By 2030, there will be a global talent shortage of over 85 million skilled workers, resulting in an estimated $8.5 trillion loss of revenue – Korn Ferry: The Future of Work.
The importance of understanding talent shortage and its implications on businesses and economies cannot be overemphasised. Talent shortages can stunt growth, innovation, and efficiency in operations. In this article, we will do a deep dive into the industries that are or will be most affected by these shortages and also discuss some potential solutions.
Table of Contents
The Talent Shortage Landscape
The global talent shortage is a pressing problem that poses significant economic challenges. About 75% of employers worldwide have reported difficulties in finding skilled talent, compared to 36% in 2014. A very steep increase!
Take a look at some of the key industries facing acute shortage of talent.:
- Technology: The demand for specialists in AI, cybersecurity, and data analytics is soaring. These are relatively new areas of tech hence the talent gap.
- Healthcare: Aging populations, workforce burnout and low remuneration have led to critical shortages of doctors, nurses and other healthcare practitioners..
- Manufacturing: There is a decline in the availability of young people in the workforce of this industry and the rise of automation is creating gaps.
- Education: There is a notable shortage of STEM and special education teachers. This is caused by high stress and low incentives.
- Financial Services: Digitalisation has created talent gaps in fintech and risk management expertise.
Industry Insights
Technology
The technology sector is grappling with a staggering 76% shortage of skilled workers. The rapid advancement of technologies such as AI and cybersecurity has outpaced the availability of qualified professionals, making it imperative for companies to invest in training programs to bridge this gap.
Healthcare
Globally, healthcare is experiencing a critical shortage of doctors, nurses and caregivers. This is mostly due to an aging population and increased burnout among existing staff. In Nigeria, there is a mass exodus of healthcare workers due to reduced opportunities for growth and low remuneration. This sector’s challenges are compounded by the need for specialised skills in areas like geriatrics and mental health.
Manufacturing
Manufacturing faces two challenges: a shrinking younger workforce willing to enter the field and the increasing automation of processes. Companies must adapt by investing in upskilling their current employees to meet evolving technological demands.
Education
The education sector on the global front is struggling with a deficit of qualified STEM teachers and special education instructors.In Nigeria, the sector faces a problem of underqualified teachers. High stress levels associated with teaching roles, coupled with inadequate incentives/remuneration, discourage potential candidates from entering this crucial profession.
Financial Services
In financial services, the fast-paced digital transformation has created significant skill gaps. There is a dire need for expertise in fintech innovations and risk management strategies to keep up with changes in the industry. The Nigerian finance industry is peculiar and requires tact. Employees are now looking to land better jobs on the global front, especially in fintech. Employers need to match up the offers of their global competitors in some way.
Common Causes of Talent Shortages
Several factors contribute to these widespread talent shortages:
- Skills Mismatch: There is often a disconnect between the skills taught in educational institutions and those required by industries.
- Limited Upskilling Opportunities: Many organizations do not provide adequate training programs to help employees acquire new skills.
- Aging Workforce: As baby boomers retire, there are not enough younger workers entering the labor market to fill the gaps.
- Remuneration Challenges: Many employers are not willing to increase the benefits package offered to their employees causing a decline in retention.
Addressing the Talent Gap
For Employers
Employers can take practical steps to mitigate talent shortages by:
- Implementing training programs that equip current employees with necessary skills through upskilling and reskilling where necessary.
- Offering a comprehensive benefits package that top talent cannot refuse.
- Adopting diverse hiring strategies to widen the talent pool.
For Governments
Governments can play a crucial role by:
- Aligning educational curricula with industry needs to ensure that graduates possess relevant skills.
- Providing incentives for companies that invest in workforce development.
For Jobseekers
Jobseekers should focus on:
- Pursuing high-demand skills through continuous learning opportunities.
- Embracing and engaging lifelong learning as a means to remain competitive in an evolving job market.
To Wrap Up
There is an urgent need for collaborative efforts among employers, governments, and job seekers to address talent shortages effectively. As industries continue to evolve, so must our strategies for attracting and retaining skilled workers. By prioritising education, training, and inclusive hiring practices, we can work towards closing the talent gap and securing a prosperous economic future.