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Companies in the EMEA region are facing increasing competition for talent, which will only get worse in the years to come. In this article, we’ll discuss key strategies for navigating this crisis, including understanding regional trends and adapting recruitment methods to local markets. We’ll also explore how technology will play a crucial role in talent acquisition over the next decade.
Is there still a talent shortage?
Talent availability varies across the EMEA region. However, according to a 2024 survey by ManpowerGroup, 75% of employers globally are experiencing difficulties filling roles. The talent shortage is particularly acute in certain industries, including healthcare, transport and information technology.
What is the $8.5 trillion talent shortage?
According to a report by Korn Ferry, more than 85 million jobs could go unfilled by 2030, simply because there aren’t enough people with the right skills to fill them. If left unchecked, this could lead to around $8.5 trillion in unrealised revenue.
Overcoming talent availability challenges in EMEA
The first step to overcoming the talent availability crisis is understanding its root causes. As we’ve discussed before, the talent shortage we’re currently facing can’t be put down to one factor alone. Instead, several circumstances have come together to significantly reduce talent availability across the EMEA region. These include:
- Demographic factors: Once the biggest generation in the workforce, Baby Boomers are now preparing to retire — and many have left the workforce already. At the same time, birth rates in many countries have been declining since the 1970s, and are below the replacement rate in all 27 EU member states. The working-age population across the EU and beyond is decreasing and expected to continue.
- Reduced labour force participation: In many countries within the EMEA region, labour force participation has also dropped since 2020. This could be partially driven by increased retirements of Baby Boomers, and partially due to long-term illness linked to COVID-19. The rising cost of childcare in many countries is also a factor, contributing to women in particular leaving the workforce.
- Low unemployment: Unemployment rates are at a historic low. Across OECD countries, the average has not surpassed 5% since April 2022. In the EU, the latest figures show a record low of 6%. At the same time, job vacancies, which spiked during the pandemic, have remained above pre-COVID levels ever since. That means there are both more jobs available and fewer people to fill them.
- Skills shortages: Rapid advancements in technology and digitalisation over the last decade have led to an unprecedented shortage of skills. To put it simply, professionals are not being trained and developed at a fast enough pace to keep up with emerging technologies like AI, automation, cybersecurity and advanced robotics.
Understanding regional talent landscapes
The EMEA region is vast and diverse, and the talent availability landscape looks different in each country. While some are experiencing significant labour shortages in certain industries, others have surpluses available.
In a recent report by the European Labour Authority (ELA), 11 European countries identified widespread labour shortages in at least 38 occupations. About 85% of the total available occupations were identified as experiencing shortages by at least one country, with the highest number of shortages reported in the Netherlands, Belgium, Romania, Slovenia and France. At the same time, surpluses were identified in at least one country for 67% of the total available occupations.
The situation across the region is complex, with many factors contributing to both the shortages and surpluses identified in each country. However, one thing is clear: for certain occupations, there is talent available for employers who know where to look.
Identifying and accessing emerging talent pools in the EMEA region
Adopting a global approach to talent acquisition will be crucial to beating the labour scarcity crisis over the next decade. And national and international legislation and initiatives will have a key role to play in enabling talent mobility.
For example, the EU Talent Pool, first proposed in November 2023 and approved by the EU Council in June this year, will provide a platform to match EU job vacancies with job seekers outside of the EU. The initiative is specifically designed to facilitate the recruitment of third-country talent for shortage occupations.
Actions at the country and regional level will also be important. Countries such as Denmark, Germany, Finland and Norway, and regions including Flanders (Belgium), Carinthia (Austria) and Vilnius (Lithuania) have already put in place programmes to both streamline immigration processes and enable social integration for migrant workers in shortage occupations.
How do you hire in a talent shortage?
As well as opening their minds to international (and particularly non-EU) talent, companies in the EMEA region will also have to find other ways of uncovering overlooked talent pools. That might mean:
- Considering candidates from less traditional career paths
- Adopting skills-based hiring practices instead of relying on qualifications
- Launching recruitment campaigns to target over-55s who have left the workforce
- Working with educational institutions to shape and access the next generation of talent, particularly in emerging fields
Adapting recruitment strategies to local market conditions
Hiring across borders requires employers to adapt their hiring processes and techniques to the local market. First, companies will need to conduct thorough market research to understand the talent landscape in any new country they want to target. Forging partnerships with local organisations including recruitment agencies, educational institutions and industry associations can help you to expand your network and gain insights into the local talent market.
Developing an employer brand that resonates with local talent and tailoring content to reflect different cultures, languages and approaches to work are also key. And of course, using local recruitment channels including job boards, social media platforms and professional networks is crucial too.
All in all, companies that are the most successful in international hiring are those that adapt their hiring processes to align with local best practices, preferences and expectations. In most cases, this means partnering with a local provider or an international expert in global talent acquisition.
Leveraging technology and data for talent acquisition
Data and technology will play a key role in helping businesses to overcome talent availability challenges. First, companies can hone their recruitment processes by using AI-powered tools to sort through and shortlist prospective candidates. Unlike previous-generation ATS tools, which worked primarily through keyword matching, AI-powered technology can effectively parse meaning in candidate CVs and applications, providing more in-depth insights into suitability.
Technology will also be crucial in retaining, reskilling, and upskilling existing employees, which will be a key success factor in tackling the talent availability crisis. Smart companies will leverage both advanced L&D platforms and tools such as internal talent marketplaces to get the most out of their workforces.
In 2024, it’s clear that AI will play an important role in shaping the future of work. While some roles may eventually be replaced by AI technologies, others will be enhanced and transformed. These tools have the potential to radically increase productivity and drive innovation. Companies that want to get ahead should be looking for ways to ethically incorporate AI into their workflows. Ultimately, this will help companies to maintain productivity even as talent availability remains a challenge.
Maximising success amid talent availability challenges in the EMEA region
Many countries and industries within the EMEA region are experiencing historic problems with talent availability. And the demographic factors at play mean the situation is likely to get worse before it gets better.
There are opportunities for innovative and forward-thinking companies to source talent even for hard-to-fill roles by broadening their horizons beyond national borders, exploring overlooked talent pools and leveraging technology for effective talent acquisition.
However, recruiting talent overseas isn’t easy, and there are a number of legal, compliance and practical factors to consider. Working with an experienced partner in international talent management can help you overcome these challenges and find the talent you need.
At CXC, we’ve been helping businesses to source, engage, and manage talent at home and abroad for more than 30 years. Get in touch with our team to find out how we could help your organisation thrive despite the talent scarcity crisis.
