The number of open jobs in 2020 was greater than the number of job seekers. Despite the fact that nearly every industry is struggling to fill openings, companies and organisations are having an even harder time finding qualified workers. A labour shortage can have a number of negative consequences for businesses, including limiting growth, making it difficult to manage procedures and maintenance, and jeopardising quality control. While there is no easy solution to the labour crisis, there are approaches that employers may use to attract employees to their businesses.
Why Is There a Skilled Worker Shortage?
The talent shortage has reached an all-time high in 2019, more than 70% of businesses reported having a labour shortages issue. Positions in skilled jobs are becoming increasingly difficult to fill. The scarcity is influenced by a number of causes, including people who lost their jobs during the recession relocating to other industries, baby boomers retiring, and younger generations having no interest in skilled professions.
The Pandemic and the Recession
Over 40 million individuals lost their jobs as a result of the Covid-19 outbreak. Thousands of small firms, including contractors, were forced to close their businesses due to the inability to pay their debts. According to a study of workers affected by the Coronavirus, 15% of people say they were laid off as a result of the epidemic; despite one-third have returned to work and 15% have found new jobs, but as much as half of those people are currently unemployed. Companies are having difficulty replacing or rehiring manpower, particularly skilled workers. However, tradespeople are required to maintain existing infrastructures and business, thus the demand for manpower and labour remains strong.
The Solutions to Manpower Shortage
The business owner and organisations are in charge of finding a solution to the manpower shortage. People are getting more creative with recruitment, such as offering current employees referral bonuses or offering flexible work schedules to achieve a better work/life balance. Non-traditional incentives play a key role in attracting talent when corporations can only increase wages so much. Partnerships with local schools and universities can also help businesses get more involved in the community. This can also be a crucial step in demonstrating to younger generations the importance of the skilled jobs to the economy and the numerous job options available.
It’s essential to understand what current and future employees are looking for in a job. You can target to the right personnel who can help your business grow by upgrading your recruiting strategies. The manpower or labour shortage is not a minor issue, and there are numerous methods that may be applied to help bridge the gap. Understanding why there is a scarcity, investing in new technologies, diversifying your recruiting team, and redesigning your recruitment procedures are all things that can help. In today’s competitive job market, being an employer of choice is a challenging task. If you’re having trouble attracting and retaining talent, there are certainly multiple reasons at play, and you may also look for the manpower / local labour recruitment firm in Malaysia that can assist you from the inside out.