Talent shortages: ‘I can’t see it getting better any time soon’

Industries have seen a shortage of skilled workers for some time now. However, as with any trend, there is usually an end in sight. Just how far away is this, though?

“I can’t see it getting better any time soon,” said Lauren Karan, director at Karan and Co.

“Let’s be honest; the power balance has shifted towards the employee. The employee has the upper hand. And I love this because it kind of tests companies to level up what they offer.”

“It won’t always be this way. We know that the market works, but we’re in the midst of a skill shortage. However, if you look at the ageing population doubling over the next few years and the lower birth rates, I can’t see it getting better any time soon. So, if an organisation isn’t adapting, that’s going to be a limiting factor.”

The test that has been put to organisations over the last few years is a testament to their resilience. However, in order to continue surviving, employers must rethink their strategies. A good example is a bespoke salary package.

“If I’m looking at where employees are having more success in hiring and what’s driving success, employers are starting to create what they call bespoke salary packages,” Ms Karan outlined.

“So instead of saying this is our employee benefits, this is what we offer, employers and a lot of clients that I’m dealing with that are agile and looking to grow, and many of them that are doubling their business over the next 12 months and successfully doing so are saying, we could offer this or we could offer this, taking it back to the individual.”

Flexibility is crucial in the post-COVID-19 workforce. Bringing this into the rewards and benefits strategy can strengthen an organisation’s attraction and retention.

Ms Karan commented: “What’s important to that individual is that you’re hiring and being flexible and agile enough as an organisation to adapt to a person’s individual circumstances. I’ve got one client, we’ve just hired a single dad. He wanted every second week of the holidays working from home. We did that for him.”

“I’ve got another one hired a commercial person, and she needed Fridays off because she wanted four days a week and had it, and we did that. These are just little tweaks. I’ve got another client that’s looking at hiring a consultant three days a week and then an up-and-coming person five days a week, hiring the consultant as a freelancer and hiring the other person full time in the office because they want to learn and they want to be mentored and grow.”

Recognising the individuality of workers and their circumstances can help keep them happy.

“It’s not a one-size-fits-all, and I think in the past, that’s what it used to be. But I think now with COVID-19, everyone’s got a taste of flexibility and an outcomes approach to managing their workload,” Ms Karan explained.

“Employees that are having the success in getting the great people are understanding that they need to look at the individual motivators and drivers of who they’re hiring.”