Many companies today seem obsessed with winning that label of “best employer” in their – state, city or block …whatever.  But even that designation isn’t enough to overcome the dramatic talent and labor shortages virtually every organization faces.

Despite the current economic slowdown, which is impacting hiring in some sectors, the shortage of critical skills and the lack of lack of labor to fill entry level positions is going to be with us for many years to come – for a variety of reasons. There were almost 11 million job openings in the US this fall and only about six million people looking for work. That doesn’t take into account the 65% of current employees who are on the market for new jobs this year. The labor market is both under resourced and constantly churning.

Employers have three choices in dealing with this long term talent drought.

• Strive to be the best employer in the universe
• Automate processes & tasks where ever possible to limit your staffing needs
• Explore marginalized talent pools to find new unconventional solutions to your workforce needs. 

“Best in Universe”

Nobody frames it this way, but many companies are striving to become the “perfect employer” for all those workers they are dying to attract, develop and retain. This means trying relentlessly to improve each step of the talent management process. I get exhausted just thinking about it.

Recruiting→Hiring→Onboarding→Employee Development→Performance Management→and so on… These better all be close to perfect, if you want to stay competitive.

Automate to Eliminate Labor

Second, you can automate the heck out of your business to replace hard-to-find workers where ever possible. Orders for robots increased 67% in U.S. in mid-2021. The talent shortage is accelerating the pace of technology roll outs in many sectors, such as manufacturing, logistics, retail and healthcare.

But automation comes with its own talent price tag. Finding technicians skilled at maintaining and updating automated systems and robotic operations is also an increasingly competitive labor market. Skill shortages abound here, too. Firms often have to develop their own talent internally and pray these key people don’t leave. (See “perfect employer” requirements above.) Nevertheless, automation will be part of the talent gap solution going forward.

Overlooked: Tap Hidden Talent Pools

The third option is the one I’ve been researching for the last two years, and for some employers it holds the greatest promise. That is, becoming much more savvy in recruiting, hiring and retaining traditionally “marginalized” workers, whether it’s immigrants, people with disabilities or the formerly incarcerated. These segments of the talent pool have been ignored for way too long.

If you’re looking for motivated, loyal and diligent workers, marginalized groups can produce highly valued employees who won’t bolt at the first opportunity. They can be used to fill a few hard-to-fill jobs, or they can become a sizable segment of your workforce. For example, about 45% of employees at Minnesota Distributed Industries (MDI) are now workers with disabilities. And 25% of employees at JBM Packaging outside of Cincinnati are “second chance” hires, who were formerly incarcerated. The company’s goal is to raise that number to 50%.

In reality, hiring from these overlooked talent pools can be tricky and requires extra effort. But the payoffs can be life changing – for individuals and your company culture. Keep an eye on this blog for more detailed success stories in this area, which will be part of my next book: Hidden Talent: Lessons From Training & Employing Marginalized Workers.

3 Keys to Uncovering Hidden Talent Today!

Here are three steps to get you pointed in the right direction.

1. Identify hard-to-fill entry level roles or jobs with the greatest turnover. It might be call center reps, CNC machinists, or warehouse workers.

2. Find the best partners in your region. That is, non-profits or government agencies who are already tapped into networks of potential candidates from different marginalized groups. Jewish Vocational Services in Boston, for example, has a well-developed system for recruiting and training immigrants. Televerde, based in Arizona, has a sophisticated call center training program for women inmates and identifies graduates ready for placement in high tech firms.

You need partners who can provide support for supplemental wrap around services that folks in marginalized groups need. These may include things we take for granted with other employees, such as transportation, housing, or financial literacy coaching.

3. Take action! Start small and learn from experience. Hire one or two people to find out what works and what doesn’t. Maybe you have to adapt your interviewing process for immigrants or candidates with disabilities. You will only learn by trying to tap these overlooked talent pools. The key is not to get discouraged by setbacks. Like your traditional new hires, some won’t work out. But many will impact you and your culture in positive ways you never imagined. It’s definitely worth a try.