What the ‘global talent shortage’ means for your business

The international business community is experiencing what many are calling a ‘global talent shortage’ – with employers struggling to fill vacancies with compatible talent. Here we discuss the potential causes of the current economic climate, and what it means for your business:

What is the ‘global talent shortage’?

The main symptom of the ‘global talent shortage’ is a lack of skilled candidates for vacant job roles. This is causing employers significant difficulty in their ongoing workforce planning strategies, leaving many turning to increased salaries and competitive benefits to attract talent.

What is causing the global talent shortage?

There are a number of theories as to the cause of the current ‘talent shortage’. Here’s why employers may be finding it difficult to attract compatible candidates:

Surge of new vacancies post-COVID

The lifting of global COVID-19 restrictions has seen the continuation of delayed expansion for businesses worldwide. This has led to many employers seeking to expand their teams to meet the increased demand, presenting a large number of vacant roles throughout the job market.

Because of the wide range of vacancies available, employers are having to compete for candidates in an increasingly talent-short market. This not only makes it more difficult to attract compatible candidates but also presents staff retention challenges – with employees being headhunted by recruiters in search of fresh talent.

Lack of learning & development opportunities

The economic challenges brought about by the COVID pandemic saw companies decrease their focus on learning and development programmes. This has led to a ‘skills gap’ within many organisations, with employees often lacking the training necessary to take on increased responsibilities.

This has led to employers looking externally for skilled candidates – many of whom have already been snapped up by other businesses. The increased demand for sought-after skills makes the job market even more competitive for recruiting employers.

What does the talent shortage mean for my business?

The talent shortage presents a number of challenges for employers. Here’s what the current economic climate means for your business:

Need for competitive job offers

The competitive nature of the job market means you’ll need to spruce up your career incentives in order to attract new talent.

Candidates need a reason to choose your business over its competition. This means adapting your employee benefits, salary levels, and workplace culture to best attract top talent.

Focus on optimising your Employee Value Proposition – the benefits and incentives offered to your colleagues in return for their hard work. This is the unique selling point of your brand and is what puts you ahead of job market competition.

Demand for a faster hiring turnaround

You can’t afford to wait around in the current job market. If you don’t engage candidates quickly, another employer is bound to get in there first.

This means you’ll need to speed up your recruitment turnaround – shortening the time between an applicant submitting their application, and your first point of contact.

For this reason, many employers have chosen to pursue ‘virtual screening/interview’ tactics – arranging video/telephone meetings soon after a candidate expresses interest.

Candidates expect a positive recruitment journey

If candidates aren’t met with a positive hiring journey, they will likely look elsewhere for career opportunities. The current surge of new vacancies means candidates can afford to pick and choose between employers; you need to present yourself as more appealing!

Keep candidates in the loop throughout every stage of their hiring journey; make sure they’re given high-quality feedback, and receive all the information they need prior to interviewing.

Focus on your onboarding process – how can you give new recruits the best start possible with your business? This is crucial for ensuring staff retention, especially during the first weeks and months.

In summary

The global business community is witnessing a ‘talent shortage’, with employers competing for candidates in a talent-short job market.

There are a number of theories as to the cause of the current climate, including the surge of new vacancies post-COVID, and a lack of internal learning & development resources.

For employers, this means competing with other companies in their sector by offering more appealing opportunities and experiences. Candidates need a reason to choose you over any other employer; focus on your career benefits, hiring turnaround speed, and candidate experience.

Competition is the key to success in the current job market – focus on your brand’s USP, and give candidates a reason to choose your business for the next step in their career.

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