Following the lockdown of 2020, the labor pool in the U.S. has shrunk dramatically — and it’s only going to get smaller. It’s estimated that by 2030, the number of unfilled positions could rise to 85.2 million. A talent shortage of that magnitude would result in trillions of dollars of losses, crippling the world economy over time. As you might expect, this puts an increasing amount of pressure on HR departments across the board — but it doesn’t have to be that way. In this article, we’ll discuss how the shortage affects businesses, and how AI recruitment software can alleviate the pressure of a severe talent shortage.
Effects of the Shortage
Although the larger shortage is still to come, a Forbes report shows that 54% of companies globally are currently reporting a talent shortage. This has resulted in a serious struggle to fill positions. According to a recent ManPowerGroup survey 69% of employers are having trouble filling necessary positions, triple the 14% rate in 2010.
This is most likely due to a shift in the relationship between workers and their employers, and the priorities of said employees. As the pandemic demonstrated the effectiveness of remote work, location flexibility has become a must for many job seekers. Better benefits and wages are being pushed for like never before, and the retirement of the baby boomer generation is resulting in a skill dearth. Maneuvering this talent shortage is tough — but those with the tools to do it correctly stand to rise above the market.
AI Software: Options & Benefits
Using AI recruiting solutions to complete more time-consuming or menial portions of your hiring plan can provide a number of benefits. Increasing time efficiency is a natural result of replacing man with machine, but there are other boons unique to specific AI recruitment tools that can alleviate the stress of the increasing talent shortage.
- Chatbots take over recruitment conversations
- The most popular AI recruitment software in today’s recruitment strategy is the AI chatbot. A chatbot’s primary use is to dispense information pertaining to open positions or company policy, and it does so through natural, human-like conversation. Learning as it converses, a chatbot can keep potential talent interested and engaged.
- HR team members will no longer have to spend hours of their time answering questions for a single potential candidate. If the talent shortage has resulted in a smaller staff at your organization, this can help assure your current employees don’t experience burnout.
- Optimize job advertisement outreach
- For many companies, the success of a recruitment campaign often rests on the shoulders of job advertisements. Where they’re placed and how they’re worded can be the difference between tens and hundreds of applicants. AI recruitment software analyzes your ad, and places it on job boards that are the most likely to attract the most suitable candidate.
- Passive sourcing software puts you ahead
- As the talent pool shrinks, finding active job searchers with the necessary experience for your open positions becomes harder and harder. Tapping into the potential of passive candidates, those who aren’t actively looking for work, can save your organization time and money if done properly.
- Passive sourcing software, like that offered by our own Wade & Wendy, can provide qualified candidates quickly. It can even send personalized emails to said talent, making them feel more valued than a simple automated message, and more likely to reach out in turn.
Overcoming the current and future talent shortage will take more than just a strong will — you’ll need the right tools for the job. With PandoLogic’s artificial intelligence software toolbox, your HR team will have what it needs to face the coming drought.