Navigating the New Normal of Talent Shortages

As talent shortages persist across industries, an increasing number of employers are grappling with the need to adapt to the “new normal” to address this challenge effectively.

HR departments are encountering a significant shift in which they find themselves dealing with an inadequate number of candidates or insufficient resources (e.g., budget and staffing) to meet the high demand for candidates. In certain scenarios, these professionals are facing both issues at the same time.

In an uncertain hiring market, employers should focus on what they can control: their strategy. To combat the new normal of talent shortages, HR departments should consider these common strategies:

• Prioritize skills-based hiring. While specific qualifications may be valuable for some roles, employers may consider candidates based on desired skills instead of experience or education.
• Hire for cultural fit. Employers can hire eager candidates who are an excellent cultural fit and train them on specific skills or tasks later.
• Support internal mobility. Many employees are willing to transition to job roles within the organization for higher compensation, better work-life balance, or new learning opportunities.
• Focus on retention. Championing current employee skills can help workers feel valued and appreciated, increasing their chances of staying at the company.
• Leverage technology. HR professionals can automate complicated, time-consuming operations by using artificial intelligence and robotic assistance.

Talent shortages aren’t going away anytime soon, so employers will have to continue pursuing creative ways to do more with the resources they have. Contact us today for additional attraction and retention resources.

IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information. This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.