Why Women Particularly Prefer A.I. in Recruitment Processes

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The promise of A.I. in recruitment is significant. The technology could reduce biases, provide objective assessments, and even speed up many components of the recruitment process. But is that true? Recent research from Monash Business School presents a more complex picture. In this study, over 700 applicants for a web designer position were informed whether their application was assessed by a human or by A.I. The results were striking: women showed a clear preference for A.I. in recruitment processes, while men preferred a human evaluator.

Women are more concerned that a human recruiter might unjustly disadvantage them.

“Women were significantly more likely to complete their applications if they knew that A.I. would be involved, while men were less likely to apply,” said Professor Andreas Leibbrandt. This is interesting, as women seem to assume that an algorithm is a fairer evaluator than a human. Why? The answer likely lies in experiences with human biases, according to Leibbrandt. Women fear that a human recruiter may unjustly disadvantage them, for example, due to gender biases. A.I. then appears as a neutral (or better: a more neutral) alternative.

Unjust Disadvantage

A second experiment focused on the behavior of 500 (tech) recruiters. They were presented with applications where they sometimes knew the gender of the candidate and sometimes did not. They were also provided with the evaluation from an A.I. system as a reference in certain cases. What did the study reveal? When the gender was hidden, or when the recruiters only had the A.I. score, gender bias largely disappeared. “When recruiters knew the gender of the applicant, they consistently rated women lower than men. However, this bias completely vanished when the applicant’s gender was concealed,” said Leibbrandt.

‘The gender bias completely disappeared when the applicant’s gender was hidden.’

When recruiters had access to both the A.I. score and the applicant’s gender, there was also no difference in scoring between men and women. “These findings show that recruiters use A.I. as a tool and anchor—it helps remove gender bias in assessments.” From this, one might conclude: A.I. promotes objectivity. However, we must be cautious with this conclusion, Leibbrandt himself warns. The Monash Business School research mainly focused on the interaction between humans and machines, not on the algorithms behind the A.I. itself.

A.I. may appear neutral on paper, but in practice, this is not always the case. Take, for example, the finding that algorithms rate CVs lower if there is a two-year gap for parental leave. If that’s not enough of a reason for concern: this also applies to resume blinding, where such personal information has been removed. The algorithm still recognizes subtle cues that it then associates with gender. These ‘hidden’ biases in A.I. arise because many algorithms are trained on historical data. An A.I. system trained on data from a male-dominated sector implicitly associates male qualities with ‘success.’ As a result, subtle forms of discrimination can still seep through, even without explicit terms like ‘man’ or ‘woman’ appearing in the dataset.

More Diversity in the Tech Industry

The solution to this problem lies not only with the algorithm itself but also with the people who develop it. The tech industry faces a significant gender gap: only 20% of technical roles at A.I. companies worldwide are held by women. More diversity in A.I. teams improves the representativeness of training data and ensures more nuance in the development of algorithms. More women in the tech industry, therefore, helps develop more inclusive and fair A.I. systems. But as long as this is not the case, bias and blind spots remain a significant risk.

More women in the tech industry help develop fairer A.I. systems.

As a recruiter or HR professional, you are, of course, dealing with these technologies. How do you use A.I. safely and responsibly? The first step towards the responsible use of A.I. in recruitment is to build a foundational knowledge of how this technology works and where its limitations lie. Then you can use A.I. as a tool, but always with a critical eye—the same critical eye you are already accustomed to using when evaluating candidates.

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AI Friday powered by RecruitAgent.ai – Meet Scotty, the global volume recruiter

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Scotty is not new, but already a proven technology who already interviewed hundreds of thousands of candidates during covid in just hours for staffing agencies in the Netherlands. This is an impressive winning case to read (in Dutch) and new ones are following fast, like the launch of Abby in august 2023 for Actief Werkt. But not only staffing agencies are using Scotty. Dutch Mail (PostNL) has also an impressive case and the best part is that candidates love the usages op AI. That people don’t want to talk to AI (for example prescreening) is not accurate, proving almost 92% of the candidates of PostNL given Scotty a 4 or 5 out of 5 ranking. Almost 55% a 5 out of 5…. For Dutch that’s a really high score.

