DECLINING BIRTH RATE + COVID IMPACT DRIVING EARLY RETIREMENT = TALENT SHORTAGE
Where did everyone go?
For businesses across the United States, locating and attracting people has become increasingly difficult. The talent pool is getting smaller as more people choose flexible professions and alternative working arrangements. Companies are becoming more inventive in their efforts to recruit people, but given the three main causes of a skills shortage, this may only be a temporary solution.
The talent shortage can be caused by a variety of factors, including:
- Declining Birth Rate
Since the Great Recession of 2007, the U.S. birth rate has declined sharply and shows little indication of turning around. (BusinessInsider.com) Fewer births mean fewer workers. If companies lack the talent they require, how can they remain competitive? Read: How to Attract & Retain Top Talent Besides Money
- Retiring Baby Boomers
According to Pew Research, baby boomers expedited their retirements in 2020, with retirements rising 13% that year. Almost 29 million baby boomers retired in the fall of 2020, or about 4 in 10 people of that generation. (CBSNews.com) As more people retire and there aren’t enough young workers to replace them, a shortage of professionals to fill key roles will continue to grow.
- Skills Gap
The supply of qualified talent is not keeping up with the amount of demand for STEM professionals. For the past 30 years, there has been a sharp increase in the need for STEM talent, an increase of nearly 80% during that time. The same is true for job seekers’ demand for on-the-job training, education, and learning in STEM-related fields. (Forbes.com)
The good news, there are strategies to address the talent shortage! Now is the time to look at long-term strategies to attract and retain a talented workforce.
Business leaders will need to get creative if they want to increase their market share and add jobs in light of the shrinking labor force. Companies may need to invest in education and training programs to develop the skills of their current employees (upskilling), as well as expand their search for talent in new regions or industries. To recruit and keep highly trained individuals, they might also need to enhance their benefit and compensation packages, offer flex schedules, or invest in cutting-edge technologies.
Need more strategies? 3 Areas That Provide a Recruiting Advantage to Attract and Retain Key IT Talent
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