Published on 3rd June 2024
In the ever-evolving landscape of global employment, the convergence of technological advancement, demographic shifts, and changing attitudes towards work has given rise to a pressing challenge: labour shortages. As organizations grapple with finding the talent they need, it’s imperative to adopt a multifaceted strategy to bridge this gap and pave the way for a more inclusive and resilient workforce.
At the heart of this issue lies the intersection of technology and demographics. The rapid pace of technological innovation, particularly in AI, has revolutionized the way businesses operate, creating both opportunities and disruptions. However, alongside these technological advancements, demographic pressures such as an ageing population and shifting workforce dynamics are exacerbating talent shortages across the globe.
Consider the staggering statistics: from the United States to Japan, China to Europe, economies are grappling with millions of unfilled job vacancies. This shortage not only hampers economic growth but also poses significant challenges for businesses striving to remain competitive in a fast-paced, digital world. Moreover, the COVID-19 pandemic has catalyzed a reevaluation of work-life balance, with many individuals seeking greater autonomy and flexibility in their professional pursuits.
In response to these challenges, organizations must embrace innovative strategies to expand the talent pool and create more inclusive workplaces. Our research “The Work We Want” reveals that one approach is to tap into underutilized segments of the workforce, such as the long-term unemployed or individuals with disabilities.
Another strategy revealed by our survey of more than 700 senior executives across the world is to make recruitment practices more efficient, whether by making the application process more accessible (identified by 47% of the companies in our research), using new recruitment platforms to access untapped talent (33%) or reducing formal education requirements when hiring.
The third-ranked strategy is to offer specialist support to refugees and asylum seekers, many of whom are blocked by legal barriers from entering the labour market when they arrive in a new country. Facilitating well-managed work mobility is equally important to meet economic and workers’ needs. 81% percent of respondents say that increased labour migration has allowed their organisation to access talent with different and/or higher levels of skills, while 78% say that if they didn’t hire workers from abroad, they wouldn’t be able to fill vital skills gaps at their organisations.
To attract and retain under-employed worker groups and workers from other countries, businesses will need to offer more flexible working arrangements and varied opportunities. But beyond increasing availability of those arrangements, businesses also need to build more inclusive cultures that allow everyone to feel comfortable and thrive as a result.
Another critical aspect is the need to invest in upskilling and reskilling initiatives to equip workers with the tools they need to thrive in a rapidly evolving digital landscape. From harnessing the power of AI to enhancing digital literacy, ongoing training and development programs are essential to future-proofing the workforce and ensuring that individuals can adapt to emerging trends and technologies.
Addressing the missing workforce requires a collaborative effort between businesses, governments, and policymakers. As we navigate the complexities of the modern labour market, it’s clear that a one-size-fits-all approach is no longer sufficient. Employers need to pull every lever available to them in an effort to close the gaps. That means a multi-pronged approach: from the smart deployment of AI to enhance workers’ productivity, to redoubling investment in skills, to creating more inclusive work cultures, and building flexibility in working hours, location and contract type.
It is essential that policymakers wake up to the shifts in worker preferences and ensure that the full opportunities of the modern labour market can be accessed by every part of society. In the next part of our research, coming out in May, we will explore how that multi-pronged approach can help design and provide the work life we want.
First published by The Global Recruiter, May 2024
