To understand where the employment market is heading, it helps to understand some of the main factors that got us here in the first place. Since the problem of the current talent shortage is not clear-cut, there’s no singular cause. And just like the cause, the solutions can vary as well. Here are some of the top factors that are driving the current shortage of quality talent.

The Older Workforce Is Retiring in Droves 

Everyone likes to point out how Baby Boomers are retiring at a rate of two workers to every new worker that joins the workforce. On just a numbers basis, that is alarming. But one crucial characteristic of this shift—and one that not many people seem to be talking about—is, that it’s not just the older workers who are retiring, it’s the habits and values of the older generation that are also beginning to sunset.

 The Baby Boomer workforce is often described as “workaholics,” and are more familiar with the notion of “paying their dues” with longer work weeks, rigid 9-5 schedules, and even unpaid overtime. Older workers are more inclined to define themselves by their professional accomplishments and the sacrifices they made to get where they are. But times change, and values shift. And adjusting to those changes can come with some growing pains.

New Needs, New Expectations 

To suggest that younger generations have a different perspective about the work/life balance of their predecessors is an understatement. For many years, employers had grown comfortable with a workforce that was more willing to overwork themselves. This might be one of the main reasons many employers have been reluctant to understand or adjust to the needs and expectations of younger workers.

That is, until the pandemic hit. During the economic shutdown, the differences between workers and their employers, not to mention the pent-up frustrations between the two, became shockingly evident. What before was reserved to disgruntled rumblings about lazy and entitled young workers became much more pointed. Some even blamed the worker shortage on young workers who wanted everything either handed to them or gotten the easy way. Many went as far to suggest young workers had lost their work ethic altogether, that they’ve lost an inherent commitment to the workplace or their employer.

 This cold war seemed to reach a climax when many states, blaming an additional $300 per month in unemployment benefits (which fits right into their notion of a lazy and entitled workforce), ended higher unemployment insurance early. And when the expected rush of returns to the workforce never materialized, workers and employers have been in a wary truce ever since.

Prime Conditions for a Phenomenon

It’s not hard to imagine how, during this miscalculation and disgruntled acceptance of the younger workforce, job seekers might be unenthusiastic about their prospects with employers who they perceive are slow or reluctant to update their recruiting and retention strategies. This may explain something incredible that’s happening in this job market.

Many employers who understand the needs and expectations of younger workers have taken measures to adjust their recruiting and worker retention strategy. Such as:
 Delivering an outstanding candidate experience from new applicants to prospective employees.
 Transforming their onboarding strategy to include better training, access to technology, and other support as indicated by the new hire.
 Adjusting their salaries and benefits to become not just competitive in the market but highly attractive.

• Adapting to more employee-informed procedures for communication and transparency.
•  Instituting a more regular pattern of check-ins, including clear and helpful reviews and competitive merit increases for wages.
•  In getting on board with the evolving needs and expectations of younger workers, many employers have been doing very well for themselves. It began with employers recognizing that today’s workforce doesn’t want more for working less. They just want something different. Many employers are discovering that, properly motivated, younger employees are just as capable and hardworking as the older generations.
  

Shifting Priorities Make The Talent Shortage Even More Challenging

There are fewer job seekers on the market. And the shifting needs and values of those job seekers is making it even more challenging for employers to attract candidates. But the situation is not nearly as dire as you’d think. Today’s job seekers are looking for something different. And the key to attracting the best talent is knowing what matters most to them. So, what do younger workers want? Maybe some of this might sound familiar: More time with their families. Employers that use new technologies efficiently, with a top-down rate of participation. A focus on working smarter, not harder. Less time spent commuting. A more diverse workforce with wider perspectives that could make businesses more dynamic, profitable, and maybe even recession-proof. More flexible schedules to help maintain a work/life balance. Real, meaningful change. And there’s no faking it either. Many employers have tried by offering vague commitments to supporting their employee’s needs or in creating more DE&I initiatives but offer little or nothing in terms of meaningful change. These employers often experience poor reviews on sites like Glassdoor that can possibly damage their employer brand and further complicate their recruiting strategy.

More Good News: Harvey Nash USA Can Help

Are you ready to hire the talent you need? We can help you evolve your recruiting and retention strategy. With our predictive-staffing model combined with our unmatched ability to pair employers with the talent that’s right for them, we’ve set ourselves apart in the tech staffing industry. If you want to learn more about recruiting, even during a perceived worker shortage, contact Harvey Nash USA today.