The CIPD Resourcing and talent planning report 2024, supported by Omni

The competitive landscape for talent acquisition has grown increasingly complex, with employers facing multifaceted challenges in attracting and retaining skilled employees whilst futureproofing their organisations. The CIPD Resourcing and talent planning report 2024, supported by  Omni RMS, highlights key trends and obstacles in the talent market, offering valuable insights into how organisations can adapt and thrive in this environment. We’ve summarised the Report’s findings here with a focus on the major challenges and suggested strategies to mitigate. 

According to the Report’s findings, the demand for qualified talent continues to intensify, with 69% of responding organisations reporting increased competition over the past year. This is particularly acute in senior and skilled roles, especially in the public sector. Compounded by recent changes to migration rules, the talent pool is becoming more restricted. According to Behavioural Economist, Roger Martin-Fagg, as home-grown labour will barely increase, and with no net migration increases, the labour supply will deteriorate significantly in the next ten years which means that it’s imperative organisation’s plan for this short supply of talent now.     

With external recruitment proving difficult, more organisations are focusing on developing talent internally, according to the report. Creating effective training programmes and career pathways remains a challenge. Skills-based hiring and upskilling are key interventions that employers will have to make part of their strategies in order to futureproof their organisations and the report has revealed that organisations are making strides with 56% reporting that they are focusing on in-house talent development. 

Of the organisations who attempted to recruit over the 12 months and found it difficult, 41% reported that they looked to improving pay and benefits packages to attract talent. Among organisations that engaged in recruitment efforts, 27% encountered difficulties with counteroffers or candidates withdrawing after initially accepting offers. The incidence of candidates renegotiating offer terms either always or frequently rose to 20%, up from 15% in the previous year. Interestingly, this increase occurred despite 61% of organisations reporting that candidates generally had realistic salary expectations.  

While there has been progress in recruiting diverse candidates, challenges persist, particularly in hiring diverse talent at senior levels. Shifting the dial on EDI has had Board level attention now for many years, whilst there have been small improvements, organisations are finding it challenging to find and retain diverse talent. Employers are having to look for candidates in “hard to reach” places and really get creative with how they attract diverse candidates. This approach not only broadens the talent pool but also brings diverse perspectives and new ways of thinking into an organisation. A proactive stance on EDI and a commitment to creating an inclusive workplace resonates with employee values and creates a sense of security, so comes with the additional benefit of retention if done well.