Small Businesses to Overcome Skill Shortages and Talent Mismatches

Abstract

Chapter Contribution

The fourth industrial revolution and its disruptive technological advances are leading to continuous significant changes in the labour markets, which affect employees and employers of all sizes.

Currently, organisations are experiencing considerable skill shortages and talent mismatches: the skills that organisations are looking for do not align with those available in the labour market. This means that matching available candidates on the market with job vacancies is unlikely. In addition, the increasing wage pressure in occupations linked with the most in-demand skills and in high-skills industries has become a reality.

The immaterial assets of a business, such as the competences and skills of its workforce and leaders, are the most significant elements in providing a competitive advantage is a fact no one in the present era would argue against.

While big corporations dispose more resources and capabilities to deal with these challenges, small businesses – considered the foundation of many healthy communities – have limited assets to face such global and complex dynamics.

This chapter acknowledges the significance of small businesses in the global landscape and their key role as ‘job generators’ in enabling an inclusive economic growth in developed as well as in emerging countries. And in this context gives focus to the crucial issue how of small businesses can overcome the skill and the talent gap, and which strategic shifts they can put in place in order to withstand these environmental constraints.

To this end, this chapter provides a broad investigation of international reports discussing the role played by external factors – such as governments and their policy frameworks – and the concept of knowledge sharing.

Moreover, it examines the influence of internal factors. Specifically explored is the key role of the human resources function in attracting skilled graduates, upskilling its workforce, establishing a total reward and talent development strategy and engaging in job design.

This chapter is of particular relevance to owner managers, general and HR managers of small businesses, but also public officials and private institutions. It identifies and offers practical solutions for small businesses that aim to transform themselves to successfully cope with skills shortages and the war for talent in the age of digitalisation.

Citation

Pedron, Z. (2022), "Small Businesses to Overcome Skill Shortages and Talent Mismatches", Biginas, K., Sindakis, S., Koumproglou, A., Sarantinos, V. and Wyer, P. (Ed.) Small Business Management and Control of the Uncertain External Environment (Advanced Strategies in Entrepreneurship, Education and Ecology), Emerald Publishing Limited, Leeds, pp. 111-135. https://doi.org/10.1108/978-1-83909-624-220211008