How Companies Are Dealing With Talent Scarcity

A labor shortage is coming. By some estimates, the U.S. could be facing a shortfall of as many as 6 million workers before the end of this decade. Once upon a time, companies could count on the enormous population of baby boomers to fill positions. However, with baby boomers retiring in droves over the past few years, companies are hard pressed to find reliable talent sources. Companies understood baby boomers in terms of their worldview and what motivated them. Younger workers see their lives and careers in a much different way than previous generations, causing a cultural shift in corporate America.

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One important strategy is to invest in upskilling and training your current workforce. In this way, organizations can narrow the gap between existing employees and the need for evolving responsibilities. Effective training programs include technical certifications, tuition reimbursement, online learning platforms and leadership training workshops. These career-building opportunities will work well for retaining and building employee morale.

Artificial intelligence: can it help?

Another strategy is to streamline the hiring process using AI-driven tools. AI technology can quickly access candidate applications to identify the best talent. In addition, companies will need to present potential employees with skills-based assessments along with structured interviews to further whittle down the pool of potential candidates. In keeping an eye to the future, companies will want to partner with universities, technical colleges and professional organizations to find the next generation of employees.

There is almost universal awareness that today's employees are looking for life-work balance in their careers. A recent study reports that 70% of workers prize schedule flexibility in choosing where to work. While offering fully remote may not be the way to go for most companies, there are alternatives. Flexible work hours, compressed workweeks or a hybrid schedule are some options to investigate.

Companies such as Synchrony Financial, GE Appliances and Unilever have instituted internship programs that offer certifications and a way for younger people to receive real-world experience. Microsoft has launched a program that teaches in-demand skills such as cybersecurity and generative AI. The interns who are selected may very well land themselves a full-time paying job with the company at the end of the program.

Widening your horizons

With the rise of remote work, globalization has already become a viable option. This means that the workforce has widened beyond a company's home country. This also suggests that companies will need to change their recruiting and hiring strategies to adapt to an international landscape. Additionally, it is important to have an in-depth knowledge of local labor laws and cultural norms in each of the countries where business is being conducted. While having an international staff can be daunting at first, it can offer new sources for recruiting and hiring in a scarce job market.

An aging workforce and a trend toward early retirement are fueling the U.S. labor shortage. There will continue to be more jobs than workers to fill them for many years to come. Companies that are meeting this challenge head-on with solutions that attract and retain talented employees will be the most successful.

Interested in learning more? Chat with a Connectify HR expert today.