War for Talents – How companies fight for young talent
A term that many entrepreneurs hear. War for Talents has become a big problem in this respect.
The term was born in 1977, but it is still true. It is increasingly difficult for companies to find and retain the right talent. The supply of these highly qualified workers will determine the future of many companies.
Every company is facing a changing market of customers and competencies. Customers are becoming more and more digital, business processes are mapped in IT systems and added value is increasingly being created online. These trends also require new talents who can implement these digital changes. Designers, programmers, and new professions such as “growth hackers” are currently very popular with companies. This great demand for highly qualified workers leads to a shortage of talent for the many vacancies.
More and more often, projects cannot really be carried out or come to a standstill if these talents are lacking or are poached. This leads to a war for the best young talents, also known as a “war for talents”.
More opportunities for graduates and young talents
Steven Hankins described the “War for Talents” as early as 1977 as part of a McKinsey study on change in human resources. He has seen that with highly educated graduates, the difficulty of finding a job decreases, and it becomes increasingly difficult for companies to recruit for their own vacancies.
Companies must be aware that talents have more room for maneuver in negotiations and are generally more in demand. New working models such as home office, flexible working hours, or creative and demanding work have become an important factor for these people.
The reasons for the “War for Talents”
1. The economy is growing – not only for us
The global economy is growing rapidly. Less in the western world, but more rapidly in the eastern states, South America, China, etc. China, for example, will soon overtake the USA as the largest e-commerce market and this fact also requires talent. Although many skilled workers come to Europe, the USA, etc., many also flow from Western markets to emerging countries. This strong global demand is increasingly intensifying the talent competition.
2. The development of the knowledge society
According to current opinion, human knowledge is currently doubling every 12 years. This constant development is also reflected in the business world. Robots, industry 4.0, Big Data, and much more have changed the business world. Highly qualified workers must not only have a lot of knowledge but also be able to adapt quickly to new developments.
3. Demographic changes
A decisive factor in the shortage of skilled labor is also the lower birth rates. Especially in industrialized countries, birth rates are declining and this leads to shortages of talent, especially in these countries. This is already noticeable in the market, as companies are increasingly recruiting at a very early stage and are also training and educating these in-house.
4. Change in values of the next generations
Safety, reputation, and opulent salaries are no longer so important for the younger generation. Younger employers expect flexible working hours, more personal freedom to develop an innovative working environment. So it’s no wonder that companies like Facebook, Google, etc. with their new work models attract many young talents and are considered the most popular employers.
5. A shift to highly qualified jobs
Society is changing dramatically in the distribution of jobs in terms of skills. Low-skilled workers are increasingly threatened by automation and computers, and the demand for highly qualified workers is growing faster than ever. Jobs that did not exist just a few years ago, such as data analysts, SEO or digital marketing managers, and many more, are increasingly in demand. Together with other earlier mentioned forces, there is a faster-growing demand for highly skilled workers, than the market can produce.
6. Increasing competition
Globalization also leads to additional competition among companies. The offer is large and therefore it is important to distinguish oneself with quality. It is becoming increasingly difficult for companies, personnel consultants, and recruiters to find the right talents to meet these quality requirements.
When companies have acquired talent and provide it with the company’s knowledge, it is of course important to retain it. Companies must strive to make their employees happy in the long run and to retain them as much as possible. With free online courses, guided learning, and other means it is possible to develop your own highly-skilled workforce to be prepared for the upcoming “War for Talents”.