You’ve seen the headlines. Companies are reporting a global talent shortage. According to a 2024 ManpowerGroup survey, 75% of employers report difficulty filling roles globally. In the US, 70% of companies are experiencing a talent shortage. Of companies with 1,000 to 4,999 employees, 77% report a talent shortage.
But how can that be? For the first time in history, we have five generations of employees. How can there not be enough employees to go around? According to the US Chamber of Commerce, the US lost millions of employees after the pandemic, and we are still recovering from that loss. Although labor force participation rates are rising (83.7% between the ages of 25 and 54), they don’t match the percentage of participants engaged in the labor force before the pandemic. In addition, there are the ever-growing challenges faced by many employees and prospective employees, including unaffordable childcare and eldercare, job overwhelm and burnout, and job skills misaligned with hiring needs. The picture comes more into focus.
Now that we understand the big picture, the question is: What does a talent shortage mean for employees? Short answer: Opportunity.
This article explores what employees are looking for from employers, how they can leverage the current talent shortage to their advantage, and why middle market companies are uniquely positioned to meet their needs.
What employees want
Employees are looking for professional opportunities where they can learn, grow, and make an impact. They also want work-life balance. For some, that means flexibility to work from home or a flexible schedule that they can manage.
Below are some of the factors most important to employees:
Challenging and interesting work
Employees want to have the opportunity to fully engage, particularly in complex projects that test them and allow them to leverage their skills, experiences, and knowledge.
Growth opportunities
Employees value access to people and experiences that grow their skills. They are looking for mentorship and networking opportunities that allow them to learn from and interact meaningfully with leadership and management. Employees are looking for companies where they can grow with the company and be promoted within the company.
Meaningful impact
Employees value being visible in their work and able to see the impact of their contributions. They want to significantly affect the company by delivering results for the company and its constituencies and helping shape the company’s future.
Entrepreneurial Environment
Many employees seek work environments where they can let their entrepreneurial spirits run free. They embrace the challenge of innovation and creativity to build and drive business solutions. At the same, they want ownership and decision-making authority to do that. Mid-sized companies can reduce or eliminate the red tape that often stymies growth.
Company Culture, Mission, and Values
Especially after the pandemic, employees strongly desire to find work that aligns with their values and sense of purpose. They crave a more harmonic approach to their work that enables them to be fully present in their work and personal lives.
Compensation and Benefits
Compensation is an essential factor for employees when deciding where to work. However, compensation is not just a dollar amount. Yes, employees want a salary commensurate with their responsibilities, skills, knowledge, experience, and impact. But that’s not everything. They also want to be acknowledged, recognized, and rewarded for their efforts. That recognition or reward does not always mean dollars.
Company Stability and Growth Potential
Employees want to work at companies where they trust and respect leadership and managers to treat them fairly and well AND to act ethically and strategically to grow the business for everyone’s benefit.
Employees can have what they want
Every challenge is an opportunity. A talent shortage is an opportunity for the savvy employee to have more of what they want. It creates favorable conditions for employees, giving them greater bargaining power, more career opportunities, and improved working conditions. It is a chance for employees to maximize their value and negotiate for roles and terms that align with their goals and needs. That is a win-win for the employee and employer.
The key is not to be afraid to ask for what you want. I’ve always heard that a closed mouth doesn’t get fed.
CONSIDER ASKING FOR:
Better Compensation and Benefits
When demand exceeds supply, employees are in a better position to negotiate raises or higher starting salaries. Know your worth by researching industry standards and be prepared to highlight your contributions or the value you bring to the organization. In addition to salary, employees can negotiate for enhanced benefits, such as remote work or schedule flexibility.
Promotions or leadership roles
As companies struggle to fill roles, existing employees may be asked to take on additional tasks or leadership responsibilities. Use this as an opportunity to showcase your leadership skills and position yourself for promotion. If there is a gap in leadership or higher-level roles, express interest in being promoted from within. Highlight your experience, achievements, and ability to take on more significant challenges.
