Overcoming Skills Shortage Issues & Level Up Your Business
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What is a skills shortage?
Skills shortage refers to a condition in which there are insufficient number of skilled professionals within a specific field or industry. Whether in technology, healthcare, manufacturing, or other fields, the repercussions of skill shortages are felt deeply, making organizations seek solutions for bridging this gap.Statistics on Skills Shortage Experience
In the last six years, more than 50% of the global organizations surveyed by Statista have consistently faced a skills shortage, which delayed their business growth. The decline in skills shortages observed among businesses in 2020 was believed to be caused by the disruptive effects of the coronavirus (COVID-19) pandemic. Nevertheless, by 2023, 54% of organizations continued to struggle with skills shortage, especially in the tech department.How can a Skills Shortage Occur?
Skills shortage can be caused by various factors. As stated by edyoucated, some of them may include:
- The fast pace of technological advancements might surpass the ability of educational institutions in providing individuals with the latest, sought-after skills.
- Outdated curriculum and limited educational resources can lead to a future workforce that lacks the skills required in today’s rapidly evolving job landscape.
- The globalization of the job market means that skilled workers can be recruited from around the world, which intensifies the competition for talent with in-demand skills.
It is very important to identify and address these factors to bridge the skills gap and ensure that your workforce can adapt to the evolving changes in the current digital world. The impact of ignoring these factors is significant, as it may result in rising employee costs, reduced productivity, hiring challenges, and competitively disadvantaged.
Ways to Overcome Skills Shortage Issue
Now that we’ve identified the causes and risks behind the skills shortage, how can you overcome this skills shortage issue? To help you out, we’ve compiled some key strategies from Morgan Hunt, tietalent, and randstad, in a way that would be relevant to your business and the digital landscape, which are:-
1. Embrace Modern Hiring Solutions
Adapting to the digital landscape isn’t limited to your sales operation, but also your hiring methods. Solely relying on traditional ways to acquire talents is simply not effective anymore. Some examples of modern hiring solutions would be hiring through talent acquisition platforms and digital job postings. 2. Invest in upskilling
To address the shortage of skilled workers, many companies are providing training to their current employees to fill skill gaps. Some offer external training, which may be costly but ensures industry-standard skills are met. Smaller companies may find it challenging to afford external training but could instead practice in-house training, where knowledgeable employees would share with others their valuable expertise. This should lead to enhanced capabilities and increased performance.
Fun Fact: Take our clients as an example. With eduCLaaS Enterprise ClaaS@Work, we have successfully helped businesses in elevating their teams with the latest digital skills and capabilities, generating tangible results in the span of 90 days (approx. 3 months)!3. Consider using contingent workers
Contingent workers provide flexibility and quick solutions which fit various timeframes and budgets. However, note that overreliance on them may hinder long-term growth, as it doesn’t address the underlying causes of skills gaps. Which is why you should only consider contingent workers in urgent situations and ideally in non-frequent business projects.4. Create a diverse workforce
Creating diversity in your workforce can increase creativity and productivity in the workplace. Recruiting a workforce with a diverse set of skills, attributes, backgrounds and experiences extends your company’s talent pool, which can ultimately improve hiring outcomes.
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Conclusion
The impact of skills shortages across various industries highlights the critical need for businesses to proactively address this issue, especially with over half of global organizations experiencing skills shortage in recent years. Understanding the causes of skills shortage is important to implement effective strategies to bridge them, enabling your business to navigate the demands of the digital age successfully. Ignoring this issue poses a lot of risks. Therefore, putting in efforts to identify and act based on these factors is essential for long-term success in today’s dynamic business landscape.
To ensure your business stays ahead, book a 1:1 digitalization consultation today and start implementing effective solutions to overcome skills shortages.