Who and what is Scotty?

Scotty offers a next-gen conversational AI designed to streamline HR and talent acquisition processes. Especially useful for prescreening and making sure that you filter fake and false candidates and get a head start in speed in the war for talent. Scotty provides in omnichannel communication, engaging candidates through calls, SMS, emails, and messaging platforms like WhatsApp. Scotty supports the entire hiring journey, from sourcing, calling, screening and updating your entire talent pool to onboarding. Scotty speaks 140 languages, is smart (Scotty knows when answers are not aligned with given answers before or don’t match the CV), reacts in seconds when someone applies and is (off course) 24/7 available. Scotty can handle 500,000 conversations simultaneously (voice, text) and is integrated to various HR systems and collaboration tools like Teams and Slack.

Every corporate organization and agency who is handling volume recruitment should be aware and test Scotty (and some of their competition like Paradox, Recrubo and Mona). And if you talent pool is really your business gold, let one of these AI’s make it really valuable for you..

Looking for Prompts?

How can you use AI to find and attract top talent in an increasingly digital world? This new E-book from Werf& Wortell explains it all, including practical AI prompts for every recruitment and selection stage.

Download E-book

 

Why a Gap in Your Resume Can Still Be Detrimental to Your Career

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A gap in your resume? Companies’ attitudes toward it seem to be changing somewhat. Once considered something best concealed by candidates, as it significantly reduced job prospects, this perception appears to be shifting. According to a LinkedIn survey (2022) of 23,000 employees worldwide, nearly two out of three respondents reported having taken a career break. Subsequently, the platform introduced a ‘Career Breaks’ feature, allowing users to showcase the skills they acquired during that time.

On social media, many people see a career sidestep as a strong signal.

During the COVID-19 pandemic, it seemed less of a blemish on your resume if you couldn’t work for a while. Additionally, it appears that newer generations (and especially Gen Z) generally view career breaks and less traditional career paths less negatively. Social media has contributed to this: it’s no longer a shame to announce that you’re taking a break; it’s often seen as a strong signal. Whether simply to ‘recharge your batteries’ or acquire new skills, such decisions are typically met with much appreciation and admiration.

The critical question: Is it a punishment?

Then, the critical question arises: social media users may be okay with you taking a break and creating a gap in your resume, but do employers feel the same way? Is it still considered a ‘punishment’ or not? Or perhaps the opposite is true: could taking a sidestep or a break benefit your career? Researchers Boris Groysberg and Eric Lin decided to investigate and reported their findings in Harvard Business Review. And it turns out the situation is still quite nuanced.

The larger the gap in the resume, the smaller the chance of getting a callback.

For example, they cite a 2019 study in which ResumeGo sent fictitious resumes to over 36,000 job openings. They discovered that a resume without a gap had a callback rate of over 11%, while a resume with a 1- or 2-year gap had a callback rate of about 10%. If the gap was larger, the callback rate dropped significantly: for gaps of 3, 4, and 5 years, the rates were 4.6%, 3.7%, and 3.1%, respectively. However, context mattered. If you didn’t explain the gap, the callback rate averaged only 4.3%. If you mentioned that you were pursuing education during that time, it rose to 8.5%. Health issues resulted in a callback rate of about 7%, and family issues nearly 6%.

Skeptical

There’s also reason to be sceptical that a gap in your resume no longer matters. In the fall of 2023, the two authors surveyed over 400 managers on LinkedIn. Their responses: 61% still viewed a gap in the resume as a negative sign. The biggest concern was reliability (29%), followed by motivation (27%), retention risk (25%), and skill deterioration (19%). Interestingly, women judged gaps more harshly than men: only 4% saw it as a positive signal, compared to 10% of men.

And a gap in your resume doesn’t only affect recruitment decisions. The authors also looked at what it could mean for your further career progression. They examined compensation data for executives with and without a gap in their resumes. It turns out there’s still a significant negative effect. Without a gap in your resume, you could expect an average salary increase of 22% when starting a new job. With a gap, that increase was only 14%. According to the researchers, this effect is even more pronounced for younger executives, which is logical because they have shorter career histories.

