Global talent management is heavily reliant on one key factor; talent. In 2018, Korn Ferry released ‘Future of Work: The Global Talent Crunch’, a report estimating a worldwide talent deficit of 85.2 million workers by 2030. It details an impending crisis that would deeply impact industries requiring skilled workers and cost trillions of dollars in unrealized annual revenue. Almost 5 years on, it would appear that these predictions are reflected in current trends, with Manpower Group reporting that 77% of employers experience difficulty in finding skilled talent. But what does this mean for the future of global talent management and what can be done to overcome the shortage?
Why is There a Global Talent Crunch?
The current shortage of skilled talent isn’t explained by one or two simple reasons but is instead the combination of various elements.
1. A Technology Skills Gap
With technological advancements happening at such a rapid rate, the skills required of the workforce are evolving just as quickly. Emerging technology, automation and AI are only efficient when there are enough talented workers with the knowledge to operate them.
2. An Aging Population and Reduced Birth Rates
As an increasing percentage of workers reach retirement age, there are simply fewer people that are available to work. What’s more, birth rates are falling annually which means the working population is set to fall continuously, having an impact for decades to come.
3. The Long-Term Impact of the Coronavirus Pandemic
The global impact of Covid-19 has created significant challenges for workplaces including workers suffering from long-term effects of the virus, a disruption in immigration and Brexit impacting the number of migrant workers, and mental health issues. All of these are contributing to a talent shortage.
4. The Expectation of Flexibility
Following a shift in working environments during the pandemic, where many workers were able to work remotely and often to their own schedule, workers have come to expect a greater degree of flexibility. This means that retaining existing talent also comes with challenges as there is an expectation of a better work-life balance.
What Does This Mean for the Future of Global Talent Management?
A shortage of skilled workers means that those who are responsible for finding and retaining talent are under more pressure than ever. Management strategies must evolve to suit the current and future workforce climate. So, what can be done?
Align Company Culture with Current Expectations
Where there is a shortage of skills, there are many job openings, which means employees have greater choice over where they work. Positive company culture has long been an influencing factor in employee retention, but perhaps now is one of the most important times to focus on what you can offer your workers in terms of benefits, flexibility and work-life balance.
Maintain a Diverse Workforce
An inclusive, diverse workforce shouldn’t be a new priority, but it may certainly help you to find the talent you need in the future. By reducing inequalities and attracting and retaining people from diverse backgrounds, you are more likely to find skilled workers to fill your vacancies.
Invest in Training
Training existing employees is often cheaper and easier than hiring new talent, particularly during a skills shortage. By focusing on building the knowledge of your existing teams not only will you be developing the skills you need, but you will also be adding to your culture by helping employees to feel valued and inspired.
Create Hubs of Talent Around the World
Struggling to find workers with a certain skill in the UK? Looking further afield and creating an overseas hub for workers who have the skills you require could be the answer. Of course, with this comes the challenge of managing a global workforce, but the reward is filling your vacancies.