The world of work is changing at an unparalleled pace. Profound market shifts and changing demographics are transforming the global demand mismatch.
In laymen terms, there is a demand for specialised workers but the supply of such is shrinking due to economic and domestic factors.
An aging workforce and declining birth rates is leading to older workers with valuable skills and experience exiting the workforce.
The crisis stems from a shortage of younger people willing to take their place.
Many Western economies cite declining birth rates as a major problem in the war on talent. As these demographic trends continue to intensify over the next ten years the threat for most developed countries and emerging economies such as China will increase.
For example by 2015,one-third of China’s population will be over the age of 50 and annual workforce growth will be less than 5%.
A shift in power from West to East and new centres of economic power will evolve.
For example China’s banking sector is predicted to overtake the USA’s by 2023 (PWC).
Continued rapid growth in emerging markets will require much greater efforts to broaden and deepen local talent pools (Financial Times).
In Brazil, skills shortages have pushed up wages and inflation. Decades of underinvestment in education have left the economy struggling to sustain its pace of growth. This hit 7.5 percent in 2010 (Financial Times).
The technology revolution of the 21st century and economic development has enabled the breakdown of geographical borders and prompted the emergence of the global worker.
In other words many applicants now see international assignments and experience as their route.
Candidates will relocate for the right job and professional experience. Global skills are in demand and the modern workforce is is emerging compared to a segregated group of domestic workers.
Research by Ernst & Young cross border migration shows a growth of 42% in the last decade from 150 million to 214 million.
It is evident from the above data that the recruitment sector will need to spread their wings.
Irrespective of whether agencies have a worldwide network in order to fill roles, both candidate sourcing and business development techniques need to embrace the above concerns.
Despite high global unemployment we are faced with a worldwide talent mismatch. There is a shortage of skilled employees in the right localities at the right times.
Worker’s, Companies and Recruiters are now faced with a talent crisis which hinders revenue. Talent is becoming the key differentiator in companies and economies.
At the same time, there has been a shift in the competitive landscape. Recruiters now have to battle increased competition from external sources that have disrupted the traditional recruitment playing field. This is due to new technological competitors such as job boards, social media and LinkedIn. All of these now have a share of the recruiter’s profits.
Looking at these stark facts, of course we would be lost without these tools but surely you would prefer to engage with the competition directly and make additional revenue as a result?
Rather than attempting to analyse whom a competitor is recruiting for, it would be smarter to collaborate with them and share a piece of the pie!
About The Author: Charlotte Lawson Marketing Manager at Intalex
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