In our line of work, R&S Quantum hears a lot from innovative companies — big and small — in different pockets of the world and their respective governments, both local and national, that talent is lacking.
And many a government turn to immigration as their most immediate solution.
But the thing about moving people around the world is that it creates brain drain in some other part of the world. Which — if studied properly — might actually not be a problem after all.
However we won’t go down into that rabbit hole of a discussion. A much bigger problem for the world’s productivity is resource efficiency and unlocking public funds that currently generate negative returns caused by lack of impact investment information (that is in the age of Big Data!!) — which translates into the lack of trust on the part of public money managers when it comes to investing into emerging markets.
By 2030, an estimated 85 million highly skilled workers could be required worldwide for companies to succeed in the new digital economy. That talent shortage could result in about USD 8.5 trillion in unrealized annual revenues.
Progress of such sectors of Saudi Arabia and the UAE as technology, media and telecom could be hardest hit by lack of talent. Worldwide, the technology, media, and telecommunications industries could have a labor skills shortage of more than 4 million workers by 2030.
Salary Surge study by Korn Ferry, one of five largest executive search firms in the world:
Business leaders need to reimagine all aspects of talent management, employee engagement and reward schemes to better position them to retain top talent at lower wage premiums to protect profitability and business models.
The coming rollout of 5G wireless technology (the Internet of Things, right) will create a massive shortage in the number of people who can make sense of and harness this new technology.
David Barnette, the sector leader in Korn Ferry’s Communications and Devices practice:
5G’s impact is in the same category as the steam engine, electricity, and even the Internet itself
According to Future of Work: The Global Talent Crunch, Korn Ferry’s most recent work in their multiyear Future of Work series, “the talent shortage may be hard to see now, with daily headlines about how robots and artificial intelligence are making their way into a growing number of industries. And the study shows how, at least in 2020, there might even be a surplus of talent in Russia and China.”
But by 2030, Russia could have a shortage of up to 6 million people, and China could be facing a shortage twice as large. The United States could also be facing a deficit of more than 6 million workers, and it’s worse in Japan, Indonesia, and Brazil, each of which could have shortages of up to 18 million skilled workers.
The United States is the undisputed leader in tech, but the talent shortage could erode that lead fast. In tech alone, the US could lose out on $162 billion worth of revenues annually unless it finds more high-tech workers.
Werner Penk, president of Korn Ferry’s Global Technology Market practice:
The onus falls on companies to train workers, and also to encourage governments to rethink education programs to generate the talent pipelines the industry will require.
This is exactly what R&S Quantum does — whether it be by bringing value to Ukrainian-Canadian pilot training partnership, promoting job-led growth in EV charger manufacturing in India or motivating IT students at educational events in eastern Ukraine.