Understanding Skills Shortages and How They Are Created

Understanding Skills Shortages and How They Are Created

The world is changing and with it so are the needs of employers and employees all over the country. However, with this change comes a problem for businesses; a workforce that is no longer skilled-up for what is needed may cause a loss of $162 billion by 2030 for US companies to deal with. Find out more about the skills gap crisis, how it’s come to be and what we need to do to change course.

What Causes a Skills Gap?

While there are many reasons for a skills gap forming, one of the key reasons in 2023 is the issue with being able to hire the right staff and then retain them. The constant revolving door means that staff are subsequently not accessing ongoing professional development and businesses have to spend more on hiring, which takes it’s toll on other budget areas and it’s not just businesses that are worried; 46% of employees also share significant anxieties about their skills becoming irrelevant by 2024!

It’s also important to note that the other issue with a skills gap comes when an organization does not properly understand it’s responsibility to provide ongoing development opportunities, even for the most skilled staff. When the development opportunities dwindle or are of poor quality, people become demotivated and then stop seeing their own development as important, creating a bigger skills gap than before.

What Happens When an Organization Has a Skills Shortage?

When an organization experiences a skills shortage, it has a domino effect on the rest of the company, reducing the capacity to achieve the results it needs to remain in a strong market position.

This means lower efficiency ratings, less profits and more expenditure as the company tries to push forward with a sub-standard workforce. The only genuine way to reduce the impact of a skills shortage is to close the skills gap and provide the opportunities for development that individuals need.

How to Close the Skills Gap

If your organization is struggling with a skills gap, there are steps that you can take to actively start reducing it while you wait for your development programs to start producing the long term results you need. The good news is that 77% of workers say that they are ready and willing to upskill if offered the opportunity. While this upskilling takes place there are three simple, short-term ways forward, including:

  • Working closely with an expert recruiter to find the candidates with the skills you need.
  • Offering temporary contracts to get a short-term skills injection in a key area.
  • Outsource your requirements to a specialist service until you’ve recruited the skills you need.

Many companies avoid accepting or don’t notice that a skills gap is occurring until it is too late. Rather than allowing this to happen to your company, take the initiative and start closing the gap before it becomes problematic for you!

Advice and Support for Employers and Employees

Whether you are running a business with a quantifiable skills gap or are a Life Sciences executive seeking a role that is right for your skills, getting support from GeneCoda® is a great way forward. We are life science experts with years of experience and we’re ready to help. Contact our team today and let us get to work for you!

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