Manpower says Skill Shortages will cause an Employability Crisis

The company’s recent global talent survey revealed that:

• A sixth of UK employers are struggling to fill key positions due to skill shortages
• Skill shortages have worsened since 2010 when one in eleven employers said they encountered problems
• Only 12% of employers give extra training and development to existing staff
• 46% of employers tackle the problem by widening their search beyond their local region
• Only 2% of employers believed that pay contributed to the problem
• A lack of technical skills was given as the reason for hiring difficulty by 27% of employer

The Managing Director of Manpower UK, Mark Cahill, said that “The recession, and now this slow recovery, has made the talent mismatch in the UK even starker. Many organisations that have previously cut their headcounts are now finding that they need to increase their workforce in an increasingly talent-hungry market. Though the UK suffers less than other countries, there is no doubt that globally we are heading towards an employability crisis. We need to see more companies ‘manufacturing’ the talent they need in order to support their long-term business strategy. This requires a fundamental shift in the way companies structure and organise their workforce, develop their people and incentivise talent.”

Other recruitment agencies such as Hays agree that talent shortages will become one of the biggest challenges facing organisations over the next two decades. Recently Charles Logan, a Director of Hays, said that “Talent shortages will become one of the biggest challenges facing organisations over the next two decades. So while organisations can attract and recruit from a much wider geography than ever before, which has obvious advantages when skills are in short supply, the global talent pipeline will also create serious new challenges for HR to navigate. Hiring managers will need to understand the flow of their talent pipeline, knowing why people move and what drives this movement of talent around the globe. In the context of a global jobs market, whole regions, sectors or industries will need to work hard to position themselves as attractive to international professionals. The challenge may be to manage or stem a flow away from a sector or region, creating a focus on retention and attraction.”

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