A new study by The HR Research Institute (HRRI), the research arm of HR.com, reveals critical gaps in organizational talent acquisition processes despite widespread recognition of their strategic importance. The research, conducted in partnership with Accurate, the world's largest independent provider of compliant background screening and monitoring solutions, 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of HR professionals identify talent acquisition as a top five organizational priority, yet more than half struggle with outdated or insufficient processes.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 study, Hiring Trends and Strategies 2026: Future-Proof Your Talent Acquisition Process, indicates that 58% of organizations have "subpar" recruitment functions categorized as nonexistent, chaotic, or basic/reactive. These deficiencies carry substantial financial consequences, with a single bad hire costing approximately 30% of that employee's annual earnings. The impact of these "regrettable hires" is significant, as 43% of HR professionals report 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 research highlights progress, with the percentage of organizations reporting "advanced" or "world-class" hiring processes more than doubling since 2021.
Persistent challenges 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 substantial transformation, potentially creating 170 million new jobs while displacing 92 million, with fastest-growing roles emerging in technical sectors like big data, fintech, and AI.
Organizations are increasingly turning to artificial intelligence, with adoption in recruitment nearly tripling from 5% in 2023 to 14% in 2025. 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 highlights industry-specific challenges, with 61% of nurses and 55% of retail employees reporting anxiety, depression, or burnout, contributing to high turnover. The study recommends prioritizing well-being resources and structured onboarding to improve retention. Compliance remains another 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" and "Fair Chance" regulations to mitigate legal exposure. For more research insights, visit HR.com's HR Research Institute.