‘No death sentence’

Notably, the researchers found that the negative effect of a resume gap was most evident in larger companies, where it is seen more as a warning signal. Also notable: the negative effect lasted longer for women than for men. They suggest that men can more easily ‘catch up’ by proving themselves at a new employer. Their conclusion: ‘A gap in your resume is not a death sentence for your career, but it’s also not irrelevant. The extent to which you can explain it can mitigate the negative effects, but not eliminate them.’

‘How you explain a gap on your resume can mitigate the negative effects, but not completely eliminate them.’

Looking at the entire career trajectory, a gap in your resume generally hurts your earnings. However, if you’ve already had a longer career, you have less to worry about, while those just starting are more vulnerable to a resume gap. The researchers note that companies, especially large ones, still use it as an important signal, although it may be unclear what that signal may be. ‘Hiring managers still make decisions based on incomplete information, using imperfect signals as input.’ For example, a gap in someone’s resume, whether it’s explainable or not.

Unintended side effect

The researchers suggest that the societal trend of taking time off could even lead to an unintended side effect. The more people have a gap in their resume, the more selective the group that doesn’t have to present such a gap becomes. The greater the chance they will stand out positively in a recruitment process, the higher their chances for promotion. Employers still view it as an important signal of someone’s suitability. ‘And so, a larger number of people with a gap in their resume could potentially widen the pay gap rather than narrow it.’

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AI Friday powered by RecruitAgent.ai – Half of the Candidates Already Use AI in Job Applications; Men Much More Than Women

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It’s not entirely surprising, of course. Research from iCims revealed last year that nearly half of all students planned to use ChatGPT or other AI bots to create their application letters and resumes. A quarter of these Gen Z members said they had already done so. However, that was still the well-educated segment of Gen Z. Now, almost the entire job market has discovered the application possibilities of artificial intelligence for job applications.

Have you ever used AI to create your resume?


Research by the American resume builder Enhancv, conducted with over 600 job seekers, shows that more than 60% of men and 45% of women report using AI to compile a resume. The company calls this development a “growing trend” and a “job hunting revolution,” noting that men seem to embrace the technology more than women:

On average, men use 81% more AI in their application process than women.
Men let AI answer their interview questions 34% more often than women.
Men are 23% more likely to feel comfortable using AI in their job search process (74% vs. 60%).
Men and women say it is equally ethical to use AI for job applications (81% vs. 80%).
No difference was found between younger and older job seekers using AI (45%).

That men tend to lean more toward AI is not a surprise either. Research by LinkedIn from November 2023 already showed that about 58% of all discussions about AI on the platform were conducted by men. According to Enhancv’s Executive Coach, Silvia Angeloro, men are generally more represented in tech professions and more inclined to experiment with new technologies. She also states that men generally have slightly easier access to these tools.

Negotiation Tips

Research by Indeed conducted earlier this year among 2,223 working Dutch people and 594 HR executives also showed that men report using AI more than women. Of the workers, 28% of men and 20% of women said they use it when applying for jobs (or would do so if they were applying). Of those, 67% use AI to write a cover letter, 58% to create a resume, and 52% to prepare for the interview. Interestingly, 38% use AI to get negotiation tips.

30% of applicants think recruiters are unaware of their AI usage.

Research by the job application platform Lerensolliciteren.nl surveyed 1,000 job seekers and found that 25% of applicants use ChatGPT to create a resume and cover letter, and 72% say this often leads to an interview invitation. Also, 53% of applicants who used ChatGPT during the application process were later hired. Additionally, 64% indicated they felt more confident during the process, thanks to ChatGPT. An interesting finding from this research is that 30% of applicants think recruiters are unaware of their AI usage.

Introduction Video

In response, some recruiters are now considering using “AI-proof” questions, such as recording an introduction video—something AI cannot currently do. Others incorporate hidden instructions for AI chatbots in their job postings that can become visible in the applicant’s cover letter.


