Is The Skills Gap Eating Away at Your Bottom Line?

Evan AbbottYou know that “Talent Gap” industry gurus have been talking about for years? Well, it looks like the beginnings are upon us … and it is costing employers money. A recent CareerBuilder study found that on average, if you have a position at your workplace that stays vacant for three months or longer, your company loses more than $14,000. 

A good percentage of the loss comes, unsurprisingly, from lost revenue, but hidden costs also factor in lower productivity, poor work quality, and greater voluntary employee turnover. So which roles are organizations experiencing the most challenges trying to hire? Examples run the gamut from computer and mathematical occupations to management, installation, maintenance, and repair occupations.

Matt Ferguson, CEO of CareerBuilder and co-author of “The Talent Equation,” stated, “There is a growing disconnect between the skills employers need and the skills that are being cultivated in the labor market today. This causes workers and companies to miss realizing their full potential and, in turn, causes the economy to fall short of its potential. The onus is on businesses and the public sector to work side by side to identify where there is a deficit of talent and reskill workers to close the gaps within their communities. This is not a problem that can be solved overnight, but it can be solved.”

Employers are taking a variety of strategies to try to stay ahead of the negative impact of this skills gap. Some are collaborating with local 2- and 4-year degree institutions to ensure students are being taught the relevant skills and knowledge needed in the workplace. Others are tapping into local workforce centers and participating in industry-specific job fairs to obtain the talent they need. Some, using available federal monies, are designing apprenticeships and on-the-job training experiences to grow the talent they need.

What can you do meet this skills gap? Give us a call and we can help talk you through your options and help you identify a strategy that best fits your organization. As the economy recovers and organizations begin to grow, it is common to promote people who “do the job well” but do not always have the strongest foundations in supervision, management, or leadership. Perhaps some of our management training would be helpful. We recommend the following courses for every new manager:

Building strengths in these core areas will provide your supervisors and managers the foundation they need to be of best service to your workforce. If you need help, give us a call at 800.884.1328.