How to Combat the Global Talent Shortage?

Organizations are fiercely competing to attract the best talent to fuel their workforce in this modern era. It is quite alarming to see that 54% of companies worldwide are having a hard time finding skilled talent to fill important positions.

This is not just impacting daily operations but also putting a lot of pressure on HR departments.

To effectively combat this growing talent shortage, employers must adjust their recruitment strategies. If employers fail to adapt their approach, they risk losing their competitive advantage and making costly hiring mistakes. It can also lead to future productivity and retention problems.

In this blog, we will delve into the reasons behind the talent shortage and provide valuable insights for recruiters to navigate this challenging landscape.

Reasons Behind the Talent Shortage

The global talent shortage has made it difficult for companies to find skilled workers. Let us explore the reasons behind this issue.

1. Skill Gap

In today’s job market, employers often face difficulties in finding candidates with the exact skillset required for specific job roles. This is largely because many job seekers lack the necessary skills, training, and qualifications that certain industries demand. However, the root cause of the problem lies in the education systems of many countries, which are failing to provide people with the training they need to fill the many vacant job positions. This mismatch between the educational curriculum and the developing industry requirements is a major challenge that needs to be addressed.

2. Technological Advancements

With the ever-changing landscape of technology, we are witnessing the rise of exciting new career paths like data scientists and cyber security experts. However, these roles demand specific skills, and unfortunately, there is a scarcity of professionals who possess the necessary expertise. The problem is that educational institutions have had a hard time keeping up with these changes. For this reason, there are not enough workers with the special technical skills needed to manage these cutting-edge technologies.

3. Globalization and Increased Mobility

With the increasing mobility of individuals across borders, businesses now have access to a much wider talent pool. Globalization also offers organizations a chance to tap into a diverse range of skills. But at the same time, it also intensifies the competition for individuals with advanced training. In today’s global job market, talented individuals have a plethora of career opportunities to choose from. This can pose a challenge for certain companies or regions in their quest to attract top-notch talent.

How to Overcome the Talent Shortage?

Overcoming the talent shortage is a complicated problem that needs a mix of proactive and inventive approaches. Here are some practical ways to handle this problem:

1. Look for Internal Talent

You do not always have to hire talent outside the organization whenever any job vacancy arrives. Sometimes, it is better to seek out internal talent. Upskilling an internal employee is an effective strategy to combat global talent shortage when new opportunities arise.

Internal employees are familiar with your organizational norms. They already have values that blend with the company’s culture. Hence it allows you to cut onboarding hours as well as costs.

Start with providing top talent with new responsibilities. Promoting high-performing employees will help to improve employee retention. You can also invest in employee training to start creating the talent pipeline. Recruiting internally also makes succession planning possible, accounting for the long-term stability and success of an organization.

2. Leverage the Global Talent Pool

Expanding your hiring criteria can be an effective strategy to tackle the talent shortage. One way to do this is by leveraging global recruitment and considering job seekers from other countries. By doing so, you increase your chances of finding highly qualified candidates and filling vacancies successfully.

By tapping into the vast pool of global talent, you not only discover highly skilled job seekers but also enhance your company’s diversity. Research has shown that a diverse workforce leads to increased productivity and improved performance.

Remote work also allows you to extend your reach beyond borders, which can help you overcome local skill gaps and save money in the process.

3. Hire Freelancers

According to projections, by the year 2030, almost half of the US workforce will consist of freelancers. While some might view them as a quick fix for talent shortages, they can also become a long-term solution.

One reason for this is that hiring freelancers can be cost-effective and require fewer resources to maintain. Additionally, freelancers can help businesses save time and resources that would otherwise be needed to hire and retain new employees. Normally, it takes companies up to 2-4 months to fill specific positions. However, hiring freelancers can be done within a day or two, addressing one of the biggest challenges HR departments faces.

4. Consider Transfers

Large organizations often find it beneficial to transfer employees from different offices rather than hiring new talent. This can even involve transferring employees internationally, especially if you work for an enterprise.

By doing so, you can gain access to guaranteed talented workers who have a great understanding of your organization’s processes, values, and culture. These employees are already familiar with how your company operates, making them a valuable addition to your team.

5. Boost Employer Branding

Did you know that 75% of active job seekers tend to apply for a job if the company has a strong employer brand?

This underlines the importance of cultivating a positive image and reputation as an employer in today’s competitive job market. It’s crucial to focus on cultivating a strong company image that resonates with potential candidates and ignites their passion to join your team.

There are various strategies you can implement to enhance your online presence and attract potential candidates. These include:

Increasing your social media engagement
Participating in job fairs
Showcasing your employees on your website and blog
Producing video content on multiple platforms
Offering candidates a glimpse into your daily work life
Exploring other creative avenues

6. Utilize Technology and Automation

Advanced recruiting technology, such as AI-powered screening and analytics tools, may help speed up the hiring process and find top applicants more effectively. Some relevant areas where technology enablement can help:

Use predictive analytics like a recommendation engine to identify top applicants for certain roles. This entails reviewing previous performance measurements, personality assessments, and other pertinent data points.
Use AI to screen and shortlist applicants. AI algorithms can analyze resumes, evaluate skill sets, and even conduct preliminary interviews, allowing recruiters to focus on the most promising prospects.
Provide personalized applicant experiences by tailoring the recruiting process to individual tastes and expectations. This includes personalized communication, flexible interview times, and the opportunity for candidates to highlight their talents.

7. Build Your Talent Community

It is an attention game at the end of the day. Companies need to find novel ways to attract and engage top talent. One such solution is building a talent community, which can help organizations overcome the challenges of talent shortage.

A talent community is a group of people who are interested in a particular company and industry, even if they are not actively looking for a job. By fostering a relationship with these individuals, companies can build a pool of qualified and engaged candidates who are more likely to consider job opportunities in the future. This helps build an easy recall which in turn can reduce the time and resources required to find and recruit new hires.

In other words, building a talent community provides companies with a ready source of qualified candidates to fall back on. It eliminates the need to spend a lot of time and resources to find, attract, and hire new employees. Think of your talent community as a group of bench players who are ready to jump into the game once they’re needed.

Conclusion

Recruiters can overcome the talent shortage by implementing the innovative strategies discussed above into their recruitment efforts. These tactics enable recruiters to adapt to the changing environment of the current job market and develop a trained, adaptive workforce for the future.