Unintended consequences of the talent gap
Inflation was a central theme in the world of work in 2022, as the cost of living and housing crises affected talent attraction, engagement, and retention. The combination of inflation and the current talent gap has led to the potential for a wage-price spiral, as employees seek salary increases to keep up with rising living costs, and businesses try to stay competitive by increasing wages. However, there seems to be a discrepancy between the perspectives of employers and employees on the impact of inflation on salary demands. While 44% of employers attribute their past salary increases to inflation, 82% of employees cite inflation as the main reason for seeking a salary increase in 2023.
Unintended consequences of the skills gap are pushing salary demands
While inflation drives the conversation, other reasons are strongly factoring into people's salary increase requests. A consequence of the current skills gap is increased talent attrition.
Organisations cannot fill roles quickly, leading to an increased workload and responsibilities for existing employees. These are critical factors behind driving pay increases.
People are also gaining knowledge and experience from wearing more than one hat. Increased experience is also a strong reason people look for increased pay packets. Combined, unintended consequences of the talent gap account for over 25% of the top reasons people seek higher salaries.
While inflation tops the list at 45%, it's a factor organisations’ have very little control over. They can, however, tackle many of the other top drivers.
Tackling the unintended consequences of the talent gap
The skills gap has a tangible impact on employees' daily tasks and can negatively affect team performance and job satisfaction. Increasing autonomy for managers may alleviate some of this pressure, but current market conditions may make it challenging to find qualified candidates. One solution is to consider using a Recruitment Process Outsourcing (RPO) service to enhance talent acquisition and quickly access in-demand skills. An RPO can assist organisations with:
Talent Mapping
Talent Sourcing & Attraction
Candidate Engagement
Interviewing & Offer Management
Onboarding
The key benefits of an RPO are its ability to scale to your needs, the expertise brought to the table and the depth of the talent pool available to providers.
Learn more about Recruitment Process Outsourcing from Cpl's specialists, the Talent Evolution Group (TEG)