Q3 2026 HIRE Report
Q3 2026 HIRE Report
Quarterly Hiring Insights and Recruiting Environment (HIRE) Report by Advanced RPO
Executive Summary
As we move through the second half of 2026, many organizations are still working through the same tension: growth opportunities remain strong, but the ability to find and retain the right talent is not keeping pace.
Across the industries we support, companies are backfilling jobs and opening new requisitions, expanding operations, investing in new facilities, adjusting workplace policies, and looking more closely at how to better use the talent they already have. At the same time, talent leaders are balancing hiring demand, retention pressure, and workforce planning with limited capacity and shifting priorities.
Talent strategy and business strategy are now moving in lockstep.
In this issue, we look at manufacturing expansion and reshoring and what it means for workforce readiness, how internal mobility is becoming a more practical lever for employers, and how return-to-office decisions are shaping talent expectations.
While details vary by organization, the pattern is consistent. The teams making progress are planning earlier, aligning business and talent decisions more tightly, and taking a more intentional approach to workforce design.
Most hiring challenges right now are not about volume. They are about readiness.

Pam Verhoff
President and CEO, Advanced RPO

Hiring Insights
You can build a factory faster than a workforce
America’s manufacturing comeback is real, but it has a serious bottleneck: companies are building facilities faster than they can assemble the workforces to run them. Manufacturers that wait until ribbon-cutting to recruit risk missing production targets.
The numbers are clear. According to the National Association of Manufacturers, 65% of manufacturers say attracting and retaining talent is their single biggest business challenge, a concern that has remained consistent since 2017. A 2024 study from Deloitte and The Manufacturing Institute projects that the U.S. manufacturing sector will need up to 3.8 million workers by 2033, with as many as 1.9 million roles at risk of going unfilled if the skills gap is not addressed. Reshoring is accelerating that pressure.
Reshoring is accelerating that pressure
The Reshoring Initiative reported 244,000 reshored and foreign direct investment jobs announced in 2024, part of a trend that has grown at a 25% compound annual rate since 2010. A 2026 survey from Parsec Automation found that 70% of manufacturers have either completed or are actively reshoring, up from 33% in 2024. But factory construction is moving faster than workforce readiness.
The Reshoring Initiative’s survey data shows startup and expansion projects have experienced delays because of difficulties finding skilled workers.
Lead time is the issue. The Reshoring Initiative has long documented that actual hiring lags facility announcements by 12 to 24 months. For complex facilities, including semiconductor fabs and EV battery plants, that window can stretch further. Industry experts advise that reshoring plants need 18 to 24 months of candidate relationship-building before key hire dates, and that sourcing for critical roles in controls, process engineering, and plant leadership should begin during engineering design, not after construction. Nearly half of manufacturers estimate it would take one to three or more years to fully staff a reshored operation.
The implication is straightforward: workforce planning must happen in parallel with facility planning. Local labor markets near new facilities often cannot absorb the demand alone. Skilled trades pipelines are thin. Leadership talent is regionally concentrated.
Strategic recruiting partnerships can make a measurable difference. Market intelligence, community college and trade school relationships, regional talent mapping, and early-stage pipeline development cannot be compressed into a 90-day hiring sprint after a facility opens.
The factory may be going up. The question is whether the workforce will be ready when the doors open.
Our expert’s advice
A new facility or expansion plan is incomplete if it does not include a workforce plan. Companies need to understand the local talent market, talent funnel, define how they will attract candidates, align recruiting capacity to hiring volume, and protect the candidate experience during a high-demand ramp-up.

Jenn Daugherty
Program Manager, Advanced RPO
Internal mobility: The recruiting strategy hidden in plain sight
The best candidate for your open role might already be on your payroll. That is not a feel-good statement. It is a strategic reality most talent acquisition teams are not yet structured to act on.
Gartner projects that roughly one-third of corporate recruiting capacity will shift from external searches to internal talent development by the end of 2026. The direction is clear, but execution is lagging. Only 33% of organizations currently have a formal internal mobility program, even as nearly 70% of TA leaders say it is receiving greater investment and attention.
The case for building that infrastructure is straightforward. LinkedIn research shows that employees at organizations with strong internal mobility stay approximately twice as long as those without it. Companies with structured programs also fill roles faster and see lower turnover than those that primarily hire externally. When employees see a defined path forward inside their current organization, they stop looking outside it.
That is the opportunity. The challenge is that most organizations still have barriers that keep internal mobility from becoming a reliable recruiting channel. Deloitte’s Global Human Capital research shows that 49% of organizations lack the processes to identify and move employees into new roles, and 45% say employees have no real visibility into internal openings. The harder issue is manager resistance. Nearly 46% of organizations report that managers actively resist internal moves, often guarding top performers to protect their own team’s output.
A real internal mobility program needs 3 things
First, visibility. Employees cannot pursue roles they do not know exist, so postings need to reach people proactively.
Second, a defined process. Internal candidates deserve clear eligibility criteria, fair evaluation, and timely communication.
Third, transition support. Internal movers may know the company, but they still need help adjusting to a new team, manager, and expectations.
Organizations that get this right gain a compounding advantage. Each successful internal move builds trust, drives engagement, deepens the bench, and reduces external hiring pressure. Talent acquisition teams being asked to do more with less have a ready answer inside the organization. The question is whether the infrastructure exists to use it.
Our expert’s advice
When employees cannot see a future inside the business, they start building one somewhere else. Internal mobility gives companies a way to retain talent before they become a candidate elsewhere.

