What Is the Severity of the Skills Shortage?

Photo by Alexander Suhorucov: https://www.pexels.com/photo/diverse-coworkers-discussing-project-in-workspace-6457589/

Currently, employers are facing difficulty filling vacancies – which is causing skills shortages. ManpowerGroup reports that 75% of companies have had difficulty finding qualified employees over the past year.

These 10 data points illustrate the current situation, what causes it, and how to improve it:

  1. There is an ongoing global talent shortage, which is at its highest level in 16 years.
  2. Skills shortages could cost the economy over $8 trillion by 2030.
  3. In the next five years, 44% of organizations expect a skills shortage. 43% of organizations already have skill gaps.
  4. In addition to AI and other forms of technology, more than half (56%) of hiring managers say workers will need different skills in the future.
  5. Almost no organization knows how to equip itself with the skills necessary to compete in the future. Technology and market trends will disrupt the workforce in 2 out of 3 companies.
  6. There is a great deal of difficulty recruiting and retaining qualified candidates for companies with 250 or more employees compared to companies with fewer than ten employees.
  7. According to recent studies, Japan, Indonesia, and Brazil are among the countries facing the greatest shortages by 2030.  Approximately 6 million people are expected to be left out of the US and Russia.
  8. Recruiting top talent is challenging due to an increase in organizations hiring to fill potential skill gaps. 56% of organizations use reskilling as the second most common strategy to close the gap.
  9. A significant obstacle to securing suitable candidates is competition from other employers, according to 43% of organizations. A third of respondents say the issue is candidates’ work experience, while a third point out that the issue is candidates’ technical skills.
  10. Due to stress and burnout, four out of ten employees are considering changing jobs.

How did this shortage occur?

There are three main reasons for the talent shortage in organizations:

  1. Employers compete with one another
  2. An insufficient amount of work experience on the part of the candidate
  3. Insufficient technical expertise

The skills people need at work are changing as a result of AI and other tech forms. Neither students nor employees receive the training they need to learn these skills. In the Society for Human Resource Management (SHRM), finding quality candidates is hampered by competition and job requirements.

What are the most likely victims of the skill shortage?

G20 countries, large companies, and those in tech and marketing seem to be struggling the most. There may be 18 million unfilled jobs in Japan, Indonesia, and Brazil by 2030. A talent shortage of 12 million people is also predicted for China. Around 6 million people are expected to be in deficit in the US and Russia.

Next step: Make it a priority to reskill existing employees and test new applicants for skills

Without investment in their workforce, employers will lose their employees to their competitors. A company that offers digital skills training is more likely to attract quality candidates and reap the benefits. To filter out unsuitable candidates quickly, conduct skills testing. You need to do this to create a positive candidate experience, build a positive employer brand, and hire the right candidate.