Fight Skill Shortage with Remote Work

The predictions on the future of employment cannot be more divergent. Some say we face huge unemployment due to the emergence of the robots. Others say the growth of the companies is highly limited to the shortage of talented workforce.

The Problem

Companies around the world list the lack of specilized workforce as one of their top risks. The ‘vacancy duration’, the time to fill an open position, which is a good indicator for the availability of fitting workers, has increased dramatically. The fluctuation rate increases in a more and more stable environment. Unemployment rates are lower than 5% in a number of regions worldwide, what can be called ‘full employment’. The consequence is, that employers have to pay highly increased wages to attract skilled workers.

It is not a worldwide problem and it occures mostly not in a whole country. It appears regionally in the following parts of the world: Canada, USA, Australia, New Zealand, Middle and North Europe. And even in some Asian, Arabian, African and Middle or South American regions.

The Reasons

There are some obvious reasons for that problem. The Baby Boomers (which are born in the 50s and 60s) are retiring rigth now, faster than young employees can follow. The average of work hours per week is declining continously. The automation replaces widely manufacturing and other low skilled jobs but rarely higher skilled jobs (till now).

The Generation Y, the Millennials, are seeking for completely different factors at work with more flexibility, less stress, less career ambition, but they are highly motivated (i.e. they presume to be allowed to have private time for phone calls or Facebook at work, but are willing to be available and checking emails after work). And the employers are very rarely attuned to that situation.

The Actions

What to do about that situation? You can employ less skilled workers and do plenty on-the-job training. Or you can educate workers by your own, i.e. right after school. But the best investment is to change your policies and culture to let your existing staff work remotely and to use the remote workforce.

As a regular reader of this blog you know all the benefits of remote work. It is not only the saved cost for offices and the ability to hire as fast as possible the best talented workers from around the world. Above all it is encouraging and motivating to your workers. That is because they will experience your trust, save time and money for commuting, have less stress and can combine work and family or hobbies in a better way. That results in happier, more productive, less sick and thriving employees.

To get a good summary, read also this blog post: ‘The Ultimate List of Remote Work Pros and Cons‘.

The Conclusion

The best way to fight the No. 1 fear of the employers – the skill shortage – is to enable remote work. It is a win-win situation for both, the employers and the employees. It is definitively the future of work, so it is a huge advantage in the competition about the most talented workers.

Status of the Remote Industry

The remote industry is thriving. That is a fact. But what is rising more? Supply or demand? Remote jobs or remote workers? Are there platforms? What is the most important new job? This post will answer that.

Actual Status

If you are curios what the remote industry is, have a look at my blog post ‘Was ist Remote Work, ein Digitaler Nomade oder ein remote-first Unternehmen?‘. If you are still wondering why so many people are talking about remote work, just read this: ‘The Ultimate List of Remote Work Pros and Cons‘.

I would summarize the status of the remote industry as follows:

  • there are lots of willing workers (this is also shown by many surveys, i.e. ‘State of the American Workplace Report 2017‘ by Gallup)
  • we have now all technological possibilities for collaboration (and the future will bring cheaper virtual reality devices on top)
  • there are best practices and knowledge bases
  • we have not enough job offers and career opportunities / too less long-time engagements,  mostly gigs (the quality and diversity of jobs should be the same as with on-site jobs)
Knowledge Bases

Lets have a closer look at the knowledge bases associated with remote work. They are a little scattered over the following fields with often overlapping topics:

 

Remote Work Consultants

What is this new job about? These consultants are advising people who want to work remotely, what kind of skills they need, which hard- and software they will need and how to find a job. But, they are also advising managers to enhance their traditional companies with remote work. That goes from letting people work from home some days, over changing companies culture, processes and tool all over to creating new teams or divisions which are completely remote.

Conclusion

Exactly with that, the remote work consultants are able to increase the number of remote positions, are spreading the word of remote work to more industries and are lobbying for remote work in our complete society including local and global politics. So that is the most important new job about remote work.

And because these consultants are gathering all the knowledge over remote work, they can establish the missing overall platforms for remote work, which will combine the important topics from the long list above.

The listed examples can never be complete. Did I miss an important service? Or am I wrong with my argumentation? Please let us know in the comments section.

