Are you having trouble filling a desperately needed vacancy? Well, you are not alone. In the last few years, the labour market has changed significantly and the search for qualified skilled workers is a major challenge for companies. Especially in times of digitalisation and a shortage of skilled workers, it is becoming increasingly difficult to fill vacancies with suitable candidates, thus restraining a company’s ability to innovate and grow. In fact, according to a study by Korn Ferry, the number of unfilled positions worldwide will increase to over 85 million by 2030. This will result in unrealised annual revenues of over 8.5 trillion US dollars.
But why is that? Well, one aspect is simply demographics: By 2030, most of the "baby boomers" in developed countries will retire, leaving a (numerical) vacuum in the labor market that cannot be filled by subsequent generations with a lower birth rate. Another reason is that upcoming industry sectors require highly specialised skills - skills that are hard to find on the labour market. Essentially, this means that companies that do not invest sufficient time and resources towards finding these skilled people will face high follow-up costs, such as stalling projects, growth and excellence.
This trend is already evident in the DACH region (Germany, Austria and Switzerland). Many industries are facing skills shortages, especially in the fields of science, technology, engineering and mathematics. In Germany, for instance, a survey conducted by the German Startup Association found that nine out of ten startups currently have unfilled vacancies. A whopping 39% of the respondents expect their ability to innovate to decline in the future due to the shortage of skilled workers. This shortage will intensify in the coming years, leading to an increased war for talents, rising wages and a possible slowdown in economic growth.
New generations on the labour market
In particular, Generation Z and Alpha, who will increasingly enter the labour market in the coming years, will be affected. These generations have high expectations of their employers and are looking for meaningful and flexible working conditions.
To meet these demands, companies need to develop new strategies in recruiting and talent management. This includes, for example, a stronger focus on digital solutions and actively addressing potential applicants.
Another important factor is the promotion of diversity and inclusion in the company. A diverse workforce not only makes for a better working atmosphere, but also for greater innovative strength and greater customer orientation.
To be successful in the recruiting market, companies must therefore not only respond to the needs of the coming generations, but also react to the changes in the labour market and act flexibly. This is the only way they can attract the best possible talent for their company and be successful in the long term.
In conclusion, it can be said that companies that invest in finding talented young people can secure a long-term competitive advantage by ensuring they have a diverse and talented workforce ready to take on the challenges of the future.