The looming skills shortage: what should HR do?

Get a group of HR people together in a room and it won’t be too long before thesubject of skills shortages comes up. The economy has picked up – and the war fortalent is back with a vengeance. Good people are at a premium and, with head-hunters on the phone or connecting through LinkedIn on a daily basis, businesses arestruggling to keep hold of their best people.

It’s a serious concern for UK plc as a whole. Figures from the UK Commission forEmployment and Skills (UKCES) show that skills shortage vacancies have been on therise since 2011. And in a recent survey for the Princes Trust, 73 per cent of Britishbusinesses said they believed a significant skills crisis was on the horizon.

So what can HR people do to make sure their companies attract and retain the peoplethe business needs to keep the wheels turning today and to remain competitivetomorrow?

Just how engaged are your people? Are your employees motivated and enthusiasticabout their work? Do they feel valued by their line manager? Are they willing to go theextra mile when needed? There’s a tendency for organisations to rely on the annualemployee performance review as a barometer of how their people are thinking andfeeling. But in a fast-paced world, things can change very quickly and how your keyperformers were feeling a year ago could be very different to how they are feelingtoday.

Take the temperature

More frequent and more focused performance reviews, and discussions about whereindividual employees see their career heading can help pick up little niggles andtackle them before they turn into big issues – and it allows managers to keep people inthe loop about where the business is headed and the role they can play. Bringmanagers together and ask them to tell you who they value most, and who they thinkis at risk and why. That way you can involve them in making decisions about how bestto retain and develop the people the whole business needs. Make sure you conductexit interviews, so you can see if there are any recurring reasons for employeesmoving on.

Grow your own

Training budgets have taken a beating in recent years, but investing in thedevelopment of the people you already have is vital. It can be quicker and lessexpensive than bringing new people in from outside – and it’s been shown to buildcommitment and engagement among existing employees. Training doesn’t have to beexpensive and it doesn’t have to mean ‘losing’ key staff for days at a time to go oncourses – but it does need HR to take the lead.

Map out the skills your business needs (now and for the next couple of years), auditthe skills you have, then plan activities that match. For example, if you need to bringthrough new managers mentoring or job shadowing can be effective. If familiarity withnew and emerging technologies is important, look at lunch-time learning bites whereexperienced staff (which may include your new intake of digital natives) can share theirskills. If more formal, specialist training is needed, consider sharing with other localcompanies in similar sectors and investigate what’s available on-line.

During the difficult economic times of previous years, people took any job they couldget, often regardless of how well it matched their skill set or level of experience. As aresult, companies typically have people sitting in roles that are way below theirpotential. It’s estimated that as many as 48 per cent of people are in fact in jobs thatdon’t match their ability. Do you have a clear idea of the skills you really have inhouse? Are you making the best use of the employees you already have under yourroof? Consider doing a simple skills audit to find out what hidden talents your peoplemay be harbouring. You could well find that the answer to your skills shortages areright under your nose.

Use what you’ve got

Recruiting new people is expensive and it often takes a long time. The rise of socialmedia and free job boards has however provided businesses with an opportunity tosupplement conventional recruitment activities with more just-in-time attractionactivity. Does your company have strong presence on LinkedIn? If not, get it sorted!It’s often the first place potential candidates go to check you out. Take a look at howyou rank in Glassdoor, and don’t forget the careers pages on your website either. Areyou in B2C? It might be worth using your corporate Facebook page or Twitter accountto get the word out about job opportunities.

Get clever about recruitment

Are you using the latest candidate tracking technology respond to applicants quickly,and keep in touch with people who’ve expressed interest in working with you in thepast? Are you mobilising your employees with ‘recommend a friend’ incentives or atthe very least encouraging them to share vacancies in their own networks?Recruitment consultants, paid for job boards and advertising still have their place, butmake sure you are using all the social communication mechanisms at your disposal toget across the message that your business is a great place to work.

Recruitment is often a knee-jerk reaction. Business is growing and suddenly youurgently needs more hands on deck. A key staff member has jumped ship and you needto quickly fill the gap. However, it’s never too early to start engaging with youngpeople and planting the seed about the opportunities you could offer them in thefuture. So be open to requests for work experience from your local school, take part incareer fairs and give talks about opportunities in your industry. Build links with collegesand universities. Offer meaningful placements and internships. Considerapprenticeships as a route to moulding future talent and growing the skills you needfor the future. Who knows, the young person you give a first step to today could be oneof your star performers in the future.

It’s never too soon…

Is your business feeling the skills shortage? What strategies do you have in place toattract and retain the best people?

Let us know in the comment section, or tweet us at @CezanneHR