As the Wall Street Journal noted earlier this year, it leads to a kind of robot war on the job market, with robots on both the candidates’ and the employers’ sides trying to outsmart each other. It also shakes up the traditional recruitment process, where old-fashioned resume and cover letter tools almost automatically move further into the background because AI increasingly undermines their value.

Looking for Prompts?

How can you use AI to find and attract top talent in an increasingly digital world? This new E-book from Werf& Wortell explains it all, including practical AI prompts for every recruitment and selection stage.

Download E-book

 

3/4 of recruiters say they prioritize ‘quality’ above everything, but half have no idea how to measure it

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It always sounds nice, phrases like: “We go for the best candidate.” “Only quality counts.” “It doesn’t matter what you look like; if you’re good, you’ll get the chance.” Or, also nice: “Quality rises to the top.” Therefore, it’s not surprising that more than three-quarters of the talent acquisition experts indicate that quality of hire is the most important thing on their agenda for 2024, according to research by the international recruiter network Higher. At the same time, the same research shows that most have no idea what that quality is exactly or how to measure it.

Most recruiters have no definition of quality of hire, nor how to measure it.

Nearly half of those interviewed (47%, a large part of whom are also in the Netherlands)) even admit they have not made the quality of hire measurable. This is even though they see engaging with high-quality talent as one of their highest priorities. “The big problem is that recruitment teams generally have no standardized way to define what ‘good’ looks like or how to measure it meaningfully,” says Phillip Blaydes, founder of Higher. According to him, this is necessary, knowing that mishires can cost up to twice their salary.

Management Reviews

Of those who claim to measure the quality of hire in some way, most rely on periodic reviews (usually from the manager) after 1, 3, and/or 6 months. Many also look at the number of candidates who pass the probationary period, and 1 in 5 also keeps an eye on turnover in general. Finally, about 5% say they look at the sales performance of the employees in question to assess the quality of hire.

However, these are all rather limited and, in any case, derived means for this, says Brian Evje in the research report. “Performance may be a reliable measure of recruitment quality, but at the same time, it depends on many factors beyond the control of the recruitment team.” Quality is in the eye of the beholder, Blaydes sums up. “After all, what ‘good’ looks like for quality of hire at Google will be very different than at, for example, the Lego Group.” Therefore, he recommends everyone build a clear scorecard and use it consistently.

How do we best map out these metrics and predictors of success?

In other words: “Collect performance data from your current employees and other data such as turnover, employment, and engagement. Use this data to determine top performers’ characteristics, skills, and values and align them with strategic objectives. What are the similarities that make these hires of high quality? How do we best map out these metrics and predictors of success? What does ‘good’ look like for each metric? For example, if you say that the promotion rate is an important indicator of the quality of hire, what is the benchmark for a good rate?”

Limited Horizon

The research also shows that many TA experts have only a limited horizon. Only 35% of them say they look more than 12 months ahead. Another similar number has a horizon of about 6 months, while 20% look no further than 3 months ahead, and 11% even say they do not do any planning at all. However, this is not so surprising, according to Blaydes. The economic outlook is quite unclear, and it is difficult to anticipate next year’s recruitment demand. However, he advises organizations to gather as much data as possible.

What is your organization trying to achieve in the long term – and what is needed from the talent function in that case?

“Integrating talent data with external data will help leaders in talent acquisition develop a more strategic view of the prevailing trends in the talent landscape, see where they can have the greatest impact, and where they can prevent challenges before they snowball. Simply put: What is your organization trying to achieve in the long term – and what is needed from the talent function?” This might also facilitate another discussion: what exactly makes a good recruiter?

Busy, Busy, Busy

Despite not knowing exactly how to define quality and not looking ahead, the surveyed recruiters are busy, busy, busy. As many as 7 out of 8 say their department is understaffed or only at capacity’. Only 13% say they have overcapacity. Much relief does not seem to be on the way for them. Three-quarters of organizations say in the research they do not plan to hire extra recruiters. If they intend to do so, about half want to do it in-house; the other half prefer an RPO arrangement.

Engaging RPOs or freelance experts can be an effective way to quickly scale up and down.

