Shift toward a Skill-based and Flexible Recruitment Operating Model for a Wider Talent Pool and Agility

The talent acquisition space is transitioning from a job-driven operating model to a skill-based approach, enabling organizations to tap into broader talent pools and address skill gaps effectively. The growing emphasis on flexibility and scalability underscores the importance of adopting flexible recruitment models. Diversity, equity, and inclusion (DEI) initiatives foster a diverse workforce, enhance employee engagement, and drive innovation. Through tech-enabled talent acquisition, enterprises are improving candidate experience, enhancing talent quality, optimizing operational efficiency, and bolstering employer branding. Service providers are augmenting their capabilities in hiring, sourcing, skilling, and candidate experience by leveraging generative AI, advanced analytics, and workflow automation. Strategic moves such as acquisitions, vendor partnerships, and AI-driven innovation are enabling enterprises to reduce costs, build agile workforces, and achieve operational excellence in a highly competitive and evolving talent landscape.

Both demand- and supply-side trends are covered in Avasant’s Talent Acquisition Business Process Transformation 2024–2025 Market Insights™ and Talent Acquisition Business Process Transformation 2024–2025 RadarView™, respectively. These reports present a comprehensive study of talent acquisition business process transformation service providers and closely examine the market leaders, innovators, disruptors, and challengers. They also provide a view of key market trends and developments impacting the talent acquisition space.

We evaluated 50 service providers across three dimensions: practice maturity, domain ecosystem, and investments and innovation. Of the 50 providers, we recognized 19 that brought the most value to the market during the past 12 months.

The report recognizes service providers in four categories:

• Leaders: AMS, Cielo, IBM, and Korn Ferry
• Innovators: ADP, Accenture, Hays Talent Solutions, PeopleScout, Randstad Sourceright, Teleperformance, and Wilson
• Disruptors: Allegis Global Solutions, Exela Technologies, Hudson RPO, and KellyOCG
• Challengers: AgileOne, NLB Services, Pontoon Solutions, and Sevenstep

Figure 1 below from the full report illustrates these categories:

“The shift toward skill-based and flexible recruitment operating models helps employers tackle talent shortages, reduce time to hire, and address critical skill gaps,” said Avasant Partner Shabnum Grewal. “Firms are emphasizing work experience evaluations and pre-employment assessments to measure candidates’ skills during hiring.”

The reports provide a number of findings, including the following:

• Enterprises are leveraging AI/ML-driven candidate screening and matching solutions and automation technologies to provide candidates with relevant employment opportunities. These tools streamline recruitment processes, enhance talent quality, and elevate the candidate experience.
• Organizations are adopting flexible models to achieve a more adaptable and cost-effective approach to talent acquisition. These models offer greater flexibility and scalability, aligning with evolving business needs compared to traditional, long-term contracts.
• Service providers are launching innovative solutions and enhancing existing offerings through strategic partnerships. Their focus spans skill-based hiring, upskilling, employee experience, sourcing and hiring, and comprehensive workforce management.
• Talent acquisition service providers maintain global delivery capabilities, with Europe accounting for 34% of all offices and delivery centers. Providers are also expanding their delivery presence across emerging regions such as Latin America and the Middle East to better serve global clients.

“Businesses are integrating emerging technologies in hiring to boost efficiency and improve the candidate experience,” said Aditya Jain, research leader with Avasant. “They are leveraging AI/ML-powered candidate screening and matching solutions, along with recruitment automation platforms, to minimize bias and accelerate hiring timelines.”

The Talent Acquisition Business Process Transformation 2024–2025 RadarView™ features detailed profiles of 19 service providers, along with their solutions, offerings, and experience in assisting enterprises in their talent acquisition processes.

This Research Byte is a brief overview of the Talent Acquisition Business Process Transformation 2024–2025 Market Insights™ and Talent Acquisition Business Process Transformation 2024–2025 RadarView™.(Click for pricing.)