US businesses are facing a major talent shortage issue. In fact, right now, there are 1.9 job openings for every unemployed American – up from 1.7 in August, and it’s only expected to get worse.
In other words, America has a supply and demand issue. Companies need skilled workers, but there just aren’t enough of them to go around. With growing recession concerns and pressure to meet investor demands, many companies are wondering how they’re going to fill their empty seats without breaking the bank.
Could embracing remote working and leveraging global talent be the answer? We think so. Here’s everything you need to know about America’s current skill shortage and what US companies can do to combat it.
The talent shortage in the United States is rising
From recession concerns and rising inflation to early retirement, supply chain issues, global political insecurity and more, there are many complex factors contributing to America’s growing talent shortage. One of those factors is the changing values of America’s workforce.
During the pandemic, remote working became the norm. Paired with spending a lot of time at home, people’s attitudes around work began to change. Suddenly, America’s workforce was looking closer at salaries, benefits and working conditions. In doing so, many people decided they weren’t happy with the status quo - and so began the Great Resignation.
As of now, millions of Americans are still leaving their jobs every month in hopes of finding greener pastures. While some industries (like construction) are starting to see this trend slow down. Others, like health care and information and communication technology, continue to lose employees at a record-breaking pace.
At the same time, America’s demand for digital skills is rising. While digital skills used to only be necessary for the IT sector, we’re now seeing demand for digital skills in other sectors, too – like manufacturing, retail and more. In fact, between 2002 and 2016, the percentage of American jobs that required a high level of digital skills jumped from 4.8% to 23%. But unfortunately, the number of Americans qualified for these jobs has not kept up with demand.
Combine all these factors with the high inflation rates, investor demands and global political insecurity, and it’s no wonder the country is facing such a massive talent shortage with no signs of slowing down.
Since there aren’t any signs that America’s skill shortage will subside anytime soon, what’s a company that needs workers to do?
Could global talent be the solution?
While remote working may have sparked the Great Resignation – it also created the possibility of hiring global talent. In a world where remote and hybrid work is the new norm, you can employ workers no matter where they’re from.
There are some benefits to hiring global talent, too. For one, with the whole world as your talent pool, you’re sure to get the most qualified employees for the job. Secondly, you’re likely to spend a lot less money doing it.
In general, when American companies hire workers from other countries, they can often pay substantially less than they would to hire locally. This is mostly due to lower living costs in other nations and favorable exchange rates.
For example, Australia is an excellent choice if you’re looking for talent comparable to what you’ll find in the US. At this time, the exchange rate is $1.00 equaling 1.49 Australian dollars, meaning your dollar goes much farther with Australian labor. In addition, 56% of Australian workers want to work remotely. That’s a large talent pool of highly skilled, low-cost, English-speaking workers that prefer remote work.
If you’re looking for a larger labor supply with a lower cost of labor, The Philippines is also an excellent choice. The population is approximately 1/3 of that of the US, and the labor cost is only about 8% of American salaries. In addition, 59% of Filipinos speak English. And most adults have college degrees. For these reasons, the Philippines has long been a favorite place to find highly skilled workers.
Ultimately, there may be a national talent shortage. But if you’re willing to extend your net a little further, there’s plenty of global talent ready, skilled and waiting.
Leverage the global talent pool with Outstaffer
In short, American companies can solve their skill shortage issues by embracing remote working and leveraging global talent. Many countries, like Australia and The Philippines, have tons of skilled and educated workers looking for the position you’re trying to fill– at a fraction of the cost of hiring local talent.
However, hiring global talent doesn’t come without its hassles. That’s where we come in. At Outstaffer.com, we serve as your Employer of Record, making it easy to recruit, hire and employ global talent from around the world. We handle the HR, liability and IT of hiring abroad, so you don’t have to.
Want to learn more about how we make it easy to hire abroad? Schedule your demo today.