The discussion about the labor market is based on a flawed premise. We talk about shortages, scarcity, and competition for talent. But anyone who looks at this issue from the perspective of management and executive leadership sees something different.
This isn’t a capacity issue. This is a management issue.
What is becoming apparent today is a structural contradiction in how organizations manage talent. Positions that attract a great deal of attention and interest are either being eliminated due to automation or are being kept open intentionally for strategic reasons. At the same time, organizations are failing to fill key roles that have a direct impact on business continuity, growth, and execution capabilities.
Not because there is a lack of talent—but because the right talent isn’t being reached.
Lots of activity, little progress
Anyone who posts a job opening will recognize the pattern immediately. Hundreds of applications, rapid screening, shortlists that look logical on paper but rarely lead to long-term hires in practice.
At the same time, we know that most of the key positions are filled outside of this process—through internal promotions, referrals, and informal networks in which trust and context are decisive factors.
That’s not a flaw in the system. That’s human behavior.
Decisions regarding key roles are not made based on optimization, but on risk mitigation. Executives seek certainty, support, and validation. Not necessarily the most sophisticated profile, but the right person at the right time.
The job market is bustling. Decision-making is calm and measured.
Why Optimization Doesn’t Work Anymore
Many organizations respond by further refining their processes: faster screening, more employer branding, and broader reach. But optimization within the wrong framework mainly widens the gap between where they are and what they’re trying to achieve.
Applicant Tracking Systems are designed for efficiency, not for differentiation. AI speeds up high-volume processing but does not provide direction. Visibility without positioning remains just noise.
The key question is rarely asked: Why would this professional strategically choose our organization—especially now?
That’s not an HR issue. That’s a management issue.
What Actually Creates Momentum in Practice
Successful hires rarely start with a job posting. They start with strategic direction—with clear decisions about which roles are truly strategic and which are not.
In practice, we see that sustainable change occurs when organizations:
- make explicit the impact a role is expected to achieve,
- understand what type of professional is best suited for this,
- and build relationships before entering the market.
Fewer transactions. More direction. Less rush. More control.
The Role of the Trusted Advisor
This development also calls for a different role for executive search. Not as the executor of a process, but as a strategic counterbalance. Not only when a position becomes available, but before that.
A trusted advisor helps the board and executive management slow down when the market is accelerating. Helps make decisions when others are still searching for answers. And asks questions that aren’t in the briefing but belong in the boardroom.
That’s no longer a luxury. It has become a prerequisite.
Conclusion
The labor market isn’t stalling because of a lack of talent. It’s stalling because of a lack of leadership.
Those who continue to optimize within the same system will continue to compete amid the noise. Those who dare to differentiate themselves will gain access to the right talent.
The question for the board and executive management is therefore not: How can we fill this position as quickly as possible?
But: Which role requires administrative attention, and who will take responsibility for it in a timely manner?
At Fornell Human Capital, we work with organizations that want to have this conversation before a job opening arises.
Not louder. Not faster. But sharper. And sooner.