The talent scarcity problem is one that has been plaguing businesses for years. And it show no signs of abating despite a slowing economy. The numbers paint a stark picture. The global workforce will shrink in the coming decade. Consulting and executive search firm Korn Ferry predicts a worldwide talent shortage that will cost businesses $8.5 trillion in lost revenue by 2030.
This is driven by rapidly aging demographics and lower birth rates around the world and more pronounced in developed nations such as Japan, Germany, the US, and the UK among others. Burnout and shortages in industries like healthcare are also taking a toll on recruiting and retention efforts.
Technology, automation, and immigration will help alleviate some of the talent crunch problems but an equal amount of focus needs to be placed on attracting, building, and retaining skilled talent.
This is a matter of survival for businesses and nations at large. So what should organizations be doing to minimize the impact of talent scarcity now and into the future? This blueprint provides actionable considerations to feed the overall strategic talent roadmap.
Are you competing for talent with purpose?
It begins with messaging and experience. In the world of employer branding that means;
- Clear Purpose: A clearly articulated purpose that people can easily understand serves as a key anchor for why your organization exists and why people should stand behind it. Values & Behaviors Values described as specific behaviors are more relatable to people. How you incentivize specific behaviors ends up becoming what you value and the “cultural norm”.
- Values & Behaviors: Values described as specific behaviors are more relatable to people. How you incentivize specific behaviors ends up becoming what you value and the “cultural norm”.
- Treatment: How people are treated through accepted “cultural norms” and the actions that directly impact how people feel.
- Employer Brand: 85% of top candidates find jobs through networking. Your employees regularly share their experiences about how they feel about working with your organization. This has a direct impact on the quality of talent you attract or repel.
Articulating Your Purpose to Talent
Your organization’s vision and mission are the most important anchors for people. A clear purpose that people understand can help them figure out whether they can stand behind that purpose or not.
Avoid using corporate jargon and keep the language simple. Know cultural, generational, and geographical differences globally when choosing specific words. Tie your purpose into your employee communications and regularly remind them about how their work is directly or indirectly helping achieve your mission.
For non-customer-facing roles, showcase customer success stories about how their work helped the front-line employee, in turn, helping the customer is a good way to make a tighter connection.
Here are a couple of helpful resources. Hubspot has compiled some great examples of mission statements here. LinkedIn recently published the 7 best and 5 worst mission statements here.
Employers need to be clear when explaining why their company exists. How you help customers is part of your employer brand. Mission driven companies tend to do better at attracting talent than ones that can’t articulate it properly.
Overall, it is too early to determine the hiring outlook for 2023 with any certainty. The coming year may present surprises that no one can predict at this point, but one thing remains clear: hiring trends will depend on how well the economy recovers from the pandemic-induced recession. As such, staying abreast of economic developments and investing in your employer brand accordingly should be top priority for employers moving forward.
By taking a proactive approach to recruiting, building a strong employer brand, and optimizing their hiring process, employers can overcome the challenge of talent scarcity. These strategies will help businesses attract top-tier talent while also reducing their recruiting costs in the long run.