Cause and solution: the talent shortage

Euro Staff Solution Cause and solution: the talent shortage

The past few years brought to the attention of the players on the labor market a new problem: the talent shortage. We already know that it does not belong to a particular industry, countries or geographical regions, but that it is a global problem. The crisis of talent tends to be no longer a crisis. It is already a state of affairs in a complex general picture with many variable elements, most of which are impossible to control.

Globally, the proportion of employers complaining that they no longer have qualified staff is close to 40%. The values are not equally divided, it is true. Countries like Japan or Peru are struggling with odds of over 80%, while Ireland is only 11%. Companies face problems both with jobs requiring qualification as well as with unskilled jobs. The causes are varied. More than one-third of employers complain of inadequate, insufficient candidates. Another third accuses the lack of professional skills of applicants. They do not even make a minimum of documentation about the industry they apply and the salary expectations are not in line with the job they are asked to do. The lack of experience and communication and communication skills endure the rest of the picture.

The main effect of the crisis of talent is the decrease in the ability to satisfy the clients. The generic causes are low productivity, low competitive products, reduced response to solving complaints from customers. Equally important are the negative effects of large staff fluctuations: decreased employee involvement, creativity, development desire, confidence in the future of the company, proactive attitudes that are so effective. All of this leads to an increase in wage costs, to the energy invested in continuing to find new solutions. However, candidates complain that they find it difficult to find work. It is of course difficult for a candidate to make a proper market analysis primarily because of the lack of a global perspective.

As previously stated, the talent crisis is not a new problem. During this time, companies and specialists have been thinking about all kinds of solutions, some new ones, others have just been developed from what already exists. At global level, the share of those willing to turn to other variants continues to fluctuate.

It has clearly started with staff practices: loyalty to existing employees and their development within the company. This is desirable in order to ensure stability and motivate staff, but overall salary costs have risen. The method has proven not to be perfect because for 3 years already, the share of employers who have turned to this strategy has fallen from 44-42% to 38% and will most likely continue to decline.

Another desirable practice is job qualification. The employer gets employees trained exactly how he needs them to be and the employee gets a new qualification. But this method takes time. Training sessions do not happen overnight, with staff not working or working at minimum capacity during this period. Even after completing the training, the employee is not 100% active, taking the time to gain experience. And there is one thing: the employer does not have the guarantee that the employee who has been educated by him will have enough time to pay back the investment. No matter how we look at things, to get to a high-performing employee, we need unsecured financial and time investment. In one word: money.


High risks

In the same situation is the training on the school benches made directly by the company. In this case, the initial benefits are exceptional for the employer who has the chance to prepare a young, fresh, active mind. The only problem is the risks are high. Guarantees that the trained pupil will engage in “trainer” after finishing the studies are minimal. In this situation, companies have to take the risk of a large percentage of financial losses from the start.

In the long run, the key solutions found by companies can have good results, but there are no guarantees. We can study the statistics from the year to come, or over 2-3 years, but for now we need solutions. Moreover, studies show that employers are not very open at global level to proposals to address or even reduce the problem of talent shortages. Only one in 20 is willing to increase basic salary or cash benefits. One in 5 offers training or additional training for existing staff and less than 5% are willing to consider employing staff with learning potential.

Help is on the way

Because the problem is not reduced to the number of vacant positions versus the number of people looking for a job, immediately and with great results there is a handy solution: the recruitment and placement agency. Basically, the agency comes in the extension of the two parties, the company and the candidate, connecting them. The agency helps the HR department of the company by excellently working with the team.

The agency is in a continuous connection with the labor market, with the needs that appear at the macro level, with the new tendencies in terms of both the employers’ demands and the needs of the candidates and negotiate correctly so that both parties meet at the point where they are thanked alike. Of the many CVs available on the market each day, they choose the right ones to interview the exact people the HR department needs. Routinely verifies, through specific methods, the skills with which candidates are present. This eliminates the risk of cosmetic resumes or of inappropriate applicants for the profile you are looking for. With the help of an agency, the HR department of the company significantly reduces the search time of the final candidates and, implicitly, the recruitment costs.

Great efforts do not always bring expected results. Sometimes a single decision is needed to change the life of a business.

Collaborating with a recruitment agency brings the right people in the right place, in a short time and at the lowest cost, allowing the company the luxury of continuing to work on staff practices with little financial impact.

It is also true that every forest has its own dryness, so if you think of a collaboration with a recruitment and employment agency, there are some aspects that you absolutely need to check before to be sure you will not have unpleasant surprises:

– Any recruiting agency is accredited by the Territorial Labour Inspectorate in the county where it is registered and can be verified

– Any payment made must be accompanied by a tax receipt

– A serious agency has a solid background, years of good work, good reviews, awards earned throughout the activity

– A solid agency is visible, serious, transparent and active

You can list your own methods to check out an agency, but remember that they have to be realistic and the results are relevant to what you want to check.

Ultimately, it also depends on the flair of each player to choose the right partners for a game where both have to win!