More than half of business leaders, 53%, plan to hire extensively this year, according to Randstad Sourceright’s 2022 Talent Trends Report released today. In addition, these professionals are also thinking outside the box to fill roles. Eighty percent said that seeking talent beyond immediate geographical barriers was a useful lever to pull, while 71% plan to shift more roles to contingent, project or contract to get work done — the highest percentage in the report’s history, and a 15-point increase from last year. One in four, 25%, report they already converted more permanent positions to temporary or freelance roles last year.

The report also found 84% of business leaders are more focused on talent experience than ever before, showing that power has shifted toward employees, amid the Great Resignation. Flexibility is one area that has grown in importance as 86% see policies, such as flex schedules and remote working, as an effective way to attract and engage talent. One-quarter of business leaders also said that talent scarcity has negatively affected their bottom line.

“It’s clear that businesses need to get creative with their recruitment strategies. Human capital leaders have spent much of the last two years dealing with operational emergencies rather than long-term strategic planning, which has led to an emphasis on savings rather than value creation,” said Mike Smith, CEO of Randstad Sourceright. “Candidate and employee expectations are dominating the CEO agendas. Those who lean in and support their HR leaders and put the needs of their people first as they recharge, refresh and renew their talent strategies will be winners in 2022.”

Additional highlights from the report:

• While one in four human capital leaders say talent scarcity is a major pain point, more than half (53%) are still planning to hire extensively this year.  
• 86% confirm diversity, equity and inclusion are embedded in their talent strategies and integral to everything they do, but when it comes to practice vs. theory, just 43% say their hiring practices supported their diversity goals in 2021.
• 75% believe reskilling is an effective way to combat scarcity, but only 29% say that they are investing in this area.
• One in four business leaders, 25%, report they experienced a reduction in profitability as a direct result of talent scarcity. The same amount had to reduce the level of service they provide to customers.

Randstad Sourceright’s 2022 Talent Trends research includes the views of more than 900 human capital and C-suite leaders in 18 markets.