Remote Work Will Save Small Towns

The struggling small towns, which lost so many people, first and foremost the young talented ones, to the big cities, will be thriving again with the already started wave of remote work.

Status quo

The entire world is in a long phase of urbanization (see also these UN report: 2014 Revision of World Urbanization Prospects from my post How remote work supports the health of our planet). But it is not only the movement from rural landscapes to cities – it is especially the skilled people, who have to move from small towns to the big cities to get proper jobs. That is the same in the US, North and Latin America, Europe, Asia, Australia and even Africa. And there are also some decreasing metropolitan areas; to name only two examples: the Rust Belt in the US and the Ruhr area in Germany, which were strong in coal mining and steel industry.

You can see the same pattern everywhere: Young people move away from home after finishing high school or studying to find higher education and work in big cities. And everywhere you see the big travel movement for christmas, chinese new year or the other big holiday breaks, when singles, couples and young families are travelling to their families to be together for a few days.

Future

But why will that change? Because of the advent of remote work. I am explaining the rise of remote work in all my other posts, but take this as summary: The Ultimate List of Remote Work Pros and Cons. Because it effects so many parts of our lifes, we should name it a new industry. With so many known advantages, it is clear that the remote industry will introduce itself even faster than the digital revolution.

Everyone with a location independed job can choose a place to live and work. There will be people, who want to live at their home town, at the place where relatives live (if it is not the same) or they will choose a ‘nice’ spot. Some will stay in big cities, because of amenities like good travel connections or cultural offerings. But the big movement will go from overcrowded cities where housing is expensive, the air is polluted and traffic is a nightmare to small towns, while some of them are already looking like ghost towns.

Home towns

We all need communities, and nearly all of us love the community of family, friends and neighbours where we grew up. So it is easy to guess, that a lot of people will move back to their home towns. And the returning inhabitants bring demand for services and spending capacity which will not only keep some dying small community alive, these towns will be literally reinvigorated.

Imagine the young high potential graduate who can still take care of an elderly family member and start a significant job from home. Or imagine a young family with remote working mom and dad, who are enabled to live in their small home town, neighbouring parents and other relatives to give their children the same feeling of ‘home’ like they experienced years before.

Vacation spots

All the others, who are not tied or not tied yet will choose a nice spot, which is affordable, has good weather and other amenities like security. In general that will be the holiday regions. There will also be much movement between these areas, because the migration will start again when the locations get crowded, which ends the quite and also rises living costs and traffic.

The vacation spots will get nomads, who are passing by on the one hand and new residents, who are settling down, on the other hand. It is important to grow the infrastructure to handle them in a balance with minimal destruction of the nature to keep the place attractive.

Responsibility of towns

The towns have to stop trying to attract big companies or manufactoring jobs. That will be a waste of time and money. Fred Perrotta explains it well with an US example here: No Jobs are Coming: How Remote Work Can Save Small Towns. Also the comments by Kristi E. DePaul, Michael DeHart and Deb Dutton are very well said.

The better way is attracting remote workers to move (back) to the town and reorganizing the infrastructure for the new situation. There will be an increase in service jobs if the population is growing again. But the actual residents should not rely on only that. They should be trained in the use of remote work tools and how to get a digital job with their capabilities.

Responsibility of big cities

First of all, the cities have to take it seriously. Lots of them are highly dependent on a few big companies (be it blue or white collar jobs), which is very dangerous. Germany has a number of cities which are highly dependent on big car manufacturers. Take Wolfsburg with Volkswagen for example. The treasurer of Wolfsburg declared a spending freeze at the day ‘Dieselgate’ went public, because they knew that VW whould not pay extensive taxes anymore.  They will have to deal with unemployment soon, because of the radical shift to electric cars, where Volkswagen will loose market share and lots of employees.

It is way better for cities to have a huge bulk of remote employees which work for many companies in different industries and even different countries. That is the best insurance against economic risk. Cities are still attracting big companies to get new jobs, but soon they will try to attract remote workers.

Big cities have to reinvent themself to keep a meaning. They have to take care of air pollution, traffic, security and they have to spend a lot for green infrastructure, parks and entertainment to be attractive in a very new competition.

If you are able to choose: Do you want to live in a big city or in a town? Let us know in the comments section!