In recent years, the fabric of global employment has changed beyond recognition. First came the pandemic and the associated rise of remote and hybrid work. Now comes increasingly powerful artificial intelligence, with promises of empowering employees to do more with less. Overshadowing these developments, however, is a deeper, more fundamental change: the talent crunch.
Back in 2018, Korn Ferry predicted that by 2030 more than 85 million jobs could go unfilled because there aren’t enough skilled people to take them. That would in turn lead to a cataclysmic $8.5 trillion in unrealized annual revenues.
Since that study came out, the outlook hasn’t improved. A brand new report from IDC says that by 2026 more than 90% of organizations worldwide will experience an IT skills crisis, causing $5.5 trillion of revenue loss. With business forced into holding patterns, unable to source the talent they desperately need, it’s becoming clearer than ever that work no longer works. And workers are beginning to take note.
Employers and employees are evolving
Whether employees are actively aware of the talent crunch or not, there’s a general atmosphere of restlessness in workers. Only one in four employees is confident about their career path at their current organization, for instance, suggesting that businesses are not meeting the career aspirations of their staff. Alongside that, 83% of workers now prefer a flexible, hybrid work model over being full-time in the office or full-time remote.
In the face of these behavioral revolutions, workplaces have had no choice but to change in order to accommodate them. With workers no longer keen on being in offices full time, four in 10 fortune 500 companies planned to reduce their real estate footprint in 2023.
And to boost retention, companies, to their credit, are making larger investments in the employee experience. Indeed, half of HR leaders are planning to increase their HR technology budget in 2024.
But these are baby steps. The relationship between employees and their workplaces must continue to evolve if the talent crunch is to be beaten. At the forefront of this change are new technologies, arising to bring together businesses and workers, wherever they are located.
How do businesses make work work again?
This is where Multiplier comes in. We offer a gateway of opportunity that helps businesses ripe with opportunity employ talent ripe with potential, no matter where they are in the world.
Technology has brought down the cost of transaction, making global employees available to businesses of all sizes. With an employer of record like Multiplier acting in your stead, you no longer have to deal with the bureaucratic and compliance challenges of employment in unfamiliar markets.
This is not just a nice-to-have. We believe thriving in the modern world of work requires businesses to embrace a global mindset, for two key reasons.
Access untapped talent pools
The obvious solution when struggling to find talent locally is to look further afield. Going global means evening out a patchwork picture of talent availability that sees Paris having more than twice as many technology workers as Chicago, but less than half as many computer programmers.
Provide the best possible employee experience
Now that employees are seeking better opportunities from day one, businesses need to match their expectations. 55% of those experiencing hiring difficulties report competition from other employers as being their top challenge. By embracing flexibility in where employees work, businesses can offer a better experience than competitors.
What does this mean for businesses?
With global employment now at the fingertips of so many, there are countless reasons for businesses to go global. But these might well differ from region to region. Let’s take Canada as an example.
Beat the brain drain
First and foremost, global employment is about beating the talent crunch and accessing previously untapped talent pools. That’s true anywhere, but for Canada it’s an even more significant imperative. Canada’s talent shortages are exacerbated by an ongoing brain drain, which means the country is losing 7% of its workforce to the United States annually. Hiring outside the country plugs that drain.
Employment at maximum efficiency
But more than just getting bodies in the (virtual) door, global employment also means being able to deploy resources more efficiently. After all, nearly 80% of organizations in Canada need tech employees. Instead of competing for a limited amount of Canadian talent, employers looking worldwide can get a far more effective return on their talent investment.
That might be through reduced overheads, or it might be through the efficiency of scale. Consider, for instance, how global employment enables you to operate support teams on which the sun quite literally never sets.
Global workers, global customers
Finally, and perhaps counterintuitively, global employment is an opportunity to grow a global customer base. Diverse customers require an equally diverse team who understand the requirements of different markets. By having a global workforce, you automatically gain that knowledge and stand a far better chance of correctly positioning your offering in a given market.
Multiplier’s mission
At Multiplier, our mission is to democratize global talent by offering ways to employ global talent as seamlessly as though they were local. We’re changing the mindsets of employers and employees alike. No more wake up in Toronto, work in Toronto. It’s time to wake up in Toronto, work in Shanghai.
We simplify international hiring so you can continue growing your team and expanding your company in the face of threats like the talent crunch. Speak to one of our experts today.
