How to Deal with a Talent Shortage

The good news is that the unemployment rate has been the lowest since 2000. The downside, nearly 60% of employers struggle to fill job vacancies within 12 weeks. This trend is expected to continue for quite some time - so what does this talent shortage mean for companies? Growth is delayed or stifled, a once-held competitive edge is lost, and your best employees leave. 

Do you want numbers? By 2030, the global talent shortage could reach 85 million people, costing companies trillions in lost economic opportunity! So how do companies effectively vie for the ‘best and brightest in a talent shortage?  There are several successful ways to maintain and grow your talent pipeline.

1. Consider a good recruiting firm

Good recruiting firms have learned the tactics that were successful in a “talent surplus” environment will not yield the caliber of candidates required in a “talent shortage” environment.  A good recruiting firm has specific expertise in your industry, a successful track record, shares your sense of urgency, and provides a ‘performance clause’ – regardless if the search is retained or contingency.  For more info on choosing the best recruiter, please review the Four critical factors in choosing a recruiting firm. 

2. Partner with educational institutions

Once you’ve employed the right recruiting firm, consider the positive impact of a partnership with universities, colleges, or community colleges.  As more educational institutions are being ranked on ROI, employability, salaries, etc., they see the benefits of industry collaborations. Curriculum review, internship opportunities, and scholarships are just a few ways to build a pipeline of future employees.

3. Promote the company culture 

Candidates agree that a strong company culture ranks high in their decision to join a specific company. Culture is also critical to retention. To promote your company culture, show off your benefits, stay active on social media, showcase employee reviews, and even host community events. 

For example, 66% of full-time employees strongly believe they do not currently enjoy a work-life balance. Highlighting your company’s work-life programs, such as flex-time, health benefits, and employee perks, will help you win in recruitment and retention. “In a world where talent competition is global, star performers seek companies with values that mirror their own.”1 

4. Use employee referrals 

One often overlooked source of candidates is employee referral.  The only time you hear of this program is during new hire orientation. A 2018 survey discovered 82% of employers found employee referrals to be the best candidate source with the best ROI.  

As recruiters, we rely heavily on referrals for clients and candidates alike.  When asking for referrals, you must be prepared. Instead of asking, “Who do you know…?” and getting a response such as, “I don’t know if I think of anyone. I’ll get back to you!”  (Spoiler alert, they never get back to you with a potential referral!) Ask specific questions such as: 

• “To whom did you report?” 

• “Who was your biggest competitor (individual and company)”?

• “Who went to President’s Club?” 

• “When you left company X, who took your place?”  

These are but a few questions that will elicit a tangible response that provides a viable lead.

5. Explore new talent pools

Still want more? What about new talent pools? Tapping into diverse candidates can help to fill your talent pipeline and expand your search. For example, the largest yet most overlooked pool is our veterans/retirees.  Several organizations exist to assist veterans transitioning out of active duty, and they have an extensive talent pool.  

Have a specific need?  Perhaps someone with a Ph.D. in Regulatory Affairs and the requisite governing body credentials? Consider a consultant, as they actively maintain all certifications and are a wealth of knowledge.  Consultants are a great “on-demand” resource, especially when quality candidates are hard to find.

The talent shortage is here to stay. And to remain successful and competitive, the talent pipeline must be managed for short-, medium- and long-term growth. The strategies above will help you identify, attract, and retain the critical talent required to thrive!

1 HBR: What Great Companies Know About Culture Deidre H. Campbell DECEMBER 14, 2011