Skills shortage: Solutions for Leaders

What is Skilled Labor?

Skilled labor refers to occupations that require specialized knowledge, formal training, or practical experience in a specific field. These include technical professions in engineering, IT, or healthcare, as well as trades like welding, carpentry, or mechanics. Skilled workers often acquire their qualifications through formal education, university studies, apprenticeships, or certifications.

A Look Back: The Development of Vocational Training

Before globalization and large-scale migration transformed the labor market, companies primarily relied on local talent. Employees had more opportunities to advance within the company, often through "learning on the job." Career advancements were more often based on performance and experience rather than formal degrees from prestigious universities. Companies actively invested in their workforce by funding professional development and giving employees opportunities to further qualify themselves while working.

The Shift: Focus on Specialized Professionals

Today, many companies prefer to hire external skilled workers rather than develop their own employees. This shift is based on two key factors:

1. Time-to-Market Pressure – Speed is a crucial competitive factor. Companies seek professionals who are immediately productive without long onboarding periods.

2. Cost Considerations – Training employees requires time and financial resources. Many companies either lack the resources or are unwilling to invest in long-term development.

   
   

The Overlooked Dimension: The Value of Employee Development

What many companies overlook is the direct link between employee development and their sense of value. Employees who have the opportunity to grow and develop are more connected to the company, more motivated, and more productive. This leads to:

• Higher job satisfaction and well-being

• Better performance and more innovation

• Fewer sick days and lower turnover

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In the long term, investing in one's own workforce can prove to be a more sustainable advantage than the short-term solution of hiring pre-qualified professionals. On one hand, recruitment and onboarding new professionals are also time- and cost-intensive.

Furthermore, there remains the risk that the new employee may not integrate well into the company culture – even if candidates are assessed for "cultural fit" during the hiring process.

A Leadership Approach: The Time Management Matrix

An effective method for leaders to efficiently manage their own tasks while also fostering the development of their employees is the Time Management Matrix (known from Stephen Covey's 7 Habits of Highly Effective People). This matrix divides tasks into four quadrants:

Time Management Matrix

• Quadrant 1: Urgent and Important – Tasks requiring immediate attention (e.g., crisis management, tight deadlines).

• Quadrant 2: Not Urgent, but Important – Long-term planning and skill development (e.g., strategic projects, employee development).

• Quadrant 3: Urgent, but Not Important – Tasks that require attention but are not critical (e.g., unnecessary meetings, interruptions).

• Quadrant 4: Neither Urgent Nor Important – Unproductive distractions (e.g., excessive social media use, inefficient activities).

  
  

How Leaders Can Use This Matrix for Employee Development

1. Eliminate Quadrant 4 – Eliminate unnecessary tasks to free up capacity.

2. Prioritize Quadrants 1 & 2 – Take responsibility for critical and strategic tasks.

3. Use Quadrant 3 as a Learning Opportunity – Delegate tasks to employees, giving them growth opportunities.

4. Provide Coaching and Feedback – Guide employees as they take on new tasks.

By strategically delegating Quadrant 3 tasks and offering feedback, employees develop further and take on more responsibility.

Additional Development Tools for Leaders

In addition to the Time Management Matrix, leaders can use other tools to promote the growth of their employees:

• Skill-Gap Analysis / Skill Matrix – Compare the skills required for a role with the skills employees currently possess, and define actions to close the gap.

• Understanding Personality Types in the Team – Analyzing personality types helps improve team dynamics, utilize strengths effectively, and identify areas for development.

• The 70-20-10 Learning Model – Employees develop 70% through practical experience on the job, 20% through coaching and mentoring, and 10% through formal training. External coaches can specifically help leaders and teams enhance performance.

• Establishing a Feedback Culture – Regular feedback loops ensure employees continually improve and remain aligned with company goals.

• Regular Sit-Ins & Job Shadowing – Observing colleagues at work promotes knowledge transfer, strengthens team spirit, and supports effective delegation. It’s also an excellent way to define and document best practices.

  
  

This structured approach to development not only supports employee growth but also strengthens their engagement and long-term commitment to the company.

Best Practice from Consulting: A Practical Development Approach

During my time in consulting, I was often assigned tasks that were technically meant for a higher position. Completing these tasks accurately, on time, and reliably demonstrated that I was ready for the next promotion.

Leaders can apply this principle to their teams: by gradually assigning employees more demanding tasks and supporting them, they foster growth. Employees gain confidence, develop new skills, and prove their readiness for the next career stage.

Conclusion: Adopting a Long-Term Perspective

The skills shortage presents significant challenges for many companies, but it also opens up opportunities. Organizations that actively invest in the development of their employees benefit from a more engaged, motivated, and loyal team. Through strategic delegation, using the Time Management Matrix, and fostering a culture of continuous feedback, leaders can not only overcome talent shortages but also ensure their companies remain successful in the long run.

About the author

Dominique Giger is an expert in mindset and transformation - speaker, coach and consultant.

With a Master's degree in Computer Science and over 17 years of international experience in coaching and consulting, she combines in-depth business expertise with neuroscientific insights and proven best practices. Her inspiring speeches leave a lasting impact and her workshops enable leaders and teams to work together more efficiently and effectively.

Learn more at: www.dominiquegiger.com