There are four key factors contributing to the Talent Crunch. There is a global talent shortage, talent becoming our customers, the great resignation, and an ageing workforce.
Global talent shortage
One key contributor to the 2030 Talent Crunch is referred to as a ‘global talent shortage’. Essentially, younger people are not entering the same industries as previous generations. This leads to an incredible mismatch, since there may be a surplus of workers specialised in labour-intensive skills. Still, they cannot fill the gaps in sectors requiring specific training and understanding.
Talent becoming our customer
Talent becoming our customer is both a cause and a symptom of the Talent Crunch. The higher demand for suitable talent gives the individual more choice (and consequently, power). The unaccepted roles increase the demand further, giving the next candidate even more control We hear on the ground that people have got a lot more choices and are saying ‘why should I work for you?’. Ultimately, businesses will have to prove why someone should work for them, a complete U-turn from the previous status quo.
The ‘Great Resignation’
Some may have already heard of ‘The Great Resignation’. When employees don’t feel valued by their employers, they leave. This is a growing problem, especially since employees are leaving without having another job lined up. Businesses in every industry will need to seriously reconsider how they treat their team in order to keep them long-term.
An Ageing Workforce
An ageing workforce is one of the most significant causes of the Talent Crunch. As a whole, the general public is having fewer children — so those leaving the workforce just aren’t being replaced by the younger generation. The combination of all these factors highlights just how much of an impact this talent crunch will have. But it’s not all doom and gloom; if we can adapt how our organisations operate, we can overcome the worst of the Talent Crunch.
How do we find people amidst a Talent Crunch?
Our biggest challenge may be finding new people — whether this is to fill existing roles or find new hires.
Make the job desirable
As the global cost of living crisis worsens, people’s motivations shift away from having a ‘meaningful’ job. Primarily, people want financial security again, which can mean offering higher salaries to attract the right calibre of workers. Ensuring the culture and benefits offered, are clearly visible as these can significantly impact a candidate’s choice.
Developing better relationships with recruiters
As the workforce diminishes, finding suitable candidates without significant investment will become exponentially difficult. When outsourcing any recruitment ensure this is not a transactional relationship and there is an investment into the partnership and process.
How to retain current people?
Listen to their needs
Paying attention to employees, helps them tell you exactly what they need. This could be anything from a pay rise to more flexible working schedules. Ensuring there is a Mental Health Coach or Wellbeing Expert available. Being confident to afraid people team what they need with group meetings, where they can all state what they need to feel happier at work.
Make your team feel valued
It’s vital that you make sure your employees feel valued. This can be by highlighting your individual members’ accomplishments, recognising, and rewarding significant effort, or treating them in other ways.
Develop a cohesive culture
An additional point to be aware of is that toxic or highly competitive workplace cultures can be damaging to overall morale.
royall can help tackle this head-on if you want your employees to stick around and have developed our own ‘resolute’ talent to help with these strategies.
It’s also worth remembering that hiring someone whose personal values don’t align with your intended culture can devastate the entire team’s morale, so continually revisiting values, company purpose and the employee value offering are vital at this present time.
Ref: FDI 310/10/2022