Tackling Labour Shortages in a COVID-19 Environment
Whilst the pandemic is primarily a healthcare crisis it has nonetheless wrought significant disruption to organisations and their workforce. The European Foundation for the Improvement of Living and Working Conditions notes that 2020 brought about a decline in employment rates and working hours across Europe. On the other hand, 2021 has seen a gradual increase in economic activity and a subsequent surge in demand for talent.
Certain industries have reported that pre-existing talent shortages have worsened - most notably in the local context, being in the tourism, catering, healthcare, and the construction industries. This shortage can be attributed to several factors such as:
- A lack in migration
A drop in inward migration can be observed locally and in other European nations alike. In instances this results in a shortage of available candidates. For example, in European countries such as Germany inward migration dropped by 25% in 2020 leading to notable employee shortages in multiple sectors. In 2021, the number of foreigners working in Malta stalled for the first time since 2009 following a significant exit of thousands of workers in 2020.
- Employees shifting industries during the pandemic
As certain industries were hit by the pandemic, its employees started to seek alternative employment in alternative industries. The European Foundation for the Improvement of Living and Working Conditions notes that in Ireland, up to 30% of hospitality employees have moved to another sector. This trend has also been noted locally, where during the pandemic individuals shifted their employment from one in the most hit sectors, such as hospitality, to other sectors. It is still to be seen if such individuals will gradually shift back or if this trend will contribute towards a long term skills shortage.
As we stand in this point of uncertainty, with the brunt of the pandemic behind us and a new normal ahead of us, organisations need to refocus their efforts on mitigating and tackling the various factors resulting in talent shortages. This may be achieved by:
- 1. Leveraging Technology
- 2. Upskilling and Reskilling
- 3. Tech Up HR
- 4. A Strong Employer Brand
- 5. Enabling International Remote Working
1. Leveraging Technology
Technology has been transforming how and where work gets done even before the pandemic. It also affects how many people are required to do it.
Companies can weather the downturn brought by the crisis and the subsequent talent shortage by leveraging digitialisation and automation. This subsequently calls for a revision of their workforce strategy and future proofing their workforce. It makes both business and financial sense for organisations to ensure they are extracting the maximum possible value from their talent pool. This undoubtedly means leveraging technology to automate its routine and repeatable processes while moving it’s talent to conduct higher value work.
2. Upskilling and Reskilling
In order to overcome the current challenges, organisations ought to protect their employees and transform their jobs in line with rapidly emerging workforce requirements. The COVID-19 pandemic has accelerated changes in the digital world and it brought to the fore the discrepancy between the skills people have and those needed for their transformed jobs.
Upskilling has therefore become the indispensable response to ongoing technological advancement and organisations must continue to recognise human capital investment as an asset. They should protect the employees by taking an active role in supporting them through their reskilling and upskilling journey. By investing in their employees, organisations would be empowering their workforce with the tools to remain economically active, even if their role is impacted by any disruptive change such as digital disruption.
3. Tech Up HR
Technology can also be leveraged in the human resources space by specialised software such as application tracking systems (ATS), introducing robotic process automation (RPA), and incorporating Artificial Intelligence into an organisation’s hiring practices. However, more pertinent to the current situation, is the use of digital marketing to increase the organisation’s reach and find the best available talent.
4. A Strong Employer Brand
The pandemic and the current talent shortages have underscored the critical importance of employer branding. Employer Branding, the practice of differentiating one’s organisation in the labour market through showcasing the values, qualities and ways of working that is distinctive and promises a particular kind of employee experience. This often involves connecting the organisation’s values, people strategy and brand to be seen as an employer of choice. In today’s world of work, employer branding cannot be seen as a ‘nice to have’ due to its direct role in alleviating the effects of a talent shortage and supporting employee retention. The way organisations have dealt with the pandemic, and how it is supporting its employees during these times, can impact the employer brand significantly.
Revising your Employee Value Proposition (EVP) could also play a key in attracting a winning talent pool that will help in the future-proofing of the company.
5. Enabling International Remote Working
The pandemic catalysed the adoption of remote working and proved its viability to organisations which never had a remote workforce before. As certain talent requirements are not met locally, organisations may opt to extend remote work to individuals situated overseas. When the hiring process is bound by geographical locations, this automatically reduces the potential talent pool that could be tapped into. Enabling international remote working allows for expanding the potential list and capabilities of candidates significantly, though presents a number of practical challenges. This includes consideration regarding team integration, measuring performance and management oversight.
Conclusion
One thing is certain; the post-pandemic workforce of the most successful companies won’t look like their past or their present workforce. It will be optimised and engaged in value driven work, aided by technology across all stages from recruitment to day-to-day operations. The workforce of the future will also be creatively sourced through increased digital marketing efforts, stronger employer branding and internal mobility, and through an emphasis placed on upskilling and reskilling. The workforce emerging from the crisis may also look different from the one preceding it on a geographical aspect; in industries where talent demands are not met, organisations may look overseas for the required talent. Having witnessed first hand the effectiveness of remote work; organisations should think beyond traditional service delivery models and ways of working to truly innovate and deliver within their respective industry.
