Due to the combined impact of the COVID-19 pandemic, growing skills gaps, increased retirement numbers, and issues with employee retention (especially among Gen Z employees), more employers are considering new strategies to address talent shortages. In some cases, existing employees need training to fulfill evolving job responsibilities, while new hires may seek more meaningful incentives to remain with an organization long-term.
Upscaling is a proven strategic solution that empowers organizations to address talent shortages effectively. Through skills assessment, targeted training programs, and the use of leading-edge technology and HR tools, organizations can successfully develop internal talent, reduce recruitment costs, and foster employee loyalty.
In this article, we’ll explore how upscaling can be leveraged to help your organization sustain a qualified and committed workforce, and how deeper investments in HR tools and culture-building can further support this process.
Why Is There a Talent Shortage?
In addition to the more glaring workforce disruptions caused by the COVID-19 pandemic, another major cause of the global talent shortage is retirement-related. Just in the United States, nearly 25% of the current workforce is comprised of Baby Boomers, who will reach or pass retirement age by 2030. This growing departure of highly-skilled workers creates a vacuum that millennial, Gen Z and younger generations of workers can not readily fill without adequate training or work experience.
This phenomenon coincides with shifting attitudes and expectations regarding work-life balance, benefits & perks, and company culture, especially among the Gen Z workforce. Generally speaking, younger employees are less inclined to remain in a single position with a single company for 10, 20, or 30 years of employment, changing jobs at a rate that is 134% higher than figures reported in 2019. More job seekers believe that their work should align with their values and interests, and that their employer should demonstrably invest in their personal growth, career development, and well-being.
Meanwhile, 87% of employers report that they are struggling to actively address skills gaps in their workforce, or are struggling to prepare for challenges based on impending retirements, recruitment challenges, dwindling employee retention, and other issues.
How to Address Talent Shortages
The issues we’ve explored all fundamentally relate to HR concerns like talent attraction, onboarding, company culture, and employee retention, all of which can be enhanced through upscaling strategies and the use of HR tools that support this process. Let’s explore some upscaling best practices that will help your organization navigate talent shortages and improve company culture, employee satisfaction, and productivity in the process.
Reimagining Work and the Workforce
Especially following shifts in work configurations (remote, hybrid, hybrid-at-will, etc.) during the COVID-19 pandemic, more employees and job seekers value flexibility in the workplace. It’s essential for organizations to thoughtfully evaluate the benefits and downsides of many “pillars” of traditional work culture: the 5-day workweek, purely in-person/on-site employment, minimal vs. comprehensive benefits & perks, scheduling protocols, unlimited vs. limited PTO, and much more. With so many organizations adapting to talent shortages by emphasizing work-life balance, unlimited PTO, a supportive company culture, and other perks to attract job seekers, your organization should strive to utilize tools and strategies that support employee experience – whether it’s self-service timekeeping, improved benefits, or transparent payroll processes and payments via direct deposit. In general, emphasizing employee satisfaction can lead to improved recruiting, greater productivity among new hires, and the long-term retention of top talent.
Employers should also emphasize flexibility when considering which employee groups to target for employment. One of the fastest-growing employee groups over the past 10-15 years has been employees aged 55-64 and 65 and above. By offering more flexible and appealing work opportunities to these late-career employees, you may also create opportunities for training and mentoring younger employees who need to become acquainted with challenging job responsibilities in an expedited way and could benefit from a structured “apprenticeship” with an experienced employee in their field or position.
Training and Career Development
Whether your organization needs to help current employees update their skills to match the shifting needs of their position, or new hires need to become well-versed in their job responsibilities before their first day of employment, it’s essential to prioritize training and career development, which includes the use of technology that streamlines the process. For instance, by using electronic onboarding, employers can use a single digital platform to deliver training modules to new hires well before their first day of employment. Along the way, managers will be notified when training steps have been completed. New hires can also enjoy access to a host of HR and employee resources so they are fully prepared for their official Day One start, facilitating early productivity and acclimation within their department or team. Onboarding tools can also be used to set up, monitor, and notate performance evaluations, skills assessments, or meetings regarding career development (for both new and existing employees).
Employers can also offer non-traditional training and skills development by partnering with governmental bodies, educational institutions, and other organizations that can support the training of existing employees or forthcoming members of the labor force. This approach not only addresses internal skills gaps and talent shortages, but connects the organization with their wider community, establishing lasting connections with partner institutions with shared or complementary goals.
Emphasizing Organizational Culture
Based on the factors we’ve already discussed, it’s imperative for employers to foster an accommodating, supportive company culture that prioritizes the physical, psychological, and financial well-being of all of its employees. Additionally, organizations should revisit and, if need be, redefine their organizational mission and values to encourage a shared sense of purpose across the entire workforce.
Beyond articulating these values and goals, employers must offer the tools, expertise, and support to put them into action. Whether it’s offering robust health benefits, providing important in-person training, or improving transparency and communication through the use of digital technologies, employee needs should be addressed in concrete and consistent ways. When existing employees and new hires feel that they are meaningfully contributing to a shared goal, and feel valued/recognized for their contributions, this can massively impact employee retention and even strengthen recruitment through positive employee testimonials and improved company reputation.
Upscale and Improve Employee Retention with Cello HR
Talent shortages and skill gaps can actually represent an opportunity to redefine and upgrade HR strategies within your organization to improve employee satisfaction, employee retention, and productivity. Take the first step today to discover how our payroll and HR solutions can help your organization overcome talent shortages and reduce recruiting costs through strategic upscaling initiatives.