Global Talent Shortage: Here’s What Your Strategy Should Be

A recent major challenge in the recruitment industry is the global shortage of skilled workers, which has reached its highest level in more than a decade. According to a survey, 69% of US employers have difficulty filling positions, a threefold increase from ten years ago. [1] Experts predict that this shortage will continue until the late 2030s or beyond. [2]”

The outcome of talent shortage for recruitment agencies and companies is dire. It means that they have to compete harder for a smaller pool of candidates, spend more time and money on hiring processes, lower their standards and expectations, or settle for underqualified or mismatched hires. It also means that they may miss out on growth opportunities, innovation potential, customer satisfaction, and competitive advantage.

The Drive Behind Talent Shortage

There are several factors that contribute to the talent shortage issue in industries across the globe. Some of them are:

• Demographic shifts: The aging population and low birth rates in many countries result in a shrinking workforce and a gap between generations. For example, in the US, the majority of baby boomers will have moved out of the workforce by 2030, but younger generations will not have had the time or training to take many of the high-skilled jobs left behind. [3]
• Skills mismatch: The rapid pace of technological change and innovation creates new skills demands that are not met by the existing education and training systems. Many workers lack the skills or qualifications that employers need, while many employers lack the ability or willingness to reskill or upskill their current or potential employees.
• Geographic mismatch: The availability and distribution of talent varies across regions and countries. Some areas may have a surplus of talent while others may have a deficit. However, there may be barriers or disincentives for workers to relocate or work remotely, such as immigration policies, cultural differences, family ties, or personal preferences.
• Expectations mismatch: There may be a gap between what employers offer and what candidates want in terms of compensation, benefits, work environment, career development, flexibility, and culture. Many candidates today are looking for more than just a paycheck; they want meaningful work that aligns with their lifestyle, values and goals.

How to Tackle Talent Shortage

To overcome the talent shortage challenge, employers need to adopt a proactive and holistic approach that covers all stages of the talent lifecycle: attraction, acquisition, development, retention, and redeployment. Here are some effective strategies for each stage:

1. Talent Attract

To attract more candidates to your organization, you need to build a strong employer brand that showcases your value proposition, culture, purpose, and impact. You also need to leverage multiple channels and platforms to reach out to your target audience, such as social media, job boards, referrals, events, etc. In addition to that, you need to offer competitive and flexible compensation and benefits packages that meet or exceed the market standards and candidates’ expectations. Check out our guide on how to elevate your employer brand on LinkedIn.

2. Talent Acquisition

Streamlining and optimizing your hiring process will make it faster, easier, and more engaging for candidates. It is also a good idea to use data-driven methods and tools to assess candidates’ skills and fit objectively and accurately. Furthermore, you need to diversify your hiring channels and recruitment pipeline by tapping into underrepresented or overlooked groups such as minorities, people with disabilities, different genders, etc.

3. Talent Development

Investing learning and development programs that help your employees acquire the skills and knowledge they need to perform their roles and grow their careers has a direct impact on employee engagement. Creating a culture of continuous learning and feedback that encourages your employees to seek and share new information and ideas is also a good way to go. Moreover, you need to provide your employees with opportunities to apply their learning in real-world situations, such as projects, assignments, mentoring, etc.

4. Talent Retention

In order to retain more talent in your organization, it’s essential to foster employee satisfaction by recognizing and rewarding their contributions, providing them with autonomy and empowerment, and supporting their well-being and work-life balance. Plus, you need to offer them career advancement and mobility options that allow them to explore different paths and roles within or outside your organization. You also need to communicate with them regularly and transparently and solicit their feedback and input on important decisions.

5. Talent Redeployment

Identifying and anticipating your current and future skills needs and matching them with your existing talent pool will help you redeploy more talent in your organization. The trick is to help your employees transition smoothly from one role or function to another, by providing them with guidance, training, and support. Moreover, you need to leverage internal platforms and networks that facilitate talent mobility and collaboration across teams, departments, or locations.

Deal with Talent Shortage: What You Need at Your Disposal

To implement these strategies effectively, you need some essential tools and resources at your disposal. Some of them are:

• Talent analytics: This refers to the use of data and metrics to measure and improve your talent outcomes, such as quality of hire, time to fill, turnover rate, engagement level, productivity level, etc. Talent analytics can help you gain insights into your talent strengths and weaknesses, identify gaps and opportunities, evaluate the effectiveness of your initiatives, and make informed decisions based on evidence.
• Talent intelligence: It is the use of external data and information to understand your talent market, such as supply and demand trends, competitor activities, candidate preferences, industry best practices, etc. With talent intelligence, you can benchmark your performance against others, identify potential threats and opportunities, adapt your strategies accordingly, and gain a competitive edge in attracting and retaining talent.
• Talent technology: It means the use of software and systems that automate and optimize your talent processes, such as Applicant Tracking Systems (ATS), Learning Management Systems (LMS), Performance Management Systems (PMS), Employee Engagement Platforms (EEP), etc. Talent technology enables you to save time and money, reduce errors and biases, enhance efficiency and accuracy, improve candidate and employee experience, and increase collaboration and communication.

Wrapping Up

Talent shortage is a serious issue that affects many industries and organizations around the world. It can have negative impacts on your business performance, growth potential, innovation capacity, customer satisfaction, and competitive advantage. To deal with this challenge, you need to adopt a proactive and holistic approach that covers all stages of the talent lifecycle: attraction, acquisition, development, retention, and redeployment. You also need some essential tools and resources at your disposal, such as talent analytics, talent intelligence, talent technology, and especially an ATS.

An ATS can help you source, screen, hire, and manage your candidates more effectively and efficiently. Among many ATS systems available now, Manatal stands out as one of the most reliable and advanced recruitment solutions that can help you overcome talent shortage with its AI-powered features and integrations. With innovative features like AI Recommendations, Candidate Enrichment, Reports & Analytics, and many more, you’ll likely be able to tackle talent shortage and identify the right candidates without breaking a sweat.

Curious to know more? Start a 14-day free trial now to discover its features and see how it can help you stay ahead of the talent shortage challenge within a few clicks.

Citations:

1. Why U.S. Talent Shortages Are At A 10-Year High (forbes.com)

2. 22 Worrisome Talent Shortage Statistics for Employers (2023) - Soocial

3. Message from Korn Ferry