OBS Report: The Talent Paradox
More than 60% of companies cannot find the profiles they need, especially SMEs
- The Community of Madrid, the Basque Country, and Navarre are the regions with the highest talent index. The Canary Islands, Andalusia, Extremadura, Murcia, and Castilla-La Mancha are at the bottom.
- Companies believe there is a lack of preparation and commitment, and that workers demand untenable working conditions.
- SMEs are calling on public administrations to promote trades, foster a culture of effort with a solid value system, and better align the education system with business needs.
- A report by OBS states that it is time for companies to analyze their personnel policies. It recommends developing brand strategies to attract people from outside the industry who have transferable skills.
February 2025. OBS Business School, part of the Planeta Formación y Universidades education network, has published the report The Talent Paradox, led by Professor Lorenzo Muriel. It analyzes the current talent situation in Spain, the existing shortage, and the difficulty of acquiring talent, especially for small businesses. In contrast, it also highlights the abundance of opportunities to develop talent.
The Situation in Spain
An analysis of 55 socioeconomic indicators shows that Spain has a talent index of 49.1 out of 100, with significant regional disparities. There are three distinct zones:
- The most advanced area: Community of Madrid and the northeastern peninsula.
- The intermediate region: The northwestern peninsula, Balearic Islands, and Valencia Community.
- The least advanced territories: The southern peninsula and Canary Islands, with Andalusia, Extremadura, Murcia, Castilla-La Mancha, and the Canary Islands being the worst positioned.
Madrid leads the overall index (67.7) due to its ability to attract talent and foreign direct investment in high-value sectors. It boasts a highly educated population, including researchers, scientists, engineers, and top executives. However, it ranks 11th in retaining talent, partly due to long commute times.
The Basque Country (66.4) and Navarre (64.9) also rank highly, with the Basque Country excelling in educational initiatives and outcomes, while Navarre leads in talent retention, followed by Extremadura and Castilla y León.
Catalonia and the Balearic Islands have a well-qualified workforce with strong technical skills, but both struggle to retain talent.
Aragon (53.4), Asturias (47.9), Cantabria (47.5), Galicia (46.5), La Rioja (43.5), and Valencia (42.4) are mid-table, with La Rioja noted for its labor market accessibility and Galicia and Aragon for strong training outcomes.
The Talent Mismatch
In just ten years, the talent shortage has increased from affecting 3% of companies to being a problem for 62%, particularly for SMEs. The most affected sectors are logistics, industry, and healthcare.
The difficulty in filling positions is particularly severe in trades, technical services, sales, engineering, and IT, attributed to both a lack of preparation and commitment. Increasingly in demand are skills like language proficiency, digitalization, and project management, along with competencies such as commitment, professionalism, initiative, and customer orientation.
However, part of the issue lies in the demand for untenable working conditions regarding pay, schedules, remote work, and stability.
The OBS report calls for companies to review their personnel policies. Meanwhile, SME leaders urge public administrations to promote trades, reinforce a culture of effort with solid values, and align the education system with business needs. They also request hiring incentives and labor law flexibility.
Salary remains the primary reason for changing jobs (51%), followed by mental health, anxiety, and fatigue from workload (28%). Remote work is seen as a valuable solution.
The talent mismatch is not just a Spanish issue but a global phenomenon. Japan is the most affected (85%). Spain (78%) is 3 points above the global average. Finland has the best figures (59%). The report recommends a proactive talent strategy, including: Predicting future skill needs. Brand strategies to attract talent with transferable skills. Training programs for digital and technological skills. Encouraging a continuous learning and development culture.
Technological Tools for Talent Management Companies can leverage technologies like: Virtual Reality, Augmented Reality, Mixed Reality, and gamification. Artificial Intelligence (AI) to: Identify skill gaps in the workforce. Map internal environments. Spot external talent. Personalize career paths and learning plans. In fact, 97% of executives agree that technology integration has improved talent attraction, engagement, and retention.
Implementing work-integrated learning programs and promoting continuous training can enhance adaptability throughout one's career.
Challenges for Talent Managers
There is a shift from prioritizing traditional qualifications to valuing skills and competencies. The main challenges ahead: Competency-based competition, with a shortage of skilled professionals. Growing scarcity of specialized skills. Some roles may not require a formal degree, including: Construction manager. Sales supervisor. Web developer. IT support specialist. This shift could create at least 250,000 new jobs for non-graduates.
Written by:
Carmen García-Trevijano
OBS Business School's Press Office
