Insights

Why you need to look beyond the traditional pool in hiring the right talent

To overcome these obstacles, companies must shift toward innovative talent acquisition strategies, such as skills-based hiring, upskilling, reskilling and tapping into hidden talent pools.

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While the digital age surges forward, many companies remain tethered to outdated hiring practices, missing out on the vast potential of untapped talent pools. Utilizing traditional hiring methods—like relying solely on resumes or standard qualifications—are no longer sufficient. Companies find that these outdated approaches limit their ability to fill roles efficiently, leaving critical skill gaps unmet. This leads to prolonged vacancies, rising recruitment costs, and persistent talent shortages—obstacles that prevent businesses from achieving their full potential.

The urgency of this issue is underscored by the World Economic Forum's report which predicts that 44% of workers' skills will be disrupted in the next five years, and six in 10 employees will require reskilling by 2027 due to rapid changes in technology, market demands, and new ways of working. Highlighting the growing mismatch between the skills businesses need and those available in the workforce. ManpowerGroup's latest Talent Shortage survey also found that 75% of employers struggle to fill open roles, demonstrating the widespread nature of talent acquisition challenges. Meanwhile, Fiverr Pro and Lightcast analysts estimate that unfilled positions cost the global economy over $1 trillion monthly.

To overcome these obstacles, companies must shift toward innovative talent acquisition strategies, such as skills-based hiring, upskilling, reskilling and tapping into hidden talent pools.. By placing specialized skills at the forefront of talent strategy, these forward-thinking approaches reduce recruitment costs and bridge the widening skills gap, enabling businesses to secure the talent for future success.

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The value of hidden talent: unlocking untapped potential for business success

Shifting the traditional talent acquisition paradigm is essential in today's evolving job market. To attract the right talent, businesses must move beyond conventional recruitment methods and creatively source for skills rather than just considering job experience. Embracing innovative talent acquisition strategies, such as:

Skills-based hiring - Evaluating candidates' abilities and competencies rather than traditional qualifications, allowing employers to identify potential talent that might be overlooked in a credential-based approach.
Career switchers - Professionals transitioning from different industries, bringing unique skills, fresh perspectives, and adaptability to meet specific role requirements.
Underrepresented communities - Individuals from diverse backgrounds, often marginalized in hiring, to enrich organizational culture and drive innovative thinking.
Upskilling - Existing employees with training to deepen their expertise, helping them advance to higher roles and adapt to advanced technologies and industry advancements.
Reskilling - Employees with new skills transition into different roles within the organization, addressing skill gaps and enhancing workforce flexibility.

These talent pools offer valuable opportunities, as candidates with the right attitude, adaptability, and problem-solving skills can make significant contributions, even without traditional qualifications. By identifying and nurturing this talent, businesses can build a more diverse and resilient workforce, helping to overcome talent shortages and strengthening the organization. Adopting these nontraditional talent acquisition practices is key to bridging the skills gap and ensuring long-term success.

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Advantages of nontraditional talent

Hiring beyond traditional talent pools provides strategic advantages that significantly enhance organizational performance. By tapping into diverse backgrounds, companies access unique skills and perspectives that drive innovation and foster inclusivity. This approach addresses talent shortages and positions businesses to thrive in a competitive landscape.

Diverse skill sets and perspectives: Candidates from non-traditional backgrounds bring fresh insights that foster innovation and workforce diversity.
- This isn't just theory—a McKinsey report shows that companies with greater gender and ethnic diversity are 36%more likely to outperform their competitors in profitability.
Enhanced problem-solving and adaptability: Candidates from nontraditional backgrounds often excel in problem-solving and adaptability, allowing organizations to respond more effectively to new challenges and remain agile.
- Research from Boston Consulting Group shows that companies with above-average diversity in their management teams reported 19% higher innovation revenue than those with below-average diversity. Additionally, LinkedIn found that diverse teams make better decisions
Lower recruitment costs, improved retention, and faster hiring: These unique approachs to talent allow companies to access a broader range of candidates, reducing hiring costs and accelerating the recruitment process, providing a competitive edge.
- TestGorilla reports that 91% of employers using skills-based hiring see improved retention, 81% experience reduced time-to-hire and 78% achieve lower overall hiring costs.
Appeal of training and flexibility: Job seekers are increasingly attracted to opportunities that offer training and flexibility.
- A PwC study shows that workers are willing to trade an average of 11.7% of their salary for these benefits, and this figure rises to 12.4% in high-demand sectors like technology.
Investing in talent development: Programs like apprenticeships and skills-based hiring allow businesses to transform raw talent into specialized resources, fostering long-term growth while reducing dependence on external hires.
- A study by OneTen revealed that 77% of recruiters struggle to find qualified candidates, yet companies adopting a skills-first hiring approach are twice as likely to find the right talent.
Bridging the skills gap: Hiring from nontraditional talent pools allows companies to create tailored solutions that align with their evolving needs.
- 89% of surveyed executives and HR leaders plan to transition toward a skills-based organization, with (90%) already experimenting with skills-based approaches.
Increased employee engagement and loyalty: Nontraditional hires often bring a sense of gratitude and commitment, having overcome significant barriers to entering the workforce.
- Research shows that inclusive workplaces see a 40% increase in employee engagement and a 41% boost in staff well-being, both of which directly enhance productivity and retention.
Positive employer branding: Companies seeking out and nurturing nontraditional talent often build a reputation for being inclusive and forward-thinking.
- This boosts employer branding, making the organization more attractive to both job seekers and customers, as studies show that 76% of job seekers consider diversity a key factor when evaluating job opportunities.

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Transforming your workforce with UST Step IT UP

At UST, we understand the challenge to find, train, and retain talent that is an ideal fit for a business. UST Step IT Up is a global talent development program designed to help organizations bridge the IT skills gap by finding and nurturing hidden talent. By leveraging diverse, underrepresented talent pools, businesses can gain new perspectives, enhance creativity, and build a workforce ready for future challenges. Our program fosters long-term employee loyalty, reducing turnover and lowering associated costs. With this innovative approach helps businesses overcome talent shortages while fostering workforce diversity and inclusion.

For deeper insights into hiring the right talent using these innovative talent acquisition strategies, download our eBook and discover how nontraditional approaches can transform your talent pipeline.