The diminishing workforce has been a constant narrative across a diverse range of sectors. It fails to recognise, however, that ‘scarcity’ is an illusion that stems from the oversight of various talent reservoirs, argues Simona Scarpaleggia for the St. Gallen Symposium.

With a world population approaching eight billion people, talk of a ‘scarcity’ within the workforce is a disingenuous argument, especially when viewed in the context of Diversity, Equity and Inclusion (DE&I). Seen through the prism of DE&I, we garner a more intricate understanding of scarcity and its remedies. It similarly enables us to challenge conventional wisdom and chart a course towards innovation and sustainable growth.

Despite making up half the population, women, for example, still fail to be fully represented within industries pertaining to Science and Technology (the so-called STEM sectors). There is no reason for this, beyond outdated attitudes to learning that should have been discarded decades ago.

Nevertheless, in Europe alone, women only account for 19% of the total STEM workforce , leaving a huge pool of talent that is yet to be tapped. People with a disability represent only 3% of STEM employees – another missed opportunity that could be countered by embracing more comprehensive recruitment strategies to help unlock the talent pool. After all, the most diverse companies are now more likely than ever to outperform less diverse peers on profitability, according to the 2020 McKinsey report “Diversity wins: How Inclusion Matters”.

Given that almost one in five (19%) of engineers are expected to retire in the next three years, engaging or re-engaging older age groups, and perhaps delaying their retirement and/or bringing them back into the fold, would also help turn ‘scarcity’ into ‘plenty’ if handled in the right way. Retraining talent is just as important as finding it in the first place, confirms the OECD report on Promoting an Age-Inclusive Workforce which finds that 57% of workers globally envision working beyond retirement but less than a third feel they have options to do so in a suitable manner.

Diversity is one part of the answer. Equity is similarly important. Inequitable access to opportunities is another way of fabricating an illusory impression of scarcity. Conversely, by upholding equity, we can streamline the allocation of resources and prospects. Disparities in our educational systems result in a lack of skilled labor coming from deprived areas.

Levelling the playing field and improving our educational systems will grow the talent pool among communities that are traditionally overlooked. Wage inequalities similarly discourage particular groups from closer engagement. Creating more equitable remuneration, on the other hand, kindles heightened commitment, engagement and productivity within the workforce.

Inclusion is, of course, critical, since it transcends mere recruitment strategies. It forges an environment where everyone feels valued and integrated, and in doing so significantly increases employee retention rates. Diverse, multi-cultural and inclusive teams are proven to be more innovative and productive, and by cultivating a more inclusive environment, organizations can surmount the scarcity of ideas and positively galvanize innovation.

The notion of intersectionality also provides a different lens through which scarcity can be seen, benefiting from the intertwined nature of social categorizations and acknowledging that the intricate tapestry of inequality facilitates the generation of more precisely targeted and effective solutions to scarcity. Taking a global rather than a local view also helps, and by embracing cross-border diversity, we overcome regional challenges and engender a more resilient global economy.

The conventional view of scarcity particularly within the workforce, fails to acknowledge the root causes of inequality and the misallocation of resources. Via the prism of DE&I, it becomes evident that the genuine remedies are steeped in embracing diversity, upholding equity, nurturing inclusivity, and grasping the intricate interplay of disparities through intersectionality.

By pivoting our focus from scarcity towards these foundational principles, we can unlock latent potential, catalyze innovation, and establish a more enduring and robust workforce. The truth of the matter is that the challenge isn’t scarcity; people are not the problem. There is no scarcity of talent, there is a shortage of imagination in how to best use our ‘people pool’ to create the workforce of the future. The real challenge is unlocking the skills with the people we have, and doing so by recognising and channeling the potency of DE&I.

Simona Scarpaleggia is a Board member to EDGE Strategy, a company leader in measuring, accelerating and certifying gender and intersectional equity in the workplace. A Non-Executive Director in different Boards of companies in Switzerland, Italy and Germany, she consults in DE&I and ESG.

Former Co-Chair of the High-Level Panel for Women’s Economic Empowerment of the United Nations and author of the book “Die andere Hälfte” NZZ Libro (“The Other Half” LID Publishing)