What Is Really Causing the Global Talent Shortage?
As the job market becomes increasingly competitive, companies are struggling to find skilled individuals year after year. This is especially troubling given that the talent shortage is predicted to become even more severe. According to LinkedIn, the global talent shortage could reach 85.2 million people – costing companies trillions of dollars in lost economic opportunity. The problem seems to be getting out of hand, but what’s causing it?
In today’s article, we’ll explore some of the most significant factors as to why companies struggle to find talent and how to combat it.
Baby Boomers Retiring
According to Pew Research, baby boomers make up over a third of the workforce. Baby boomers are retiring after either losing their job, concerns for their health, or finding out they can retire early during the brunt of the pandemic. As baby boomers retire, companies are struggling to find new talent and transition current employees into senior roles they left vacant.
Decreasing Numbers of College Graduates
According to a National Student Clearinghouse Research Center report, fewer students went back to college this year – bringing the undergraduate enrollment rate down to only 3.1%. In fact, enrollment is down 6.6% compared to two years ago. Many young adults are opting to get into the skilled labor market to seek out more short-term career paths and avoid the rising costs of college.
In addition to the dwindling number of college graduates, the increasing retirement rate of baby boomers means the workforce shortage is unlikely to find relief any time soon.
Candidate Needs and Expectations
It’s a well-accepted fact that millennials have different expectations in the workplace and care more about company culture and workplace advancement. As a result, organizations need to be aware of the needs and expectations of young job seekers. Aside from competitive pay and benefits, most job seekers expect a healthy work-life balance, work-from-home opportunities, and a positive company culture.
They want to see themselves as a valuable and respected contributor to their employer’s business. If they feel undervalued, they know they can find a new job faster than ever before.
What Employers Can Do About It
It’s critical to know what your peers and competitors are doing to combat the talent shortage. As an employer, you’ll need to understand how the labor market in your industry is recruiting and retaining top talent. You should also be aware of new trends contributing to the talent shortage. You’ll need to stay flexible by holding yourself accountable for future talent planning needs or potentially updating your company’s recruitment process or career path.
How your organization responds to the talent shortage will depend on the specific needs of your business. Be sure to know yourself, the labor market in your industry, and the needs of candidates to avoid hurdles in attracting top talent. Here are some tips on how to stay ahead of the curve when it comes to finding talent:
- Focus on creating an amazing candidate experience – no matter the role.
- Start sharing career opportunities within your organization to attract passive candidates.
- Get creative when promoting your organization’s culture and career opportunities – millennials are looking for something more than just a job; they’re looking for meaning.
- Don’t go it alone – recruiters can be a valuable resource for finding talent in today’s competitive market.
- Make your company stand out to candidates through comprehensive employer branding.
Looking to Fill Your Vacant Roles?
It’s crucial for employers to understand the issue of the talent shortage. However, with so many factors involved, it can be difficult for companies to find and hire qualified candidates.
At TeamSoft, we can help you find talent who can seamlessly integrate into your company culture and empower you to meet your business goals. Contact us today to learn more about our contract, contract-to-hire, direct hire, and employer of record solutions.