It’s perhaps an understatement to say that HR, talent acquisition and people management teams have faced a wealth of evolving challenges that aren’t letting up. Professionals are having to navigate global economic volatility alongside evolving candidate expectations, skills shortages, new working models, and multi-generational workforces. And few have seen talent budgets increase in line with these growing challenges.

So, while people experts are being asked to do more with less, knowledge sharing and insights into best practice are becoming increasingly valuable in the HR community. To achieve that purpose, I brought together several TA leaders to share their honest insights and best practice advice.

Here’s what they feel will be the biggest opportunities and challenges for talent acquisition and management for the rest of this year.

Fractional models of employment will be normalised

How people are employed and resources are engaged has evolved significantly to become far more flexible, nuanced and individualised than it has ever been. You’d be hard-pressed to find an HR team that hasn’t adopted contingent, contract or SOW (Statement of Work) hiring models at some point.

However, a new trend that will not only impact how HR and TA engage resources, but also operate themselves, is the emergence of fractional models. The growth of the gig economy, rise of mid-life career changes and the increase in project demands have made fractional careers more viable. People can – and now want – the ability to work across multiple roles and projects simultaneously.

In reality, it’s unlikely that this will succeed all other workforce employment or engagement models, but it will certainly change the demand from HR and talent teams. The future of work will likely be defined by blended models, with the fractional approach leading the way.

In this environment, managing workforce requirements based on output rather than presence becomes essential, and talent teams will need to regularly assess whether they not only have people with the right skills, but also the capacity and mindset to learn and adapt.

The Great Resignation 2.0 isn’t far off

There was an interesting consensus with the talent leaders involved in our study into the future of TA, namely that there will undoubtedly be another Great Resignation. Talent trends are cyclical, though the cycle has become faster-paced and the impacts more acutely felt. As such, we are likely to reach a tipping point where a return to stability economically will drive another mass movement of skills in the workforce.

While the last Great Resignation certainly presented a significant challenge for talent acquisition and management teams, the impact of the economic uncertainty noted over the last few years has created a new challenge that will likely mean that a mass movement of talent will be welcomed by some. Yes, staff retention is a target, to a degree at least. However, every business needs a healthy level of talent turnover to keep new ideas, fresh perspectives and positive energy flowing into the company.

With the uncertainty that we’ve experienced now for a prolonged period, there has been an increase in people remaining in roles longer than they would in more optimistic markets . This creates a risk of workforce stagnation, which no business wants, but it does mean that for many HR teams, another Great Resignation may be welcome news. However, given that the function is already understaffed and overworked, it will put more demands on HR and TA recruitment as well.

As HR teams seek more flexible talent acquisition models, we’re likely to see a rise in the aforementioned fractional employment and temporary workforce solutions becoming the norm.

New demands on talent functions

The above are some of the more immediate elements that are impacting talent teams. However, there are so many other influences that are creating a need for more agility and adaptability, whether that’s the growth of AI, demand for smarter assessments to support skills-based hiring or the widening gap between education and business skills requirements. The impact that they will have on talent teams is profound.

Today’s people specialists must have more than hiring and talent management knowledge. They need to be equipped with tools to deliver truly strategic workforce planning, they have to have a nuanced understanding of how, why and when roles need to be filled, and they have to provide the evidence to support any decisions linked to this.

We will continue to see a shift away from the traditional people metrics that many in HR and talent acquisition have long relied on. Headcount numbers and retention levels are going to have less value over time, and instead, the function will be required to answer more targeted questions.

Rather than considering if the business needs more people, the focus is shifting to whether or not the company has the right skills in the right places, and ascertaining what its core goals are. It’s rarely a case of sourcing specific technical skill sets, at least not permanently. Smarter and more sustainable people decisions are necessary, and while HR and TA leaders can be upskilled and retrained to achieve this, what will deliver the best value for the function will be the ability to be bold and brave.

We’re shifting away from rigid, transactional hiring to dynamic, people-centric workforce planning. The organisations that succeed will be those that rethink their assumptions, embrace flexibility, and empower HR and talent teams to lead the way.

Tomorrow’s talent team will look different from today’s, but that’s not a negative point. In fact, it’s a strength that reflects HR’s ability to lead by example. Shaping the future of people management will require bold and brave decisions, and now is the time for the function to step up as a strategic architect of the workforce, not just a fulfiller of requirements. That to me is an opportunity not to be missed.