Every business leader wants the best employees on their team. But right now, and for the foreseeable future, there happens to be a stark shortage of excellent candidates.
The war for talent is on, and companies are suiting up for battle.
ENTER… THE GOVERNMENT?
In the past, traditional grants, tax abatements, and free land were the main reasons companies sought government backing. But now, help building a successful employee base has become a top governmental request, as well. It isn’t that the idea is new. Government-funded workforce development programs have always been available; many companies just didn’t take advantage of them or weren’t aware they existed.
That has all changed in the last three to five years, though, thanks to a murky-to-navigate talent pool and an alarming shortage of workers anticipated.
“It’s across the whole industry spectrum,” says Eric Stavriotis, senior vice president, Chicago Occupier Practice Group at CBRE. “We used to see that, most notably, technology companies had a hard time finding engineering talent or technology talent. And I think that issue remains today, but now we’re hearing it from everybody. Labor is tight all around the country right now. Everyone is experiencing that competition.”
In fact, skilled labor shortages in financial and business services will have a potential deficit of 10.7 million workers globally by 2030, which could lead to a loss of $1.3 trillion in annual revenues, according to a recent Korn Ferry report. With startling numbers like that, companies are scrambling to prepare.
A DEEPER DIVE FOR TALENT
Across the country, states are improving and expanding their resources around workforce development and workforce incentives. In some cases, city governments are offering cash incentives to prospective residents in the hopes of attracting skilled talent. Some are even offering to pay off student loan debts in bids to fortify local workforce development efforts.
That effort is moving the needle. “Georgia, Alabama, and South Carolina all have really great workforce development programs for companies that are hiring new people,” says Stavriotis. “Those programs are helping the job market and helping potential employees understand that there’s a new employer in town and what kinds of jobs they’re hiring for.”
And the workforce development sector itself is eager to assist. “Now, more and more, we’re seeing that these economic development groups are ready to come to the table with customized programs around workforce,” says Stavriotis.
Those programs and initiatives are getting better. States, cities, and counties are willing to partner with their four-year universities and colleges, trade and technical schools, and even high schools to train students on in-demand skills. Those partnerships are not just for immediate needs, but they set companies up for long-term success when it comes to prospective employees.
Additionally, cultivating top talent doesn’t have to require above-market pay and benefits packages –by investing time instead of money, and by instituting the right training regimen, companies can more efficiently control their own destinies and build employee loyalty.