A huge challenge
The tight labour market is obviously a major theme in both trend papers. As Start People’s report states: "The labour market was already tight in 2018, and it’s expected this will not change in 2019. Every organisation looking for new employees will therefore face a major challenge.” Advantage Resourcing points to a study by Korn Ferry which estimates that the worldwide talent shortage will reach about 85 million people with needed skills by 2030. But what does this imply for organisations?
Although Start People the Netherlands and Advantage Resourcing are mainly active in their respective countries, their trend papers focus not only on the changes in the local labour markets, but on the global labour market as well. The brands not only register the upcoming changes, they also provide tips on how organisations can conquer today’s challenges.
Start People the Netherlands predicts the final breakthrough of artificial intelligence in recruitment and selection as one of the major trends for 2019. "Artificial intelligence can provide organisations with insights into regional labour markets, helps to optimise vacancy descriptions and can even predict a candidate’s learning agility.” But with the rise of artificial intelligence, the need for what Start People calls the ‘human touch’ in recruitment and selection is also growing.
Other trends according to Start People:
- The need to build a strong employer brand and to invest in current employees as brand ambassadors
- As two new generations enter the labour market (Millennials and Generation Swipe), organisations need to be more transparent and adapt to these generations’ requirements, ideas and values.
- Employees take more responsibility for their own career development.
- Departments dissolve as more flexible team structures emerge.
Keep the people you already have
As employees take on more responsibility for their own career development, Advantage Resourcing emphasises the urgent need for organisations to act. Employers are advised to 'update their employee referral programme', 'manage their online reputation', and ‘be decisive on job offers'.
As their report states: "With a limited supply of talent, it's important to keep the people you already have. While many studies report that most employees leave their jobs for better-paying positions, a Work Institute report showed that career development opportunities, work-life balance, and poor management are consistently the real issues that spur employees to leave.”
Other trends according to Advantage Resourcing:
- The growing impact of online reviews
- Candidates are increasingly turning down (or not responding to) job offers
- Wages continue to rise
- Job rotation is at an all-time high