This last option also fits well with the current uncertainty, says researcher Blaydes. “Engaging RPOs or freelance experts could be an effective way to quickly scale up and down, offering in-house talent teams some breathing room and maximum flexibility in managing their fluctuating recruitment needs.” According to some respondents, this also aligns with another trend: the rise of A.I. This could replace some of the tasks of current recruiters.

More Information?

Read the entire research

Higher Research

International Talent Considered for Almost Half of Vacancies, Housing is the Biggest Concern

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Yes, organizations often try to find local talent; if not, they prefer talent from within the Netherlands. However, according to new research by the Dutch relocation platform Settly, a shift is occurring. A significant 78% of organizations surveyed by Settly said they consider relocating talent for up to 50% of their vacancies, although only 13% say they consider international talent for more than 75% of all their open positions.

67% reported a favorable return on investment from bringing in international talent.

Some other notable findings from the study (conducted in collaboration with Netherlands Point of Entry) include the following: the international talent that organizations attract mainly comes from Asia and Europe. The average cost of relocation is (only) 7,232 euros, while organizations spend an average of 96,011 euros per year (around 13 employees on average). More than 3/4 reported a positive correlation between a good relocation experience and increased engagement and retention. Moreover, 67% of the surveyed organizations reported at least a break-even return on investment when bringing talent from abroad.

The Winners of Tomorrow

Marieke van Iperen, CEO and co-founder of Settly (pictured), notes in the report that the biggest frenzy in the (international) labour market is over. However, she believes this will not immediately slow down the demand for relocation. “We are also dealing with the reality of an ageing workforce and an increase in migration, both voluntary (economic) and involuntary (e.g., due to geopolitics, climate, or safety). This means that in the next 3 to 5 years, the demand for international talent will grow again. Those who lay the foundation for their talent strategies today will be the winners of tomorrow.”

“Those who lay the foundation for their talent strategies today will be the winners of tomorrow.”

Of the companies surveyed, 74% had their headquarters in the Randstad region, while the rest had at least a permanent presence in the Netherlands but headquarters ranging from the U.S. to Dubai and Australia. Notably, organizations report spending less on relocation than in last year’s research, but this year, fewer organizations have specific policies in this area. However, there is significant growth in the number of organizations hiring specialized services for this, and even a doubling of the percentage of companies saying they plan to bring in at least the same number of employees from abroad this year.

Primarily a Large Company Activity

As expected, recruiting international talent is primarily an activity of large companies: 63% of all recruitments occur by organizations with more than 1,000 employees. These large organizations also expect the most growth in relocating international talent, with companies of over 5,000 employees even anticipating 40% growth. Notably, these large organizations also spend the most on it: an average of 12,489 euros per recruited employee, five times what small organizations are willing to spend.

The focus is mainly on very specialized roles. According to the research, seeking international talent is less common for management and executive (C-level) functions. Internships and support roles are quite underrepresented when it comes to cross-border recruitment. However, respondents are generally very satisfied with the contribution of international employees: while only 4.35% disagree that talent from abroad performs better and is more engaged, 39.13% agree (strongly) with it (and the remaining 56.52% are neutral).

Housing a Major Concern

Unsurprisingly, housing in the Netherlands is the biggest challenge for all organizations wanting to attract international talent. This concern spans the board, from small to large companies. It is naturally something that relocation service providers can help with only relatively little: after all, they also face the enormous scarcity in the housing market, a problem already highlighted in last year’s research by the Amsterdam-based startup, which managed to raise 6 million euros in investment a year ago.

Want to Know More?

In 2023, the first edition of the conference Internationalization of the Dutch Labor Market took place in Rotterdam. On September 9, 2024, the second edition will be held in The Hague. During this conference, participants will be inspired by the facts, context, practice, best practices, dilemmas, challenges, issues, and solutions. There are no sacred cows, just facts and practice. Problems and solutions. Register now:

Internationalization

How Companies Worldwide Are Trying to Expand Their Talent Pools

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Here are some big numbers to start with. According to an analysis by the U.S. Chamber of Commerce, even if every unemployed person in the U.S. were to find a job right now, the country would still have 2.4 million open vacancies. Japan expects a shortage of 11 million workers by 2040. China is anticipating a labor market gap of 11.8 million people per year. And then there’s Europe. By 2050, Europe is expected to see a decrease in its workforce of a staggering 35 million people, which is equivalent to three times the Dutch workforce. This comes after a decline of around 5 million people in the past decade, bringing the total workforce to 264 million.

