The Great People Shortage is coming, warn experts. A Korn Ferry report revealed that by 2030, there will be a global human talent shortage of more than 85 million people – roughly the population of Germany.
Wondering why that is? There are different factors at play, but one of the big ones was the pandemic and the way it disrupted the way we work while turning hybrid and remote work into mainstays. Millions of workers then quit their jobs in 2021 during The Great Resignation, which caused a reshuffle in the job market and affected some industries more than others, according to the U.S. Chamber of Commerce. Because of these shifts, some organizations are scrambling to attract and retain workers.
There are also skills gaps to consider – and they will only get bigger because of demographics. “In the United States, the majority of baby boomers will have moved out of the workforce by 2030, but younger generations will not have had the time or training to take many of the high-skilled jobs left behind,” according to Korn Ferry.
If you’re feeling alarmed, keep in mind that while you can’t control population trends, there are other things in your control as a leader. Karyn Martin, President & CEO of Interprise/Southwest Interior & Space Design, leadership expert and keynote speaker, offers an interesting perspective that you can borrow to combat some of the trends above: “The Great People Shortage is really a misnomer. There are plenty of qualified people out there, but unlike before and during the pandemic, they have the luxury of being more selective about where – and how – they work. To be more accurate, it should really be called the Shortage of Great Places To Work!” she says.
Combating The Great People Shortage
“As the CEO and de-facto hiring manager of Interprise, a mid-sized commercial interior design firm in Dallas, Texas, I think this is much more than a trend. People say that we are fortunate to have kept all of our employees during the Great Resignation, but that is because leading by listening is central to my mission,” she adds. “My best employees are routinely courted by competitors, but despite dangling much bigger salaries, they have never been poached.”
She credits her company’s unusual retention rate to the fact that she offered what her employees asked of her: “training, training and more training, an affordable, comprehensive health care plan, and an open door policy.” As she puts it, people want to have some autonomy over their work and environment. “We can no longer afford to lead by forcing top-down anecdotal procedures that have not been vetted for viability within the environment they are being deployed. At least in my experience, having the opportunity to have your opinions and ideas heard, ongoing skills training, and healthcare that is actually usable and affordable are incredibly important to most people.”
Tips to attract and retain talent in light of worker shortages
Martin says that offering some form of hybrid work is a must if you want to attract and retain talent these days. You also have to keep compensation and benefits in mind. If workers know that they can get higher pay at another company, you are not going to attract the best talent unless you offer something others don’t, she adds: “Put yourself in their shoes: What would you want? Sometimes the most compelling perks don’t actually cost the company much. If your company has critical mass, on-site (or near-site) daycare is often a big winner.”
That’s right: Even though employees expect to pay for a company daycare, having it at or very near the office can be “the tipping point that gets you the best people.” If your organization is not large enough to offset this cost, Martin suggests providing flexibility for child pick-up and drop-off in other ways.”
According to her, career advancement is also a competitive advantage when it comes to attracting and retaining talent. “The third thing for hiring managers to keep in mind is that a clear path to career advancement really does carry significant weight. Make this an important part of the interview process and you will find people ready to join your team, despite the current trends,” she says.
What job hunters should keep in mind
As a professional, The Great People Shortage sure offers benefits on the job-hunting front. But there are a few things to keep in mind if you’re tempted to switch jobs. “Professionals need to remember that the pendulum swings both ways. Sure, it’s great to have employers knocking on your door, but just a few years ago, the situation was reversed — and it probably will reverse again,” says Martin.
The best thing you can do to take advantage of the current market is to think long-term. Martin suggests aiming to work for companies that will help you develop your skills and knowledge base. Read between the lines of job offers and pay attention to company culture. “It is also important to be mindful of the prospective company’s track record. For example, how did they treat their staff during the pandemic? If they are quickly hiring massive numbers of staff to meet the current need, what will they do during the next downturn? Now is the time to pay close attention to the ethics and hiring practices of the employer you choose,” she says.
The Great People shortage is not just a buzzword – it’s a real trend with real consequences to being aware of. Whether you’re a manager looking to hire and keep the best people or professional seeking new opportunities, remember that some key principles remain the same when it comes to being a great place to work for or finding one.
