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Tonya DiPaolo (Schriner)

California Intercontinental University


Barbara Lennard

June 2019


Competition For In-Demand Skilled Workers is one of the trends which is being experienced in most of the organizations. This paper will briefly explore how the demand for skilled workers is likely to impact organizations. First, competition for skilled workers affects most of the organization positively because it helps to increase labor toward highly productive employment: this is achieved through improvement of level of firm productivity it also affects the level of productivity through driving the allocation of labor within an industry thus increasing the level of productivity (Sethi, 2017). The second impact of competition for in-demand skilled workers is that it makes the market more open to foreign competition, which drives labor to sectors resulting from increases in the level of organizational productivity. Competition for in-demand skilled workers affects organizations in that it makes jobs more productive, thus increasing the level of wages which the workers require (Sand,2016).

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The third impact of competition for in-demand skilled workers on organization is that it results to decrease in the level of employment, demand for skilled employees is one of the factors which leads to increase in unemployment, and the reason is because most of the organization only absorb the skilled workers only, the local jobs are even allocated to the skilled workers thus increasing the rate of unemployment. In situations whereby organizations are to choose employees from a pool of skilled employees then they are forced to heavily compete for the available employees this results to increase in the rate of wages(Craig,2015).

The last impact of competition for in-demand skilled workers is that it results to a reduction in team morale among employees, the competitive workplace has a significant impact on the level of team morale, and the reason is that communication is always a challenge since every employee feels superior. It is advisable for managers not to use competition only to be able to fuel productivity in an organization, and the reason is that teams are likely to have a weak bond which is expected to undermine organizational behavior (Deming,2017).




Singla, A., Ahuja, I. P. S., & Sethi, A. P. S. (2017). The effects of demand pull strategies on sustainable development in manufacturing industries. International Journal of Innovations in Engineering and Technology8(2), 27-34.

Beaudry, P., Green, D. A., & Sand, B. M. (2016). The great reversal in demand for skill and cognitive tasks. Journal of Labor Economics34(S1), S199-S247.

Craig, M. (2015, July). Cost-effectiveness of retaining top internal talent in contrast to recruiting top talent. In Competition Forum (Vol. 13, No. 2, p. 203). American Society for Competitiveness.

Deming, D. J. (2017). The growing importance of social skills in the labor market. The Quarterly Journal of Economics132(4), 1593-1640.

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