The War for Talent: Why Urgent Action is Essential

Last week, I attended the Northern Ireland Chamber’s Future Workforce Summit, which brought together industry leaders to explore pressing workforce issues. Topics ranged from the ‘Good Jobs’ Employment Rights Bill and funding for future talent development, to building a skilled green economy, adopting AI, and fostering a healthy workforce.

From these discussions, four major challenges emerged that demand urgent attention:

1. Availability of Labour

Northern Ireland faces a labour market paradox. Despite near full employment, 324,000 people (27.5% of the working-age population) remain economically inactive, with almost half under the age of 24. This represents a vast pool of untapped potential that could be pivotal to addressing future workforce needs.

2. Skills Shortages

One of the most pressing issues is the skills gap. The 2022 Employer Skills Survey found that 35% of the estimated 39,500 job vacancies in Northern Ireland were due to a lack of necessary skills, experience, or qualifications.

Globally, Korn Ferry, a global organisational consulting firm, predicted a shortage of over 85 million skilled workers by 2030, with India being the only country expected to have a surplus. This highlights that the skills shortage is not a short-term issue but a long-term demographic challenge.

3. Sickness Absence

Sickness absence in 2023 reached the highest levels in over a decade, with employees taking an average of 7.8 days off per year - up from 5.8 days in 2019. This rise in absenteeism negatively impacts productivity and puts additional pressure on the already stretched workforce, intensifying the talent crisis.

4. Retention

Retention is a growing concern. Gallup’s State of the Global Workforce report shows that 52% of employees worldwide are considering leaving their jobs. While Europe’s figure is slightly lower at 32%, the UK and Northern Ireland come in at 20%. Even at this rate, the volatility of the workforce is a serious issue that employers must address.

These factors suggest that the talent crisis is not going away—it’s likely to worsen. Organisations need to act now to stay ahead in the increasingly competitive war for talent. Here are seven strategies to help businesses thrive in this environment:

1. Revamp Your Recruitment Strategy

Assume the talent and skills you need may not be readily available. Invest in developing talent pipelines through partnerships with educational institutions or bespoke training programmes. This proactive approach will help ensure you have the skilled workforce needed for future growth. 

2. Strengthen Your Employer Brand

In a competitive labour market, a strong employer brand is crucial for attracting talent. If you're not actively cultivating your reputation as an employer of choice, your competitors certainly are.

3. Boost Employee Engagement

Conduct regular employee engagement surveys to assess how your staff feels about working in your organisation. Use the insights to develop an action plan that addresses key areas of concern and improves the employee experience, which in turn aids retention.

4. Proactively Manage Absenteeism

Review your sickness absence data to identify patterns and underlying causes. Consider implementing preventative measures such as mental health support and well-being initiatives to improve overall workforce health and reduce absenteeism.

5. Leverage Apprenticeships

Apprenticeships can be a key component of your talent strategy. They provide a structured way to train new talent, especially in industries facing critical skills shortages. Northern Ireland offers a range of resources to help businesses establish apprenticeship programmes.

6. Review Your Retention Strategy

Take a deep dive into your retention data to identify why and when employees are leaving. Use this information to improve your onboarding process, company culture, benefits package, and career development opportunities, fostering long-term employee loyalty.

7. Fill Gaps with Artificial Intelligence

Consider using AI to bridge talent gaps. The Artificial Intelligence Competence Centre (AICC), a 5-year project funded by the Department for the Economy and Invest Northern Ireland, provides 20 days of support to help businesses assess and implement AI-powered solutions. This initiative offers specialist expertise and training to help companies integrate AI into their operations. Visit their website to learn more and register for support.

Conclusion

The war for talent is already upon us. Organisations that take proactive measures now to attract, develop, and retain talent will be better positioned to succeed in this increasingly competitive environment. By addressing key workforce challenges and adopting innovative solutions, businesses can secure the skills they need for the future.

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