The future of work is uncertain. Macroeconomics and geopolitics have made work environments sensitive to the slightest shifts in the labor industry.
The most recent Manpower Group talent shortage survey reported that 77% employers find it tough to find the right people for the job. The 2022 CEO Deloitte survey found that 71% of CEOs cited global labor/skill shortages as a top external business strategy challenge.
KPMG’s opinion is that this lack of talent is the most important roadblock to industries growing and innovating, and this is during a time that we’re anticipating a global recession. This is not surprising, because:
- Chronic skill gaps = slow/no development. Companies aren’t in a position to capitalize on emerging businesses
- Talent shortages also mean burnout and high turnovers for very competitive companies as existing employees are forced to take on way more work than they can cope with
- If companies don’t find talent to take on primary responsibilities, research and advancements will be impossible
- The time and resources required to find, vet, and onboard qualified candidates can and will strain HR departments and delay project timelines
Perhaps the most immediate obstacle is the intense competition for top talent, which drives up compensation demands and labor costs. This is further compounded by demographic trends, such as aging populations in certain regions, as well as educational gaps and a lack of well-defined educational pathways in key industries. Long recruitment cycles and increased employee turnover will perpetuate the skills gap. Addressing this complex issue necessitates a collaborative effort, investments in education and training, immigration reform, upskilling and reskilling initiatives, and proactive talent attraction strategies.
There are circumstances which we cannot control, like post-Covid recovery chains, Brexit, and the Ukraine situation. Fortunately, there are some we can influence. Globalized markets are part of the solution: it’s easier for multinational companies operating out of several places to adapt to sudden changes of any sort. This has also facilitated the creation of a diverse, global workforce, prompting companies to tweak their hiring practices. We notice a slow shift towards a more thoughtful and considerate way of deciding who the “right fit” is. Companies recognize the value of cross-cultural perspectives, and prioritize hiring individuals with the right expertise and experience, regardless of their location or background.
Talent acquisition managers are looking beyond The Great Resignation and Quiet Quitting to try and solve the shortage with a transformed mindset.
Psychologically, individuals –and entities – with a global mindset are more curious, receptive to new ideas, and willing to explore unfamiliar territory. This openness enables them to embrace diverse perspectives and adapt to novel situations, which is crucial in global work. Most of us assume quite wrongly that global work tends to be more complex and uncertain. The truth of global work is flexible and simple.
Let’s see why.
The Perspective of a Borderless World
Everything from economics and politics to the environment and public health transcends traditional borders. What happens in one corner of the world can have far-reaching consequences that ripple across continents. Recognizing this interdependence is crucial for addressing pressing global challenges like climate change, pandemics, and economic inequality. A borderless perspective encourages cooperation, empathy, and a shared responsibility for the well-being of our planet and its inhabitants. It reminds us that in an interconnected world, our fates are intertwined, and the solutions to complex issues often require collaborative, transnational efforts.
A region-blind mindset while team-building
One powerful approach is to be region-blind, which means placing emphasis on skills, experiences, and contributions over an individual’s geographical origin. Teams can tap into a diverse pool of talent regardless of where team members come from if we can see beyond the ‘address’ on a candidate’s biodata. When we focus on the talents, experiences, and potential of individuals, we bring together a group with a wide range of perspectives. This diversity often leads to more robust decision-making processes, innovative solutions, and adaptability.
A skills-first approach to hiring
Skills are often a better indicator of a candidate’s potential success in a role than their background or even their formal qualifications. Implementing a skills-first approach involves accurately defining the required skills for each position, conducting skill-based assessments, and utilizing tools like competency-based interviews and practical tests. This helps identify candidates who demonstrate proficiency in the specific skills needed for the job, and allows candidates to showcase their abilities regardless of their background.
Global hiring and flexibility
Global hiring offers a level of flexibility that traditional hiring methods cannot match. It makes remote and distributed work possible, accommodating individuals’ preferences for different formats of work. Embracing remote work and flexible arrangements can help companies attract and retain talent who may have unique work needs, including part-time, freelance, or project-based commitments. It gives candidates a global presence, and promotes constant upskilling and reskilling efforts.
Cost and scalability benefits of global hiring
This cost advantage extends to accessing specialized talent, as global hiring allows companies to find experts in niche fields, often at competitive rates. Additionally, global hiring enhances scalability by providing access to a larger talent pool, allowing organizations to scale their teams up or down quickly in response to changing market demands. This flexibility is particularly valuable for startups and businesses with fluctuating workloads. Remote working means reduced needs to keep a physical office running, and distributed teams help optimize resource allocation.
Conclusion
Global hiring represents a transformative shift in the way organizations source, engage, and manage talent in an increasingly interconnected world. From remote work and flexible arrangements to focusing on skill-first approaches and diversity, these trends reflect the evolving landscape of recruitment and employment. The pursuit of inclusivity and cultural sensitivity has promoted a fairer, more equitable approach to workforce management. As technology continues to advance and the world becomes more interconnected, organizations that stay attuned to these trends will be better equipped to navigate the real challenges of the talent shortage and build resilient teams capable of thriving in the modern business landscape.
