Over the past few years, the fabric of global employment has changed in so many ways. One fundamental change looms the largest, however: the talent crunch.
What is it? Whether due to demographic changes or an education system unable to keep up with the rapid pace of technological development, businesses are increasingly unable to find talent with the skills they desperately need.
Indeed, a recent report says that by 2026 more than 90% of organizations globally will experience an IT skills crisis, causing $5.5 trillion of revenue loss. And it’s not just a problem for the future. Businesses are already feeling the effects.
What does the talent crunch look like on the ground?
Some 87% of organizations know they have a current skills gap or anticipate one to emerge in the next few years. An absence of skilled workers leaves businesses stuck in holding patterns, unable to innovate and grow.
It’s affecting workers too. While unemployment is at near-record lows (in the U.S., at least), job instability is high, driven partly by a skills mismatch. Only 25% of employees feel confident about the career path where they work now, suggesting that businesses are often unable to meet their staff’s career aspirations. Not ideal.
This fractured relationship between employees and their workplaces must evolve to beat the talent crunch. It’s time to find ways to bring together businesses and workers, wherever they are located.
How do businesses make work work again?
There are several ways to attack the issue.
Provide the best possible employee experience: Now that employees are seeking better opportunities from day one, the onus is on businesses to provide. With 55% of those experiencing hiring difficulties reporting competition from other employers as their top challenge, embracing flexibility is becoming a key differentiator in the hunt for talent.
That flexibility might come in the form of work hours, job sharing, or—most importantly—location. With 83% of workers worldwide now preferring a flexible, hybrid work model over full-time office or remote work, businesses hungry for talent would be wise to accommodate their wishes.
Access untapped talent pools: The obvious solution when struggling to find talent locally is to broaden the search. Businesses can start by looking internally. Upskilling and reskilling high-potential workers lets businesses create the talent they need. It’s cost-effective too. One study found 218% higher income per employee for companies with comprehensive training programs, compared to those who don’t have them.
The other place to look is beyond borders. Thanks to employer of record (EOR) solutions, global hiring is no longer the preserve of the biggest companies with the deepest pockets. Nowadays any small or midsize business can hire an accountant in Adelaide, a marketer from Manila, and a developer from Delhi.
And the more businesses embrace borderless hiring, the more we can even out the patchwork picture of talent availability that sees Paris having more than two times as many tech workers as Chicago, but not quite half as many computer programmers.
Be flexible and go global
With all these options available to entice employees and broaden the talent pool, it’s clear that the only thing holding back a solution to the talent crunch is mentality. To make work work again, these are the words employers and employees alike need to take to heart: Be flexible and go global.
Thanks to technology, career prospects and talent pools no longer need to be limited by geography. Instead of closing ourselves off, we should be opening doors. To employees. To opportunities. To the world.
Sagar Khatri is CEO and cofounder of Multiplier.
