5 solutions to seize opportunities from labor shortages

Labor market tightness? “Get used to it!” was the firm statement of labor market specialist Aad van der Werf during the Labor Market Trends 2024 - 2028 seminar by Werf&. The tightness is here to stay, so act accordingly, think about how you can still attract the right talent. Here are 5 options to do just that.

1. Retention is the new gold

In times of labor market tightness, employee retention is extremely important. Organizations have to put a lot of effort into attracting good staff, so it is all the more important to retain that staff. A solution that Van der Werf sees is ‘Onboarding 2.0’. Onboarding often takes place in the first weeks that someone is with an organization. But when this is used throughout the entire career, employees will truly continue to feel part of the organization. And that encourages people to want to stay with the organization. Digital environments such as a My environment or employee portal enable you to stay in touch with your employees in a scalable way. A digital environment where the content adapts to the employee, can enrich their profile and manage their needs or development.

2. ‘Frustrated actives’ to work

Another major opportunity, according to Van der Werf, lies with untapped labor potential. It turns out that 80% of the untapped potential are ‘frustrated actives’: people who are looking for a job but cannot find one (source: Research Untapped Labor Potential Drechtsteden). This is an interesting group. Almost 300,000 people indicate that a study or training is the reason they do not work. Organizations can engage this group by better understanding their needs and talents, and responding to them. What can we do to get them back to work? Focus on an accessible system where untapped personnel are helped towards suitable work. A platform could provide a solution here by enabling onboarding at everyone's own pace and matching them to a suitable job based on profile data (skills).

3. Talent holds the reins

The entry of Gen Z into the labor market is also accelerating a few trends. A large part of this group takes the reins into their own hands, has high expectations of how work should fit into their lives, and on average does not stay long at one company. Organizations would do well to bind these candidates to them by offering the flexibility they seek. For example, there is more demand for channels where the candidate has their own control. Platforms like YoungOnes set the standard for the market here. Here assignments adapt to the wishes of the freelancer, who determines when, where, for whom, and at what rate they will work.

4. Reversed mentoring

The next trend relates to the speed of technological and digital transformation. You see more and more ‘reversed mentoring’ where the older generations are helped by the younger generations due to rapid changes. Organizations can use this to become more productive by optimally utilizing all knowledge within the organization. However, it is important to properly support and guide ‘reversed mentoring’. For example, there are special buddy programs or e-learning modules that you can also plug into your onboarding 2.0.

5. Company culture

The last trend that has enormously accelerated recently is about the need of talent for a purpose in work. The culture of a company plays a major role in this. A company culture that matches the goal of an employee will create a bond. Therefore, it is wise to make this explicit as an organization.

Seize opportunities

At the end of the seminar, the question arises when talent will start behaving normally again. “Well”, responds Eveliese Luiting, co-founder of People Masterminds, “they already are, because this is normal.” They are not going to change, so it's time for organizations to change themselves. Seize your opportunities, because there are plenty. Platforms offer possibilities for all these five solutions. Together, we can turn this crisis into opportunities!