Although the unemployment rate is at its lowest since before the COVID-19 pandemic, organizations of every size and industry are facing challenges with filling labor shortages. When positions go unfilled, workforce productivity suffers, the retained employees work longer hours and there’s increased pressure within the organization.
We wish there was just one factor contributing to the hiring challenge, but there are multiple. In this article, we’ll discuss three reasons why hiring is harder today than before and tips to help overcome each.
1. The Changing Labor Market
Due to the labor market’s major transformation in recent years, job seekers have more options than ever before. Businesses across industries are feeling the increased competition for skilled workers, as well as the difficulty of attracting and hiring top talent.
Take a look at the following labor market factors that are making hiring harder:
- The COVID-19 pandemic drove over 3 million workers to retire early. Although 1 out of 5 are likely to return to work to fight the rising cost of living, this still leaves a significant decrease in hiring talent.
- Five generations of employees are working together, all of whom have their own motivations, goals, thoughts about work, and experiences. Leaders must recognize these different generations and the need to alter recruiting efforts beyond common strategies.
- Childcare costs were high before the pandemic, and they’ve continued to increase over the past three years. According to Edsource, employees are struggling to pay for high-quality child care, which is more likely to be higher than a person’s monthly housing cost. This is driving parents and guardians to forgo a career temporarily or permanently to decrease childcare costs.
2. Major Priority Shifts for Job Seekers
Employees have always been motivated by different things in the workplace, but ‘The Great Resignation’ illuminated the major priority shifts for job seekers. Leadership tends to agree on the fact that the COVID-19 pandemic spurred this major shift and the results aren’t changing.
McKinsey’s recent research illustrates the results from employees surveyed across six countries. The research found that 40% of employees still express the thought of leaving their jobs in the next three to six months. This number remains unchanged from 2021 data. We’ve seen an increased trend in the past year of employees quitting their jobs to pursue roles in other industries, begin their own businesses, or out of necessity to care for children, relatives, and/or themselves.
Prospective employees are craving work-life balance, a respectable salary, and the opportunity to make a difference with the work they do. Since job seekers have set expectations and are aware of the changing labor market, they’re leveraging this to choose where they want to work and who they want to work for.
3. Tech Advancements And The Skills Gap
Artificial Intelligence (AI) and automation are technologies changing the nature of work. Employers are facing a “skills gap” where available workers lack the specific technical expertise required for these evolving roles. Here are some key areas where this gap is particularly pronounced:
- Data fluency: Analyzing and interpreting data is crucial across industries. Skills like data wrangling, data visualization, and familiarity with tools like SQL are in high demand.
- Cloud computing: Cloud-based platforms are rapidly becoming the norm. Familiarity with platforms like AWS, Azure, or Google Cloud Platform is a valuable asset.
- Cybersecurity: As technology advances, so do cyber threats. Understanding security best practices and being able to implement them is essential for many roles.
- Artificial intelligence (AI) and machine learning (ML): While not everyone needs to be an AI expert, a basic understanding of these technologies and how they impact different fields is becoming increasingly important.
- Programming languages: Python, Java, and Javascript are just a few of the in-demand programming languages, depending on the specific field.
The top workforce strategy that 81.2% of survey respondents said they plan to use is “investing in learning and training on the job.” If hiring is hard, then investing in your current employees by building upon their skills and knowledge can help.
How Emerge Education Can Help Your Workforce
Whether you’re facing a tough hiring market or not, making workforce development programs an anchor benefit of your organization is always a great idea. Emerge Education’s expert workforce development solutions help healthcare and higher education systems like yours upskill and reskill their workforces.
Lauren Holubec, Ed.D.
Are you ready to unleash the full potential of your workforce?
Take the first step towards transforming your organization by scheduling a meeting with our renowned workforce expert, Lauren Holubec EdD. Together, we’ll tailor a comprehensive solution to address your unique needs and empower your team to thrive in today’s ever-evolving business landscape. Don’t wait, book your meeting now and embrace a brighter future for your organization.
