The Ultimate Guide to Understanding the Talent Crunch
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Sept. 10, 2022, 8 a.m.
The Ultimate Guide to Understanding the Talent Crunch
A global talent crisis could cost nations trillions of dollars in unrealized annual
revenues, new Korn Ferry study finds. “The talent crunch —an imminent skilled labor shortage affecting both developed and developing economies — could ultimately shift the global balance of economic power by 2030 if left unaddressed.”
What is The Talent Crunch?
The Talent Crunch is the difference between the supply of skilled labourers as compared to the demand of skilled labour in 20 developed and developing nations over next decade, potentially leading to massive workforce deficits by the year 2030.
What is driving The Talent Crunch?
- Changing Demographics
The aging population as well as a sharp decline in the global birth rate are driving labor shortages. By the year 2030, the new workforce is projected to not have the time or training to fulfill many of the positions that will be left behind by retiring baby boomers.
- Wage & Benefits Demands
Some of the largest effects of the Covid-19 Pandemic brought on extraordinary personal and professional demands. Sudden layoffs, a shift to a remote work life, homeschooling, mental and physical health struggles all contributed to the worker’s expectation to maintain a healthy work-life balance. Workers in today’s market demand greater flexibility in schedules, working from home, paid time off, and so on. The Great Resignation has shown us that many people will switch careers or industries or leave the workforce all together if these needs are not being met.
- Skill Deficits
Booming technology industry leaders have been monopolizing talent acquisition due to unparalleled growth. However, this impacts other sectors as more industries move to a digital mindset. Organizations are facing the challenge of acquiring both immediate and long-term recruits as education fails to output the demand of highly skilled workers this growth requires.
- Immigration Laws and Globalization
The tightening of immigration laws has meant a difficulty in obtaining new talent in economies with a skilled-labor shortage. The economic demands that are fueled by migrant workers have been disrupted by immigration policies enforced to control the spread of the virus.
What’s the Impact?
The overall impact of the Talent Crunch will be a global supply chain issues fuelling lower production. This in turn will lead to difficulty in business development and growth and failure to meet production and sales’ quotas, slowing down global post-pandemic recovery. There are mixed opinions on whether the talent gap directly influences the rise in inflation, however the delay in implementing emerging technologies will have a direct influence on unrealized economic output.
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