With the global talent shortage changing the way we source and recruit the best talent on the market, employers are learning that there’s a significant benefit to be gained from a widening of the talent pool. Yes, we’re talking diversity and how looking farther afield has had a positive impact on diversity in the workplace.
A global talent crisis
The global talent shortage is very real. According to Korn Ferry’s report The Talent Crunch, research suggests that the global talent deficit in the technology, media, and telecommunications sector could reach 4.3 million by the year 2030.
In fact, the report also predicts that by the same year, the global talent shortage across all industries will reach a staggering 85.2 million. And this talent deficit will result in $8.452 trillion in unrealised annual revenue.
Those predictions are certainly cause for concern when many of the technology industry’s powerhouses are looking to expand over the next few years. This is particularly true when we take into account that local colleges and universities will be unlikely to produce enough talent to meet the shortfall.
Thankfully though, the recruitment industry, as always, is ahead of the game.
Casting a wider net
In recent years, employers have, at the behest of their recruiters, turned to the global market in their efforts to fill essential skilled positions. A wider net has been cast and it’s not unusual now for recruiters to cross multiple time zones in their search for talent.
Interestingly, while graduates with skills required for the IT and semiconductor industry are sometimes in short supply here in Ireland and the EU, it’s a little different on other continents. For example, in countries such as Malaysia, Egypt, and Singapore, there’s a much broader pool of talent with the requisite skills. And even more interesting is the fact that many of these candidates are female, but more on that later.
While this wider talent search has led to employers being in a position to bridge current and future talent gaps, their open approach to recruiting has had another benefit that is just as tangible.
The positive impact on diversity
Diversity in the workforce is hugely important, and it doesn’t just cover gender. It also includes age, experience, cultural background, sexual orientation, and even educational background.
But what’s so important about diversity in the first place?
Well, take a look at these findings.
Research from Deloitte has shown that companies with a diverse workforce enjoys 2.3 times higher cash flow per employee.
Research by BCG shows that diverse management boosts revenue by 19%.
A study by McKinsey of 366 companies found that those with a racially and culturally diverse workforce are 35% more likely to have annual returns above their industry average.
And those findings are just the tip of the iceberg. It’s clear to see that diversity in all of its shapes and forms boosts productivity, fosters innovation, and generates more revenue.
So back to the global talent shortage.
As employers and recruiters look to the global talent pool to fill roles, they have inadvertently created diverse and multicultural teams. As we said, it’s not unheard of for recruiters to source talent from across the globe.
As they work to locate the most suitable candidates, they create a truly diverse talent pool that may not have been possible to create in their home nation.
Let’s go back to what we mentioned earlier about female candidates from countries such as Egypt and Singapore. In certain countries, parents often encourage their children to pursue careers that offer the best job prospects and financial rewards. As a result, there are many female students that look to work in engineering, software development, and a variety of other tech-related fields.
Unfortunately, with so many students following similar paths, job opportunities which were once plentiful are now few and far between. While this isn’t ideal for graduates, it creates a wonderfully diverse talent pool that overseas employers can draw candidates from.
By following this path, employers are not only diversifying in terms of cultural background but also with respect to gender. As we said, female students in certain regions are more likely to pursue tech qualifications and so we have a better chance of finding suitable female candidates.
What makes this so beneficial for employers here in Ireland is that without even trying to, they can reach their diversity goals while still hiring only the most suitable candidates for a role.
Of course, we’re not for a moment suggesting that Irish candidates are not up to scratch. It’s just that there simply aren’t enough graduates and existing professionals here to make up the expected talent shortfall.
A changing attitude to remote work
On a related note, the recent global pandemic taught us that the world is a very small place indeed. Both employers and employees learned that remote work is possible (although it may not suit everyone) and that team members don’t necessarily have to be in the same city or country.
Prior to the pandemic, many employers had already embraced remote interviewing and hiring. Could they now adopt a similar attitude towards full-time remote work? It seems likely that many will and this could open the door for overseas candidates who may not want to relocate outside their home country. From the employer’s point of view, it’s another aspect of recruitment that could help them address their long-term talent shortages and inadvertently help them diversify their workforce.
So as you can see, while the global talent shortage is certainly something that is cause for concern from a recruitment perspective, it does have a significant if unintentional impact on diversity in the workplace.
Are you worried about your diversity goals or future talent gaps? Not sure how to go about casting that wider net that takes overseas candidates into consideration? Then get in touch with Software Placements and learn how we can help you find the best overseas talent for your company.