The Shrinking Talent Pool: How to Tackle it Strategically

MIKE WESTBURY • Aug 12, 2016

The Shrinking Talent Pool: How to Tackle it Strategically

As most employers are aware, there are prominent candidate shortages in the areas where they are needed most. Primarily in New Zealand you will find this in the IT and construction/engineering sectors. In New Zealand 51% of employers are having trouble filling jobs, but this is also a global concern with 38% of employers not being to find the right talent (ManpowerGroup Talent Shortage Survey 2015, 2016).

There is also a trickle-down effect from this shortage; over half of employers said that the talent shortage impacted their ability to meet client needs. A reduction in productivity/competitiveness was also expected, partnered with an increase in turnover and lower employee engagement. It is also expected to have an effect on innovation and creativity, with 1 in 4 concerned about these effects.

The world is faced with a lack of experienced candidates as well as a lack of candidates with the right qualifications and technical competencies. In today’s world soft skills are increasingly important; but over 10% of applicants lack professionalism, motivation, enthusiasm, and the right learning mind-set employers want (ManpowerGroup Talent Shortage Survey 2015, 2016).

This pressing need for talent has seen candidates from overseas increasingly being sourced and given offers before even arriving in the country. Firms will also be competing for the same talent and be faced with a confident candidate who knows their existing employer will be willing to put up a strong counter offer in order to retain them. What does this mean? The power is in the candidates’ hands.

So how do you go about retaining those top employees and attracting the most demanded talent when the playing field has been so evidently leveled for employers and recruiters?

Internally, employers can focus on training and development and providing employees with the right opportunities to own their career. Taking proactive measure to retain existing talent by identifying key drivers of motivation while encouraging employees to own their careers is a simple step employers can take.

Employers should also look at company culture. Firms can take action to build a winning culture and use existing employees as brand advocates in order to attract talent.

According to ManpowerGroup only 10% of employers are seeking to explore previously untapped talent pools such as part-time workers, contractors, young people, military veterans, people with disabilities, those seeking flexible work arrangements (i.e. work form home) and older workers. The key here is to adopt an agile mind-set and explore pools of untapped talent.

New Zealand struggles to have an open mind when dealing with overseas talent available to the market. By investing in this overseas talent employers will find it complements the local skills they have within their business with much needed international skills and insight. By tapping into this rich source of migrating talent New Zealand businesses can remain competitive at a global level.

Talent trends have changed, there is no questioning that, but many employers have not rethought their recruitment strategies. New people practices will give you the results you’re after, the same old same old won’t. More than one employer in five is still not pursuing any recruitment strategy to overcome talent shortages. Action is needed now.

With this in mind, what steps are you going to take to tackle the talent shortage?

Reference

ManpowerGroup Talent Shortage Survey 2015. (2016). Manpowergroup.com. Retrieved 12 August 2016, from http://www.manpowergroup.com/wps/wcm/connect/manpowergroup-en/home/thought-leadership/research-insights/talent-shortage-2015/talent+shortage+results

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