In 2023, over half of SMEs in Europe identified skills shortages as one of the top problems in their company. As the employment rate rises, employers struggle to fill critical positions with staff with the necessary skills and experience. They may get a few relevant candidates when recruiting for technical and scientific positions, often insufficient for a healthy talent pipeline. Let’s look at how to fill critical roles in these competitive times.
The Biggest Challenges in R&D Staffing
A full 75% of Europe’s employers are struggling to find workers with the right skills, up from 42% in 2018. Worldwide, 70% of employers report that a lack of skilled workers is preventing their company from reaching its goals, and 20% of EU employers face talent shortages in R&D. Some of the factors driving this situation include:
- Less talent overall. The declining birth rate and increasing age of the EU population has led to fewer workers overall, in any industry. The working age population has reduced from 66.3% in 2013 to 63.6% in 2023, and is expected to decline by a further 20% through 2050. Automation and immigration will shape these future trends, but it remains a challenge for employers in all sectors.
- Lack of suitable education programs. The education system in Europe has been slow to respond to new technologies, shifting economies, and the current labor market. This means that young people have fewer options to pursue an education in R&D, and new graduates do not have the necessary skills for entry-level positions in their field.
- Competition from abroad. Highly skilled and experienced talent can choose to work anywhere. Many companies in the US and China have established themselves as global leaders in innovation, spearheading their industries, and they offer attractive employment packages to Europe’s top talent. Many students who study abroad, especially in the US, do not return to work in Europe.
Naturally, these challenges become even more exacerbated when companies seek to fill senior or leadership positions.
Optimal Solutions for R&D Specialists Shortages are Systemic
Let’s face it: R&D talent shortages are not simply a problem for companies struggling to recruit the right people. These shortages affect entire industries, slowing the rate of innovation and the ability of Europe’s firms to compete globally. While companies, industries, and recruitment experts can seek to address short-term problems, long-term solutions are systemic and need to happen across the EU.
The university system cannot keep pace with changes in markets and technologies. Instead, significant investment needs to be made in lifelong learning and upskilling so that working adults can learn new skills and adapt to changes even as they participate in the workforce.
The EU needs to invest much more in research and innovation. Currently, the EU invests much less in research than the US and Japan, exacerbating the brain drain problem and making our companies less competitive.
Finally, R&D and STEM industries need to work harder to attract girls and women. The existing gender disparity disproportionately contributes to the talent shortage, and little progress is being made. Outreach programs that encourage women to enter these fields, and workplace programs that ensure that they are fairly compensated and advance in their careers, can help address these challenges.
Naturally, while we look to the EU for programs and initiatives to tackle these systemic problems, it is also important for countries to take action. In many cases, countries do not allocate EU funding or optimize EU initiatives to meet these goals.
What Innovative Employers Can Do Now to Solve Their R&D Talent Shortages
While it is important for companies and whole industries to move together to promote these systemic changes, many employers face talent shortages right now. Based on our years of experience in R&D recruitment, here are some actions companies can take right now to improve their competitiveness in the R&D job market:
- Review your job listing criteria. Many companies recycle old job listings and descriptions to revise them into new ones. Instead, work with team members and department supervisors to closely examine your job listings, determining which skills are essential and ensuring your requirements are realistic.
- Participate in education initiatives. Some of your best R&D candidates are already within your company. Research ways to retrain/cross-train your current employees, taking advantage of an existing talent pool that understands your customer, product, and culture. Consider partnering with educational institutions to offer courses and specialized training to potential candidates and new hires to make up for lacking skills.
- Be competitive. Employers must offer top R&D candidates something that stands out from their other opportunities. Write better job listings, create better candidate experiences, and craft career trajectories that improve candidate selection and employee retention.
- Use specialized recruitment resources. Many highly specialized skills and career fields also have specialized communities and networks. Consider online communities focused on specific skills or tools, and tune into those networks to find new ways to reach potential candidates. Work with recruitment companies or employment agencies specialized in R&D, know your industry, and know how to find the people you need.
For more insights on attracting top R&D talent, contact Grapefrute today for a consultation. Our years of experience as a specialized recruiter for R&D and life sciences, working for the most innovative companies in Europe, have proven our ability to solve tough recruitment challenges. Contact us today to discuss your challenges and requirements!