The calendar reads late June, and it wouldn’t be surprising to hear you exclaim, “Half of the year is already behind us!” It’s that phase of the year when we assess what we’ve achieved so far and, more crucially, start strategizing for what lies ahead. Forecasts of sales, budget formulations, and staffing deliberations are the norm. However, we’re not in ordinary times.
All signs suggest a robust economy that seems likely to persist. Yet, 2023 brings us a year closer to the complete retirement of the Baby Boomer Generation. As per a study conducted by the National Association of Manufacturers, The Manufacturing Institute, and Deloitte Consulting, by 2030, there could be an excess of 2.1 million jobs with not enough people to fill them. We are familiar with these figures—but the time they start affecting our industries is swiftly advancing. Many participants in the study reported a “shortage of qualified workers.” Even though the survey mainly focused on manufacturing, the general agreement is that this shortage will cross all sectors and disciplines.
Currently, we’re in a candidate-driven market, simplified as a scenario where the number of job vacancies outweighs the available workforce. At the time of penning this article, the national unemployment rate stands at 3.7%. Many would interpret this as “full employment.” With an increasing number of firms seeking to elevate their staff qualifications with degree holders, the unemployment rate for individuals with a four-year degree drops to 2.7%. Include technical, engineering, and healthcare-related degrees, and the figure dips further.
So, how do you plan to manage these imminent shortages as they start impacting your company? Here are a few aspects to consider:
- Identifying the “core” team that drives your organization
- Establishing an effective “succession plan” for these individuals
- Designing a substantial program that will efficiently retain key employees
Where will you source the personnel to execute your plan? The old saying goes—you either nurture them, or you recruit them. If you choose to nurture, the survey suggests that organizations need to:
- Invest a proportion of their total payroll in offering training opportunities for their employees
- Form partnerships with local schools and regional community and technical colleges to ensure students are adequately prepared for a future high-tech, high-performance workforce
- Endeavor to stay informed about government workforce development programs
If you choose to recruit, where will you source them from? You need access to the resources necessary to identify high-caliber individuals your organization will demand! Remember when recruiters present an MPC (Most Placeable Candidate) or talented individuals from your industry or even your competitors? When they reach out, pay attention to their insights about these individuals and what they can contribute to your company! Make time for a courtesy interview to assess if this individual could fit into your succession plan! This problem isn’t fading away, and it necessitates your proactive intervention to resolve it. Will you have the staff needed to sustain your company for the long haul? Time is of the essence!
As the year’s midpoint approaches, we extend our best wishes for a restful and rejuvenating summer holiday and a prosperous remainder of 2023. Stay safe and enjoy the company of others.
For any queries regarding this topic, don’t hesitate to reach out to me at dan@continentalsearch.com.
About the Author
Dan Simmons is the President and Founder of Continental Search. His journey started as the top recruiter for an acclaimed agency, leading him to establish his own firm in 1996. Over the years, Dan has made significant placemats, including executives at major animal feed and dairy consulting businesses.
A recipient of more than 25 awards from the Top Echelon Network, Dan became a Franchise Owner with Sanford Rose Associates in 2020, achieving a Silver Award for Continental Search in 2021. Known for his profound insights, Dan has been a keynote and guest speaker at various conferences, universities, and trade associations. You can connect with Dan on LinkedIn or drop him an email at dan@continentalsearch.com.
