It’s a longstanding idea that a company is only as good as the people it keeps. However, with talent shortages (pdf) now affecting virtually every industry, the sentiment has never rung more true.
These shortages are being driven by a melting pot of factors; first, ageing populations in the western world are causing workforces to shrink, as fewer people enter work in comparison with those who are leaving it.
Second, rapid digitalisation is shifting what employers need from their employees, with many roles requiring a blend of traditional expertise and new technical skills – something the labour force is behind on. Simultaneously, increasing expectations around work-life balance and job satisfaction are putting companies on the back foot when it comes to hiring the right talent.
The issue affects all industries but particularly in roles that are physically or mentally demanding, often not well compensated, or slow to modernise, says Oliver Steil, CEO of the digital workplace company TeamViewer.
While the initial fallout of talent shortages may mean lost productivity, delayed response times and operational slowdowns, the issues run much deeper. “The cost of talent shortages is substantial,” says Steil.
“When roles remain unfilled or teams are understaffed, it affects everything from production capacity to customer service quality,” he says. Moreover, in environments with high turnover, it can lead to repeated onboarding and training cycles. This inevitably drives up costs and stretches internal resources.
“When skilled staff are hard to find, companies may be forced to reallocate experienced employees to cover gaps, which can reduce overall efficiency,” Steil says. “In short, talent shortages don’t just slow you down – they introduce real, measurable costs that impact both revenue and long-term competitiveness.”
In the manufacturing industry, shortages can result in: increased labour costs; the slower adoption of new technologies, such as artificial intelligence and robotics; and diminishing investments in research, development and innovation. Meanwhile, in retail businesses, talent shortages are affecting customer service, supply chain and fulfilment, which is also having a knock-on effect in terms of brand perception and loyalty.
One effective way to address the problem is through technology, something businesses are increasingly putting at the top of their agendas. Research by TeamViewer and Bloomberg* that surveyed senior business leaders across six sectors in the US, Germany and the UK, found that digital transformation was a major business priority, alongside improving operational efficiency. Specifically, 78% of senior business leaders felt digital transformation was a top priority and 76% have significantly increased their budget allocated to digital transformation initiatives over the past two to three years.
Empowering an existing workforce can help with the problem of talent shortages – and technology is crucial for this. TeamViewer’s augmented reality (AR)/extended reality (XR) platform “Frontline” equips employees with immersive real-time information right in their field of view, with visual guidance running on smartphones, tablets or even smart glasses. This can improve both employee experience and efficiency.
In manufacturing, the platform is enabling staff to learn new processes through immersive training, and is accelerating knowledge transfer. “GE Aerospace uses this technology to provide hands-on training for turbine technicians. They have replaced a 600-page paper manual with guided digital workflows that significantly speed up time-to-productivity and improve learning outcomes,” says Steil.
Meanwhile, in customer service businesses, the platform enables technicians to provide remote assistance without the need for travel. For instance, Uniting, one of Australia’s largest non-profit care providers, uses this technology to connect frontline staff with remote medical experts in high-stakes environments, resulting in faster, more informed interventions.
When it comes to getting new staff up to speed, it’s estimated the process can take at least six months. TeamViewer’s technology aims to make things as simple as possible, which is particularly pertinent for companies welcoming new employees who are working remotely or in overseas locations.
TeamViewer’s remote connectivity platform, Tensor, is also addressing this issue, from another angle. The Bühler Group, a global leader in food processing, is leveraging Tensor to connect experts and machines and allow for remote troubleshooting of equipment, which means their scarce expert resources can be used more efficiently. This alleviates labour shortages and maintains smooth operations.
Considering the issues causing talent shortages are not set to disappear anytime soon, having the right digital systems in place to both onboard, upskill and retain staff is one of the smartest bets for tackling talent shortages – now and in the future.
*Bloomberg Media and TeamViewer: the Workplace Reimagined research study conducted by MTM
Find out how your business can embrace the digital revolution with TeamViewer’s innovative workplace technologies