Europe expects a decrease in its workforce of 35 million people by 2050.

Globally, there will be an overall shortage of about 85.2 million people in the coming years, according to Korn Ferry. Among the 20 largest economies, India is the only one expected to have a talent surplus by 2030. The financial impact of this scarcity amounts to approximately $8.5 trillion (!), which is roughly the combined GDP of Germany and Japan. It is expected that the labor market shortage is already costing the global economy around 1.5% in growth.

The work we want

Had enough of a scare? Then it’s time to look at how organizations are dealing with this. Recently, the World Employment Confederation, a global HR industry association, conducted a global survey among 715 senior executives, supplemented with in-depth interviews, and presented the results under the name “The Work We Want“, a comprehensive platform that extensively covers all trends. What are some of the trends that stand out?

Many organizations say they are (going to) use new platforms to reach untapped talent.

Firstly, organizations claim to be increasingly widening their gates. Long-term unemployed? People with disabilities, a criminal record, or from ethnic minorities? They are all more welcome than ever, according to employers. Additionally, organizations claim to be working on more efficient recruitment practices, such as making application procedures more accessible and using new platforms to reach untapped talent. Many companies are also reducing formal educational requirements for hiring staff.

The majority favors migration.

According to the research, half of the organizations aim to expand their employee base within 2 years to include groups currently experiencing less employment, thereby enlarging their talent pools. Furthermore, they aim to provide specialized support to refugees and asylum seekers, who often face legal barriers and disadvantages due to gaps in their CVs, language barriers, or a lack of local experience. Of those surveyed, 81% indicate that increased labor migration enables their organizations to access skilled talent, which is crucial in their pursuit of a balanced labor market.

The desire for more flexibility applies globally to both employers and employees.

Flexibility is also a major trend. This applies in both directions. On one hand, employers increasingly demand flexibility from their employees, while on the other hand, employees themselves are increasingly demanding it. A large-scale trial in England showed that 89% of companies that temporarily switched to a 4-day workweek continued this practice after the trial period. Some other findings in this area include:

  •  83% of respondents state that employees, after the COVID-19 pandemic, place (at least) as much value on flexibility (in their workplace) as on their primary employment terms.
  • 82% believe that the idea of following one career path throughout a person’s entire life has disappeared forever.
  • 83% believe it is necessary to raise awareness among people about the different types of employment contracts available to employees today and enable them to choose what suits them best.

Rise of A.I.

The emergence of A.I. has also been explored, and here are some notable findings in this field:

  • 81% state that A.I. and other technological disruptions force them to radically rethink skills and HR.
  • 78% are concerned that they may not be able to train their employees quickly enough to keep up with developments in the next 3 years.
  • 79% believe that flexible hiring of specialized workers is an effective way to train permanent employees.

The researchers also refer to projects undertaken by various organizations to adapt to the new world of work. For instance, attention is drawn to a project by Randstad aimed at engaging the 2.8 billion gamers worldwide and fostering the development of their skills, thereby simultaneously forming a talent pool for the staffing agency. Additionally, a Swiss initiative is highlighted, in which a specialized recruitment agency (Stiftung Profil) successfully reintegrates people with barriers to employment into the workforce.

FT Longitude · Episode 2: How to attract and retain diverse talent pools

The research also addresses the increased international labor mobility since the pandemic, as well as trends like The Great Resignation and The Great Attrition, which illustrate the changing preferences of employees. “The pandemic underscored employees’ desire for non-traditional forms of work, whether it’s flexible work, remote work, or working while traveling the world – all of which have become normalized,” says Barry Asin, Chief Analyst at Staffing Industry Analysts (SIA). “Meanwhile, companies continue to struggle to obtain the workforce they need.”

