Europe’s talent shortage: What are the solutions?

Europe’s talent shortage: What are the solutions?

Diverse approaches are key to solving this challenge

By Tom Verhoeven

Vice President, Sales, Europe, AgileOne

Even as the global economy made great strides in 2021, jobs remain unfilled. It has become an unmitigated challenge to source and retain workers. The talent shortage is predicted to reach 14.3 million in Europe, the Middle East, and Africa (EMEA) by 2030. A single solution won’t solve the unique talent challenge of each region; cultural knowledge and innovative talent solutions will be key in addressing talent shortages by country.

One innovative answer to employee retention is taking place in the Swedish city of Gothenburg. Here, some nurses are now only working six hours a day. They report that they are healthier, happier, and more productive as a result.

Of course, other EMEA countries consider similar workplace measures to attract and retain talent. We’ve examined this and other critical talent trends in the second edition of AgileOne’s series of reports on the state of the global workforce. This report, Workforce Solutions Market Overview—Building and Sustaining an Agile Workforce for the Future, provides a deeper look at the current talent shortage in the EMEA and U.S. markets.

For Europe specifically, the report highlights three big economies – the United Kingdom, Germany, and the Netherlands – discussing talent solutions and strategies that can help employers adapt to their unique talent challenges. We’d love for you to access the report here to gain a better understanding of the talent shortage and how regional/industry factors are likely to shape your own workforce in the near future.

Key trends by market

The United Kingdom’s talent shortage – facilitated by Brexit and exacerbated by COVID-19 – is the worst on record and includes 100,000 caregiver sector roles alone, unfilled. With Brexit in place, the UK can no longer easily recruit certain resources from Europe. This means companies must increasingly rely on UK citizens, who often require higher salaries. By mid-2021, UK employers were receiving an average of just six applicants for every job opening. With some cross-border recruitment options in play, it will be essential for British companies, especially those in the pharmaceutical industry where the skills gap is huge, to devise better sourcing and retention strategies such as upskilling.

Labor shortages in the Netherlands are also at a historic low, with a critical need for workers skilled in commercial driving, pharma, and technology. Employers in the Netherlands are focusing on passion and purpose over perks – and this is a direct reflection of Dutch culture. Going forward, employers can continue to address talent shortages by giving workers resources and opportunities to gain technical and digital skills.

Wrapping up our big three is Germany. The country’s federal labor agency says it must attract at least 400,000 skilled immigrants annually to keep up with demand. With Europe’s largest economy, Germany’s GDP is expected to grow by just 2.5 percent by the end of 2021 as a direct result of the pandemic and associated labor challenges. A new government was also elected in September, which contributes to uncertainty for 2022 and beyond. These factors support the case for employers to use more temp labor (contractors, contingent workers, etc.) in order to support their businesses.

Top five takeaways: What are the solutions?

Our full report provides much more detail on these challenging aspects of talent today — as well as what every company can do to make sure they are prepared to address their own talent shortages.

1.?????Consider contingent: Value and flexibility reign supreme in the contingent world. By adding this talent model to your workforce — and working with a partner like AgileOne — you can diversify your workforce strategy and be prepared for any talent demands

2.?????Look beyond your industry: There is qualified talent out there who can adapt to jobs in new industries

3.?????Reskill and upskill: Take advantage of your current workforce by giving them the opportunity to learn new skills

4.?????Keep flexing: Offer flexible work options even after the pandemic ends, recognizing that workers today expect creative options for getting their work done

5.?????Break down borders: Recruit globally where possible if the local talent pool falls short

?Want to know more? Download our second edition of the Workforce Solutions Market Overview today at: ?https://www.agile-one.com/media/3vqf20a2/workforce-solutions-market-overview.pdf