The Fourth Industrial Revolution and the creation of a future based on innovation and knowledge are transforming demand and putting pressure on the supply-side adaptation of human capital, which under these circumstances is crucial for value creation in companies and society. Because talents play a crucial role in creating value, there is an ongoing "war for talents", but also a so-called "talent paradox" that explains that despite the excess supply in the labor market, companies are failing to find the talents they need. By conducting a questionnaire-based survey among companies and students in their final years of study, this paper is trying to address this particular topic. The analysis shows that companies face a paradox considering youth employment, and due to the war for talents, they are developing an internal environment and strategies that are dedicated to attracting and retaining the much-needed talents. Most companies find that the present higher education system does not meet the current needs for necessary skills, especially those necessary for performing creative and complex activities. This need exists among students, as well, given that 60% believe that educational programs should be improved in terms of development of critical thinking, creativity and research skills. The results also indicate that the war for talents is transcending local boundaries and becoming global, given that companies find it harder to recruit young people because of the better opportunities they have abroad. At the same time, most of the students want to develop their careers in Western Europe in order to improve their standard of living.