Identifying the single most critical issue in staffing is quite difficult, as different companies in different industries face unique challenges depending on their context. However, there are several major issues currently impacting most companies, and their relative importance can vary based on specific circumstances. Ask a company “What’s your problem?” and you’re likely to hear any one of these as an answer:
Talent shortage
A shortage of qualified candidates for open positions is a widespread concern across many industries. This can be due to various factors like the skills gap, demographic shifts, and increased competition for top talent. This issue is even more pronounced in the high-tech sector, where individuals with the requisite education and skills are fewer and further between.
High employee turnover
The “Great Resignation” trend has led to significantly higher turnover rates, causing companies to grapple with replacing valuable employees and experiencing decreased productivity and morale. Economic factors play a role here, too, as companies shift, downsize, and continue to outsource to cut costs. According to SHRM research, replacing technical employees can cost 100% to 150% of their annual salary.
Changing employee expectations
The pandemic and evolving employee demographics have shifted worker priorities. Factors like work-life balance, flexibility, and purpose play a larger role in job satisfaction and talent attraction. Companies need to adapt their offerings and workplace culture to meet these evolving expectations.
Cost of hiring and training
The overall cost of recruiting, onboarding, and training new employees has risen significantly. This puts pressure on budgets, and adds to the challenges of managing staffing needs efficiently.
Technological advancements and skills gap
Rapid technological advancements require companies to find talent with the right skills to adapt and innovate. The rise of AI isn’t just about replacing workers with AI. It also includes being able to hire individuals with the skill set necessary to harness AI. This can be challenging, as existing education systems may not be keeping pace with evolving technological needs.
What Can a Company Do?
Ultimately, the answer to the “what’s your problem” question for a particular company will depend on the specific industry, size, location, and culture. However, by understanding the common challenges affecting staffing in today’s landscape, companies can better assess their priorities and develop strategies to attract, retain, and engage their workforce effectively. Working with partners who possess skill and experience in addressing these challenges is a critical success factor. Whether you need a robust onboarding and training program or a concise, replicable hiring process fits the bill, leveraging outside expertise may be the secret to unlocking your company’s full potential. Reach out to us today and let’s see what we can do together.
