Is There Really a Talent Shortage?

The economy has finally turned a corner, with June marking the fifth consecutive month of more than 200,000 new jobs. The Bureau of Labor Statistics reports that 288,000 jobs were created last month across many industries. The biggest gains occurred in professional and business services, with the healthcare and retail industries not far behind. The good news is that these new jobs mean companies are experiencing growth. But with that growth comes a challenge: talent shortages across some sectors.

How Can There Be a Talent Shortage?

The unemployment rate is moving in the right direction, but it still hovers around 6%. If there are that many people looking for work, how can there be a talent shortage? The answer lies in what kind of talent needs companies have. While certain sectors can hire employees to fill open positions fairly quickly, others have difficulty finding candidates with the right qualifications.

The IT, banking, and engineering fields, for example never experienced much of an unemployment rate even during the worst part of the recession. That means that when new jobs are added, there’s not much of a talent pool to pull from, particularly for highly skilled jobs such as software engineers and banking analysts.

How Can You Find Your Next Employee?

If you’re looking to hire someone in a technical field, you may need to get creative in terms of recruiting. As the economy continues to grow, qualified talent will be increasingly in demand. Some ways to attract qualified candidates to your company include:

• Look outside your local area—You may need to recruit in another city where competition isn’t as stiff.
• Review compensation packages—Traditional compensation programs may not be enough to win the talent war. Consider better salary and benefit packages in order to attract even passive candidates who may be willing to leave their current position for a better deal.
• Network—Talent stars can often be found participating in social media groups such as LinkedIn and Facebook. Become an active participant so that when you’re ready to hire, you have contacts who can put you in touch with potential candidates. You can also take advantage of the networking power of a third-party recruiting agency.
• Position your company as a desirable employer—Spend some time developing your employer brand and investing in your current employees. Creating a positive work environment that fosters personal and professional growth among employees can be an attractive drawing card for potential job candidates.

In several major industries, there’s a talent war heating up that could determine which companies survive and which ones don’t. Attracting the most qualified candidates to your company is an essential step in creating an atmosphere of growth for your business. Taking steps now to ensure you have the right people on your team will mean long-term success for the future.