Everyday news feeds tell us about companies downsizing and AI replacing jobs, so many question if the talent shortage is real or imagined. The answer is – It’s real. It’s significant. It’s impacting. It’s across all industries. No one appears to be immune. Hiring great people has always had its challenges but it is becoming more acute and there are number of reasons. Highly skilled people are retiring and exiting their areas of speciality. Many people do not have the skills to step into these roles. AI has made lots of inroads but it hasn’t replaced roles in many key areas. Many people now prioritise work life balance which can include flexibility or remote work options.
So what can we as employers do to respond to this workforce shortfall?
- Security is a big driver. People want to feel confident that margin squeezes and maximising shareholder returns do not mean headcount reductions. Large scale redundancies creates an environment of instability and insecurity often resulting in high performers moving on too.
- Promoting being a people first company cannot be viewed as rhetorical – it must be real and easily demonstrated.
- Businesses need to validate that they invest in their good people and work hard to retain and develop them.
- Redesign responsibilities to best leverage AI can create both meaningful and productive work for people.
- Parents want some flexibilityso offer part-time work or flexible work—in terms of where, when and how work gets done.
- To reduce the brain-drain of aging workers leaving the workforce, offer plenty of options for them to stay with reduced hours, flexible models or contractor status.
- For those who may not need to work, offer a compelling sense of purpose and meaning. Sometimes people want more from work than their salary.
- Bring in temp help when key people are showing burn out signs – preferably before this happens.
- Less skills-based hiring and more focus on attitude, growth mindset and cultural fit. The 100% candidate is rare and skills can often be taught through training but core behavioural traits such as adaptability, coachability and motivation are much harder to change.
- Don’t delay. Top people frequently receive multiple job offers. When you meet the right person and all the due diligence has been done move quickly.