Recruitment Realities: Insights From Business Leaders on Hiring Challenges

In 2023, businesses faced a myriad of hiring challenges that stemmed from the evolving landscape of work. A significant hurdle is the ongoing talent shortage driven by a lack of workers available to meet the hiring demand.

As the competition for top talent continues, companies are grappling with the need to attract and retain skilled professionals. Additionally, the shift toward remote and hybrid work has introduced new complexities in assessing candidates' adaptability, communication skills, and ability to thrive in virtual environments. 

Hiring managers, recruiters, and HR professionals are bracing for more challenges ahead. They know that the process can be long and strenuous — reviewing applications, conducting interviews, performing background checks, onboarding, and other aspects — and difficulties can creep up along the way. To prepare for what lies ahead, it’s helpful to get insights into the current landscape of hiring challenges from business leaders across the country.

To help hiring managers and companies prepare to attract, hire, and retain top talent, Checkr surveyed 1,000 business leaders across America about how they feel about the current hiring landscape, what it takes to compete for top talent, key hiring strategies, the importance of background checks, and what they’re looking forward to in 2024. 

Let’s get right into the data. 

Before we dive into the detailed hiring challenges that are facing business leaders, we first wanted to reveal how many companies struggled with hiring in 2023. We asked respondents if their businesses faced hiring challenges within the past 12 months and an overwhelming 72% said yes. 

To dive deeper, we then asked respondents to share their greatest challenge during the hiring process, and the most common answer, with more than 36% of the vote, was that there are simply not enough qualified candidates. 20% of respondents said their biggest challenge was difficulty identifying the right fit for the role, and 18% cited competition with other companies as their biggest struggle. 

Companies across the US are looking for quality candidates, and many of those companies have important hiring goals to hit each year as businesses grow. With this in mind, we asked respondents to share whether or not their company met hiring goals in 2023, and nearly half (44%) said they failed to meet hiring goals, while another 22% were uncertain; only 34% said they met hiring goals in 2023. 

*Data from Checkr proprietary survey of 1,000 American business leaders

We know that failing to meet hiring goals can be a major stressor on business leaders, but what else do they worry about when it comes to hiring? When asked, respondents said that the most stressful parts of hiring are: 

• Finding and acquiring new talent (51%)
• Lack of financial resources (14%)
• Lack of training (13%)
• Struggles with compliance (12%)

Our survey results show the majority of business leaders faced hiring challenges in 2023 and the stress is building. Now let’s dive deeper into their biggest issue—competing for top talent. 

Hiring top talent can be difficult, especially if a shortage of qualified candidates exists. To learn more about the availability of qualified candidates, we asked business leaders how they would describe their search for talent. An overwhelming 63% said it’s either difficult or very difficult to find qualified candidates, or few or no qualified candidates exist. On the other hand, just 37% said it’s easy to find qualified candidates. 

When candidates are available, it’s important to capitalize and find a way to attract them to your company. With this in mind, we asked business leaders to share their best strategy for attracting talented candidates and beating their competition. When asked, here’s how respondents ranked their best strategies:

1. Offer work-from-home (WFH) or flexible work arrangements
2. Showcase clear job requirements
3. Provide clear career development opportunities
4. Offer full salary transparency 
5. Offer higher salaries 

Another important aspect to pay attention to within the labor market is how different generations are making an impact—Gen Z’s impact might be felt in a much different way than Baby Boomers and Gen Xers, and this can create unique challenges for those involved in the hiring process. 

To expand on this, we asked respondents to share more information about which generation they find it most difficult to source qualified candidates from, and the clear-cut top answer was Millennials, while Baby Boomers seem to be the easiest generation to find candidates within. 

Next, let’s dive into the detailed tactics companies are using to bring in top talent. 

Above, we learned that attracting top talent has been tough, and many companies are not finding a large enough candidate pool. They even shared with us their top strategies to get talented individuals in the door for interviews. But when it comes to finalizing a hire, what matters the most?