Significant emphasis on recruitment

The research also clearly demonstrates that many organizations worldwide are currently reassessing their recruitment practices. They aim to make their hiring processes more efficient and effective by:

  • Making the application procedure more accessible (indicated by 47% of companies),
  • Utilizing new recruitment platforms to access untapped talent (33%),
  • Finding talent among unemployed workers and providing them with the support they need to succeed in the workplace (52%),
  • Providing specialized support to refugees or asylum seekers to help them work within your organization (36%),
  • Shortening the workweek (33%),
  • Reducing specific experience or formal education requirements in recruitment (32%),
  • Developing a global talent acquisition strategy (24%).

According to the researchers, there is a significant opportunity in providing asylum seekers and refugees with faster access to the labor market. 80% of respondents say that governments should reduce legal barriers to hiring refugees or asylum seekers. They believe that without migration, it will not be possible to address the shortages, as the majority opinion suggests.

Would you like to learn more?

Read the full research here.

The Work We Want
talentpools wec

Too many jobs for too few workers?

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The sixth edition of the EURES report on labour market imbalances shows a tightening labour market across Europe. In spite of slower economic growth many companies are competing for workers who are willing or able to work in the jobs offered at the location where they are needed. This is particularly obvious in construction and engineering crafts, healthcare and ICT occupations.

Reasons are manifold: structural change in the economy, the digital and green transition resulting in changing skill requirements, demographic change and societal developments, unattractive working conditions or mismatches between workers’ and employers’ preferences are just a few of them.

Among the most critical shortage occupations – i.e., shortages that are widespread and severe – were: heavy truck drivers, nursing professionals and (specialist) doctors, electricians, roofers, waiters or construction labourers.

More than 60% of those who were employed in surplus occupations in the EU in 2022 were women while only 27% of those who were employed in the shortage occupations were women. This results in a less favourable labour market situation of women compared to men.

Many workers in surplus occupations were highly qualified showing that a high level of education does not automatically correspond to good employment opportunities.

In some of the shortage occupations the share of young workers is low. As a result, the structural shortages are expected to remain in the future, and partly even grow, when workers retire and the influx of young workers cannot fill the gap.

One aim of the report was to identify where cross-border job matching could be possible. For about 2/3 of the identified shortage occupations there is at least one country where there is a surplus of workers in this occupation. However, for the most widespread shortages, common in many European countries, intra-EU mobility is likely not the ‘silver bullet’, as labour surpluses in these occupations either exist nowhere or are limited to very few countries only.  Construction labourers are an exception.

Key insights:

  • 84% of occupations (367 out of 436 occupations) were in shortage in one or more country.
  • About 40 of the identified shortage occupations have been classified as severely affected by lack of available workers’.
  • Market imbalances are fed by structural change in the economy, new labour trends and skill requirements, demographic change and societal developments as well as working conditions, among others.
  • Mostly women work in surplus occupations.
  • Many workers in surplus occupations were highly qualified.

The report also contains a specific analysis of labour shortages in the construction sector.

Find out more about labour shortages and surpluses from 2023 in the report here, or click here to use the interactive dashboard:

Why the role of the manager has changed forever: ‘Focus must be on empathy and connecting’

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With 2020 came a fair amount of challenges for everyone, but particularly for those at the helm of organisations, talent acquisition teams — or those leading in any other capacity. Offices were closed, and workforces were stationed right where they began their day: in their homes. The same applied to those leading organisations and teams, they were asked, challenged, to do something they had never done before: lead from afar.

A stark contrast

Prior to the COVID-19 crisis, managers were largely used to the same in-office routines they had experienced their entire professional careers. “They rarely had to deal with connectivity issues or making sure their team stays engaged with low supervision”, Talentsoft say in their brand-new e-book The Role of the Manager in 2021. “Diversity and inclusion were also optional and the case of the empathetic leader never made headlines.” Suffice to say: 2020 proved to be a stark contrast for everything leaders knew.

‘Leadership varies in every country’

Then came the cultural differences. A leader may be hugely successful on one continent— but prove to be horrendously incapable in another. Therein lies the notion that leadership greatly varies in Europe and North America. “Take Germany, or France for example, where managers have to stay humble and avoid getting all the attention”, Talentsoft add. “They have to focus on their people first.”