Support to upskill or reskill
In response to the talent shortage, many companies will opt to invest in training programs to reskill or upskill their workforce. Take advantage of these programs to learn new skills or gain certifications. Employees who have a broader range of skills are more valuable. You might use this time to learn skills outside your primary role, such as technology, leadership, or business strategy.
Greater autonomy and influence
Employees may find that they have more influence within their organizations during a talent shortage. With fewer available candidates, companies often rely more heavily on existing employees, giving them a greater voice. Take on new and challenging projects. This is your chance as employers must trust their current team to handle a wider scope of responsibilities.
Positive company culture
Companies often place greater emphasis on improving workplace culture, employee satisfaction, and engagement to retain their workforce during a talent shortage. This may lead to more employee-friendly policies and practices, resulting in an overall better work environment. Create the culture you want.
Selective job hunting
With a shortage of talent, companies are competing more fiercely for qualified candidates. Be more selective, focusing on job opportunities that align with your career goals, personal values, and desired work culture. Also, consider jobs at organizations that have a solid plan for growth and adapting to changes in the market. This can lead to long-term job stability.
Why employees should strongly consider middle-market companies
Middle-market companies are a good option for employees looking for a more personal professional experience that is responsive to their needs. Though less flashy and popular than larger global ones, middle market companies are typically able to act more quickly and creatively to employee needs, fostering a more supportive and adaptive work environment.
Characteristics of middle market companies that make them worth consideration include:
Agility, flexibility, and adaptability
Middle-market firms tend to be smaller and less bureaucratic than large corporations. They often have simpler organizational structures, which allows them to make quicker decisions and adapt policies based on employee feedback. They also are typically more agile when responding to external changes, such as economic shifts, market trends, or technological advancements.
Closer leadership-employee connection
In many middle-market companies, senior leadership is more accessible and visible to employees, creating opportunities for direct communication. Leaders are often more in tune with the concerns and needs of their workforce, enabling faster responses and personalized solutions.
Customized employee benefits
Unlike large corporations, middle-market companies may have more freedom to tailor employee benefits and perks to their specific needs. They can offer a more personalized approach to employee wellness, work-life balance, and career development, which may resonate better with some employees.
Innovation
Middle-market companies often operate in competitive environments where innovation is key. This mindset can extend to their HR strategies, making them more open to adopting new trends, flexible work arrangements, and creative solutions to employee needs. Additionally, they are more inclined to invest in their employees by offering upskilling, reskilling and career development support.
Collaboration
Middle-market companies often foster a stronger sense of community and collaboration among employees. With fewer layers of management, employees may feel more empowered to voice their opinions and suggest changes, which can lead to a more engaged workforce.
Cost-efficiency focus
While they may not have the resources of large companies, middle-market firms are often more careful with their budgets. This efficiency can lead to more thoughtful and targeted investments in employee programs, ensuring that resources are spent on areas that truly matter to employees.
Summary
Companies are competing for top talent and candidates with the skill set, knowledge, experience, or willingness to learn that they need to achieve their goals. Keeping top talent once they have them is an ongoing challenge. The average cost per hire is nearly $4,700 (B2B Reviews). Employers estimate that hiring new employees can cost up to or more than 3 or 4 times their salary. Businesses spend an average of $1,111 to $1,252 per employee on training. Having to hire and train new employees constantly is costly and unsustainable, especially for middle-market companies. That said, middle-market companies are uniquely positioned to meet the expressed needs of today’s employees.
Middle-market companies are a great option for employees to consider. They are able to adapt, tailor, and respond to employees’ needs more quickly than larger companies. By their nature, they tend to be less bureaucratic, offering more opportunities for flexibility, project ownership, professional growth, and interaction with senior leaders and managers.
In a talent shortage, employees have the power to leverage their skills, knowledge, and experience to advance their careers, negotiate terms, and enhance their work experience. For more tips on how to do that, check out Three Ways to Pivot Your Career.
You are in the driver’s seat…if you want to be. Become the CEO of your Career. Not sure how? Schedule your FREE career strategy consultation today to learn how to have a career you love with a company and under the conditions you need to thrive.
