A new analysis by The HR Research Institute (HRRI), the research arm of HR.com, reveals significant challenges in talent acquisition despite its high organizational priority. The study, Hiring Trends and Strategies 2026: Future-Proof Your Talent Acquisition Process, conducted in partnership with Accurate, found that 77% of HR professionals identify talent acquisition as a top five organizational priority, yet more than half struggle with outdated or insufficient processes.
The research indicates that 58% of organizations have "subpar" recruitment functions, categorized as nonexistent, chaotic, or basic/reactive. These deficiencies carry substantial financial consequences, as a single bad hire can cost an organization approximately 30% of that employee's annual earnings. The impact is widespread, with 43% of HR professionals reporting they would rehire fewer than half of the candidates they brought on last year.
"We're seeing more organizations recognize talent acquisition as a strategic priority," said Tim Dowd, CEO of Accurate. "But this research shows that real impact only happens when that priority is backed by a company-wide commitment — and many organizations still have work to do to get there."
Despite these challenges, the study highlights progress in talent acquisition maturity. The percentage of organizations reporting "advanced" or "world-class" hiring processes has more than doubled since 2021. However, persistent obstacles include a scarcity of candidates with required skills, reactive hiring approaches, compensation below market rates, and insufficient workforce planning.
Looking toward 2030, the labor market is projected to undergo significant transformation, potentially creating 170 million new jobs while displacing 92 million. The fastest-growing roles are expected in technical sectors, led by big data specialists, fintech engineers, and AI and machine learning specialists.
Organizations are increasingly adopting artificial intelligence in recruitment, with usage nearly tripling from 5% in 2023 to 14% in 2025. Currently, AI is primarily used for content creation, including writing job descriptions (65%) and creating interview questions (67%). However, HR leaders express concerns about system bias, depersonalization of candidate experience, and potential legal risks.
"The rapid evolution of technology and labor trends means that TA can no longer be a reactive function," said Debbie McGrath, Chief Instigator and CEO of HR.com. "This research underscores that when HR professionals prioritize performance-linked metrics and embrace strategic technology like AI and advanced analytics, they can dramatically improve both hiring quality and organizational resilience."
The report also addresses industry-specific challenges, noting high turnover in sectors facing severe burnout. In healthcare, 61% of nurses report anxiety, depression, or burnout, while 55% of retail employees report similar struggles. The study recommends prioritizing well-being resources and structured onboarding to improve retention.
Compliance remains a significant risk area, with only one-third of organizations taking a proactive approach to employment law and 34% facing enforcement actions in the past year. Employers must navigate increasingly complex "Clean Slate" laws and "Fair Chance" regulations to mitigate legal exposure. For additional research insights, visit hr.com/hrresearchinstitute.
