Nearly Half Say Company Operations Are Being Negatively Impacted Due to Shortage
Los Angeles, Sept. 22, 2021 – As companies continue to scramble to fill open positions, a new Korn Ferry survey finds that professionals believe that the labor shortage issue is turning into a marathon, not a sprint.
More than half (55%) of respondents say that as 2022 approaches, they expect employee turnover will increase. Nearly half (43%) say the labor shortage is having a negative impact on their company’s operations, and two-thirds (66%) say the pandemic has made it more difficult to fill open positions.
The top reason employees are leaving, according to respondents, is that they are re-evaluating their priorities amid the pandemic (30%). This is followed by a lack of a clear advancement path (24%) and better pay and benefits (23%).
“This labor shortage is much more than just a people issue – it’s a business conundrum that can have long-lasting effects if not addressed,” said Juan Pablo Gonzalez, Senior Client Partner and Sector Leader, Professional Services.
Nearly three-quarters (74%) of respondents say their company has a shortage of the skills and capabilities needed for the future.
“These statistics show that the negative impact of this trend will increase over time, unless employers change course,” said Gonzalez. “Leaders must work to understand the priorities of employees and develop talent strategies that will keep employees engaged and on-the-job.”
The top way companies are combating the labor shortage is upskilling/reskilling current employees (37%).
About the survey: The Korn Ferry survey of 1,128 professionals took place mid-September 2021.
As 2022 approaches, what do you expect will happen with turnover?
It will remain the same as it is now 29%
It will increase 55%
It will decrease 16%
What do you believe is the top reason employees are leaving your organization?
Better pay/benefits 23%
Need for more challenging/rewarding work 14%
Lack of a clear advancement path 24%
Re-evaluation of priorities amid the pandemic 30%
Are your company’s operations being negatively impacted by a labor shortage?
Yes and it’s hurting business 43%
Yes but it hasn’t had a significant impact on business 34%
We do not have a labor shortage 23%
Is your company experiencing a shortage of skills and capabilities needed for the future?
If it is harder to now to fill open positions, what is the top reason?
More people are leaving the workforce 17%
Can’t find qualified talent/skills 45%
Need more competitive salaries/benefits 24%
Remote working policy 8%
Safety/health concerns related to the pandemic 6%
What is the top way your company is addressing the labor and skill shortage?
Upskilling/reskilling current employees 37%
Relying heavily on contingent/gig workers 20%
Offering former employees incentives to return 4%
Increasing compensation, rewards and benefits 20%
Offering additional training and education opportunities 9%
Providing remote working opportunities 10%
Is the percentage of open positions at your organization higher or lower than before the pandemic?
Has your company experienced higher turnover since the start of the pandemic?
Has the pandemic made it harder for your company to fill open positions?
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.