You may have heard about a “Talent Crunch”, but what actually is it? In short, the amount of ‘skilled’ people in the workforce is decreasing at an alarming rate. It’s estimated that by 2030, there’ll be a worldwide talent deficit of 85 million.
What does this mean? Well for one, finding and hiring new people will become increasingly difficult. It also means you, as an employer, must improve how you handle the candidate’s experience throughout the hiring process.
We’re going to explore:
- Why is there a Talent Crunch?
- How do you find people amidst a Talent Crunch?
- How can you retain your current people?
Interested in overcoming the worst of the Talent Crunch? Then keep reading.
Why is there a Talent Crunch?
There are four key factors contributing to the Talent Crunch. These are a global talent shortage, talent becoming your customer, 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 your Customer
Talent becoming your customer is both a cause and a symptom of the Talent Crunch. The higher demand for suitable workers gives the individual more choice (and consequently, power). The unaccepted roles increase the demand further, giving the next candidate even more control.
Brett Lofthouse, Head of FDI’s Pharmaceutical Business Unit, contemplates recruitment trends in Pharma. He says, “people have got a lot more choice 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
You 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 are having fewer children — so those leaving the workforce just aren’t being replaced by the younger generation.
The combination of all these factors should highlight just how much of an impact this talent crunch will have worldwide. But it’s not all doom and gloom; if you adapt how your company operates, you can overcome the worst of the Talent Crunch.
How do you find people amidst a Talent Crunch?
Your 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, which can mean offering higher salaries to attract the right calibre of workers.
You should also be aware of the culture and benefits you offer, as these can significantly impact a candidate’s choice.
Outsource hiring to recruitment agencies
As the workforce diminishes, finding suitable candidates without significant investment will become exponentially difficult. Instead, it might be better to outsource your recruitment to agencies specifically designed to meet your needs.
For example, Fraser Dove International is a Talent Consultancy operating solely in the Life Sciences industry. If you’re searching for top talent in that sector, our Executive Search functions are designed to find your next new hire.
How can you retain your current people?
Withstanding the talent crunch is about more than just finding and hiring new people, however. You also want your existing talent to stay at your firm long-term. While this presents its own struggles, solving these issues can also make your company more attractive for new hires too.
Here are some excellent ways to keep hold of your employees:
Listen to their needs
If you pay attention to your employees, you’ll find that they tell you exactly what they need. This could be anything from a pay rise to more flexible working schedules. You may find it beneficial to hire a Mental Health Coach or Wellbeing Expert for your team to book sessions with.
Don’t be afraid to ask your team what they need either. One method could be to have a group meeting, where they can all state what they need to be 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. You’ll have to tackle this head-on if you want your employees to stick around.
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.
Stay up to date on FDI news
In the coming months, we’ll explore the five stages of our Talent Ecosystem, and how they help us find the perfect candidates for your business. Since Fraser Dove is the only consultancy with a talent ecosystem, this should highlight why our services are optimal for your hiring needs.
For now, why not follow us on LinkedIn to stay updated on all our latest news?