Two recent surveys, one by Challenger, Gray & Christmas, Inc and another by CareerNet, suggested that more than 80% of companies across the globe might be hiring.
Most of the companies, however, grumble about the lack of talent among applicants. Challenger, for instance, found that 70% of applicants in the US job market lack both soft and hard skills.
It also found that 43% of companies don’t get enough applicants to make feasible comparisons and 27% receive applications that don’t meet the requirements at all.
And this isn’t just in the US — in Africa, companies report that 9 out of 10 applicants are unqualified for the jobs they apply to.
Why is it so difficult to find talent?
According to Ringier One Africa Media, the main problem facing the job market is a misinterpretation of job requirements by both applicants and employers. Many employers seek unnecessary skills, applicants apply to jobs they can’t fit.
Here are other significant factors that can lead to talent shortage:
1. The millennial challenge
Since the consumer age demographic today is mainly millennials, employers must hire many ‘like-minded’ people to ensure customer satisfaction. But, millennials are complicated to hire and maintain.
Because they spent a lot of effort and money at school, most expect very high pay and work flexibility.
In addition, they want faster career advancements and companies that are tech-savvy; meaning that you’ll probably get fewer applications from millennials looking to work for the long run.
2. Fewer applicants
There are two main reasons why you can lack sufficient applicants: requiring a narrow skillset and lacking an audience for your ads.
Competency mapping candidates with a narrow skillset closes doors on others with great potential. Otherwise, you might refuse to hire experienced candidates with bad resume writing skills.
Fierce competition and wrong job Ads placement can also result in few job applicants. You may need to post your job online on a high-authority website, especially if you want to hire millennials.
Sometimes, you may need to post your job Ad on several social media platforms to capture the right audience.
3. Lack of experience
According to SHRM, the greatest pain point of HR professionals is the lack of experience amongst job seekers. It’s easier to fill a position when the majority meet the job requirements.
However, as millennials are entering the job market with modernized skillsets, employers are lacking people with traditional skills like marketing, account, and project management to replace them.
Since baby boomers are retiring fast — about 4 million highly-skilled workers a year — the need to replace them is high.
4. Culture “quirks”
Culture quirks are things that employers enforce on employees like their dress codes, reasoning, determination levels, beliefs, socialization, and manner of speaking.
While some company cultures can help to improve teamwork and productivity, they may deter different people from joining the team.
Can talent management replace HR?
Although it’s clear that something must give so employers can find talent, HR cannot be waived. It plays an integral role in the recruitment, training, developing, onboarding, and maintaining, and payment of employees.
They also analyze benefits, manage safety and risks, reduce liability issues, sustain compliance, and ensure employee satisfaction.
But you can integrate team management with HR to secure more talent and boost productivity. You can also recruit from within to save the time and money needed to recruit new employees.
That’s why many organizations are resorting to team management in efforts to curb the need for new recruitment and develop positive organizational culture.
Trends in talent management to help you find better recruits
Although salary still plays a significant role in employee satisfaction and engagement, there are other factors you may need to consider to get more applicants.
Here are top trends in companies trying to find more suitable talent for open positions:
Many businesses are trying to improve their brand image by diversifying their workforce. When done right, diversification can yield more customers and act as a legal defense.
Since brand name and image can lead to bias from job applicants. Improving both can make employees desire to work in your company; so you may get more applications.
2. Skilling, upskilling, and reskilling
It’s estimated that at least a third of the global workforce will transform to automation and AI by 2030. This requires hiring fresh talent to match the fast-developing workplace.
However, A LinkedIn survey found that companies that provide in-house training had a 53% lower churn rate.
So, the key to success might also be flexibility; and companies like Amazon, Walmart, and PwC are working to reskill their employees each year instead of waiting for them to burn out so they can replace them.
To do this, you must find jobs whose skills and competencies overlap then expose the employees to skills and experiences that’ll propel them into the new roles.
3. Management of remote workforce
The Covid-19 pandemic proved that employees are flexible to work in remote areas. Companies also resolved to test performance based on results and measurable goals rather than attendance and cultural quicks.
In addition, remote work integrates nicely with millennials who’re more accustomed to technology. You can build more systems to accommodate remote workers and gain access to talent from across the globe.
4. HR leading talent management efforts
Talent management and HR overlap a lot. For example, by reskilling current employees to fit into new positions, HR won’t hire a new recruit.
During times of crisis, HR must work with employees to bring the company back to normalcy. By researching to understand analytics in the business market, HR can learn ways to improve productivity and employee satisfaction.
They must follow trends to understand talent management; following conventional methods to hire new recruits may yield conventional results.
5. Compensating for current work conditions
For employees to improve organizational performance, they need access to well-being resources. During Covid-19 businesses that offered enhanced emotional and mental health benefits got amazing feedback from their workers.
Since individuals were unable to socialize, as usual, they needed resources for mental health and stress relief. They also need access to professional development tools, resource groups, and more.
To reduce churn and increase application rates, consider reintroducing cafeteria-style benefits where workers can choose a benefits package that best suits their needs.