For many years, experts have spoken about an ever-worsening talent shortage - something that was predicted to impact virtually every industry you can think of. Now, thanks to a variety of factors including anxiety induced by the still-ongoing COVID-19 pandemic, that shortage may have officially arrived - and business owners everywhere are worried that it could impact their bottom line.
According to one recent study, the talent shortage and the overall skills gap is expected to cost the United States economy a massive $8.5 trillion by as soon as 2030. Based on that, it should come as no surprise that filling this skills gap is a top priority of 64% of people who responded to one survey on LinkedIn.
Combating the Skills Gap, One Day at a TimeThings have gotten so severe that, according to the experts at Fortune, the leaders of many Fortune 500 companies said that the talent shortage was the top threat to businesses being faced today.
Indeed, the experts at Forbes indicate that things may be getting a lot worse before they have an opportunity to get better. It isn't just the pandemic that is causing people to leave the job market - it's actually a variety of factors.
Fewer people are having kids, which means that the next generation of talent will be even smaller than the one right now. We're also currently seeing lower high school and college enrollment, meaning that the pool of talent with the specialized skills needed for modern businesses is dwindling.
Increasing wage inflation, a near-record unemployment level, the ongoing impact of The Great Recession - you name it, it's contributing to what Forbes calls a "perfect storm."
But thankfully, there are savvy businesses out there who are finding new and innovative ways to help combat these issues - and changing the way we think about recruitment is likely among them.
Rather than relying on the "old school" recruiting techniques of yesteryear - techniques that are clearly not working as well as they once did - organizations like Walmart, Amazon, and Intellect are forging a new path and are showing that it is still possible to attract and retain top talent.
They're doing it by creating strong employer brands on social media sites like Facebook and Twitter. They're saving resources (and thus money) by testing a candidate's skills, not in a general sense, but in a specific way that speaks directly to the position they will be filling. They're also consistently saving even more time and money by performing all engagement actions on just one platform as opposed to many, allowing the pool of talent from which they can draw to become as large as possible.
In the end, the talent shortage is very real and it's definitely not going away anytime soon. But as is true with all periods such as this, those who recognize what is happening and who are willing to adapt to it are typically those who are in a position to rise above the rest.
About Spencer Wilson, EA
Spencer Wilson Financial Management Services has been a family business for the last 40 years. He specializes in personal and business tax preparation and tax planning, as well as accounting and payroll services. Based in Long Beach, they serve the greater Los Angeles and Orange County areas.
