Why Companies Can’t Find the Employees They Need

Some of the complaints about skill shortages boil down to the fact that employers can’t get candidates to accept jobs at the wages offered. That’s an affordability problem, not a skill shortage. A real shortage means not being able to find appropriate candidates at market-clearing wages. We wouldn’t say there is a shortage of diamonds when they are incredibly expensive; we can buy all we want at the prevailing prices.

Peter Cappelli is a Professor at the Wharton School of Business who explains that employers can’t find employees to hire because a variety of reasons, including unrealistic expectations, lack of training by employers, inflexibility, and a lack of imagination by employers. He suggests that employers should train or have longer probationary periods with prospective employers that don’t have every skill wanted by employers. This, among a few other ways, would help the economy out of the recession.

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