Despite a global economic slowdown, research from Universum shows organizations still face critical challenges hiring knowledge workers in many regions.
“Notwithstanding a flurry of news about layoffs and economic contraction, most companies are still struggling with a talent shortfall, and the problem isn’t going to improve anytime soon,” explains Yusuf Azoz, CEO of Universum. “Some companies are even ‘labor hoarding’ — hanging on to critical talent despite clear signals of a slowdown. Talent leaders remember the hiring crisis they faced in 2020-21, when they laid off large numbers of workers, only to have to hire them back within a year.”
The newest findings from Manpower’s research highlighted that over 80% of companies globally are having trouble finding the talent they need for their key roles. This also agrees with Universum’s findings on talent shortages through the Employer Branding NOW survey for 2023.
This number has increased 2 percentage points since 2022, and a substantial 46-point spike since 2010. In specialized industries like cybersecurity, robotics, auditing, and compliance, the demand-supply imbalance in the labour market is still severe and extremely expensive to succeed in. It is important to note that the talent shortage goes beyond entry-level jobs; manager and leadership-level positions frequently go vacant for lengthy periods of time. These holes in the pipeline for acquiring people can inhibit innovation and growth, highlighting the long-term effects of a skills and talent deficit.
Critical Talent Shortages- what can companies do?
Companies are using a variety of strategies to fill the skills gap during these times. Adopting ‘new-collar’ recruiting is one of the emerging trends, which focuses on abilities rather than requiring a bachelor’s degree for positions that historically needed a university certificate. This strategy broadens the pool of eligible applicants and improves workplace diversity, all while tackling the talent shortage problem.
Additionally, businesses are using automations and generative AI technologies to replace or supplement humans and simplify repetitive operations, increasing productivity and filling skill shortages.
Although technological developments AI give hope to aid in skill shortages, the lack of qualified engineers and technologists presents obstacles – successfully implementing these innovations into everyday work. As a result, the speed of automation disruption may slow down, which would influence how quickly skill gaps are filled overall.
To combat these challenges and bridge the talent shortfall, companies are urged to prioritize talent acquisition strategies and invest in talent development programs. Proactive measures such as collaborating with educational institutions to foster skill development, offering robust training, upskilling opportunities, and implementing attractive Employer Value Propositions can attract and retain top talent when it is so critically needed. Additionally, companies should leverage platforms like LinkedIn, which highlight job opportunities for candidates with the right skills, enabling businesses to address pressing issues by recruiting individuals capable of driving impactful change.
It is now more imperative than ever that companies must take a deliberate and proactive strategy considering the ongoing skills shortages across the globe. Companies continue to struggle to locate the right talent for critical roles, according to data from Universum and Manpower. The recent recruiting crisis serves as a clear reminder of the difficulties and effects of a skills shortage.
Interested in more findings and the state of Employer Branding for 2023? Download Universum’s Employer Branding NOW 2023 eBook today!
If you are one of the many companies having issues staffing your critical roles, contact us today to learn more about how Universum can help you!
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