While unemployment numbers are looking great, the same can definitely not be said for under employment. Those numbers are sky-high. Additionally, those who are lucky enough to be employed full time are keeping their titles just a little too long for their liking, largely in part because they don’t have the skills to move on up. Tenure and the “good ‘ol boy system” mean nothing if the minimum required skills simply aren’t there. While 72% of educational institutions believe recent graduates are ready for work, only 42% of employers agree, according to a McKinsey study. Tweet this stat.
Candidates and employees aren’t the only ones less than thrilled about this skills disconnect, employers are taking hard hits for every day that goes by with too few (or the wrong) people on deck. CareerBuilder conducted a study on companies losing money due to the skill gap and here are some of the findings.
- 54% of employers currently have open positions for which they can’t find qualified candidates. Tweet this stat.
So it’s not just you, and your recruiting team doesn’t suck. Everyone is hurting to fill specific talent needs right now (or at least half of everyone anyway). The inability of companies to fill key roles is costing them more than they probably know. If you’re a company exec and you’re faint of heart, you shouldn’t read on.
- On average, a company loses more than $14,000 for every job that stays vacant for 3 months or longer. Tweet this stat.
How many position are currently at that 3-month mark in your organization? Those costs add up quickly in a number of areas that most leaders wouldn’t have even considered. Employees are citing lower morale due to increased workload, lower motivation and more mistakes at work. Organization members aren’t the only ones suffering, your customers are too. Customers are seeing declines in customer service. When people are wearing thin, it always shows.
If you’re thinking that this mythical “skill gap” can’t possibly be the reason your recruitment team isn’t delivering is because it only exists for tech workers, you’re dead wrong. The following fields are reporting the hardest hits in lack of talent.
- Computational and mathematical
- Architecture and engineering
- Installation, maintenance and repair
So what’s behind this seemingly increasing issue in today’s workforce? While some of the causes that employers are pointing their fingers at are avoidable, there are a few problem areas that are pretty far beyond control, for the most part. Here are the reasons that employers feel are the driving factors behind the skill gap.
- 37% of employers believed that education gap was to blame. Click to tweet.
- 37% cited a gap in expectations of wages. Click to tweet.
- 35% said job requirements that were above entry requirements. Click to tweet.
- 32% believe that the gap was due to new/shifting technologies. Click to tweet.
Let’s get this straight, employers are losing out big time, workers are getting frustrated with their lack of career advancement opportunities and there are still around 4 million unemployed Americans. Here’s one last stat from CareerBuilder’s survey findings:
- 99% of job seekers said that they would feel more loyal to an employer who invests in training them. Tweet this stat.
Beefing up training programs and making stronger investments in employees does seem to be the obvious answer here. The key to covering the skill gap is already on the payroll; it’s your current workforce. Find and tap into the hidden potential of your workforce by investing in training and offering career counseling. An investment in learning and development can end up not only benefiting your current workforce; it can improve customer service, increase engagement, nurture innovation and act as a strong attraction and retention tool.
(About the Author: Sean Pomeroy, CEO of Visibility Software, has worked in the Human Resources industry since he graduated from Radford University with a Bachelors in Psychology and a Master of Arts in Industrial/Organizational Psychology. After working in HR as a generalist for a government contracting company, he moved to the HR Technology arena and began assisting companies in the selection and implementation of HR software.)
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