Skilled labour shortage

This story of Julius, as crazy and unbelievable as it may sound, reminded me of the current situation at HR. For years, it was taken for granted that important specialists could be found relatively easily on the labour market. Sometimes it took longer, sometimes less. The risk of process interruptions due to recruitment was very low. The vast majority of companies were in "flow" when it came to carrying out their core tasks.

This has changed radically in the last one to two years. Some companies are struggling to pay wages on time because they lack HR Professionals. Others have to reduce the number of beds because there is a shortage of nursing staff. Still others are keeping their terraces closed when the weather is nice because the restaurant can't find staff.

According to x28, Switzerland's leading labour market data provider, the overall situation is currently as follows (as at 17 February 2023)

The shark in this story is the labour shortage. No one knows exactly where this has come from. There are basically two possibilities: Either no new employees are coming, or too many are leaving - or both.

During a project staffing, I suggested one of our best consultants who had just returned from maternity leave. However, a manager on the client side didn't want this consultant to work on the project as she supposedly had a different focus in life. As long as such managers are in charge, the formula will probably apply: Leaving > Coming.

On the coming side, companies need to ask themselves whether they are visible and attractive enough for new employees. Are we using the right platforms? What is our reputation in the market? How well known are we as an employer? How good are our job adverts compared to others? External factors, such as the availability of young talent for a certain profile or whether the job content is exciting enough, are difficult to influence.

On the go side, the corporate culture is probably the most important factor. Do we have a management culture that inspires employees? Do our employees receive the Appreciation they deserve from their team leaders? Is there a common "why" in the company or in the team?

However, there are also factors that are easier to influence: Do we have a clean, efficient onboarding process? Do we continuously collect feedback (experience management)? Do we offer exciting development opportunities? Do we recognise change requests quickly enough? Do we first look internally for talent that already fits the corporate culture before we advertise positions externally?

Admittedly, these are more questions than answers. However, it is difficult to find simple answers - especially not generalised or generic ones. In the long term, the shortage of skilled labour will not ease in many industries, if only because of demographic change. Every HR organisation would do well to ask itself the right questions and develop a strategy. It is also not wrong to think about a coping strategy - like Julius.