Why the Current Labor Shortages are Pushing Companies to Invest in More Training
Photo by Christina Morillo from Pexels
Two years into the Great Resignation, as the pandemic has calmed, the labor market has continued to be tight with an abundance of vacancies and not enough workers. This labor shortage has proven to be a unique feature of the impending recession as we usually have the opposite problem: not enough jobs. As such, employers are turning to retraining existing workers and creating untraditional pathways to opportunities that previously required a four year degree. More and more, companies are now considering hiring candidates based on their skill sets rather than college studies.
A confluence of events has made it the perfect time for employers to rethink their hiring approaches. In a world where more people are reconsidering whether paying college tuition is worth it and employers see a mismatch between what is taught in school and skills needed, new systems are called for.
Forbes recently hosted the virtual event, “Building The Workforce Of The Future: From The Great Resignation To The Great Reorientation,” on June 30th. During this gathering, HR leaders from companies like Bank of America, IBM, and Verizon, as well as founders who created apprenticeship programs and corporate learning platforms, shared their thoughts on the labor shortage.
Forbes contributor, managing director of Achieve Partners, and co-founder of Apprenticeships, Ryan Craig, made the following statement about this issue during the event.
“There’s a large American population that’s been brainwashed to believe that there’s only one socially acceptable pathway to socioeconomic mobility and economic advancement–and it lies through four-year colleges and universities,” said Craig (Forbes).
Companies must be open to changing their mindset and core values to survive through the labor shortage and the threat of a second wave of the Great Resignation. A few methods to maintain current employees and attract new ones include:
Creating opportunities for current employees to be upskilled or re-skilled
Expanding company benefits to include mental healthcare, childcare, etc.
Offering “second-chance” hiring
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