Talent Competitors vs. Business Competitors: How Employers Can Gain a Hiring Advantage 

by: Jenna Hinrichsen, Director of Recruitment Strategy |
April 9, 2025

When companies think about competition, they often focus on their business competitors—those rivals offering similar products or services in the same market. However, in the realm of talent acquisition, a different kind of competition matters just as much, if not more: talent competitors. These are the organizations vying for the same skilled professionals, regardless of industry, and they can often present an unseen challenge to hiring strategies. 

What’s the Difference Between Talent Competitors and Business Competitors? 

Business competitors are straightforward—they operate in the same sector, share a similar customer base, and often have comparable business models. These competitors are typically top of mind when companies develop sales, marketing, and growth strategies. 

Talent competitors, however, cast a wider net. These are companies, sometimes in entirely different industries, that seek out the same kinds of talent. For example, a logistics company looking for IT professionals might find itself competing with tech startups, financial services firms, or healthcare providers—not just other logistics companies. 

Key Questions to Identify Your Talent Competitors 

To gain a competitive edge in hiring, organizations must first identify who their talent competitors are. Start by asking yourself these critical questions: 

  • Who are your business competitors in your local market? This is often the easiest list to create, as business competitors are well-known and regularly analyzed. 
  • Who are your talent competitors in your local market? This list will likely be larger than your business competitors list, encompassing companies across industries that are also looking for the talent you need.
  • How does your compensation and benefits package compare to those offered by your talent competitors? Staying competitive requires understanding not just what your direct business competitors offer, but what any employer recruiting similar talent is presenting to candidates. 
  • Do you hire for remote or work-from-home (WFH) roles? If so, do you know who your talent competitors are in those remote markets? The rise of remote work has significantly broadened the competitive landscape for talent. 
  • What are the current labor market trends? Consider supply and demand, average pay ranges, and availability of candidates with the required experience. Labor market data can help you benchmark your offerings against those of your talent competitors. 

Using Competitive Analysis to Shape Your Recruitment Strategy 

Once you’ve identified your talent competitors, it’s time to transform insights into action. Here’s how to use your analysis to build a more effective recruitment strategy: 

1. Target Companies to Recruit From 
Create a list of companies where your ideal candidates currently work. This list should include not only your business competitors but also organizations in other industries that employ the skill sets you need. For instance, if you’re looking for customer service professionals, consider not only direct competitors but also industries like retail, hospitality, and tech support. 

2. Define and Promote Your Competitive Advantages 
What do you offer that your competitors don’t? Highlight unique selling points such as career growth opportunities, flexible work arrangements, innovative projects, or a positive company culture. Employee testimonials can also be powerful in showing why your organization is an employer of choice. 

3. Leverage Training and Development Programs 
If your compensation package isn’t as strong as your competitors’, focus on what you can provide in terms of professional development. Upskilling and reskilling programs can attract candidates who value growth and learning opportunities over immediate financial gain. 

4. Develop Targeted Recruitment Marketing Content 
Create tailored messaging that speaks directly to the needs and interests of your ideal candidates. This can include blog posts, social media content, and recruitment marketing campaigns that differentiate your company from both business and talent competitors. 

5. Engage in Data-Driven Decision Making 
Use labor market data to stay informed about trends and adjust your recruitment strategies accordingly. This includes understanding what competitors offer, where talent is located, and how market shifts may influence candidate availability and expectations. 

Competing for Talent in a Broader Market 

In today’s hiring landscape, the competition for talent often extends well beyond your business competitors. By expanding your view to include all talent competitors—regardless of industry—you can broaden your candidate pool, reduce time-to-fill, and ultimately build a more dynamic and competitive workforce. 

Organizations that embrace this broader competitive analysis will not only attract top talent but also position themselves as forward-thinking employers in an increasingly complex labor market. By understanding both business and talent competitors, companies can craft more effective hiring strategies that drive long-term success. 

If you need help in any of these areas, companies like Advanced RPO can be a great partner to help you achieve your hiring needs!