Enterprises responding to Everest Group’s 2022 Key Issues Study list “finding enough talent to run the business” as their No. 1 constraint.
The results of Everest Group’s 2022 Key Issues Study are in: Enterprises are bullish about growth in 2022; however, they’re facing a nearly “immovable issue”—fewer new workers entering the workforce.
On one hand, enterprises anticipate 7.4% headcount growth in 2022, a much more positive growth sentiment than expressed in 2020 (5.2%) and 2021 (2.7%). On the other hand, enterprises report their No. 1 constraint heading into 2022 is “finding enough talent to run the business,” a challenge that has moved up from the No. 5 position it held in both 2020 and 2021.
Everest Group says the concern about a talent shortage is entirely supported by the facts. Contributing factors explored in the study include the following:
- North America and Europe, in particular, have unhealthy “labor pyramids,” with 2.4 million less new workers coming into the workplace than just 5-10 years ago.
- Anti-immigration policies
- COVID deaths
- Government subsidies that provide alternatives to work
- Changing culture views (including a rise in stay-at-home parents)
Other talent issues detailed in the study:
- North America and Europe (including UK and Ireland) are the geographic regions most heavily impacted.
- The talent shortage seems to be all-pervasive across all job levels and has spread beyond IT and high-end digital skills.
- One half of all respondents reported they were actively looking to make a work change.
- In general, enterprises cannot find enough qualified people to fill roles, and attrition levels are too high.
- Enterprises are being compelled to compete not only by paying budget-busting market rates but also by improving employee experience and actively addressing environmental, societal and governance (ESG) issues.
“With 2.4 million less new workers entering the workplace in North America and Europe, the talent shortage is what we deem an ‘immovable issue’ for enterprises for the foreseeable future,” said Michel Janssen, chief research officer for Everest Group. “The talent shortage is our new reality, and the enterprises we surveyed recognize this as their No.1 constraint against their growth goals. So, the question then becomes, ‘When dealt a difficult hand, what strategies can we use to overcome this challenge?’ As we head into 2022, developing and implementing a talent strategy should be at the top of any enterprise’s list of priorities.”
***Webinar: It’s Not a Talent War, It’s a New Reality***
Everest Group will present the findings of its 2022 Key Issues Study in a December 14 webinar. Everest Group experts will recommend ways organizations can address this new reality, including strategies for pricing, sourcing, ESG, and potential technology solutions.
***Register for the webinar here.***
***Additional Resources Available from Everest Group***
- CXO Agenda Item: Build a Talent Strategy for Today and Tomorrow | On-demand Webinar
- Services Sourcing in a Constrained Economy – How to Deliver Value in a Talent Shortage | On-demand Webinar
- HR Outsourcing’s Role in Winning the Talent War | On-demand Webinar
About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com.
