Shortage in the labor market: ten actions to solve the staff shortage
If talent is no longer available, there is no point in continuing to use classic recruitment and selection. The shortage of people now threatens to disrupt society. Ton Wilthagen, professor of the labour market, expects that the shortage could last another thirty years. For that reason he is launching ten actions to counter scarcity.
Despite the coronavirus pandemic the economy is growing strongly, and the labor market in particular is feeling it. In almost every shop window there's a note saying 'staff wanted', and other sectors such as healthcare, IT and transport are also crying out for extra hands. For every 100 unemployed people there are currently 126 vacancies. This shortage will eventually slow economic growth, says the CBS.
Wilthagen's ten points broaden the shortage beyond the daily activities of the average recruiter. Headhunting, posting vacancies and motivating staff to enthuse people in their environment will remain, but to get the labor market moving smoothly, attention must also be paid to the housing market, refugees and training. These are Ton Wilthagen's ten actions.
The 10 actions
1. Focus on untapped labor potential and talent
Approach people who are currently not working or who are retired and train them. Solve the welfare trap by offering a return guarantee and making it easier to earn extra income while on benefits. Requirements for applicants can also be lowered by implementing work-study programs and open hiring. In addition, we can introduce skills passports and strengthen labor-market orientation, addressing all forms of discrimination in the labor market.
But there are also potential groups of workers who struggle with debt; wage garnishment could be adjusted for them. The tax deduction for study costs may be reintroduced and personnel risks for employers must be revised in labor law. The tax on labor should be reduced, in exchange for higher taxes on wealth and on environmentally polluting activities and products.
2. Motivate prospective students
Prospective students cannot of course be forced into certain choices, but we can improve the image of work in shortage sectors. Giving discounts on study costs and offering a job guarantee can help, but if the
tight labour market
is broad, certain sectors will suffer from it.
3. Improve wages and other employment conditions
These improvements can be achieved by offering good employment contracts, childcare, reduced workload, autonomy, training, flexible working hours, job rotation, sabbaticals, language courses and the abolition of the minimum youth wage. One disadvantage is that this can lead to competition and shifts between companies and sectors; after all, the pie doesn't get any bigger.
4. Involve students in practice earlier and for longer
Dual learning can be expanded, among other things by offering sufficient internships. Programs can be shortened, although that must not come at the expense of quality.
5. Ask part-timers to work more hours
This is mainly about women, and an increase in working hours must therefore be worthwhile for them and practically feasible. In addition, the retirement age should be raised, although this is not popular.
Make part-time retirement widely available. Counter absenteeism due to illness and invest in support and reintegration. Absenteeism due to illness is partly caused by high workload and is a consequence of staff shortages.
6. School staff to positions where shortages prevail
Companies can also do that together. End 'useless' or environmentally harmful business activities and functions (or even factors) and help people relocate.
7. Draw people from other (shrinking) sectors
Admittedly, that's not easy when many sectors are tight. The work-to-work infrastructure can be sustainably improved for all workers. The reluctance to do this must be removed, especially among people aged 50 and over.
8. Promote lateral entry through labor migration
Attract more people from abroad, including from outside the EU. We can get refugees and asylum seekers into work more quickly. Here, in a number of sectors, such as education, language issues do play a role. Labor migration must be properly regulated; offer equal pay and good working and living conditions and introduce language courses for this group. This does require political and social support.
9. Increase people's productivity through technology
Focus on leveraging robotization, AI, automation and better organization of work, among other things via jobcarving.
10. Create affordable housing and improve
mobility
Build affordable homes in tighter regions (Skilled construction workers are needed for this…). Improve mobility from shrinking areas. Create public transport – also in the evening – to industrial sites and distribution centers. Make all buildings accessible ('remove thresholds') and, for example, have cleaning work done during the day as well.
