Guidance for solving the worldwide labour shortage of today
Supply chain disruptions and the continuous global labour shortage are two of the main problems facing today’s businesses. In fact, according to recent studies, 87% of companies worldwide are either presently struggling to find the talent they need or expect to in the future. Why is there a lack of labour? This question has a very complicated answer.
Today’s talent scarcity is undoubtedly influenced by the ageing of the world’s population, employees’ desire for higher earnings, and the rising demand for tech-related talents. A further important element is COVID-19. The global epidemic didn’t cause the labour shortage, but it helped speed it up.
It’s critical to put a plan in place as soon as possible to address these issues and surpass your rivals. We have created a list of 11 tactics to assist you in this process and address the workforce shortage.
1. Spend money on staff education
Whether you like it or not, the labour shortage and the skills gap are not likely to go away very soon. In fact, it’s quite likely that the skills gap and labour deficit will continue to widen at least through the end of the decade.
For instance, the McKinsey Global Institute forecasted in 2017 that by 2030, up to 375 million employees worldwide may need to shift their employment and learn new skills. This firm acknowledges that by 2030, there will be a further 25% more workers without jobs due to the pandemic. It’s likely that your business won’t be able to acquire the essential tech-related skills through recruitment efforts alone as automation and technology continue to improve.
It’s likely that your business won’t be able to acquire the essential tech-related skills through recruitment efforts alone as automation and technology continue to improve. The greatest solution to this issue is to make an investment in giving your current employees the skills your business requires. Your organisation can gain the exact skills it needs to integrate emerging technology by upskilling and reskilling your current personnel.
2. Make use of HR technologies
According to studies, 46% of businesses worldwide are currently employing an HR SaaS platform. The moment is now if your business hasn’t yet made this kind of investment or if you haven’t updated your HR IT solutions in a while.
By automatically sorting through applications, sending automated responses to candidates, employing AI for candidate matching, automating the reference checking process, and conducting video interviews, among other things, the proper technology may enhance your recruitment procedures. For instance, our Concepts Groups tech stack may help with reference verification, the talent search process, and predictive career opportunities.
Additionally, HR technology can help with worker management and enhance internal communication. Your business may boost its recruitment and employee retention efforts by making the most of HR technology.
3. Employ novice employees
Companies must concentrate on internal training because it is getting harder and harder to acquire skilled workers. In the end, the candidates your firm requires will change because of the switch to internal training. Your organisation should look for applicants you can train rather than just those who possess the talents you are looking for.
Start by looking for applicants that have the necessary soft skills that suggest they will be successful learners, such as problem-solving, adaptability, critical thinking, and communication abilities. Enlarging your talent pool overall by lowering your candidate requirements will also help you hire people who can advance the business.
4. Create a competitive salary and benefits package
It’s critical to create a competitive remuneration package that complements the company’s EVP. If it has been more than a year since your organisation last reviewed employee pay and benefits, it is time to do so. Since so much has changed since the pandemic, it’s imperative to make sure your pay packages are still appealing. Furthermore, both workers in developed and emerging nations are being impacted by global inflation. It makes sense that workers would want their pay to increase along with inflation.
For instance, considerable pay rises were observed in many countries. Pay rises were also observed in fields like manufacturing, logistics, healthcare, and hospitality that are experiencing severe labour shortages. To assist you make the necessary modifications, foreign worker recruitment agencies like Concepts Groups undertake salary research across markets.
Additionally, you must modify your benefits programme to suit the changing demands of your workforce. Your business may differentiate itself from the competition and draw in the talent it needs by developing a benefits package that emphasises the expectations of today’s workers.
5. Flexible Employment Strategies
According to studies, more than 3 out of 4 firms now deploy flexible employment strategies like contingent or temporary labour. As the skills gap widens in the next years, this demand is only predicted to grow. However, using contingent workers has several advantages. For instance, using contingent workers enables your business to adjust its labour size to match changing production demands. Leveraging a contingent labour effectively can boost output and reduce costs for your business.
The key to managing a group of contingent workers effectively is to have a plan in place. The hiring, training, and scheduling of contingent workers’ shifts should all follow a set procedure. Concepts Groups can give your business the continuing support it needs because we have years of experience managing contingent employees.
6. Workplace Engagement
Many firms are placing a high priority on employee retention because the current labour scarcity is anticipated to persist for the foreseeable future. This technique aims to lower internal turnover so that there are fewer open positions to fill. A survey found that highly engaged businesses see a 59% reduced rate of employee turnover.
Workplace engagement is believed to be increased through strategies including a recognition and incentives programme, frequent check-ins, empathy, and strong, open communication. Creating a solid plan for employee satisfaction can not only raise retention rates but also decrease absenteeism and boost profitability.
7. Collaborate with a HR specialist or recruitment agency
Partnering with an HR solutions provider or foreign worker agency in Malaysia can give your business extra support in acquiring and retaining the people it needs to bounce back and advance in a post-pandemic market.
For instance, Concepts Groups may provide your business with immediate access to our sizable database of pre-screened foreign workers and assist you in searching through this pool of prospects to identify those who meet your predetermined criteria. We can even manage the talent management process for businesses with a big volume of employees to enhance employee engagement, training, and communication at work.