Winning the Talent Race: Overcoming Top Hiring Challenges in 2026

Finding qualified candidates remains the biggest hiring challenge in 2026, with over 60% of organizations struggling to attract the right talent. 

At Sprout’s NextGen HR Summit: Redefining HR Leadership, Strategy, and Skills for the Workforce of Tomorrow event, industry leaders gathered for the panel discussion Winning the Talent Race: Overcoming Top Hiring Challenges in 2026 to explore key workforce trends and hiring strategies.

Moderated by Ms. Maria Lourdes Ann Cruz, Vice President of Human Resources at Lufthansa Technik Philippines, the discussion delved into hiring challenges, balancing artificial intelligence (AI) and human touch in recruitment, and key strategies for improving talent acquisition and retention. 

Panelists Mr. Patrick Dimayuga, Talent Acquisition and Employer Branding Lead at Cargill—Mr. Ken Bajar, Vice President for HR Strategy and Organizational Development at SM Retail—and Ms. Gissell Katrina Valeza, Assistant Vice President and Head of Talent Acquisition at Sun Life Grepa Financial—shared actionable insights and strategies on winning top talent in today’s competitive job market. Let’s dive in!

A live poll conducted during the panel revealed that finding qualified talent remains the top hiring challenge in 2026. This aligns with the insights from Sprout’s latest Talent Management Strategy Forum, which reveals that 63.3% of organizations struggle with finding candidates who meet their skill and experience requirements.

Candidate ghosting—where job seekers suddenly stop responding during the hiring process—also continues to frustrate recruiters. AI bias is also a concern, as many companies try to effectively integrate AI with their recruitment strategies without losing the human connection. 

To address candidate ghosting, the panelists shared the following strategies:

• Implement proactive communication. Mr. Bajar shared that preventing candidate ghosting requires different approaches for managerial and rank-and-file roles. Managers rarely disengage from the hiring process due to their professional reputations, while entry-level candidates are more likely to stop responding. To address this in their company, Mr. Bajar’s team combined automated and direct communication. AI-driven recruitment tools sent timely reminders via text, while recruiters followed up with personalized messages and calls.
• Elevate the candidate experience. Ms. Valeza stressed that a positive hiring experience is key to keeping candidates engaged. The team analyzed recruitment funnel data, lead conversion rates, and candidate journey touchpoints to identify gaps in the hiring process and optimize each stage. Also, they implemented strategies such as enhancing their career site, implementing an applicant tracking system, and offering an employee referral program. 
• Optimize preboarding: According to Mr. Dimayuga, preboarding is the most critical phase in the hiring process as many candidates disengage between accepting a job offer and their first day. He suggested that companies should strengthen communication and engagement during this phase to keep candidates engaged. 
• Collaborating with hiring managers. The panelists also emphasize the importance of working closely with hiring managers throughout the recruitment process. Regular email follow-ups and providing clear guidelines to hiring managers about the job requirements are essential. 

Another key concern discussed during the event was integrating AI and automation without losing the human touch in recruitment. Panelists emphasized that AI should enhance and not replace human work in the hiring process. The panelists shared the following best practices:

• Combine AI insights with human judgment. AI can efficiently filter applications based on qualifications and experience, but recruiters should validate AI data to avoid any hiring biases. That said, companies can leverage AI for initial screening, but recruiters should still be heavily involved in the evaluation process, especially when gauging soft skills. 
• Customize candidate communication. Instead of generic automated messages, recruiters should personalize job descriptions and emails to create a more engaging experience.
• Seek feedback on AI tools. Before rolling out new AI-driven hiring solutions, organizations should gather feedback from both candidates and hiring teams to ensure a smooth process.

During the discussion, the panelists shared some actionable strategies  in keeping employees engaged and motivated.

• Hire for skills, not just degrees. One key takeaway from the discussion is adopting skills-based hiring. Instead of focusing solely on academic background or previous job titles, companies should focus on the skills of the candidate. For instance, Ken shared that when their team is hiring, if a candidate isn’t a fit for one role, they explore other positions where the person’s skills align better.
• Strengthen employer branding. Ms. Valeza emphasized that a strong employer brand plays a crucial role in attracting and retaining talent, so companies should actively invest in authentic storytelling. She also highlighted the importance of creating a positive work experience for employees so they would become the best advocates for their company.
• Investing in employee growth and well-being. The panelists shared the importance of upskilling, reskilling, and promoting a culture that supports the overall well-being of their employees.
• Embrace AI. The panelists stressed that AI are not an enemy but are a useful tool for improving the hiring process. In fact, our State of AI Report, says that 60% of employees see AI as a coworker rather than a job threat.

During the Q&A session, the panel addressed the challenge of retaining Gen Z and the emerging Gen Alpha workforce. Here are some key insights shared:

Based on her experience, Ms. Cruz realized that despite generational differences, employees across all age groups want the same things, such as fair compensation, meaningful work and career growth opportunities, and to feel included, valued, and respected. That said, she suggested that companies should focus on building their culture, employee experience, and employer branding.

According to Mr. Dimayuga, multi-generational workshops can promote collaboration between generations and help employers understand different work styles and expectations. HR leaders should encourage open discussions where employees can talk about what they like and find challenging about different approaches. 

Additionally, Mr. Bajara shared the importance of removing generational biases. According to him, companies should promote an inclusive workplace where everyone is valued for their skills and what they bring to the table despite their age.

• Prioritize the candidate experience. Make sure that every touchpoint, from job application to onboarding, impacts hiring success.
• Use AI to streamline and not replace human work. AI and automation can improve efficiency, but human interaction remains essential.
• Strengthen employer branding. Building and maintaining a strong reputation attracts top talent and improves retention.
• Focus on skills-based hiring. Evaluate candidates based on their skills and strengths and the value they can bring to your organization, 
• Invest in employee growth and well-being. Building a culture that supports continuous learning and work-life balance promotes loyalty in employees.
• Embrace a multi-generational workforce. Understanding the needs and working styles of Gen Z, Millennials, and older employees to build a more cohesive workplace.

Ready to elevate your hiring and employee engagement strategies? Sprout’s AI-powered Talent solutions help you attract top candidates faster, while tools like Sprout Pulse and Sprout Wellness empower you to build a more engaged, resilient workforce.

Let’s transform your talent game! Book a free consultation today and discover how Sprout can help you hire smarter and retain better.