Last week, we covered the growing issue of talent gaps within school districts across the country. As schools work to fill this talent gap, other industries are facing similar issues and staffing shortages. There have been many factors leading to the talent gap in the current job market, and their culmination has finally reached a point of no return. The compensation difference across industries has widened, which is attracting more applicants to certain sectors over others. Covid-19 has also played a large role in people leaving their current jobs, re-evaluating their career goals, or trying to make ends meet. Finally, many departments that are in need of staff cannot find people to fill the roles due to a shortage in skilled candidates. In this article, we dive into some of the major factors that are causing a talent gap in the U.S.
Many industries are currently at a crossroads as they face staffing shortages and workers demand for higher wages. According to Forbes, organizations are now attempting to manage offering new employees higher compensation while still fairly paying their current teams. This also comes at a time when budgets may still be tight for organizations leading them to prioritize their employees. With a recent push for higher compensation across the country, teams are looking to close the talent gap within their teams and will do whatever it takes to remain in operation. CNBC recently reported that hourly pay has increased by 9% over the past year. As job searchers look for their next move, fair compensation will be at the top of their list.
The pandemic undoubtedly changed the perspectives and goals of employees across the country. As people reevaluated their careers, they left their jobs in record numbers leading organizations scrambling to fill their places. Working from home and layoffs also led people to different paths in their personal and professional life. CNBC speculates additional factors that have driven nationwide labor shortages including health concerns, child care, retirement, and new career paths. As the U.S begins to open up, a shift in professional culture is visible and organizations are starting to adjust.
Organizations may miss out on valuable talent due to missing certifications and skills. While organizations should be committed to hiring the right candidate, SHRM suggested increasing your talent pool to typically “overlooked” groups of people. By having a fresh perspective when searching for new talent, you’ll find new qualities that can be just as useful in a certain department or team. Finally, investing in certification and skills training allows you to hire a less experienced individual that can be just as valuable to the organization. It may also attract more talent if they are aware of the training that is offered.
As industries begin to bounce back, filling the gaps in their organizations will be a big hurdle that they will face. Some industries are promoting incentives for people to apply to their organizations or refer their friends to apply. Other organizations are starting to offer programs that will help candidates gain the necessary certifications that they need to join a department or incentives for joining their team. As the world starts to open up post-pandemic, more people will begin searching for new roles or leave their current jobs. In order to close the talent gap, organizations should be prepared to address a few of the issues listed above so that they can build stronger teams.