Shortage of Skills Affects Employees' Productivity and Job Satisfaction
According to the recent Hays U.S. 2018 Salary Guide, more than half of the 3,000 U.S. managers and employers surveyed indicated that they are hiring in 2018.
However, more than three-quarters of the survey respondents have highlighted that their industries are currently facing severe skills shortages. In fact, this outlook is affecting job productivity amongst employees in these industries, resulting in lower job satisfaction and high turnover rates.
Based on the survey results, industries that have reported the greatest skill shortages are construction and life sciences.
The problem of skills shortages is largely attributed to the lack of training and development provided to workers across the various industries. Additionally, hiring is also on the upswing for gig workers due to the flexibility and the lower costs associated with these “freelancers”.
With the problem of skills shortage and the high demand for talent, companies have to step up their recruiting efforts as well as talent retention strategies. According to Hays' guide, the most common recruiting methods citied are promoting company culture as well as offering competitive salaries to job candidates. Additionally, the survey results revealed that the employee turnover is largely attributed to competitive salaries offered by other competitor firms.
Shortage of skills in Singapore?
The struggle tackle skills shortages are not limited to U.S. In fact, employers in Singapore have expressed concerns over the shortage of skills in Singapore, fearing that it will impact businesses in 2017.
According to a report Online Jobs Census released by JobTech, Singapore is still at the "onset of the next wave of digitisation". Moreover, there will be an increasing need for employees with technical skills such as data analytics and software engineering in the next few years.
Recognising the need to build the capabilities of Singaporeans, the Singapore Government has launched a nation-wide initiative "SkillsFuture Singapore". This initiative aims to provide Singaporeans with opportunities to take on courses to upgrade and equip themselves with new skills by providing a SGD500 credit to take any course or class as they deem relevant for their career or personal development.
At the same time, companies can use various methods to enhance their employee retention strategies to ensure that they do not lose their talents to other competitors. One such way to look beyond offering traditional benefits such as providing flexible work schedules, on-site office perks and additional paid leave. Additionally, companies should consider providing employees with multiple learning and development opportunities as well. By investing in the organisation's own internal employees, it would certainly improve employees' productivity as well as serve as an effective retention strategy in the long run.
This article was first published on Gpayroll, on 2 April 2019. Information is correct at the time of publication.