On the 4th of August 2023 Astra Space Inc to support its growing customer base & order backlog of its spacecraft engines announced a strategic reallocation of its workforce from its Launch Services organization to its Astra Spacecraft Engines business. Astra has reallocated fifty engineering and manufacturing personnel to Space Products from Launch services in support of the Astra Spacecraft Engine business.
“We are intensely focused on delivering on our commitments to our customers, which includes ensuring we have sufficient resources and an adequate financial runway to execute on our near-term opportunities,” said Chris Kemp, Founder, Chairman and CEO.
Labor shortages present huge challenges for companies across diverse sectors which not only affect productivity, but also affect innovation and the growth potential. Addressing these shortages need a strategic as well as sustainable approach to the workforce planning which comprises long-term strategies & short-term solutions. In this article, let us look at the multi-faceted nature of labor shortages and render actionable insights to companies to effectively navigate these challenges via sustainable workforce planning.
Labour shortages often occur when the demand for labor increases the supply that is available, which leads to unfilled vacancies as well as business operation disruptions. Numerous factors which contribute to labor shortages include skill mismatches, evolving market demands, demographic shifts and technological advancements. Therefore, it is important to understand the root cause of labor shortages to develop targeted solutions as well as interventions.
Demographic trends & aging workforce
A primary driver of labor shortage includes demographic shifts which comprise the aging workforce coupled with declining birth rates in several regions across the globe. A huge portion of the workforce is nearing the age of retirement as the population ages, and this results in talent gaps in critical sectors that include healthcare, construction & manufacturing. Furthermore, declining birth rates also lead to smaller pool of younger workers from entering the labor industry which further exacerbates the shortage of skilled talent.
“We need to be creative and innovative about how we partner with our clients. It’s important that we understand staffing from the perspective of not what necessarily is beneficial to us, but how we solve this very complex problem for them,” says Richey Brownfield, Vice President of Enterprise Solutions, AMN Healthcare.
“Our biggest focus since the pandemic has been on helping our clients understand how they reduce their reliance on external agency resources. How can they staff up? How can they be more effective from a recruitment processing perspective and from a technology perspective when it comes to talent acquisition? We continually challenge ourselves to be better for our clients and ultimately our communities,” he adds.
Impact of Globalization & Economic uncertainty
Globalization has expanded the labor pool availability by helping cross-border mobility as well as outsourcing of jobs to lower-cost regions. Globalization poses challenges which include potential disruptions to domestic labor market and increased competition for skilled workers while it provides opportunities for businesses to access talent globally. Furthermore, regulatory changes, geopolitical tensions, as well as economic uncertainty will influence the labor market dynamics which contribute to supply & demand fluctuations.
“Healthcare historically has been reactive. It’s difficult (to change that), especially now with the staffing shortages you see across the board. There’s a shortage of doctors and nurses, but quite frankly, I don’t know that there’s any position that’s really easy to fill in healthcare,” says Christine Pirri, Chief of Workforce Solutions, Bassett Healthcare Network.
Emerging technologies will help in shaping workforce planning strategies
The most exciting part about advanced technologies are the crucial role they play in sustainable workforce planning. Technology can help in equipping businesses with powerful tools to streamline workforce planning in the present digital age. HR software like BrightHR facilitate businesses to manage data such as employee records & contracts efficiently. They can also help in managing employee development as well as training in order to equip them with the required skills for future roles.
Some of the top workforce planning software include iMocha, Visier, Planday, Runn, Quinx, Board, Vena and others.
In short, sustainable workforce planning is important for the long-term health of any business. Therefore, in order to win you have to embrace diversity, leverage technology, foster a learning culture and prioritize employee wellness. By using these strategies as well as regularly assessing progress you are setting your organization and business to thrive in the ever-changing environment.