Talent Shortage Hits 76% of Automotive Employers

As much as 76% of automotive employers are grappling with the challenge of finding qualified talent, as per a recent report by ManpowerGroup. 

ManpowerGroup’s study, drawing insights from interviews with over 40,000 employers across 41 countries, sheds light on the anticipated surge in electric vehicle sales, projected to comprise at least 40% of total vehicle sales by 2030. This transition not only necessitates a new spectrum of technical skills but also signals a potential decline in jobs associated with internal combustion engine (ICE) vehicle production.

"The shift to electric vehicles will inevitably lead to the phasing out of certain roles linked to ICE vehicle production, already sparking tensions with labor unions, as evidenced by recent UAW strikes in the United States," the report notes.

The rise of new market entrants further amplifies the demand for skilled workers, prompting established companies to revamp their recruitment strategies and workforce development initiatives.

However, the talent shortage manifests differently across regions. In Mexico, 68% of automotive employers report challenges in finding suitable candidates. 

To address the talent shortage, companies are advised to embrace more flexible hiring practices and enrich their employee value propositions. ManpowerGroup highlights, "Automotive companies globally are offering their employees flexibility in terms of when (31%) and where (31%) they work to tackle the talent scarcity. Additionally, they are contemplating salary hikes (30%), exploring new talent pools (26%), and offering hiring incentives (25%)."