Business leaders around the world are experiencing the most severe talent crunch since 2006, found the latest survey commissioned by ManpowerGroup. Involving about 40,000 employers across 43 countries, the study revealed that almost half respondents (45 percent) are struggling to fill roles, with skilled trades workers, sales representatives and engineers the most difficult to fetch.
According to the Talent Shortage Survey, employers in Japan (89 percent), Romania (81 percent) and Taiwan (78 percent) reported the most difficulty in finding the right talents for their openings. This condition was owing to the rapidly aging populations, skills needs shift, and organisations struggle to find the right blend of technical skills and human strengths.
As the world of work is undergoing a Skills Revolution where new set of skills emerge as fast as others become obsolete, more than a quarter employer said applicants lack either hard or soft skills. Employers are increasingly placing importance on transferable soft skills as roles adapt. More than half employers said communication skills, both written and verbal, are their most valued skills, followed by collaboration and problem solving ability.
ManpowerGroup Chairman and CEO, Jonas Prising said, “With record talent shortages around the world, it’s no longer a question of simply finding talent; we need to build it. New assessments, big data and predictive performance mean employers have the best tools to identify adjacent skills, help people shift into emerging roles and create clear career paths. We know talent shortages are not going to fix themselves. Organizations need to accelerate efforts to upskill and reskill employees for the new world of work so companies succeed and people have employment security for the long term.”
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The study noted that employers in the Asia Pacific region are suffering the most acutely from talent shortages, with five of the top 10 worst affected markets in the survey: Japan, Taiwan, Hong Kong, Singapore and India. In Japan, the number of employers reporting difficulty continues to grow, currently standing at 89 percent, the highest percentage reported globally.
In Americas, Argentina is suffering from the most severe talent shortage in the region at 52 percent. In Brazil 34 percent business leaders report difficulty. Mexico faces the biggest increase in hiring difficulty, jumping from 40 percent to 50 percent since 2016. Brazil, Colombia and Argentina have experienced the greatest improvement in talent shortages since 2016. The number of U.S. employers experiencing talent shortages has grown from 32 percent in 2015 to 46 percent in 2018 – just above the global average.
Meanwhile in Europe, the Middle East and Africa (EMEA), Ireland (18 percent), the UK (19 percent) and the Netherlands (24 percent) are experiencing the least difficulty filling jobs. The worst affected markets in Europe are Romania at 81 percent, up 9 percentage points, and Bulgaria, up 6 percentage points since 2016.
With the global talent shortages are at the highest level in 12 years, ManpowerGroup is suggesting for new solutions to the growing talent problem: Build, Buy, Borrow, and Bridge.
BUILD. Invest in learning and development to grow the talent pipeline and upskill the existing and potential workforce.
BUY. In a tight labor market, go to the external market to find the best talent that cannot be built in-house in the timeframe required to fill immediate openings.
BORROW. Cultivate communities of talent inside and outside the organization including part-time, freelance, contract and temporary workers to complement existing workforce.
BRIDGE. Help people move on and move up to new roles inside or outside the organization.
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