Is "Talent shortage" the B2B-version of "Climate change"?

The year 2023 has been a challenging one for businesses across all sectors.

Market volatility becoming the new normal, guidelines for 2024 budget being "We need you to keep growing, while cutting 20% of your investments" for market leaders or challengers alike, (massive ??) lay-offs happening at top-notch companies, change of paradigm on the start-up/scale-up economy demanding for profits, my dear FC Barcelona stuck in a hole,...

Now that I'm approaching the end of my 2nd year at Malt, that I reflect on what we've accomplished so far and what we are looking at moving forwards in terms of projects, ambitions, etc. one question came to my mind: why is the industry still so slow to embrace a revolution that is happening right in front of our eyes?

A bit like the Climate change question, while all the figures are pointing towards the same conclusion (= life for Talent Acquisition experts or leaders in 2023 is not exactly a walk in the park), while we know the problem, we see the problem, we feel the problem, the market is very slow to take drastic measures to significantly act on it.

The data are telling us that change is (urgently) needed

So, like a good activist, let me give you a few figures and arguments on why you should care and rather act now than later:

• In Belgium, the last barometer published by Manpower mentioned that 80% of Hiring managers are facing difficulties to recruit. To put things back into context, they were 14% answering the same question in 2014 (9 years ago).
• According to the latest figures from Agoria, we count 50,000 jobs with Digital/IT skills in short supply in Belgium today
• Only 8% of Belgian employees is actively looking for another opportunity. And Belgians in general are least open to change jobs
• In a recent global survey published by Unleash, Talent shortage and the lack of skills is the n°1 concern of 47% of the respondents (being HR leaders across the world)
• The first reflex of HR and Talent Acquisition managers facing this problem was very rational: let’s equip ourselves with new tools. But there again, tools are failing us, as 75% of companies nowadays are not happy with their sourcing strategy and 1 out of 3 are multiplying the tools/solutions used to crack the code
• And last but not least to crash the party: AI. It's probably too soon to measure the real impact of AI on the work industry. But there will be one, for sure: whether technology taking-away the burden of repetitive tasks to allow the human brain to focus on adding-value/deep work (my take) or Skynet/The Matrix turning humanity in batteries, companies but most of all individuals will have to adjust to what is the biggest revolution of the past 30-40 years

The paradigm has changed - you need to deal with it

The good news is: these challenges are also synonyms of opportunities.?

Opportunities for Talent Acquisition and HR leaders to rethink their strategies and embrace a new era of work. And it all starts with acceptance. We all know that "Talents have the power", especially those who attended the panel that we organized a few months ago. Now, we need to accept this new reality and adapt accordingly.

During this same panel, our industry experts and leaders identified a few insights on how to adapt to this new reality. And the most important one being: winning companies and individuals in this new working economy will be the ones who are embracing these changes and show their capacity to be as lean and as agile as possible.

How? 3 key elements:

• Adopting new, more "unconventional" methods to recruit. According to a 2022 LinkedIn report, 85% of recruiters believe that traditional hiring methods are no longer effective. And in an article published in April 2022, McKinsey & Company also highlighted the need to change the way recruitment is done, mentioning that the old "Post and Pray" strategy is not an option anymore. Talents are demanding to live a real recruitment experiences. They want/need to be farmed, hunted, convinced, etc.
• Companies that are thriving in today's market are also placing a strong emphasis on flexibility and a strong corporate culture. Younger generations are increasingly seeking work that aligns with their values and makes a positive impact on the world.
• And one last key strategy to embrace this need for agility is for companies to engage with the right talents, agnostic of the relationship with the company (employed vs freelance). Companies can stop viewing freelancers as a temporary solution and instead embrace their growing importance in the workforce (for more details on that one, I’m referring you to this brilliant article from Quentin, written 2 years ago but more valid than ever: https://medium.com/@reshaping_work/overview-of-the-european-freelance-industry-c464b2497960). This includes expanding the range of roles for which freelancers are considered and adopting a "status-agnostic" approach to hiring. And taking into account the fact that Freelancers are mostly interesting in the content of the mission more than anything else (Top 2 motivations to continue working with the same client on different types of projects: Strong working relationship - 70% // Interest of the project - 54%) and are building long-term relationships with clients (54% of freelancers do more than 1 mission with the same organisation within 2 years).

In 2024, be more agile and embrace the chaos

The year 2023 has presented both challenges and opportunities for Talent Acquisition and HR leaders. While market uncertainty and economic pressures continue to impact businesses, there is also a growing recognition of the need for a new approach to work.

By embracing the rise of freelancing, adopting new recruitment methods, and creating workplaces that foster flexibility and purpose, companies can attract and retain top talent in an increasingly competitive market.

And while the future of our industry is uncertain, stop hanging to the "good old days" or hoping for a slow-down. Instead, jump on the train, embrace chaos and make the most of the new possibilities and exciting initiatives that are popping in front of our eyes!