A survey conducted by the CBI (Confederation of British Industry) discusses how labor shortages hamper organizational growth. According to the CBI/Pertemps Employment Trends Survey, 38% of businesses reported that labor shortages are a significant factor restraining their expansion.
Key findings from the survey indicate that businesses are struggling to find and retain talent –
Labor Shortages- Nearly 4 out of 10 companies (38%) are experiencing labor shortages, indicating a pervasive issue across various industries. This shortage is affecting both large and small enterprises.
Impact on Growth – Labor shortages are hindering companies’ growth ambitions. The inability to find and keep the right workforce is a critical concern.
Recruitment Challenges – Hiring suitable candidates has become more challenging, with a shortage of candidates posing significant difficulties. The competition to attract talent is fierce.
Retention Issues – Businesses are also struggling to retain their existing employees. The high demand for skilled workers gives employees more options, making retention a challenge.
Skills Mismatch – There is a notable discrepancy between the skills needed and the skills available in the labor market. This disparity is further fueling the labor shortage issue.
The CBI emphasizes the importance of addressing these labor shortages. Here are a few strategies that recruiters, employers, and HR teams could consider to boost organizational growth –
Training and Development – Focusing on upskilling and reskilling employees can help bridge the skills gap and reduce the impact of labor shortages.
Attracting Talent – Employers should work on employer branding and offer competitive remuneration and benefits to attract the best talent.
Diversity and Inclusion – Encouraging diversity and inclusion can broaden the pool of potential candidates, ensuring a more inclusive and productive workforce.
Adapting to Remote Work – The survey shows that remote work is now more accepted, making it possible to tap into a broader talent pool and address labor shortages.
Government Support – Businesses are calling for government support in the form of practical solutions and training incentives to help address labor shortages.
In conclusion, labor shortages are a significant challenge for businesses, impeding their growth prospects. Companies need to focus on the above-mentioned strategies to overcome this obstacle. Government intervention and support are also essential in addressing this issue and ensuring that businesses can access the workforce they need to thrive.
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ABOUT THE AUTHOR
Jody Ordioni is the author of “The Talent Brand.” In her role as Founder and Chief Brand Officer of Brandemix, she leads the firm in creating brand-aligned talent communications that connect employees to cultures, companies, and business goals. She engages with HR professionals and corporate teams on how to build and promote talent brands, and implement best-practice talent acquisition and engagement strategies across all media and platforms. She has been named a "recruitment thought leader to follow" and her mission is to integrate marketing, human resources, internal communications, and social media to foster a seamless brand experience through the employee lifecycle.
