Skill shortage has become a common problem in today’s world and one that is recognized across all industries. Hiring employees is a real challenge today for companies since finding people with right skill set is not easy. This is an issue that can cause a lot of problems for the company and even hinder its growth.
A study conducted this year showed that the skill shortage gap will continue to grow on a global level and even reach 85.2 million workers by 2030. Additionally, when observed from the revenue standpoint, it will cost the industries $8 trillion if this issue is not addressed properly. However, the following strategies companies can use to remedy this and prevent future losses.
1. Change Your Recruiting Tactics
If you have trouble finding the right employee for a certain position, then maybe it’s time to reevaluate your recruitment tactics. First of all, expand the pool of applicants by taking into consideration usually overlooked demographics. Namely, veterans, people with disabilities, immigrants, older workers and women who want to work again after taking a career break.
This means you will have to look at different recruitment zones, which can make you feel insecure about this option. But just think about diversity and new experience that you will bring to the company and thus help it grow in more ways than by filling the skill shortage. Another thing you can is to follow the employees since the type of the skill shortage depends on the area as well.
This is a more extreme strategy but can prove to be effective for factories and other manufacturing industries. For example, Michigan had an excess of industry workers after the Great Recession in 2007-2009, especially in the auto industry. Now, companies are taking their manufacturing to Michigan to fill their skill shortage with high-quality workers.
2. Promote Learning
Every employee needs to be up to date with the newest trends, technologies, and practices when it comes to their skill and talent. However, as an employer, you have an obligation to promote and support learning in various ways. You can organize seminars, invite experts in a certain field to give lectures and send your employees to events regarding their profession.
Another important factor is to provide them with the best possible equipment and devices. Of course, this will require they undergo training to handle such machinery and software. Nonetheless, usually, that is the easier way to fill the skill shortage than look for new employees that fit the job requirements.
3. Develop an Internship Program
Internships are an excellent way to educate and fill in the skill shortage with students. There are two types of internships: paid and unpaid, with the latter usually more attractive to employers. But most unpaid internships offer college credit and need to fulfill stricter standards which make them more attractive to students as well.
On the other hand, a survey by the National Association of Colleges and Employers showed that 65.4% of college seniors get a job offer before graduating if they had a previously paid internship. Therefore, you can create a program or more that will cover both types of internships. That way you will gain much-needed workforce, and students will find the experience they need.
4. Support Immigration
When the employee pool has dried out locally, employers look for the skilled workers internationally. This is a common practice present since ancient times when there was constant movement of people to find better living conditions. In Ancient Rome, if foreigners had the necessary talents they were welcomed to stay.
However, today there are laws and regulations that an employer must follow before hiring a foreigner. When it comes to countries that are the best to immigrate, Australia attracts a lot of immigrants for its excellent quality of life. Canada, Finland, Norway, and Germany are also one of the most attractive destinations to move for work.
But just because these countries welcome immigrants with jobs, employers still have to follow certain protocols and procedures. Hiring an immigration lawyer in Sydney, for example, is necessary just like in the USA, no matter that Australia is a more desirable place for foreign labor. That way both the company and employee are protected by the laws and have the right for certain benefits, like health insurance.
5. Invest in Employee Education
Investing in employee education can be a costly and lengthy process, so many employers see this as a business disadvantage. However, that is a mistake since one educated employee can transfer that knowledge to others in the company.
Some jobs require PhDs and further scientific improvement in order to do the work efficiently. This means that an employee will have to dedicate a portion of their time to study, as well as to their job. But in the end, an employer will gain a skilled employee who will improve the company and help it grow.
On the other hand, helping an employee to pay for college will make them eligible for promotion. That way, you could easily fill open positions from a person who already knows how your company works.
As an employer, you need to make tough decisions every day that will help your business survive. With one or several of these strategies, you can easily skill shortage and thus minimize the gap. Some solutions will take time, others money, but usually both so look at it as an investment that will help you grow.
About the Author
Daniel Brown is a law graduate and a passionate blogger from Sydney. His areas of interest are alternative dispute resolution and its applicability in different fields of law, IP law and resolution of disputes arising from intellectual property infringement and commerce law.