human resources and labor shortage by 2030

According to Rainer Strack in the 2014 TED talk “The workforce crisis of 2030 and how to start solving it now,” the global workforce crisis of 2030 is due to two main things: a labor supply shortage, and a skills mismatch. Forecasting models show that even in Brazil, India, and China, there will be a critical labor supply shortage that will cause economies to stagnate. Technology cannot make up for the labor shortage because technology does not supplant people; it actually just creates different jobs.

Migration is one of the keys to resolving the labor shortage, but ultimately it comes down to the need for higher skilled workers all over the world. Upskilling is the key. Through upskilling, education, and training, the work force of the future can meet the demands for their services to perpetuate a robust global economy. Surveys do show that among highly skilled job seekers in countries around the world, most (at least 60%) are willing to migrate to another country.

Interestingly, the three countries where people are least likely to be willing to move include Germany, Russia, and the United States. The United States is, on the other hand, the country where most people in the world want to migrate to. In any case, the labor crisis of the future will be related more to a greater demand for high skilled jobs in particular; the labor crisis will not affect lower skilled jobs as much. This is why upskilling is a crucial factor in meeting this challenge.

It is not just upskilling and training that will help companies, though. Surveys show that workers—especially those that are most in demand for their skills—are more interested in having good interpersonal relationships with their coworkers and supervisors, in having a good work/life balance, and being appreciated for what they do even than for their salary. Workers are motivated by organizational culture factors much more than money. Given this, companies around the world need to attract top talent by changing their culture.

The organizational culture of the future will thrive only when it transforms its culture to meet the needs of a highly skilled and highly motivated work force. The “people strategy” that Strack (2014) recommends is divided into four main keys: workforce planning, attracting the right people, upskilling, and retaining the right people. Workforce planning, Strack (2014) says, will be more important than financial planning by 2030. Forecasting supply and demand for specific jobs and skills will help companies understand who they need to attract and when.

This will help companies make strategic decisions about their own workforce and meeting their own labor demands. Second, the company needs to learn how to attract great people. There are many ways to do this, but improving culture and then using public relations to promote that attractive culture are certainly things that can help make an organization more attractive to people who would be willing to relocate. Third, Strack (2014) recommends strategic planning for workforce education and upskilling.

Of course, this would mean assessing needs, developing and implementing the right training programs to meet those needs, and administering the training programs to the right people at the right time. Finally, organizations need to.