Rethinking Talent: Why HR Must Build, Not Just Buy

Recruiting challenges remain a defining feature of the labor market in 2026, and for many organizations, the problem is structural. New findings from SHRM’s 2026 Talent Trends report, based on a February survey of 2,094 HR professionals, show that while hiring difficulties have eased from pandemic-era turmoil, they remain widespread, persistent, and increasingly complex.

At the same time, the research points to a critical shift in how organizations are responding. Rather than relying solely on traditional recruiting methods, leading employers are investing in internal talent development and building new pipelines through apprenticeships, internships, mentorships, and job rotation programs. The takeaway is that organizations cannot just hire their way out of talent shortages. They must fundamentally rethink how they develop and deploy talent.

“Recruiting challenges remain widespread,” said Ashley Miller, SHRM-SCP, director, operations and partnerships at SHRM. Miller and Jenny Perez, lead researcher for the survey report, presented the newly released findings at SHRM Talent 2026 in Dallas April 20.

“Irrespective of the industry, or the occupation group, 68% of HR professionals reported difficulty recruiting full-time employees, and 53% said recruiting has become more difficult compared with one year ago,” Miller said.

While that figure is much lower than the 91% reported at the height of the Great Resignation in 2022, the consistency of the challenge is notable. “Comparing this data to last year’s survey results we don’t see much change, giving the sense that talent shortages remain structurally persistent rather than cyclical,” Perez said.

The drivers of these challenges are multifaceted. HR professionals identified several primary reasons why their organizations are having difficulty recruiting for full-time regular positions, spanning challenges in supply and demand, skills mismatches, and inadequate compensation and benefits offerings. Beneath these issues lies a deeper problem: misalignment.

Event: SHRM 2026

The Talent Mismatch Problem

“Today’s recruiting problem is not just a supply issue,” Perez explained. “It is also a mismatch issue between the skills candidates have and what employers are looking for, as well as a mismatch between what candidates want and what employers are willing to provide.”

This mismatch is showing up across industries and job levels. While health care continues to face the most acute hiring challenges, driven by sustained job growth and demand for workers, other sectors such as the sciences, construction, and social services are also struggling. Even industries with relatively lower difficulty levels, such as information, finance, and real estate, still report significant hiring challenges.

Compounding the issue is the evolving nature of work itself. Over a quarter (27%) of HR professionals reported that roles they filled in the past year required skills that were not previously necessary within their organizations. Among those employers, 77% had difficulty finding qualified candidates.

“Many organizations are not only struggling to fill their open roles, they are also struggling to find workers with the skills required to perform the open roles,” Perez said.

In many cases, these new skill requirements are emerging from both newly created roles and the transformation of existing ones. Employers report modifying roles to include new competencies, particularly as technology — especially AI — reshapes job expectations. Some organizations are even creating entirely new roles, such as prompt engineers, to address emerging needs.

The Skills Gap Widens

The data underscores a growing gap between the skills employers need and those available in the labor market. HR professionals report the greatest difficulty finding candidates with systems and resource management skills, including judgment, decision-making, and complex problem-solving.

Interestingly, demand for so-called “power skills” — such as creativity and critical thinking — now exceeds demand for technical skills. This shift signals that while technology is transforming work, human-centric capabilities remain essential for organizational success.

“Together, these findings suggest that skills gaps are not merely temporary hiring challenges but may represent longer-term structural shifts in workforce capability requirements,” Miller said. “If skills needs are changing quickly, organizations have to be dynamic and prepared to meet these needs.”

Specialty Credential: Talent Acquisition

Strategy Stagnation

Despite the evolving nature of talent challenges, many organizations continue to rely on the same recruiting strategies. “We’re seeing a disconnect in strategy,” Miller noted. “The same set of recruiting strategies remain the most popular among organizations year over year, but they are not necessarily the ones driving results.”

For example, social media remains the most commonly used recruiting tool, cited by 59% of HR professionals. Yet it ranks ninth in effectiveness when it comes to actually filling roles. This gap between usage and impact highlights a broader issue: organizations are defaulting to familiar tactics rather than adapting to changing realities.

At the same time, some of the most effective approaches remain underutilized. Learning and development pathways, including internships, apprenticeships, mentorships, returnships, and job rotation programs are proving highly successful in addressing talent gaps. Among these, job rotation programs stand out, with 93% of HR professionals reporting them as effective, despite fewer than a quarter of organizations implementing them.

The growing emphasis on development-driven strategies reflects a broader shift in mindset. Rather than viewing talent acquisition as a transactional process, leading organizations are taking a more holistic approach that integrates recruiting, development, and retention.

“Career growth opportunities might seem like a focus for an organization’s existing workforce, but learning and development pathways that recruit new talent can show viability and effectiveness at addressing hiring gaps,” Miller said.

These programs not only help organizations build critical skills internally but also create more sustainable talent pipelines. Internships and apprenticeships, for example, allow employers to cultivate early-career talent, while mentorship and job rotation programs accelerate skill development and improve internal mobility.

This approach also aligns with evolving candidate expectations. As Miller emphasized, “At a high level, the talent market has become significantly more competitive, but not in the way we typically think about it. It’s not just about greater competition for fewer candidates, it’s about a growing misalignment between what candidates expect and what organizations are offering.”

Today’s candidates are evaluating employers based on a broader value proposition that extends beyond compensation to include flexibility, career development, and overall employee experience.

“The organizations winning right now are the ones actively aligning their EVP with what candidates and employees are looking for,” Miller said. “It becomes less about fixing recruiting and more about rethinking how your organization competes in the talent market overall.”

Taken together, the findings point to a clear imperative for HR and business leaders: rethink talent strategy from the ground up. The traditional model of sourcing external candidates to fill immediate gaps is no longer sufficient in a labor market defined by persistent shortages and rapid skill evolution.

Instead, organizations must adopt a more integrated approach that combines targeted recruiting with robust internal development and a compelling employee value proposition.