While we already have a candidate market today, we will see a further intensification in the fight for executives and talents in the coming decade. Allow me to share some background and advise, followed by some great international articles with more insights if you wish.
A Candidate Driven Decade Ahead
According to a new research from the Korn-Ferry Institute nearly 60% of employers struggle to fill vacancies within 12 weeks already today. By 2030, the global talent shortage could reach 85.2 million people — costing companies trillions of dollars in lost economic opportunity. So, things are very likely to be getting worse towards 2030.
Knowledge-intensive industries like financial services or technological roles will be some of the hardest hit. These industries require a high volume of skilled workers—and as demand outpaces supply, competition for qualified candidates will soar. This shortage of candidates could damage the industries´ growth.
The Meaning for Portugal
Portugal already today experiences a positive share of people with a job, it looks much more like Germany than, say, Spain. Looking at the structure of Portugal´s economy today, its attractiveness in the international context will continue to rise – and thus aggravate the situation, making it more and more challenging to get crucial executives and talents. This phenomenon is especially true when unemployment is low, since employed workers have much less incentive to retrain, reskill, or enter a new field.
The years to come are thus going to be an even more candidate dominated market than today. And we advise to prepare for that.
Change Your Composition - Full Time versus Contingent Worker
Being a decision maker in your company as a manager or preparing a decision as a human resources director or business partner, to get the best and brightest we think you need to rethink your cocktail. There is a great opportunity to not only survive, but to create a competitive advantage by composing your team with the best talent for your ambitions. It´s just that the mix will have to be different to succeed. You will need to explore the opportunities of playing with full time versus contingent workers.
Executive Search for Your Leadership Team
Your senior management team should be well selected and composed, so your leadership team is a well thought and designed composition of senior talents. For these people you should invest time and resources to find, attract and retain them, take a deep view not only into their skills and competencies but especially what motivates them, how they work and perform and what kind of company culture they create, live and breathe. The brightest and most agile leaders should be just good enough for you.
Your Internal Resources – Your Holy Grail
Starting a new project within the organisation, businesses will often look internally to identify strong internal performers to run business critical change projects across your business. It’s rare that big change projects will use an entirely internal team, however it’s also vital that internal team members are involved in these types of initiatives to prevent the programme losing momentum after the specialist change experts leave. Your internal resources should be trained well, treated well by an agile remuneration package, possibly with the opportunity to choose from different options. These resources build and represent your culture, they must live with the changes post project implementation.
Your Change Boost – Contingent Workers: Interim Managers
Interim management is the temporary supply of an individual with strong management expertise into an organisation. These individuals are referred to as 'interim managers' and will typically be experienced business leaders. Interim managers are typically experienced managers and directors who have spent time sat “in the clients seat” giving them a deep understanding of the requirements and best approaches for the role and project.
Interim Managers offer cost effective solutions at often half the day rate of traditional consulting houses, while being extremely ‘hands on’ so will not only strategize and advise but also implement and execute. They transfer knowledge into internal teams, can be hired within days on flexible contracts that offer the ability to scale up and down quickly on projects. You usually can select the person you want to work on the project from a shortlist provided by the Interim Management Firm.
The huge value is that they have sensitivity to your company's ethos but aren’t constrained by its politics, personalities or protocols, they report directly into senior leaders and are extremely goal focused.
Most certainly they are lead differently and you must make sure they don’t leave before they have fully passed their knowledge to the team.
On top of the above economical trend changing social demographics, disruptive new technologies and globalisation all require fresh leadership and fresh perspectives.
You must start to build a notion of full time versus the contingent worker, and you need to have a different plan from what you are used to. Define the groups of workers well that you want to retain and train, and apply courage when defining where you need different skills, competencies and motivations.
Don´t expect job posts to work for you but more a well-prepared talents search, with a bespoke plan of internal and external sourcing, and also with internal talent search resources on the one hand and executive search professionals on the other. Things will go faster in the coming decade, so digitize processes to the best extend.