Does your business have a recruitment plan? Sensible preparation could help you over the line in the dash for talent as we find ourselves in a candidate-short market.
New research by the Korn Ferry Institute predicts a major recruitment crisis with a significant future shortage of skilled workers. The study estimates that by 2030 the global talent shortage could reach 85.2 million people, costing companies trillions in lost business opportunities.
The United States financial services sector is projected to suffer the most, while European financial centres, like the UK and Germany, could struggle to retain their global positions due to the looming skilled-talent shortage.
Strategic action to address this is essential and it should start now. Business leaders who move talent acquisition to the top of their agenda will be in the best position to compete for scarce talent in the future.
In this article, I’ll be looking at what businesses can do to attract talent in a candidate-light market.
Agency recruitment isn’t always all it is cracked up to be. For a start, how can an agency know everything about your business? Deciding who should handle your recruitment isn’t an easy decision and there are pros and cons for seeking talent yourself or using an outside recruiting team that is dedicated to looking after your recruitment needs.
One of the biggest arguments for keeping recruitment in-house is to avoid huge recruitment fees. Mike Knivett, MD at Artemis Marketing, found using external agencies costly and not always successful in finding exactly the right candidate.
“We decided to bring recruitment in-house and hired a specialist on a part-time basis to help us. Since our recruitment specialist, Caroline, has been on board we have successfully recruited some amazing people who are exactly the right fit for us. Caroline has been able to work closely with us to really understand our culture and business needs.”
If you do decide to use an agency, it is a good idea to partner with one that has a high level of specialism suited to your business needs. This should at least ensure you get access to the right pool of talent. By working with the same recruiter, they can also get to know you and your business and ensure that there is a good cultural fit, in addition to having the right skills and experience.
Social media is being used like never before in the race to find talent. Building your reputation online is by far the easiest way to reach the talent pool of the future. Millennials and Gen Z will soon become the biggest cohorts in the labour market.
Both groups embrace social media as their main form of communication. Millennials tend to use Facebook and Instagram, while Gen Z also uses Instagram, they also watch YouTube and communicate via Snapchat. Be mindful though, that social media is great for communication and establishing your brand, but not always as a stand-alone job advertising media.
See more about how Millennials and Generation Z use social media here.
70% of respondents to a Global Human Capital Trends survey by Deloitte cited recruitment as a critical issue when it comes to effective growth. High rates of employee-initiated turnover, low unemployment and the accelerating adoption of automation, which is creating intense demands for technical skills that don’t exist in today’s workforce, are making the job of finding qualified talent harder.
If talent shortage predictions are true, businesses will need a robust training and development programme to teach the skills they need in business. In fact, there are already enough talent shortages across more than 500 recognised skillsets to warrant adopting a fresh approach to attracting and retaining staff.
Internal talent mobility isn’t a new idea, but it is an area that isn’t tapped enough. According to Deloitte, reskilling an internal hire can be done for as little as one-sixth of hiring an external candidate. Emphasizing internal promotions illustrates to your employees they have a future in your business. This will go a long way in addressing the talent shortage and improve staff retention.
The national apprenticeship program and levy are all designed to encourage businesses to recruit ‘out of education’ and look outside of the obvious skillsets, in order to address similar issues. Expect to see this type of strategy become central to most larger organisations growth plans in the future.
You may not realise it, but your employees are an untapped resource when it comes to finding new talent. Your employees have an established network of friends and associates. They understand your business and are in a position to filter potential recruits to you with the appropriate skills and competencies. This could be one of your best recruiting tools.
Your business will only become a magnet for talent if potential candidates hear good things about you. Salaries are no longer enough in isolation to entice the best people. Talented individuals are looking for companies with a strong and positive culture.
Things like Corporate Social Responsibility, business ethics and a caring and supportive environment are increasingly important and often mean more than salary. Wellbeing programs and robust learning and development opportunities are also on the list of must-haves that candidates are looking for in a company.
The future shortage of talent isn’t an industry-specific problem. Whatever your business, whatever the sector, you should be identifying business strengths to ensure you can attract candidates ahead of your competitors. You will, of course, also need to work hard at retention strategies too, which means an increasing focus on culture.
Ignore the recruitment problem and your business will suffer. The digital age means businesses with poor culture are being exposed like never before.
Annie Button is a Portsmouth based writer and recent graduate. Annie has written for various online and print publications, she specialises in business, Recruitment and career development’.
More articles by Annie Button
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