The Perfect Storm: Talent Gap Looms as the Global Economy Improves

The Perfect Storm: Talent Gap Looms as the Global Economy Improves

There is a flip side to every situation, even the welcome improvement in the global economy–which shows signs of having now begun. Years of cutbacks in hiring and staffing have resulted in a widening gap between the number of jobs open and the talent to fill them. This gap will be felt sharply in the US as Baby Boomers, the largest generation in history, approach retirement, with many fewer younger workers coming up to replace them.

The problem is not limited to this country. According to a worldwide survey of senior managers conducted by The Economist magazine, trust in companies has been eroded by the layoffs and cutbacks of recent years. To restore it, companies must earn back workers’ trust by putting employees first. Should they fail to do so, they risk losing the race to attract talent and will pay for their negligence with sustained underperformance as the global economy recovers.

The survey showed that:

  • 41% of respondents said there was a shortage of talent in their company.
  • 44% of executives surveyed said they find it getting ever harder to recruit talented employees.
  • 29% of business executives said that they expect to lose key people as talent demand grows.
  • 50% of respondents plan to increase their recruitment efforts.

Not only did executives find that companies needed to expend more energy on both retaining their best people and attracting new employees, but that they needed to reexamine and improve their talent management strategies. Low recruitment coupled with the lower trust in their company felt by mid-level employees create what may be termed “a perfect storm”. High quality and experienced workers are headed out the door (via retirement or for better job opportunities available as the employment situation gets better) and new talent is not being recruited to replace them.

Let Peoplelink Staffing help your company navigate the troubled waters of this perfect storm.