In this article, Josh Bersin explains why we are entering an long term or secular labour shortage, and the factors that are contributing to this drought of talent.
Here is the article, summarised:
Why We Are Entering a Secular Labor Shortage
- Labor shortage is becoming a long-term issue in various industries.
- Key factors contributing to the labor shortage include demographic shifts, retirement of baby boomers, and reduced immigration.
- Automation and technological advancements are changing job requirements, causing skill gaps.
- The COVID-19 pandemic has disrupted labor markets and accelerated retirement plans.
- Secular labor shortages have economic implications, including reduced productivity and wage pressure.
Now what can you do about this as an employer/recruiter?
Importance of Utilising Training and Development to Retain Employees
- Addressing Skill Gaps: Training programs can help bridge skill gaps caused by technological advancements, ensuring employees remain relevant in evolving industries.
- Talent Retention: Offering development opportunities can motivate employees to stay with the company, reducing turnover.
- Productivity Boost: Well-trained employees are more efficient and contribute to higher overall productivity.
- Adaptability: A trained workforce can adapt to changing job requirements, mitigating the impact of labor shortages.
- Cost Savings: Retaining skilled employees through training is often more cost-effective than constant recruitment and onboarding.
- Competitive Advantage: Companies with a skilled and loyal workforce are better positioned to thrive in the face of labor shortages.
In summary, as the labour market faces secular shortages due to demographic shifts and technological changes, investing in training and development within a company is crucial. It helps address skill gaps, retain talent, boost productivity, enhance adaptability, save costs, and maintain a competitive edge in the evolving job landscape.
Contact us today so you can empower your workforce and create a loyal talented team! We offer countless training and development solutions, you can read about them here.