Recruitment – a candidate selection process or a complex game where flexibility and the ability to adapt to dynamic changes and modern technology matter? We answer this question below.

First Challenge

Recruiters’ nightmare – lack of qualified candidates

One of the biggest challenges companies face in the labor market is the shortage of qualified employees. Many industries, especially IT, finance, and engineering, struggle with a scarcity of specialists. As a result, companies must compete for talent, which leads to increased recruitment costs and ever-higher candidate expectations.

Second Challenge

Modern technology vs. humans in the recruitment process

Technology not only influences how work is performed but also transforms the recruitment process itself. The use of artificial intelligence, chatbots, data analytics tools, and applicant tracking systems (ATS) are just some of the tools that facilitate recruiters’ work.

On one hand, these tools increase efficiency; on the other, they may create the impression that candidates are treated more like data points than real people. Balancing automation with a personal approach to recruitment is a key challenge in today’s labor market. What works positively by speeding up the process and focusing on key skills and fit can also cause valuable candidates to be overlooked simply because their CVs don’t perfectly match the “system’s” criteria.

„The HR industry is digitalizing faster than ever. Human resource departments and recruiters now have access to increasingly advanced tools.„

Report ©EDISONDA, January 2023

Third Challenge

Benefits and attractive salaries are not enough

Candidates are becoming more demanding. A good salary is now just one of many factors that need to be met. Today’s employees expect flexibility, professional development opportunities, work-life balance, as well as inclusivity and transparency from their employers.

The recruitment process itself is evolving – no one wants to spend hours preparing application documents only to have them rejected by another ATS. Simple and fast recruitment methods, such as apps that match job offers to candidates based on a few attributes (e.g., Match Job), are gaining popularity.

Will publishing a job offer itself become a labor market challenge in the future? Will job ads have to meet easy application requirements to be noticed? In an era of technology designed to speed up and simplify everything, the answer is definitely yes!

Fourth Challenge

Finding and retaining talent

Another modern labor market challenge is the phenomenon of “transient talents.” Recruitment is just the beginning; retaining valuable employees is equally difficult. Many companies invest in strategies to increase employee engagement by offering professional development, training, and non-monetary benefits, yet turnover remains a significant issue.

Employers must also focus on organizational culture and creating a work environment where employees feel valued and motivated for long-term collaboration. Sustainable development, work flexibility, and mental health care are increasingly important aspects. This trend will continue to grow. It’s long been known that the best brand ambassador is a satisfied employee – and that remains true. However, today companies must put in much more effort to earn that satisfaction.

Fifth Challenge

Diversity and inclusion. What does it mean today?

Diversity has become a key challenge in the modern labor market. Recruiters increasingly emphasize the need to hire people from diverse backgrounds, cultures, orientations, and genders. Employers who care about inclusivity not only build a positive company image but also gain access to a wider talent pool.

On the other hand, implementing diversity policies requires an advanced approach to recruitment to ensure selection processes are fair and unbiased. This means introducing anti-discrimination and equality training and creating spaces where everyone feels fully accepted.

Sixth Challenge

Legal regulations – facilitating employment or the opposite?

The labor market continues to evolve in terms of legal regulations. Recruiters must stay updated on changes affecting employment conditions, data protection, and new remote work regulations. Understanding these laws and their impact on recruitment is essential to avoid mistakes and misunderstandings.

It’s not enough to just be aware; companies must implement regulations effectively “on their turf” and adapt them to their business goals. Sometimes this conflicts with employee needs and expectations, creating additional challenges in recruitment and employment. Nevertheless, without regulations, both sides would lose out over time. Investing energy upfront during the implementation of new procedures or solutions to tailor them to the company’s needs will ease employees’ lives and allow managers to focus on other aspects.

Summary

Recruitment in today’s labor market is not just about acquiring candidates but also about effectively managing people within the company. What influences this? Namely:

• Increasing competitiveness
• Technological changes in the employment process
• Organizational culture and new employee expectations
• Inclusivity
• Rapidly changing regulations and legal frameworks
• Mental health considerations

All these factors must be taken into account by recruiters to attract and retain valuable employees. Recruitment today is a dynamic process requiring flexibility and readiness to continuously adapt to changing market conditions.

In the future, companies that successfully balance employee needs with business goals will play a key role, creating workplaces that support both career growth and personal life. Additionally, they will keep up with simple, intuitive recruitment processes. Will labor market challenges change? Certainly. It only depends on the pace and who will keep up with them.