Talent Shortage: A Challenge Transforming the Job Market

According to recent reports from the World Economic Forum, the future of work is marked by a growing demand for digital and technical skills worldwide. This is due to the fact that digital transformation and the increasing complexity of businesses have generated an unprecedented demand for specialized talent.

However, many companies struggle to find professionals with the necessary skills to drive growth and innovation. This discrepancy between the supply and demand for talent has given rise to what we know as a talent shortage.

At Talent2Win, we are a recruitment agency with extensive experience identifying, selecting, and managing talent in the region, so we are knowledgeable about the subject. In the following lines, we will explore the talent shortage, its current state, and how to escape this global phenomenon.

What is the Talent Shortage?

The talent shortage refers to the difficulty companies face in finding and retaining professionals with the skills, knowledge, and experience required to fill their vacancies. This situation is due to a combination of factors, such as rapid technological evolution, demographic changes, and globalization.

Current State of the Talent Shortage in the World

The talent shortage is not a problem limited to the borders of a particular country. Globally, the talent shortage figure is currently 75% according to a survey conducted by ManpowerGroup. And what are the specific figures in the region? Well, the talent shortage figure can reach 80% in some countries, which shows that it is a current problem. The current figures for the most affected countries are as follows:

• Mexico: 88%
• Canada: 80%
• Brazil: 80%
• Argentina: 76%
• United States: 70%
• Colombia: 66%
• Peru: 65%

Type of Talent in Shortage in the Region

In general, the following are the areas with the highest unmet demand in Latin America:

Digital Talent

• Software developers
• Data engineers
• Cybersecurity specialists
• Cloud solution architects

Engineering

• Industrial engineers
• Civil engineers
• Mechanical engineers
• Electrical engineers

Health

• Medical specialists (cardiology, oncology, etc.)
• Nurses
• Public health professionals.

Finance

• Financial analysts
• Accountants
• Auditors

Marketing and Sales

• Digital marketing specialists
• Product managers
• Sales representatives.

Type of Talent in Shortage by Country

1. Talent in Shortage in the United States

The United States always presents a very competitive labor scenario. In this context, it is technology-related positions that have the highest demand, such as developers, data scientists, and cybersecurity experts. However, it is also interesting to note a growing demand for professionals in the health sector and for both civil and mechanical engineers.

2. Talent in Shortage in Brazil

In the giant of Latin America, there is a great demand for profiles in technology, engineering, finance, and health. In this country, the shortage of digital talent is particularly acute, as evidenced by the figures presented previously.

3. Talent in Shortage in Mexico

Mexico is a similar case to Brazil, as they have a high unmet demand for technical and digital profiles. However, in this country, there is also a shortage of talent in sectors such as manufacturing and construction.

4. Talent in Shortage in Argentina

The need for IT-related profiles is a constant throughout the region, and Argentina is no exception. This country experiences a strong demand for professionals in technology, especially in the area of software development. There is also a shortage of engineers and business professionals-

5. Talent in Shortage in Colombia

In the case of Colombia, the talent shortage is concentrated in sectors such as technology, engineering, finance, and health. It is interesting to note that in this country, there is a growing demand for bilingual profiles.

6. Talent in Shortage in Chile

In Chile, as in the rest of the countries in the region, the technology sector is the one with the greatest shortage of talent, with a high demand for developers, data engineers, and cybersecurity specialists.

7. Talent in Shortage in Peru

Peru is an interesting case, as the main area in demand is made up of professionals in mining, energy, and construction. This is due to the mining and energy potential that this country possesses. However, as in the rest of the Latin American countries, the demand for technology, sales, and marketing profiles is also quite high.

Causes of the Talent Shortage Worldwide

The Context of Digital Transformation

As we have seen, the main profiles in demand are those related to technology. This is because most companies are undergoing a digital transformation process, which leads them to seek professionals who can help them digitize their processes.

In this sense, the accelerated adoption of technologies such as artificial intelligence, big data, and automation has generated a demand for new digital skills that are not always present in the current workforce. In fact, between 70% and 80% of employers in Latin America have difficulties in finding digital and technical profiles.

Globalization and Talent Migration

Faced with the complex economic situation that many Latin American countries are going through, many professionals take advantage of globalization and seek better job opportunities in other countries, which aggravates the talent shortage in the region.

Globalization and competition have intensified the demand for workers with multilingual skills and a global vision. However, many professionals do not have bilingual skills, which hinders the expansion possibilities of companies in some countries.

Examples of Companies Affected by the Talent Shortage

Many well-known companies worldwide have been affected by the talent shortage. For example, in the technology sector, giants like Google and Amazon have invested heavily in training and development programs to acquire the necessary skills in areas such as artificial intelligence and machine learning. In the manufacturing sector, companies like Siemens have implemented initiatives to retrain their employees and acquire the skills necessary for intelligent manufacturing.

Solutions to Address the Talent Shortage

To address the talent shortage, companies can implement a series of strategies:

Continuous Training and Development

If you cannot find the talent you require, you can opt to train it within the company through a continuous learning and development program. For this, measures such as upskilling or reskilling can be the most effective solution to have talent that is scarce in the labor market. Here you can choose to develop your team through online educational platforms or partnerships with educational institutions.

More Flexible Labor Policies

If talent is difficult to hire, it is advisable to establish labor policies that allow you to attract and retain scarce talent. To this end, you can establish an attractive benefit structure with an emphasis on flexibility.

What benefits are we talking about? Remote work, which is usually very attractive, especially for tech talent. The hybrid modality is also recommended, although it is usually less effective than the hybrid modality if you want to attract scarce talent. Finally, flexible hours are usually a plus for modern workers and you can attract quality talent with this measure.

Specialized Recruitment Processes

If what you need to recruit is specialized talent, the ideal is to apply a specialized recruitment process carried out by experts. That is why, when the in-house recruitment team fails to identify the necessary profiles, many companies resort to recruitment and selection consulting firms.

This is usually the fastest solution to cut the talent shortage. These talent acquisition agencies have recruiters with a lot of experience who can identify a wide variety of profiles in a very short time and through customized consultative processes.

Let’s Recap!

The talent shortage is a complex challenge that requires a comprehensive solution. Companies must invest in the development of their employees, collaborate with educational institutions, and adopt new technologies to acquire the necessary skills to compete in an increasingly dynamic labor market. By closing the talent gap, companies can improve their competitiveness, innovate, and grow in the long term.

The talent shortage is not only a problem for companies but also for society as a whole. By investing in the education and training of workers, we can ensure that people have the necessary skills to fully participate in the 21st-century economy.

Talent2Win offers borderless talent consulting solutions tailored to your company. If you would like to learn about our Executive Search, Talent Acquisition or RPO services, please do not hesitate to contact us.