The process of recruiting the right fit for your company is more intense than ever before, and the need for highly qualified professionals who would fit with their goals & values is growing exponentially across the world. But the supply is not even closer to the demand, especially in the knowledge-intensive industries like IT and Finance where you can find at least a 73% talent shortage globally.
In almost all the sectors, there’s an average of 77% talent shortage worldwide. If you ask why these concerning stats are present, the biggest reason can be that every 4 out of 5 employers report difficulty in securing qualified professionals for their respective organizations.
In short, talent shortage can be the biggest incoming threat for companies at all scales and across all industries in the coming years. The talent shortage for 2023 is already at an all-time high from the last 17 years. But what can we possibly do about it?
Firstly, there are a lot of other factors that cause talent shortages besides the difficulties faced by employers in finding the right talent. We will discuss those causes as we move forward.
Secondly, this blog will also cover the possible solutions that can provide much better access to employers to secure the best talent either by yourself or by outsourcing technical interview services, hence answering what we can do about talent shortage. So let’s dig deeper into the issue without any wait now.
Causes of Global Talent Shortage
There are multiple causes majorly based on what employees or job candidates of different age groups bring to the table in terms of challenges for the recruiting team of any organization around the world. These are-
- Departure of the Experienced: People who were born between 1946 & 1964 constituted one-third of the workforce till the late 2010s. This stat was severely affected by the onset of COVID-19 and between June & September of 2020, approximately 30 million of them were pushed into retirement, therefore leaving a significant size of vacancy in the skilled labor pool.
- Insufficient Preparation of Young Talent: People born between 1986 and 1996 have the largest share of the global workforce but most of them are yet to achieve managerial experience or other high-quality soft skills that the recruiter seeks to fill crucial job roles. Thus, they simply cannot make up for the void left by people who retired during the pandemic despite their efforts to pursue transitioning into leadership & sought-after roles.
- Change in Expectations from Both Sides: Employers in the 21st century are seeking dynamic employees possessing specialized skills with leadership capacity to take bigger roles in the future. On the other end, the expectations from employees are evolving as well by seeking more than just monetary compensation for their labor. They want such facilities like remote work options, revised productive measures, initiatives to promote work-life balance and much more. So, with such dynamic shifts in what both sides want, there will be time required to adjust and prepare to cater to each other’s wants.
- Increase in Job Hopping: The rise in job hopping came from the hands of people born between 1981 and the early 2000s. The people born prior to 1965 rarely practiced job hopping, especially in the earlier periods of their employment, and therefore preferred retiring from the first company they joined. A few reasons for why job hopping has become a trend in contemporary times are increasing chances of better pay, career exploration, as well as discontentment with the work culture.
Tackling Talent Shortage with Efficient Recruitment
Finding the right talent amongst a pool of candidates for the vacant position is like a needle in a haystack. Therefore, considering all the causes of talent shortage, the only comprehensive solution that is completely in the employer’s hands is adapting to efficient recruitment strategies like-
Expansion of Hiring Efforts
Employers need to seek innovation in their approach to recruitment and aim at improving overall talent acquisition. For instance, unlike traditional hiring practices, opt for candidate-centric hiring where you give utmost importance to the job seeker’s experience. In this way, you will be able to attract highly talented and suitable candidates.
One way to candidate-centric hiring is to opt for offering on-demand interviews over live video interviews so that the candidates can have the flexibility to attend the interview rounds as per their conveyance, therefore giving an impression that organizations have the utmost respect for the job seekers’ time and effort required in giving the interview. You can find several Interview as a Service platforms that offer conducting on-demand interviews.
Rely on Data for Insights
Recruiters need to rely on any data that gives insightful information on the ongoing state of hiring. Such data is important to pursue an effective practice on employee turnover and skill gaps, and also drive other productive improvements.
In other words, by implementing a well-designed strategy for candidate analytics, businesses can thrive to target challenges that occur during the recruitment work and address them punctually and efficiently.
Data collection and analysis are also important to figure out the ongoing trends in talent demand and supply so that you can personalize your process accordingly and gain a competitive advantage in the market for that talent. Therefore, all of this calls for a data-backed recruitment model.
Have an Advanced Job Pipeline
When creating a job pipeline for hard-to-fill roles, you should be prepared with advanced strategies to achieve your goal of finding the right candidate and there are many ways to do so.
One such way is built out of Artificial Intelligence (AI). It is important everywhere to incorporate AI in today’s day and age, especially in the hiring industry. Therefore, you would prefer automating your personalized outreach with candidates through Chat Bots powered by AI which can take care of common and repetitive queries.
There are also various AI-powered platforms for outsourcing interview services that streamline the recruitment process easily and help you find qualified individuals via online interview assessment in a very short duration of time. VProPle is one such platform prospering in the area of interview outsourcing that makes use of the latest technology and tools to provide the best in class facilities.
The rate of global talent shortage has risen to an all-time high every year since 2019. Many factors like the inability of employers to find the right fit for their organization and the departure of the people that retired during COVID-19 have elevated the level of this crisis.
We can say that efficient recruitment either directly by the company or from interview outsourcing can indeed mitigate the effects of talent shortage by actively seeking out better approaches to hiring, incorporating better technology, and using data analytics to scoop out opportunities to ease the search for the best.
It is likely that the huge void of skilled labor in the global job market will lead to adverse effects on the international economy in the coming years. Therefore, employers need to step up in the wake of the fact that the problem is much bigger than their organization’s interests and take stern control of the hiring process. One can also outsource technical interview services to speed up the process.