There are a number of reports that provide compelling evidence to suggest that America is currently experiencing a skill shortage. Without entering into a debate on the particulars, there are certain fundamental facts that are difficult to dispute.
- The Baby Boomer generation is aging rapidly and the next generation is ill-equipped, numerically, logistically and skillfully, to fill those shoes. There simply aren’t enough of them.
- It is not just an issue of labour shortage but also a shortage of people ‘in the system’. With the economic downturn and collapse of global markets, see the crisis in the Eurozone for example, rates of enrolment at Universities are slowing as are rates of certification for skilled trades.
- The current generation of employable, skilled workers have developed some hefty expectations about rate of compensation and stability of the job market, informed by the perceived booming success of past generations. A recent study showed that most post-secondary graduates expect to be making over $70,000/year and be debt-free within 5 years of graduating; a considerable feat even in better economic environments. This break with reality has not been addressed and all anyone seems to be able to do is watch with morbid fascination as this current generation speeds towards a drastic shift in their expectations of compensation and employment.
These observations aren’t the whole story though. The reality is that the contemporary business world is shifting in real time around all of us. While it is true that the past few years have been difficult, it is also true that forecasts for 2012 suggest an increase in business through innovative new, and yet old, business practices. Where companies have historically relied on certification and development through external institutions to produce highly skilled workers to employ, the new breed of employee may need to be built, in many cases from the ground up.
As employers cast a net, in search of candidates with the perfect qualifications, the shortage of skilled workers is broadening the criteria for a successful hire. Increasingly, companies faced with a job vacancy are selecting candidates that can grow and learn within their role. Increased resources are being spent on internal education systems to further develop employees.
These internal development systems, first implemented out of need as a result of skill shortages, have become valuable as employee retention programs; as employees fostered through these systems appear to have a greater sense of loyalty or commitment to their company. What this means is that it is no longer about finding the “right candidate” but about finding the candidate with the “right potential”.
Notably, this perspective is not merely a positive thinking “silver lining” in the face of a purportedly severe skill shortage, it is also acknowledgement of the realities of the new business environment that the past few years have committed us all to. The lesson to be learned is how to cultivate, curate and commit your staff to your company through internal development incentives. Allow an employee to grow within a role and they will produce better results.
