Talent shortage in the 21st century

 

One of the biggest problems the business world faces in the 21st century is talent deficiency. The technological enhancements (Gandhi, 2023) and the competitive job market (Junejo, 2024) have made it challenging for the employers to attract the right talent in the business world.

The talent crisis could rise up to 85.2 million people by the end of 2030 which is an alarming number if correct measures and strategies have not been taken to mitigate the issue (Junejo, 2024).

A survey done by the Manpower Group (2023) indicates that healthcare & life science industries are the most vulnerable for talent shortage followed by consumer goods & services, IT and Transport, Logistics & Automotive.

The survey further highlights that an average 75% of the employers find it difficult to fill up roles a staggering 6% rise within the last 5 years.

What are the reasons for talent shortage around the world? 

1. Reduction in the working-age populations 

The working-age population can be described as the total number of people willing to work from the age group of 18 to 64 (Majaski, 2024). The reason there's a rapid decline in the working-age population is because younger workers are not willing to take on the older worker's place (Junejo, 2024).

2. Evolutions of technology 

The rapid changes and advancements of technology has created new openings and opportunities in the business world. However, as a result of the talent shortages, companies find it hard to adapt to newer technology (Roe, 2021).

3. Unstable economies in countries forcing talent out

The economic uncertainties and talent migrations are topics which go hand in hand and of course, it is a major contributor towards talent shortages in a country. As an example, Sri Lanka is currently seeing a noticeable spike in talent shortage as the top talent has been migrating since the economic crisis in 2022 (Perera, 2023). This talent shortage has a huge impact  on the country as individuals with strong academic background such as doctors, engineers, teachers, and bankers are leaving the country (Fernando, 2023).

4. Entrepreneurial 

Another reason for talent deficiency in the corporate world is that candidates being lured towards free-lancing and entering the entrepreneurial world. According to Junejo (2024), 58% of the millennials will be a part of the workforce whereas 50% will take up the entrepreneurial and free-lancing roles (Junejo, 2024).

Solutions to mitigate talent shortage 

1. Quick recruitment strategies

Employers should fast-track the hiring process to reduce the opportunities for other competitors to steal the potential candidates. Moreover the employers can facilitate a remarkable experience during the hiring process in order to attract more talent to the company (Junejo, 2024).

2. Reskill Employees 

Reskilling talent within the organization is a much more cost-effective and feasible way to address the talent shortage (Junejo, 2024)

3. By outsourcing jobs 

Outsourcing jobs to free-lacers is another cost-effective and quick way to find talent for the organisation. As mentioned above 50% of millennials focus on free-lacing by doing so organisations could resolve short-term talent shortages a long side long-term challenges. (skillsyouneed.com)

4. Using new methods to recruit talent

In the new generation of millennials and Gen-z, playing games and social media is a huge part of their childhood. Therefore using creative and innovative methods in recruitment will establish a connection, improve the branding of the organisation and attract more and more talent into the company (Junejo, 2024).

Conclusion

The talent shortage is without a doubt a major issue faced by many countries worldwide. Multiple studies and surveys done by scholars and institutes in the field have made it evident that it is currently at an alarming stage and precautionary measure must be put into action to mitigate the impact. Therefore the use of such tools presented above would definitely help tackle the potential impact. Reacting quickly and using modern methods are the strongest means to help manage the talent shortage in the business world.

References

Fernando | Sri Lanka | Independent Policy Think Tank. (2023). Sri Lanka’s talent drain: From dreams to departures. [online] Available at: https://www.advocata.org/commentary-archives/2023/08/20-sri-lankas-talent-drain-from-dreams-to-departures  [Accessed 28 Mar. 2024].

Gandhi, V. (2023). Talent shortage, a Collective Business problem. – Ennovision Technology Solutions. [online] Ennovision. Available at: https://ennovision.co.uk/talent-shortage-a-collective-business-problem/#:~:text=Hard%20as%20it%20might%20be,the%20adoption%20of%20digital%20technologies.  [Accessed 27 Mar. 2024].

Junejo, J. (2023). Global Talent Shortage 2024 | Insight for HR Leaders. [online] The Talent Games. Available at: https://thetalentgames.com/global-talent-shortage-2024/ [Accessed 27 Mar. 2024].

Majaski, C. (2021). What Is the Working-Age Population? [online] Investopedia. Available at: https://www.investopedia.com/terms/w/working-age-population.asp.[Accessed 27 Mar. 2024].

 ManpowerGroup (2023) 2024 Globel Talent Shortage. manpowergroup. Available from https://go.manpowergroup.com/hubfs/Talent%20Shortage/Talent%20Shortage%202024/MPG_TS_2024_GLOBAL_Infographic.pdf. [Accessed 27 March 2024] 

Perera, A. (2023). Sri Lanka: Why is the country in an economic crisis? BBC News. [online] 29 Mar. Available at: https://www.bbc.com/news/world-61028138 [Accessed 27 Mar. 2024].

Roe, D. (2021). The Impact of Talent Shortages on New Technology Adoption. [online] reworked.co. Available at:https://www.reworked.co/talent-management/how-talent-shortages-are-impacting-new-technology-adoption/ [Accessed 27 Mar. 2024].

www.skillsyouneed.com. (n.d.). HR Challenges to Overcome Talent Shortages? | SkillsYouNeed. [online] Available at: https://www.skillsyouneed.com/rhubarb/hr-talent-shortages.html  [Accessed 28 Mar. 2024].