Horváth: In the next two years, every tenth job will remain unfilled

Companies are operating in an unprecedentedly challenging time, and the three biggest challenges they will continue to face are rising labor costs, the gap between available and required employee skills and the inability to fill positions on time. As direct consequences of such a situation, the workload for the existing workforce will increase, labor costs will continue to rise, and the implementation of new business solutions within companies will slow down, as shown by the latest research from the consulting firm Horváth, which involved 50 financial directors from companies in Europe and around the world, among which 43 percent generate revenues of over one billion euros, and 30 percent of the companies that participated in the research have more than 5,000 employees.

– Although the lack of employees with certain technical skills such as programmers or employees in construction or tourism is often emphasized, the research from the consulting firm Horváth has shown that companies are most lacking in soft skills, which pertain to interaction with colleagues – communication, work ethic, motivation, good collaboration, and problem-solving, followed by business skills, understanding of the company’s operations, application of digital solutions and their implementations, and functional skills, understanding of processes, knowledge of IT systems, and analytical skills – stated Robert Ćuzela-Piljac from the consulting firm Horváth.

Horváth’s research has shown that companies will continue to face the pressing problem of the lack of quality workforce until 2025, and it is estimated that every 10th job will remain unfilled, with a direct consequence expected to be a 16 percent increase in labor costs, while as many as 93 percent of companies plan to compensate for the worker shortage by increasing the workload of current employees.

The research has shown that 76 percent of managers highlight that it is harder to reach employees due to fierce global and regional competition, 46 percent cite changes in demographics, while only 5 percent of managers point out that the problem lies in the money they pay to talented employees.

– In order for companies to retain their employees and attract new ones, it is essential to offer employees clear opportunities for further development, advancement opportunities, and to shorten the employee selection process. The role of the human resources department is extremely important here, as it needs to think strategically and consider how the expectations of new generations can interact with the company’s goals to ensure sustainable business growth – emphasized Ćuzela-Piljac.