Recruitment is Broken: What Are Businesses Doing to Fix It?

Recruitment has reached a breaking point. Businesses are grappling with two colossal shifts: a rapidly aging workforce and the rise of generative AI. Over the next two decades, the working-age population in Western economies is set to shrink by 25%, while the talent lakes companies rely on are drying up. At the same time, AI has revolutionized how candidates apply for jobs, creating a flood of applications but often leaving hiring managers overwhelmed.

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If recruitment is broken, how can it be fixed? Let’s explore how businesses are tackling these challenges with innovative solutions.

1. The Talent Shortage Crisis: A Perfect Storm

The workforce landscape is shifting dramatically:

• An Aging Population: By 2030, 50% of the UK workforce will be over 50, while younger talent pools continue to shrink.
• Generative AI’s Impact: While AI has made applying for jobs easier, the actual availability of high-quality talent remains scarce.

Industries like law and accountancy illustrate the problem. American firms are luring top talent with salaries double those offered by UK firms, creating an arms race for skilled professionals. Other sectors face a similar crunch, with many roles left unfilled due to a lack of suitable candidates.

2. Tapping Into the Overlooked Workforce

One promising solution lies in leveraging older talent. Lindsay Simpson, CEO of 55 Redefined, highlights how extending careers for people over 50 can address skills gaps and reduce reliance on shrinking youth demographics. By 2030, 50% of the UK workforce will be aged 50 or older. This shift demands a fresh perspective on recruitment strategies, encouraging businesses to:

• Embrace flexible roles to attract experienced professionals.
• Create pathways to upskill older employees, keeping their expertise relevant.

Ignoring this demographic could mean missing out on an invaluable pool of knowledge and skills.

3. The Role of AI: Friend or Foe?

Generative AI has transformed the job application process, enabling candidates to create tailored resumes and cover letters in minutes. According to recent data, 45% of applicants now use AI to enhance their CVs. However, this ease has created new challenges:

• Overwhelming Volume: Hiring managers face a "sea of sameness," where applications look perfect but fail to reveal true capabilities.
• AI-Driven Sifting: Companies like Siemens have adapted by using AI-powered psychometric assessments to identify candidates based on aptitude and behavior rather than just qualifications.

This shift ensures that candidates are judged on their potential and fit, rather than their ability to craft polished resumes.

4. Task-Based Hiring: Moving Beyond the CV

Traditional CVs are quickly losing relevance in today’s hiring landscape. Tools like Arctic Shores offer task-based assessments that measure:

• How candidates think and adapt.
• Their ability to solve real-world challenges.

For example, Siemens now recruits for certain roles based on behavioral fit and aptitude, broadening its talent pool and ensuring better alignment with organizational needs. This method levels the playing field, giving candidates from non-traditional backgrounds a fair chance to succeed.

5. Internal Mobility: Unlocking Hidden Talent

Another innovative approach is internal mobility. Companies like Novartis use AI platforms such as Talent Match to pair employees with roles across the organization based on their skills and interests. The benefits are clear:

• Enhanced employee engagement by providing clear career progression pathways.
• Significant cost savings—Novartis reported over $15 million in productivity gains by redeploying internal talent.

By investing in internal mobility, businesses can retain top talent and fill critical roles without turning to external recruitment.

6. Keeping the Human Touch

While AI and automation play a critical role in fixing recruitment, they can’t replace human intuition. Hiring is still about people, and businesses must balance technology with empathy to:

• Build diverse teams that thrive on collaboration.
• Foster trust with candidates through transparent and engaging processes.

Recruitment is as much about relationships as it is about results, and the human touch remains indispensable.

Conclusion

The recruitment crisis is a wake-up call for businesses. By leveraging AI, tapping into overlooked talent pools, and rethinking traditional hiring practices, organizations can adapt to the evolving workforce landscape. The future of recruitment lies in balancing innovation with humanity, ensuring that every hire contributes to long-term success.

The time to act is now. As businesses navigate these challenges, they must remember: the key to fixing recruitment isn’t just smarter tools—it’s smarter strategies.

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