Overall, Talentsoft sees that managers in Europe get more time and opportunities to center their plans around training their team and reaching goals. With more of an emphasis on collective leadership, a group effort — decision are usually made collectively, rather than by one individual. “Meanwhile, US leaders have stayed rather individualistic to encourage innovation and culture fit when hiring”, the company says.

“From home, team members experienced their own struggles that European managers found harder to spot with feedback surveys and one-on-one meetings not being as popular as in the U.S.”

But while Europe’s overall methodology has its benefits — perhaps the American way proved to be more helpful in a fully-remote situation. With leadership being the task of one person in the US, it allowed for easier transition to a remote environment. “From home, team members experienced their own struggles that European managers found harder to spot with feedback surveys and one-on-one meetings not being as popular as in the U.S.”, the company says.

Download Talentsoft’s full interactive e-book:
The Role of the Manager in 2021.

From ‘heroic’ to ‘a connector’

However, one notion is true for both continents: teams will no longer accept the heroic leadership stance, wherein those in power made all the choices. Instead, a successful leader in a distributed or hybrid workplace is a ‘connector’ leader, Talentsoft say. They describe the ‘connector’ manager as someone who is a great active listener and recognises routines or risks, so they can be discussed ahead of time.

“Staying humble, authentic, and being good active listeners are suddenly assets you can’t manage people without.”

“As part of this role, one essential objective is establishing clear expectations”, the company adds. “It’s all about aligning all roles, outcomes, responsibilities, and workflows. Managers do this by talking to their team and listing out guidelines or norms for individuals to follow. In uncertain times, managers need to turn into coaches and learning catalysts to do all this. Staying humble, authentic, and being good active listeners are suddenly assets you can’t manage people without.”

“Connector managers empower their teams”, they say. “So while every individual will work on their own skills, they teach them to share their expertise, helping the team as a whole. In turn, everyone learns from the best person and the team can maintain complete transparency. On one hand, they connect the right people. On the other, they will always return to recognise peer involvement and results so no one is left without feedback.”

Identifying leaders from within

According to Gallup research, only 1 in 10 people possess what they describe as ‘innate management traits’. Though many may come close in terms of the requisite skills — seldom do people have the combination to lead a team to greatness. “Now is the time to distinguish great managers from the rest by fixing the soft skills gap”, Talentsoft add. “A true leader is in charge of unlocking the full potential of their employees and teams — especially in a context like the one we find ourselves in today.”

“Reskilling alone will help you save on the costs of hiring new managers.”

That’s why organisations must do everything in their power to identify proficient and authentic leaders from within. “Imagine how you could transform your organisation once you’ve identified those leaders”, the e-book adds. “Reskilling alone will help you save on the costs of hiring new managers. Automated HR tools support identifying ideal candidates based on an exact set of skills and experience markings.”

Doubling down on soft skills

After identifying those that can be in charge, organisations must make enough of an effort to teach and support them to double-down on soft-skills. According to a survey, 84% of leadership and talent development managers report that by 2029, soft competencies would be of top importance in defining ‘good managers’.

“The future leaves no room nor time for managers who can’t understand the individual and its independent needs and struggles.”

With professional and personal lives blurred amid the pandemic, drawing lines between work duties and private life became one of the largest issues at hand for employees. “The future leaves no room nor time for managers who can’t understand the individual and its independent needs and struggles. Managers need to see their people as people.”

Keeping it real

“When creating successful manager training programs, ask yourself if the new information will be useful when managing real-life projects”, Talentsoft say. “Turn to your own employees’ feedback to spot team pain points. Training itself is a large professional goal but other targets to keep in mind are improving their active listening skills, supporting transparency, or offering actionable feedback.”

“In a fast-paced world, you’ll instead want to support ongoing education but avoid rushing managers into taking duties they’re not confident with.”

Moreover, the process of learning can be a daunting task for some — as more information comes in faster and to a greater extent than ever before. Talentsoft advises to organise the learning process according to priorities, goals and every person’s own pace. “In a fast-paced world, you’ll instead want to support ongoing education but avoid rushing managers into taking duties they’re not confident with”, they conclude.