Career Insights

Talent Shortage: Definition, Causes, and Things to Prepare

Finding a job is a challenging thing. Especially since the pandemic, many companies have gone out of business, resulting in massive layoffs. Many people are increasingly finding it difficult to get the right and proper job. This is also increasingly supported by digitalization which affects the occurrence of a talent shortage.

The talent shortage phenomenon is not only a challenge for job seekers but also for many companies that are still able to survive when the pandemic strikes. This phenomenon occurs not only in Indonesia but also in various other countries in the world. If you do not prepare yourself well, this phenomenon will persist, and finding a job becomes more difficult. What is the talent shortage phenomenon like? Let’s find out here!

What is Talent Shortage?

The talent shortage is a phenomenon where companies cannot find quality talent. This means many people do not meet the requirements that companies need when opening a job. The talent shortage phenomenon has even been felt long before the pandemic occurred. Research on the emergence of a talent shortage has existed since 2014.

Many companies retain the right talent for years because they need help finding a suitable replacement. Skill mismatch is one of the factors that increase this phenomenon.

For example, a company engaged in finance opens vacancies for those who understand accounting science. However, in practice, people from other majors, such as engineering, also apply for jobs there. They need to gain the basic accounting skills required by the company.

What Causes Talent Shortage?

The causes of the talent shortage phenomenon can be various, and this has happened since the massive market fluctuations several years ago. Related research examines that the causes of talent shortages can vary by geographic area and industry.  However, one of the reasons is the increasing number of open job vacancies that must be filled immediately.

Many observers believe that post-pandemic causes of talent shortage have emerged, such as labor fatigue and depression, early retirement, and delays in school or graduation time by many people, making it increasingly difficult to find talent. Some of these things are causes of a short-term talent shortage, but it must be remembered that there are also causes that have been happening for years.

One of them is the industrial demands that must be flexible to the times. In this era of digitalization, many companies must be relevant to the present. Many industries are starting to switch to using technology so they will need the right and technology-literate talent. Many prospective workers still need to understand the development and sophistication of today’s technology.

Read More: The Reason behind Millennials and Gen Z Refusal to Be Civil Servants!

Indonesia and the Talent Shortage Phenomenon

The talent shortage phenomenon occurs in Indonesia. This has already been felt in the United States and several European countries, such as Hungary and Sweden. In Asia itself, Japan has also felt the impact of this talent shortage phenomenon. Japan once had the highest talent shortage due to weak economic growth.

Meanwhile, in America at least there was an increase in vacant job vacancies by 10.5 million compared to the last few decades, which only recorded about 3.8 million open job vacancies. Research even estimates that by 2030, there will be around 2.1 million positions that the talent cannot fill in the America for manufacturing alone.

The Key to Success Amid the Talent Shortage Phenomenon

Understanding that the talent shortage rate continues to increase yearly, many companies have anticipated it with several steps, including creating an independent talent pool and collaborating with universities and job search services to build specialized training channels.

As a job seeker, these things can be used. This means that job seekers need to consider taking specific training to increase their chances of being accepted when job vacancies open. For example, universities will offer unique training with companies that have partnered with them so that later graduates can immediately work in these companies.

Job seekers can take advantage of this facility if it is available at their college. In addition, job seekers must also be flexible with the times. Enrich the knowledge you already have to keep it relevant to changes in the related industry. For example, now that the health industry has penetrated the use of digital technology, prospective workers in the health industry must also enrich their digital knowledge.

Finding the right talent is part of a strategy to strengthen business strategy. The better the talent the company has, the company can also develop better. No need to worry if you currently need a reliable team to handle company management, including organizational leadership and HR.

Read More: Gig Economy: A New Way to Earn Money!

You can use the services of a management consultant from Skha as a solution to your business problems. Visit our services page to learn about the range of services available.

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