With a historically low unemployment rate making the supply of available workers scarce, global executives now view the shrinking pool of qualified candidates in audit, finance and compliance as a top business risk. This insight comes from Gartner’s quarterly Emerging Risks Report, and marks the first time ‘talent shortage’ has been appeared on the risk list.
This shortage of labor ranks third, with only accelerating privacy regulation and cloud computing ranking higher. This newly identified concern is placing pressure on recruiters, with a separate survey of 400 executives finding only 26% are satisfied with their company’s capacity to attract and retain high-performing talent. Digital transformation initiatives have not helped, only furthering the competition for workers who have the critical skills to navigate today’s digital environments.
“In today’s tight labor market, where employees have the upper hand, workers are more willing to look for a job with better pay, more generous benefits and defined career development opportunities — or all three,” said Gartner HR practice group’s vice president, Brian Kropp in a press statement. “To retain your best employees, companies need to better understand what matters most to them and help them see how they can advance in their careers with their current company, especially if wage growth continues to remain stagnate.”
To fight these talent shortages, organizations are being forced to shift how they acquire talent. Gartner recommends adopting a market-driven approach instead of the needs-driven approach that many recruiting professionals use. This sourcing strategy enables timely adaption to the external labor market as changes emerge.
