In 2020, the quantity of available jobs outnumbered the number of job searchers. Companies and organisations are having an even more difficult time recruiting competent workers, despite the fact that virtually every industry is failing to fill jobs. A labour shortage may have a variety of negative repercussions for firms, including restricting expansion, making operations and maintenance harder to manage, and jeopardising quality control. While there is no quick answer to the labour shortage, there are strategies that organisations may utilise to recruit personnel.
Why is there a shortage of skilled workers?
In 2019, the talent shortage hit an all-time high, with more than 70% of enterprises reporting a labour shortage issue. Positions in the skilled sectors are getting increasingly tough to fill. Scarcity is impacted by a variety of factors, such as workers who lost their employment during the crisis transferring to other industries, baby boomers retiring, and younger generations who have little interest in specialised occupations.
The Pandemic and the Economic Downturn
As a result of the Covid-19 pandemic, about 40 million people lost their employment. Thousands of small businesses, including contractors, were forced to close owing to an inability to pay their obligations. According to a survey of employees impacted by the Coronavirus, 15% were laid off as a result of the pandemic; despite the fact that one-third have returned to work and 15% have found new positions, up to half of those persons are currently jobless. Companies are experiencing trouble replacing or rehiring labour, especially specialised labour. However, tradespeople are needed to keep current infrastructures and businesses running, thus the demand for manpower and labour remains high.
Solutions to the Manpower Shortage
The business owner and organisations are in charge of resolving the labour shortage. People are becoming more imaginative in their recruiting efforts, such as providing referral incentives to current workers or offering flexible work hours to attain a better work/life balance. When firms can only raise pay so far, non-traditional incentives become increasingly important in attracting talent. Collaborations with local schools and colleges can also assist firms in becoming more active in the community. This may also be an important step in proving to younger generations the value of skilled jobs to the economy and the variety of career opportunities available.
It’s essential to understand what current and future employees are looking for in a job. You can target to right personnel who can help your business grow by upgrading your recruiting strategies. The manpower or labour shortage is not a minor issue, and there are numerous methods that may be applied to help bridge the gap. Understanding why there is a scarcity, investing in new technologies, diversifying your recruiting team, and redesigning your recruitment procedures are all things that can help. In today’s competitive job market, being an employer of choice is a challenging task. If you’re having trouble attracting and retaining talent, there are certainly multiple reasons at play, and you may also look for the manpower in Malaysia that can assist you from the inside out.