Written by Maitri Meyer, September 1, 2017
Talent Shortage Facts
- Globally, 40% of employers report having difficulty filling positions states ManpowerGroup’s 2016-2017 Talent Shortage Survey.
- There were 76 million people born between the years 1946 and 1964. Numerous sources have confirmed 10,000 Baby Boomers are turning 65 every single day, and this is expected to continue into the 2030’s. The Boomers filled (or still fill) the highest levels of leadership.
- There are 30 million less Gen X’ers (the generation after the Boomers), which creates a major gap in leadership and experienced talent.
- Succession planning is still not common place, especially in smaller companies. Various sources over the past 5 years reported between 30-60% of companies have not done any succession planning. Likewise, few companies invest in identifying and developing their high potential employees.
- Many employers are still cautious about increasing their W2 employee count after the 2007 recession forced layoffs and terminations of those they considered family.
3 Talent Shortage Solutions
- Recruit New Talent: Given the talent shortage and skills mismatch, recruiting new employees is not as easy as it used to be. Significant strategy and investment is often required to be even moderately successful. Creating a new position is weighed very carefully and is often denied.
- Retain and Train Current Talent: Lifetime career employees are no longer the norm. We have all heard facts such as: Average tenure in a job is less than 5 years; average workers will work 12-15 jobs in their career; and only 30% of employees are engaged at work, 50% are not engaged and 17% are actively disengaged. In addition, personnel costs typically account for 15-30% of a financially stable company’s budget. The cost of turnover is obviously staggering. Clearly, the best investment is to train and develop current employees. If the skills being learned will be required on a regular basis or to move up in the company, the investment is even more critical.
- Outsource Talent: Hiring independent contractors is a low-risk strategy that many organizations are embracing. In fact, this trend expanded significantly after the recession. Given healthcare and additional benefits add 30% to every employee investment, avoiding those costs results in a low investment per manhour. For short term, skill-specific or project work it becomes a no-brainer, outsourcing is by far the most economical tactic to fill talent gaps.
As the demand for off-site contracted services skyrockets, the supply of remote workers, advisors, consultants, virtual professionals, freelancers, overseas call centers and virtual assistants has kept pace.
What Exactly is a Virtual Professional? How is it different from a Virtual Assistant?
A virtual professional completes his/her work remotely as an independent contractor. Areas and levels of expertise can vary greatly including highly specialized consultants, project managers, individual contributors or administrative support. Oftentimes, virtual professionals are hired on a project or other short-term basis. Side note: Some fun labels for virtual professionals include Digital Nomad, Freedom-preneur, and Suitcase Entrepreneur.
A Virtual Assistant (VA) is a sub-set of the broader category of Virtual Professional (VP). Most VA’s provide administrative support to take routine tasks off the plates of busy executives. They can be hired via numerous online service providers, typically for $6-$40/hour.
In addition to carrying out the tasks, VP’s can also help determine what is needed and recommend the best resource (oftentimes a VA!) At Actually DONE, our VPs are highly accomplished (20+ years of experience), reliable professionals that recommend strategy, define scope, and complete your on-demand projects when you have a skill or bandwidth gap in your organization.
We specialize in bringing business skills to positive impact organizations to fulfill their mission-critical projects on time and on budget. Contact us to discuss how we can cut your To Do list in half.