Why Can’t I Find the Right Talent?

If unemployment in Minnesota is 6.5%, why can’t I find the right
talent for my business?

This is a pretty common question that many hiring managers and small business owners are asking these days. There are several contributing factors that lead to this conundrum. None of these challenges will be easily resolved and most likely will be exacerbated as the war for talent really heats up with the recovering economy.

First, and foremost, while the overall unemployment rate in Minnesota is 6.5%, the unemployment rate for many highly skilled professionals and executives is far lower. Even during the height of the recession, unemployment among those with four-year degrees peaked at roughly 3.4%. Evidence suggests that over the past six months that number decreased.

Another factor to consider is which employees were eliminated during the recession. Many companies made special efforts to retain top talent and those with unique skills that are in high demand. This is not to say that good people were not let go during the recession. Some took voluntary severances. In other cases, whole divisions were eliminated.

This contributes to the next challenge. There is often a skills mismatch between available talent and available openings. Sometimes this is driven by a fundamental lack of skills, such as construction workers not being qualified to do computer programming. Other times it is due to employers being unwilling to consider talent that is functionally qualified, but may not have the exact industry experience.

The sum of these three issues effectively means that employers are seeking candidates with specific talents, but these candidates are currently employed. Despite an improving job market, many skilled professionals are still unwilling to bear the risk of moving to a new company. Thus, they are not scanning the job boards and must be recruited to consider new roles.

These are some of the primary factors in finding talent. As the economy continues to improve, we will see the difficulty in finding talent intensify. My advice is to be open to skilled employees from other industries and move quickly to hire candidates you like. The talent wars are heating up!

Chris Gustanski
Director
McKinley Group