Amanda Sprenkle,
Account Manager, Advanced RPO
The RTO Hiring Tax
There is a real, measurable cost to bringing employees back to the office, and it shows up directly in talent acquisition numbers.
A peer-reviewed study from researchers at the University of Pittsburgh and Baylor University tracked more than 3 million employees and over 2 million job postings across 54 S&P 500 companies to measure what happens to hiring after a return-to-office mandate takes effect. The findings are hard to ignore.
On average, time-to-fill increased by 23% following an RTO announcement, and overall hire rates fell by 17%. For companies already stretched thin on recruiting resources, those are meaningful numbers: more vacancies staying open longer, with fewer resulting in completed hires.
The turnover data tells a similar story. Employee turnover increased by an average of 14% after RTO mandates went into effect, and the departures were not evenly distributed. The effect was especially pronounced among mid- and senior-level managers and more skilled employees, creating replacement challenges for roles that are already difficult to fill. The study also found a disproportionate impact on female employees, whose turnover rate increased at nearly three times the rate of male colleagues.
If your organization has moved toward stricter in-person requirements, the most valuable thing TA can do is quantify the recruiting impact and bring it to leadership. Connect time-to-fill trends, offer acceptance rates, candidate withdrawals, and turnover data directly to the timing of the policy change. If flexibility is no longer part of the value proposition, something else has to carry more weight: compensation, career trajectory, manager quality, or a clear employer brand story about why the in-person environment is worth the tradeoff.
Our expert’s advice
The RTO debate gets framed as a culture topic, but for TA leaders it is an operational one. You may not control your company’s workplace policy, but you can control whether leadership understands its cost to recruiting and build a strategy that works within your environment.

Mike Foster,
Account Director, Advanced RPO
Recruiting Environment

Life Sciences
Articles we read
Cell & Gene Therapy CDMO Partnerships
Contract Pharma

Manufacturing
Articles we read
Manufacturing job openings increased to nearly 500K in January
Manufacturing Dive
Manufacturers Turn to Second Chance Hiring to Access Talent
The Manufacturing Institute
Our expert’s advice
Recruiting in manufacturing is at an interesting crossroads. Job openings remain near 500,000 nationally, yet hiring rates have actually declined, exposing a growing mismatch between the available workforce and what the industry actually needs. The traditional post-and-wait approach is failing, and manufacturers are responding with longer-horizon thinking: tapping previously overlooked candidate pools like second chance hires, and investing in structured pipelines through high schools and apprenticeship programs before the shortage reaches the front door. Recruiting in manufacturing is no longer transactional, and the organizations winning on talent are treating workforce development as a strategic discipline.

Justin King
Solution Design Director, Advanced RPO

Food & Beverage
Articles we read
UNFI to roll out AI inventory planning tool at 12 distribution sites
Supply Chain Dive
AI Is Splitting Food Manufacturing Into Two Groups. Frozen Desserts Show How Fast It Happens.
Food Industry Executive
In Food Plants, AI and Automation Are Filling Roles Nobody Can Staff
Food Industry Executive
Our expert’s advice
Looking Ahead to Q4 2026
Next up: the talent priorities shaping year-end planning
As organizations move into Q4, hiring conversations tend to become more focused. Workforce plans are being finalized, budgets are taking shape, and talent leaders are evaluating what worked, what didn’t, and where adjustments are needed heading into 2027.
A few themes are already emerging as priorities for the months ahead.
Onboarding as a retention strategy
Organizations continue to invest heavily in attracting talent, yet many still struggle to retain employees through their first year. We’ll take a closer look at why onboarding remains one of the most overlooked drivers of retention and what leading employers are doing differently.
Hiring demand vs. hiring readiness
Many organizations are entering 2027 with ambitious growth plans. The challenge is insuring talent strategies, recruiting resources, and workforce plans are aligned early enough to support those goals.
The next phase of workforce planning
As economic conditions, business priorities, and talent availability continue to shift, workforce planning is becoming less about annual forecasting and more about ongoing adaptation. We’ll explore how organizations are building greater flexibility into their hiring strategies without sacrificing long-term goals.
As always, the trends making headlines are only part of the story. The bigger question is how organizations translate those trends into practical workforce decisions that support business outcomes.
For more information about any of these topics or to learn more about how an RPO partner can help you reach your hiring goals, please contact us.
Subscribe
Get updates and new content delivered right to your inbox. Unsubscribe anytime.
Featured resource

2026 Recruitment Scorecard
Jumpstart your talent acquisition improvement plan with an 8-step recruiting program evaluation.


