Talent Wars Set to Intensify

Article Commentary

Original Article:  Talent wars set to intensify

Craig Donaldson - Human Resources Magazine, June 10, 2008

IF FINDING the right employees isn’t challenging enough, companies in the developed world are about to face a new challenge – recruiters from emerging markets.

A recent study has found that when talent isn’t available locally, companies in emerging markets will look to developed countries in the West to fill their vacancies.

This is particularly onerous as aging populations and declining birth rates in much of the developed world are beginning to cause a talent crunch.

In some countries, such as Japan, the problem is particularly acute. Three-quarters of Japanese executives view the aging population as the primary factor in the talent gap their firms are facing.

“Organisations need to start thinking creatively about how to resolve the talent shortage issue,” said Robin Bew, editorial director at the Economist Intelligence Unit, which conducted the study. “Hiring a head-hunter to poach employees from a rival firm is not a sustainable solution.”

Businesses across the world are worried – of the 587 executives polled for this survey, nearly two-thirds expect employee recruitment and retention to become tougher over the next three years, and more than a fifth see this as becoming significantly harder.

The study, sponsored by SAP, also found that soft skills are the most sought after, but the hardest to find. The ability to manage change, think strategically and communicate effectively are the most wanted skills, yet these are in the shortest supply.

Furthermore, talent management is too important to leave only to HR. Having recognised people as a core competitive asset, companies are treating talent management as an integral part of their business strategy.

Many survey respondents said the most effective talent-management strategies were those devised and implemented by business units themselves and supported by the HR function. As such, a more creative approach is needed, the study found.

Companies are continually told that to stay competitive they need to be more innovative. Firms will need to recruit not only from other countries but also from other industries, and they will need to work more proactively with universities and other businesses to develop training programs and help expand the available pool of skilled employees.

To view this article in its entirety, visit Human Resources Magazine at … http://www.humanresourcesmagazine.com.au/articles/82/0C057382.asp?Type=59&Category=917

Nesso Editorial

by The Nesso Team

The so-called talent crunch clearly increases the importance of recruiting efficiency. If it is becoming more challenging to find and retain the right people, it makes identifying the optimum candidate in the first instance more critical than it has ever been. In this more competitive environment, getting this process right is now about identifying the skill sets required for the position being filled and identifying the candidate who meets the necessary criteria. By refining the interview process to find the right candidate, the probability increases for longer employee tenure, greater productivity and reduced recruiting costs.

So how can we improve the process to identify the candidates who are worth hiring and who will remain with your organisation? One initiative is by using Integrity and Values Profiling to create a candidate character portrait to enhance the interviewing process. By assessing a candidate’s accountability, loyalty, responsibility, trustworthiness and self-awareness, employers can equip themselves with the tools and information to make the best appointments.

It’s so easy for experienced interviewees to “perform” for recruiters and interviewers, but what will be the impact on the organization if these people turn out not to be “anything at all like they were in the interview ?”

We all understand the direct financial costs of recruitment mistakes to the organization, but what about the opportunity cost? Consider that psychometric profiling will tell you more about the candidate than they will ever offer on their own, and Nesso can provide you with the questions to ask during the interview to extract confirmations and explanations of all elements in the profile.