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The Talent Gap: Redefining hiring for a new era

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The Talent Gap: Redefining hiring for a new era

If the tech gap is about adoption, the talent gap is about attraction and retention. Companies are not just trying to train people on AI. They are competing to attract and keep the people who already have the skills. Some arrive with the right skills on day one. Others grow with the right support. But today’s workforce is shifting. In some fields, talent is plentiful. In others, especially in emerging tech or industries facing mass retirements, the competition for talent has become a growing challenge.

Talent shortages in critical skill areas put significant pressure on organizations. Employers struggle to find workers with the technical skills to meet modern demands. They also worry about losing the deep institutional knowledge of baby boomers.

The race is on for tech-savvy talent.

The demand for AI fluency, data science and tech proficiency is only growing, but many organizations say the workforce is not keeping up.

Nearly half (46%) of business professional and industrial executives say they struggle to find talent with technical and operational skills in AI. Yet only 18% of workers say there is a demand for these skills. That mismatch reveals a perception problem. Employers see shortages in specific skills, but many job seekers are not aware of the need. If unresolved, the gap could stall progress as emerging tech becomes central to everyday operations.

In STEM fields, both executives and workers acknowledge gaps in high-demand skills. Compared to other areas, relatively few point to scientific writing (21% of executives and 20% of workers) or statistics (20% and 27%). But when it comes to emerging technologies and soft skills, like adaptability and leadership, both sides see room for improvement.

See how Kelly sourced 11 specialized scientists in six weeks for a high-impact project.

Skills STEM workers and executives say are lacking:

Top skills business professional and industrial executives struggle to find:

Boomers are retiring and successors are not ready.

The workforce is aging fast. As boomers retire, they take decades of knowledge with them. Few leaders feel ready for what’s next.

Nine in ten (92%) global executives say they are concerned about the impact of retirement on labor shortages, and four in ten (39%) say they are very or extremely worried. Workers feel it, too. Eighty-one percent of global workers say they are concerned their employers will not be able to replace retiring boomers, and more than a quarter (28%) say they are very or extremely worried.

Some sectors are more confident than others. Two-thirds (67%) of business professional and industrial executives say their organizations are moderately or very prepared to keep organizations running as boomers retire, but just 55% of workers in those same industries agree. That divide highlights the risk of losing valuable knowledge if it isn’t shared with others.

STEM leaders are bracing for the shift, too. Nearly a quarter
(24%) say their organizations plan to grow headcount over the next five years to get ahead of retirements. But without sharing expertise, added headcount alone will not close the gap.

49%

Tech proficiency

46%

AI operational skills

Skills expected to rise in demand:

Executives turn to outsourcing to close the skills gap.

A skills-first mindset is reshaping how organizations hire. Employers are looking beyond degrees and résumés to focus on real-world capabilities. Nearly two-thirds (65%) of global executives say their organizations are shifting from degree requirements to skills-based hiring. This approach also opens doors for veterans, career switchers, and mid-career professionals who bring proven experience but may not fit traditional résumé filters.

Outsourcing is also a way to bring in critical skills. Nearly nine in ten (89%) business professional and industrial executives say their organizations are outsourcing or considering it. They see outsourcing as a way to expand capacity, fill critical roles and stay competitive while freeing operations leaders to focus on core work.

For business professional and industrial organizations, outsourcing has become a strategic tool.

Executives give four main reasons:

40%

Attracting or hiring talent

37%

Supplementing the existing workforce

34%

Expanding administrative capacity

30%

Lowering overhead or operational costs

See how a global logistics leader used outsourcing to double workforce capacity & exceed 97% of its performance goals.

Key Takeaways: How to win the race for skills and talent.

Plan ahead for retirements: Boomers are leaving fast. Mentorship, succession planning, and passing down experience are essential to capture expertise before it’s gone.
Hire for skills, not résumés: Skills-first strategies broaden access to veterans, career switchers, and mid-career talent with proven leadership.
> Read how organizations are fixing their hiring struggles.
Connect learning to advancement: Ensure training leads directly to future roles and growth opportunities, so employees see the payoff.
Use outsourcing strategically: Expand capacity, fill gaps, and keep teams focused on high-value work.
> Read how to choose the right BPO partner for growth.