Summer, 2018. The Italian football club Juventus has a tough decision to make. They need a new player, and the team wants Cristiano Ronaldo. But the renowned athlete wants something, too: $112 million, a contract four times more costly than any other player.
Juventus takes the risk, and it pays off. Ronaldo continues to be a star on and off the field. He wins games, wins over fans, and grows into an even more immense international media sensation. By the end of 2018, the share price of Juventus has more than doubled.
Clearly, companies looking to stay ahead of the curve are in tough competition to attract the best talent. This is why they need to make hiring a top priority and invest in the process.
The key message here is: Hiring the right talent is more important, and more difficult, than ever.
It takes three things to run a successful business: a great idea, a little bit of money, and talented employees to get the job done.
These days, ideas and money seem to be abundant. Everyone feels like they have a million-dollar idea. And there are plenty of investors willing to take a chance on a novel startup. However, that last ingredient – experienced and enthusiastic workers – is harder to come by.
What’s the reason for this scarcity?
Well, today’s jobs are much more specialized than they were in the past. In the old industrial era, most companies could hire anyone willing to work. Jobs were simpler and more straightforward. But in the contemporary knowledge economy, the necessary skill sets are much more specific. Companies don’t just need software developers; they need software developers who know certain programming languages or specific platforms.
These skills are hard to learn and even harder to master. But as the tech sector continues to grow, demand for them will continue to rise. A recent report by the consulting firm McKinsey estimates that by 2030 there will be more than 85 million of these high-skill positions to fill. And, unfortunately for employers, there just won’t be enough college-educated workers to fill the slots.
World leaders like Google are already making hiring a priority. The tech giant pours a lot of money into recruiting. In fact, its number of recruiters per employee – 16 for every 1,000 – is nearly ten times higher than any other Fortune 500 business.
But all the money in the world wouldn’t make hiring simple. It takes smart strategy as well. In the next blink, we’ll take a look at some principles to make the process work for your business.