Think a Recession will fix your talent shortage? It won’t… but these tips will!

I really thought we had moved beyond the point of talking about “unprecedented times,” but as we teeter on the verge of recession and economic uncertainty, it seems we are once again in rather uncharted waters – at least from a talent perspective anyway.

According to the latest economic statistics, U.S. inflation rates are currently at 9.1% – this is a 40 year high. However, unemployment is only at 3.6%, the lowest it’s been since December 1969. In fact, there are currently over 11 million job vacancies in the US, but only 5.9 million people who are unemployed. We’ve never experienced an economy like this. Despite such lofty figures for inflation, talent is still in high-demand, and there’s one major reason for this – the skills shortage.?

The skills shortage has been reported on for years, but according to a survey of Fortune 500 leaders, it is currently the #1 threat to business success. Even as we creep into recession, companies are struggling to find (and retain) the people and skills they need to thrive. So how can we overcome this?

Leverage diversity, equity, and inclusion

It won’t come as a huge surprise, but it’s so important to remember – the best talent doesn’t always come from the most expected source. If your organization cannot find their people through conventional approaches, you MUST broaden your search. Focusing on DEI is no longer a ‘nice-to-have’ or secondary pursuit, it is a major reason why organizations are flourishing and will weather the storm of recession.?

Finding, hiring and engaging diverse talent requires a mindset shift, but if companies are willing to invest a bit of effort, they can reorient and tap underutilized sources. Look at your recruitment processes – do they alienate women or people with disabilities? Are there barriers to entry that don’t reflect the work you’re doing? Does your workplace enable ALL people to bring their best??

Don’t ignore flexibility and remote working

Earlier this year, a SocialTalent survey of over 500 HR and TA leaders found that ‘flexibility’ and ‘work-life-balance’ accounted for a combined 69% of the vote on what is keeping employees most engaged at the moment. If organizations aren’t offering hybrid solutions, then they’re going to be on the backfoot when it comes to attracting talent.?

Linda Jonas, a renowned expert on remote working, recently spoke to us on The Shortlist about this, stating that “we need to go back to the drawing board and see how everyone gets their work done best.” We all work differently and the arbitrary shackles of an office-based, 9-5 job does not guarantee success in any measure.?

Provide opportunities to upskill and develop

Hiring isn’t the only way to tackle this crisis. More and more, organizations are looking to grow their own skills – offering targeted education programs to upskill and reskill their workforce with the aim of filling urgent gaps in the business. Many large US companies like Disney, Walmart and Starbucks have set up initiatives that will cover college tuition costs for its employees. Amazon has also created over 1,500 apprenticeships in the UK, specifically designed to grow a bespoke talent pool.?

Employment and education are a natural fit. But so few organizations are thinking long term about this issue. If you’re struggling to find and retain the talent you need, surely it’s a no-brainer to focus on how you can generate and sustain it yourself?

Optimize internal mobility

Sometimes the skills you need are right under your nose. Promoting internal mobility not only helps employers plug skills gaps, it also bolsters engagement and retention. But it’s a MASSIVELY underutilized function. Recent Josh Bersin research showed that only 11% of companies actively promote a culture of internal mobility. And this is despite it being cited constantly as a major plus-point from talent.

If economic conditions continue to decline however, it’ll be the organizations who have active internal mobility programs that will flourish. An agile workforce that is enabled to grow and develop within the company is a powerful source of both stability and innovation. Look to Cisco’s ‘one company, many careers’ approach – here employees are encouraged to use an active internal jobs portal to seek out new opportunities and build skill sets.

Final word

We are on the cusp of the next recession, but with such a low unemployment rate and job vacancies at all-time highs, talent is still at a premium. So even within this economic uncertainty, the skills shortage is ensuring that TA will have to adapt their approach to snag the people they need. I think the solution lies in DEI, remote work, education and internal mobility – would you agree?