Across industries, retirement percentages are on the rise, skill gaps continue to grow, and job seekers desire more flexibility and benefits in the workplace. As a result of these developments, many employers are struggling to develop strategies to cost-effectively address talent shortages to sustain qualified and productive workforces that are prepared for the future, including evolving job responsibilities.
Whether it’s by offering training programs to existing employees, hiring late-career employees, or using HR tools to conduct skills assessments and leverage electronic onboarding for new hires, upscaling is a strategic solution that can help your organization maximize internal talent, strengthen company culture, and minimize recruitment costs.
In this article, we’ll discuss how developing an upscaling strategy that includes training, culture-building and the use of HR tools can help you resolve talent shortages and focus on long-term business growth.
Causes of Talent Shortages
The COVID-19 pandemic not only impacted unemployment numbers and talent shortages, but also altered the expectations and priorities of many existing employees who were introduced to more flexible scheduling practices, opportunities for remote or hybrid work, as well as benefits like unlimited PTO, perks, and wellness offerings that prioritized individual well-being, work-life balance, and career advancement opportunities.
This change coincided with evolving attitudes about work among the Gen Z workforce, who continue to prioritize autonomy and alignment with a company’s mission and values. Gen Z job seekers are also less likely to remain in a single position or with one company for more than a decade, desiring more opportunities for internal promotion, or seeking work with a new company 134% more than in 2019. More recent data shows that the inclination to switch careers is affecting younger generations in general; specifically, over 70% of Gen Z employees and 66% of millennial employees are considering a job switch within the next twelve months.
Compounding these issues, approximately 25% of the US workforce (Baby Boomers) will retire or be retirement-eligible by 2030, leaving a major shortage of highly-skilled workers and careers that must be filled by Gen Z, millennial and Gen X employees, many of whom lack the immediate skills and experience to ensure a smooth transition. This issue affects all industries – from manufacturing to education and IT.
From the perspective of business owners, over 85% of current employers admit that they are struggling to successfully address workforce skill gaps and express concern over their ability to adapt to increasing retirement percentages, employee retention issues, and other factors that affect workforce management.
Best Practices to Address Talent Shortages
Despite the range of challenges that employers face, upscaling strategies paired with HR tools and expertise to support this process can help your organization improve employee retention, talent attraction, onboarding, and company culture to address talent shortages. We’ll explore some upscaling best practices below.
Embracing Adaptation and Flexibility
As the expectations of existing employees and new job seekers shift to prioritize flexibility and work-life balance, it’s essential to determine how your company culture and workforce management strategy can be modified to match these needs and preferences. Beyond soliciting employee feedback, it’s helpful to look at the concrete benefits and drawbacks of all of the following: on-site vs. remote/hybrid work, basic vs. comprehensive benefits packages, unlimited vs. limited PTO, scheduling flexibility, opportunities for career advancement, and many other factors that influence each employee’s decision to remain with your organization, leave for another company, or for a new hire to join your team.
As competing organizations adapt to employees’ and job seekers’ stated preferences, it’s important for your organization to distinguish itself by pairing any updated policies or strategies with the best tools and support available – whether it’s an electronic onboarding platform, intuitive payroll software that can deliver bimonthly direct deposit pay to employees, or self-service timekeeping for hourly employees. Prioritizing employee satisfaction and responding to the needs of candidates and existing employees can lead to improved recruiting, more immediate productivity from new hires, strengthened company reputation, and the long-term retention of top talent.
Especially when evaluating recruitment and hiring strategies, employers should also consider that although Baby Boomer retirement continues to impact talent shortages, one of the fastest-growing employee groups over the past 10+ years has been employees aged 65 and over, especially for part-time or specialized work. If your organization can incentivize work opportunities for late-career employees, their contributions can not only help you address immediate job vacancies, but also create the opportunities to train and mentor younger employees. New hires and/or existing employees with aspirations to occupy a position requiring specialized skills could benefit greatly from an apprenticeship with an experienced employee while maximizing the benefits of the limited hours the late-career employee has agreed to work.
Establish Training Programs and Emphasize Career Development
Issues with talent shortages can be majorly improved through the use of training programs and career development programs offered to both existing employees and new hires. This is especially true as job responsibilities for positions across industries continue to evolve. Fortunately, in addition to improved HR strategy, a number of digital tools can streamline this process. As just one example, electronic onboarding empowers employers to deliver training modules and company resources to new hires well in advance of their official Day One start, and all through a single digital platform that can be linked with payroll, benefits administration, and other HR processes. Through this platform, managers are alerted when training steps have been completed by the new hire, while the new hire enjoys 24-7 access to all modules, resources, and managerial feedback during the preboarding phase, preparing them to be fully productive on their first day and beyond. Of course, these same onboarding tools can help your organization conduct performance evaluations, specialized skills assessments, and arrange regular meetings regarding career development steps and opportunities for both existing employees and new hires.
Additionally, it’s important to consider the potential benefits of offering non-traditional skills development and training through partnerships with educational institutions, governmental bodies and other institutions that can support the training of your current employees or help you establish a talent pipeline of recent graduates from partner institutions, or other forthcoming members of the labor force. This approach has proven effective in a variety of tech industries, manufacturing, and elsewhere. In addition to helping your organization address talent shortages and skills gaps, it establishes a more meaningful connection with the wider community where you operate, boosting company reputation by forging partnerships with institutions that share similar or complementary goals.
Redefining Organizational Culture
For the upscaling strategies and tools we’ve already discussed to work effectively, a company must also invest in fostering a supportive company culture that makes the physical, psychological, and financial well-being of its employees paramount. Especially given the priorities of younger Gen Z and millennial workers and job seekers, some organizations may benefit from revisiting and redefining their organizational values and mission to encourage a shared sense of purpose across the workforce and company.
In addition to communicating these goals and values, employers must take concrete steps to utilize the tools, expertise, and support that can empower their workforce. Offering employees an intuitive payroll platform to ensure timely and accurate pay, providing comprehensive healthcare, improving transparency and communication, or providing digital or in-person training reassures employees that their well-being is prioritized, communication is open, and opportunities for advancement are consistently available.
When new hires and existing employees feel supported by their employer, and know that their work contributes meaningfully to a shared and valued goal, this can majorly improve employee retention, employee satisfaction, and improve talent acquisition through a boosted company reputation and positive testimonials from existing employees.
Upscale and Strengthen Your Workforce with The Orsus Group
Identifying talent shortages or skills gaps within your organization can actually represent a unique opportunity to introduce new HR tools and strategies that will improve employee retention, employee satisfaction, productivity, and long-term adaptation to the changes within your industry. Take the first step today to learn how the Orsus Group can help your organization bridge talent gaps and achieve sustainable growth.