Adapting to skill shortages: what strategies to follow?
There is a relatively large body of evidence suggesting that skill shortages have an adverse effect on firm performance. We use data from a recent Eurobarometer survey in an attempt to identify strategies that firms can implement to mitigate the negative effects of skill shortages. Our results indicate that the use of temporary work contracts, increased reliance on automation, and the abandonment of certain product lines are all successful measures that help companies prevent the detrimental effect of skill shortages on their turnover. On the other hand, we find that upskilling and reskilling current staff is a less successful measure to respond to skill shortages, though this result only holds for SMEs.
DI PIETRO Giorgio;
2024-07-18
European Commission
JRC138816
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