Between the skills gap and the growing talent war, employers worldwide are facing severe recruitment challenges. 75% of employers report struggling to find candidates with the right expertise, prompting many to seek talent beyond their borders.
With skilled workers in high demand globally, local recruitment efforts often fall short. And while expanding your horizons to international talent pools can be fruitful, it’s a highly competitive landscape.
Before putting together your multinational recruitment strategy, it’s vital to assess the labor market climate in the prospective country.
In this article, we’ll review the factors contributing to the talent war and provide insights into the employment landscape of various countries.
Recruitment challenges are everywhere
Global employers are grappling with two formidable recruitment obstacles: a pervasive skills gap and the escalating global talent war.
According to Randstad’s recent Talent Trends Survey, 34% of talent managers anticipate heightened competition for hard-to-find talent, and 32% expect the scarcity of specialty skills to continue.
Why the skills gap is growing
The demand for highly skilled workers isn’t being met for a number of reasons:
- The capabilities employers demand may not align with existing educational systems.
- There may be a disconnect between skills already in the system and surrounding industry needs.
- There’s a lack of local resources and a limited number of training programs or institutions.
The talent pool may be even more reduced for employers in smaller and less developed countries, particularly for high-demand skills, whether soft or hard.
Most in-demand hard skills:
- IT and data
- Engineering
- Sales and marketing
Most in-demand soft skills:
- Resilience and adaptability
- Accountability and reliability
- Reasoning and problem-solving
Shortages in all these skills fuels a highly competitive labor market, with talent managers searching for the same skills, creating a talent war.
The status of talent in global labor markets
But the story is not the same in every location. Exploring the global employment landscape reveals fascinating insights into the dynamics across international labor markets.
Japan is the most seriously affected country, with an 85% skills shortage leading to demand for software developers, architects, and programmers. Germany comes in second place, sharing the need for the same competencies, with an 82% skills shortage.
Further down the list, Costa Rica has a skills shortage of 70%. As a partial explanation of their superior position, we might mention that the Costa Rican government has invested significantly in the country’s education and overall development. With a population moderately fluent in English, they’re able to develop workers with the expertise global employers are looking for–namely employees with critical thinking, problem-solving, and digital proficiencies.
By creating educational programs to develop people with the capacities to fill the skills gap, countries are better able to address immediate hiring needs and build a pipeline for future talent.
Using workforce development to gain skills
Instead of ignoring the skills gap and considering it purely the responsibility of government, global employers should focus on developing their existing workforce and new hires. By identifying current and future hiring needs, you can build out a workforce development strategy that complements the efforts of governments.
Providing ongoing training and educational opportunities presents an excellent means to enhance the skill sets of existing employees. For new workers, meanwhile, consider eschewing hard skills for softer skills like proficiency in English, and keen problem-solving capabilities.
That’s because evaluating candidates based on soft skills and their potential ultimately increases the selection of quality candidates. After getting them in the door, certification and development programs, such as seminars, webinars, workshops, and classes, can be used to train workers on the specific aptitudes your company needs.
To create a future pipeline of skilled talent, companies might also seek to offer training programs to the public at large. While that may seem counter-intuitive, there’s value in cultivating a source of specialized talent before the need arises.
Corporations like Amazon and Microsoft already offer training to the general public. Amazon’s AWS Educate trains and certifies any individual on cloud competencies regardless of their educational background, technical experience, or career stage. Microsoft, meanwhile, established Microsoft Learn to train people in cloud services, computing, administration, and AI.
Simplifying talent management
Advancements in Human Resources Information Systems (HRIS) are helping business owners expertly handle their talent management–but hiring becomes exponentially harder when conducted globally. On the administrative side, hiring overseas can put you at risk of global payroll and compliance violations if you don’t adhere to the country’s employment regulations.
Tools like Employer of Record (EOR) platforms give you easy access to international talent pools without the danger of failing to comply.
With a comprehensive EOR, you can:
- Pay your employees on time and in their currency.
- Onboard end offboard efficiently.
- Maintain compliance from country to country.
How Multiplier can help
Navigating the skills gap and global talent war requires a rigorous assessment of the international labor market and strategic workforce development. Putting your new hires to work requires an equally rigorous EOR.
Multiplier assists you in simplifying international hiring so you can continue growing your team and expanding your company. Speak to one of our experts today.
