Flip the script: winning the talent war in an AI-driven era

Ask any CEO in a mature market what keeps them up at night. Artificial intelligence may dominate the headlines, but their answer is often about people: “We just can’t find the talent we need.” This isn’t a short-term blip – it’s a long-term, structural shift. In country after country, aging demographics are shrinking the workforce. The OECD projects working-age populations will shrink by up to 30% in many developed nations over the coming decades. In other words, the talent pipeline is drying up. One major study even predicts a global shortfall of over 85 million skilled workers by 2030. Paradoxically, for all the talk of AI taking jobs, the bigger threat to business is not enough humans to fill them. Even the smartest AI system still needs smart people to build it, train it, and manage its outcomes. If anything, top human talent is more critical than ever – and scarcer. So how should employers respond?

Flip the Recruitment Script

In this new reality, companies must reverse the traditional recruitment process. The old approach – posting a vacancy and waiting for applicants – won’t cut it when great people are in short supply. Proactive talent scouting is the new name of the game. Instead of hoping high-potential candidates come to you, go out and find them. Scan your industry (and beyond) for rising stars and proven value-creators, then make the first move. This might feel more like business development than HR – and that’s exactly the mindset shift needed. The best people, especially those who can drive innovation and harness new tools like AI, are likely already employed or inundated with offers. They won’t be knocking on your door; you have to knock on theirs. Equip your recruitment team (and senior leaders) to continually map the talent market and build relationships long before a job opening exists. In an age of LinkedIn and intelligent recruiting software, there’s no excuse not to know who the high performers are. The companies that embrace this inverted approach – treating talent acquisition as an active search rather than a passive filter – will have a huge advantage in securing the people who truly move the needle.

Pay More (and Lose Less)

Another mindset shift for leadership teams: drop the old idea of hiring the best talent as cheaply as possible. In today’s market, underpaying is simply a mistake. We know from both research and experience that compensation is a hygiene factor – money alone won’t inspire someone to greatness, but being paid unfairly will definitely drive them away. If an employee realizes they’re underpaid, it becomes a powerful source of demotivation. Frustration builds, engagement drops, and the exit door starts looking awfully tempting. In contrast, companies that pay fairly and even slightly above market rates often see outsized returns in loyalty and performance. Why? Because competitive pay sends a clear message that you value your people, and it takes money off the table as a daily worry. Analysts note that businesses keeping salaries at or above market rate improve their ability to attract and retain top talent. It’s a relatively modest investment for a potentially huge payoff in stability and commitment.

Consider two real examples. First: a mid-sized firm that insisted on “lean” compensation to save costs. Sure enough, in a hot market their most valuable people – the handful who truly drove value – were the first to be poached. By trying to hold salaries to a minimum, they created a breeding ground for regret: the very talent they couldn’t afford to lose walked straight to competitors offering what they were worth. Now contrast that with a medical-tech company I know. This company chose to pay slightly above market for critical roles and made it a policy to review pay regularly. The result? They rarely experience regretted losses. Their best people stick around, and when a top-tier candidate is on the market, this company finds it easier to win them over. The small extra percentage in payroll is negligible compared to the cost of vacancies, turnover, and subpar execution. The lesson is simple: pay to prevent pain. Make compensation a non-issue by meeting or modestly exceeding market standards, so that your team’s focus stays on creating value, not updating their résumés.

Hire for Attitude – Especially Toward AI

Recruitment and retention aren’t just about filling current skill gaps; they’re about future-proofing your organization. As you scan for talent, assess not only what candidates can do today, but how they learn and adapt – particularly when it comes to new technologies. In the age of agentic AI (AI systems with increasing autonomy and decision-making capability), the most valuable employees will be those who embrace these tools as amplifiers for their own productivity. You’ll want people who are curious about AI, eager to experiment with it, and open to reinventing their workflows to take advantage of it. Conversely, a candidate (or existing team member) who is rigidly set in their ways – someone who says “this is how I’ve always done it” – could become a liability as the industry evolves. When interviewing or promoting, probe for that AI-ready attitude. Does this person see technology as a threat, or as an opportunity? Are they actively learning new digital skills? A growth mindset and openness to innovation can often outweigh a few missing technical skills on day one. After all, specific skills can be taught – the willingness to continually reinvent oneself cannot. Building a team that’s flexible and tech-savvy will ensure that when you introduce advanced AI into your processes, you have employees who run with it rather than run from it.

The Bottom Line for Leadership

All these talent strategies tie into a bigger picture: value creation. At the end of the day, a company’s ability to create value hinges on its people. No strategy – no AI initiative, no market opportunity – survives contact with a talent gap. If you can’t attract or retain the right people, you will create less value, plain and simple. Leadership teams in Western Europe, the US and other mature economies must recognize this reality as strategic, not just operational. It’s time to treat talent as the scarce, high-impact resource it is. Proactively court the best in the field. Pay them what they’re worth (and then a bit more to show you mean it). Empower them with tools and training – especially in how to leverage AI – so they can multiply their impact. In short, invest in the people who drive your business, just as deliberately as you invest in technology or product development. The companies that solve this talent equation in the coming decade are the ones that will lead in the next.

Finally, a challenge and a call to action: Look at your own talent strategy today. Is it truly built for the realities of 2026 and beyond? Are you still expecting great people to simply walk through your door and settle for less, or are you out there making it happen – scouting, rewarding, and enabling the talent that will secure your future? The choices you make now will determine whether you end up as a talent magnet powering innovation, or a company with cutting-edge AI but no one left to run it. The future of work belongs to organizations that get this balance right. It’s time to rethink recruitment and retention for the AI era – your next decade of value creation depends on it.



Hope this inspires.

Paul P.J. Donkers


Paul P.J. Donkers is a global business coach and management consultant. Together with his partners at tèn company, he has spent decades working with leadership teams to navigate transformations and unlock sustainable value. You can find out more about their work at tencompany.org or through the Ikigai Coaching Institute. For a confidential conversation, feel free to reach out via This email address is being protected from spambots. You need JavaScript enabled to view it..