A new study confirms that skilled workers are at a premium and essential to business success going forward.
With every industry comes a different set of skills. Even within industries, companies differ based on the role they serve. This means that when a company looks to hire a new employee, it looks for a candidate who has the necessary skills to increase client satisfaction. But with so many different industries requiring such varied skill sets, how many truly qualified candidates can there be?
ManpowerGroup recently released its 2013 Talent Shortage study examining the difficulties that companies have looking for labor that can make a meaningful impact. The study revealed that 39 percent of employers currently have difficulty finding employees with the proper skills.
"Employers need to invest in creative solutions to have access to the skilled talent they need for future growth," ManpowerGroup president Jonas Prising explained.
Difficulty Finding Competent Employees
Many of the employers surveyed in the study report difficulty finding new employees for reasons attributed to lack of skills with 48 percent reporting that potential employees do not have the necessary "technical competencies/ hard skills" and 33 percent of employers reporting that candidates "lack workplace competencies/ soft skills."
Employment Ppportunities for Contract Labor
Unemployment for the month of May hit 7.6 percent according the US Bureau of Labor statistics and while the country's economy has not fully recovered, there are certainly opportunities for employment. Contract labor, which saw 26,000 jobs added in May, is emerging as a great opportunity for those seeking work.
According to a US News story published in May, "temporary work" is becoming more long term. The news source consulted Daniel Feldman, who is the associate dean for academic affairs at the University of Georgia's Terry College of Business.
"Most temporary work used to be temporary by the day or week, and now a lot of the temporary work is contract in nature where people will get three, four, six month contracts."
Markets in Need of Trained Labor
Many available, skilled positions are in emerging markets within the United States. A different Manpower report covering the manufacturing industry indicates that 93 percent of the manufacturing managers surveyed believe that their industry in North America will be "increasingly important in my company's future operations." Consequently the same percentage of managers believe that a skilled workforce will be essential to whether or not manufacturing will return as an important American industry.
Manufacturing is not the only employment field in need of trained workers. The Talent Shortage Survey noted that among the hardest jobs to fill were skilled trades, IT staff, and mechanics.
Who Will Train?
In an ideal world, training would come from the hiring company. However, this can often be time-consuming and the company may not have the available staff to do so. But as the economic recovery continues, employers are hiring to meet the demands of their growing businesses. The question then becomes how to increase the amount of effective labor within the company without having to focus on training new employees.
A growing body of US employers are seeking contractual labor through alternative methods. According to the Talent Shortage Survey, 20 percent of employers are "adapting talent sourcing to recruit more from untapped talent pools." One new way to recruit talent is through performance based labor options.
Unlike traditional temporary staffing agencies, these alternative labor options can provide training for its associates on the job site, thus allowing companies to grow as businesses without having to delay their day-to-day operations. By providing performance based incentives, these labor options allow companies to receive competent contract laborers determined to successfully complete their tasks.