How Organisations Can Navigate the Skills Shortage in the Current Climate
Across the world there are a number of skills shortages that are creating challenges for businesses. Whether it is the skills needed for new hires, or the skills needed to improve current processes, the ability to recruit and retain the right talent is key. This article looks at what the skill shortages mean for businesses and how to tackle them.
Almost three-quarters of employers say they’re having trouble filling roles. It’s a critical problem because businesses need skilled people. Yet, they’re being hamstrung by a workforce that’s stuck in the past. And it’s a problem that’s getting worse.
The skills crisis is driven by digital technologies. These technologies are rapidly changing the way we do work. It’s disrupting industries and regions around the world. It’s also changing worker expectations. These expectations include better work-life balance, better pay, and a wider range of remote work options.
But, while there’s no easy fix to the skills crisis, there are things we can do to address it. For example, we can focus on strengthening the coordination of labour market policies. We can also strengthen sector-wide collective bargaining.
What does it mean for organisations?
Having a talent strategy is a must for organisations. In order to ensure that you get the best people, you need to understand how the labour market works. This can help you make smart career decisions.
There are a number of ways to get the most out of your workers. One way is to give them more space to perform. Another strategy is to give them the skills they need to excel.
A skills audit can tell you which skills your company needs to improve. It can also help you plan for the future. By understanding the skills your organisation requires, you can identify how best to deploy the resources.
The best strategy is to give skilled workers the flexibility and autonomy they need. This means hiring people who will fit your organisation’s culture and environment. This may require you to partner with other companies, suppliers or the government.
Navigating the skill shortage
Having an in-house training centre is a great way for companies with few good resources. Upskilling your staff will help you to offset labour shortages.
Upskilling is also a great way to build trust between your employees and your organization. People with high learning agility are resourceful and quickly figure out what next best step is in a chaotic situation. This is a highly prized attribute.
Businesses will need to think about a new approach to solve the world wide skill shortages. A recent survey by the Open University estimates the direct cost of the UK skills shortage at £6.3 billion per year. This includes inflated salaries and recruitment fees.
The world wide skill shortage is a huge risk to organisations. This relates to the fact that many of the skills necessary to perform a job have changed significantly. It also means organisations are unable to meet customer demand as effectively. This means businesses are in direct competition with international competitors.
How can mentoring help transfer skills?
Increasingly, organisations are looking to mentoring programs to train their employees, especially those with less experience. Aside from the obvious benefits, mentoring also helps keep employees on the right track. Mentoring can be done through formal training, or through one-on-one interactions between a mentee and a skilled professional.
There are many types of mentoring programs, from career mentoring to knowledge transfer mentoring. In addition to building hard skills, mentoring programs can also help employees retain organisational knowledge.
Career mentoring, for example, pairs younger employees with more experienced employees. This pairing can help employees identify career paths and solve workplace problems. It can also minimize turnover.
Knowledge transfer mentoring, on the other hand, aims to transfer knowledge to the next generation of workers. Typically, it involves a combination of formal training and one-on-one interactions.
Outlook for talents in the upcoming years
Despite the global recovery, the talent outlook for the coming years is not optimistic. According to the OECD, global economic growth is expected to slow to 2.2% in 2023. Moreover, the global shortage of skills is at an all time high.
As global corporations grow, they will have to push a strong ethical agenda to retain and engage top talent. Companies will also have to explore new avenues to fill skill gaps. They will have to integrate talent management systems with emerging technologies to identify and hire top talent.
The digital design talent is in high demand in the brand companies and in the digital agency sectors. They are also in high demand in the sectors of automotive, consumer goods and logistics services.