We asked respondents if they believe compensation is the single most important driving force in terms of hiring top talent, and a significant majority (68%) said they agree with that statement, with only 3% saying they strongly disagree. 

*Data from Checkr proprietary survey of 1,000 American business leaders

While compensation is paramount, respondents previously told us that their smartest strategy to beat the competition during the hiring process was offering WFH or flexible work arrangements. 

We dove a little deeper by asking respondents if they prefer to avoid these arrangements, but don’t think they’d be able to compete without these flexible work offers. When asked, 65% of respondents said they agree or are on the fence, showing that while flexible work arrangements are helping them attract candidates, it’s not always the most preferred strategy by the hiring company. Companies know what works and may make sacrifices to hire the most talented candidates possible. 

Next, let’s take a look at how business leaders feel about background checks and how they’re utilizing screening to make smart hiring decisions. 

Lastly, we wanted to see if companies are committing to diversity, equity, and inclusion (DEI) during the hiring process as a strategy to broaden their candidate pool and provide opportunities for all people. The answer here is yes, as nearly 77% of respondents said their commitment to DEI during the hiring process is good or excellent — a great sign from business leaders that hiring from different backgrounds and diverse candidate pools is a positively impactful business decision. 

*Data from Checkr proprietary survey of 1,000 American business leaders

Business leaders know that background checks are an important part of the hiring process and that it’s extremely important to have the tools you need to ensure you’re conducting these background checks properly and efficiently.

While background checks are a key aspect of the hiring process, one strategy that remains under scrutiny is social media screening. According to the Harvard Business Review, “70% of employers check out applicants’ profiles as part of their screening process, and 54% have rejected applicants because of what they found. However, much of what they dig up is information they are ethically discouraged or legally prohibited from taking into account when evaluating candidates–and little of it is predictive of performance.”

With this in mind, we asked business leaders if their company had rejected a candidate due to what they found when social media screening, and 42% said yes, while another 23% said they were unsure. 

When used compliantly, background checks are an important tool for making informed hiring decisions. Employers use background checks to determine if candidates are qualified for a role and may use several types of background checks to perform a comprehensive screening, including a criminal records search, driving records check, or professional license verification, among others.

The data gathered in this survey shows a clear issue at hand — hiring challenges are negatively impacting businesses' ability to meet their hiring goals. But what do business leaders expect as we move into a new calendar year? Will things improve? Will hiring issues get worse? 

When asked what they expect in terms of hiring challenges in 2024, only 19% said they expect them to worsen, 33% said they believe the challenges will remain the same, and another 45% said they expect improvement.     

Additionally, when asked if they think candidates will have leverage over employers during the hiring process going forward due to labor shortages, 68% of respondents said yes, while just 11% said no, and another 21% said they were unsure. 

Overall, business leaders expect fewer challenges in 2024 but still believe that candidates have a strong position in salary negotiations due to a labor shortage. 

In the end, hiring the right way is the best place to start to mitigate challenges. This starts with salary transparency, accurate job descriptions, conducting fair interviews, committing to diversity, equity, and inclusion, conducting proper background checks, and more.

Predicting the specific details of the labor market in 2024 is challenging, as the market is influenced by various unpredictable factors such as global economic conditions, technological advancements, geopolitical events, and societal changes. However, hiring trends and expectations can be considered based on existing patterns, including remote work, diversity and inclusion, and much more.

For more information on Check’s research or to request graphics or commentary about this study, please contact press@checkr.com. 

All data found within this report is derived from a survey by Checkr conducted online via the survey platform Pollfish. In total, 1,000 adult American business leaders were surveyed. The respondents were found via Pollfish’s age, employment, and organizational role filtering features. This survey was conducted over a three-day span in November 2023, and all respondents were asked to answer all questions as truthfully as possible and to the best of their knowledge and abilities.

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.

About the author

Sara Korolevich serves as checkr.com’s editor and content manager. In this role, she produces educational resources for employers on a broad range of screening topics, including background check compliance and best practices. She also writes about Checkr’s company and product news to keep customers updated and informed.