Companies struggle to find right talent
Saturday, June 6, 2009
Source: Business 24/7 2009
Before the economic crisis shook the world there was an acute shortage of skilled professionals across the globe with experts warning that companies wanting to hire would not be able to find people to replace retiring workers 10 years down the line.Even though the present crisis has made it an employers market at the moment, and given the world a temporary reprieve, the factors that were causing the talent shortage are still there and once things normalise the world will again face the same issue of talent shortage.
The annual Manpower Talent Shortage Survey polled nearly 43,000 employers from 32 countries and territories across the globe in an effort to determine which positions employers identified as the most difficult to fill in 2008 due to lack of available talent.The survey results indicated that 31 per cent of employers worldwide were having difficulty filling positions due to lack of available talent in their markets. Employers reporting the most difficulty finding the right people to fill jobs were those in Romania (73 per cent), Japan (63 per cent), Hong Kong (61 per cent), Singapore (57 per cent), Australia (52 per cent) and Taiwan (51 per cent).Notably, more than 50 per cent of the employers in five of the eight countries in the Asia Pacific region reported difficulty in finding suitable talent for available positions. The talent shortage appeared to be least problematic in India (12 per cent), the United Kingdom (12 per cent), Ireland (14 per cent), China (15 per cent) and the Netherlands (15 per cent). Emirates Business spoke to some experts to find out the reasons that caused the talent shortage, what the scenario is in the GCC and what are the top jobs in demand right now in the region.
According to the White Paper by Manpower, demographic shifts (ageing populations, declining birthrates, economic migration), social evolution, inadequate educational programs, globalisation and entrepreneurial practices (outsourcing, cross-border recruiting, on-demand employment) were between them caused shortages, not only in the overall availability of talent but also – and more significantly – in the specific skills and competency required in industrialised, emerging and developing economies. Furthermore, as a result of technological advances and productivity gains, many low-skill, routine jobs were being eliminated and once in-demand skills were rapidly becoming obsolete.While this reduced demand for some jobs and, thus, tended to minimise the perceived impact of the talent shortage, it also left employees potentially jobless.The talent crunch created structural changes in the workforce, and employers who are not paying attention could find their businesses healthy one year and in trouble the next. There is a need to focus not just on the top 10 per cent of talent categories, but rather on the entire talent spectrum. According to a recent article in The Economist, the 500 biggest companies in the United States will lose half of their senior managers to retirement in the next five years.Most US companies will have a difficult time replacing the knowledge and the skills these workers bring to the job. And in Japan, where employers will suffer through a similar generational employee loss, Japanese companies were required to raise the mandatory retirement from age 60.Talking about the reason for the talent shortage the market saw in 2008 and that will affect the world once again after the present economic crisis is over Patrick Luby, Managing Director, Manpower Middle East said: "Talent shortage is due to an increase in demand without available supply. If school and university students are not studying a broad enough range of subjects, and if workers are not sufficiently experienced in specific or specialised areas, then companies who need engineering staff or accounting staff just cannot find them. However, not all talent shortages relate to highly technical or specialised roles; it is simply that not enough people have the experience or are prepared to work in these positions to cover the necessary demand."Talking about the situation in the GCC market after the economic crisis hit the region as well Bharti Jatti, general manager, Careertunity said: "At the initial stage, it was easy to source professionals as they were exploring the market."However, due to visa regulations, over a period of time the pipeline has dried up.At this point, skilled professionals either prefer to continue with their existing job or they have moved out of the country. In the long run, it would be difficult to find specialised professionals."Luby said: "Talent shortage is not as acute as 12 months ago in the GCC due to the redundancies that have happened recently, but countries that are still actively hiring, such as Saudi Arabia, are still finding difficulty in sourcing the right level of talent for the right price with the right workplace fit."There has not been the same level of redundancies in the Middle East as elsewhere, economies here are still relatively stable, so the talent surplus that regions such as the US and Europe are experiencing is not at the same level in the GCC and especially Saudi Arabia." Yet, although many of the problems associated with the talent shortage are broadly acknowledged worldwide, potential solutions have yet to be widely embraced or implemented by the companies, governments and individuals who stand to benefit from their application.
Talking about what the GCC should do to attract more talent in the future Luby said: "Ensuring that jobseekers know who is hiring is very important as is raising awareness that the entire world has not stopped recruiting. People out of work in other regions are just not aware that there are countries that have not been hit in the same way and they do not know that some employers are still hiring. Advertising GCC jobs in other countries is therefore a good way to encourage people to relocate here and find meaningful work." Jatti added: "Firstly, there is a need to create confidence among candidates which the governments in the region are doing by taking various measures such as flushing money in the market, creating opportunities and exhibiting support to sectors which need it the most at this time."According to the Manpower Talent Shortage Survey skilled manual trades (including electricians, carpenters, joiners and welders) were the most in-demand employees in the global results, as well as in 15 of the 32 countries and territories surveyed, and were among the top 10 in 27 of the 32 countries and territories surveyed.These results confirmed the importance of continuing government investment in education and vocational training. In the professional category there was also a shortage of secretaries, personal assistants, administrative assistants and office support staff and IT staff and IT programmers.Giving an insight into what professions are most in demand in the GCC at the moment Jatti said: "Sales professionals, customer service professionals, quality, health, safety and environment professionals, health and pharmaceutical sector professionals and change management experts are most in demand in the GCC."Luby said: "Sales roles are still very much in demand to help companies increase their revenues."We are also seeing an increase in non-construction related engineering, and in-house finance roles (finance managers for non-finance related companies, for example, rather than jobs within a bank or financial institution). Finally IT and telecom related jobs and administrative and secretarial jobs are also still in demand."Giving advise to students in the GCC who are still planning their careers Jatti said: "Eventually all sectors will bounce back, only the sequence would vary. So the students who are preparing for the future should be more generalist and not get into too much of specialisations so the opportunity base is larger for them," he said.Luby agreed: "In terms of what to study, that all depends on what a particular person enjoys learning about. Students should specialise in areas that interest them rather than worrying about what the world's economies will need in five years or 10 years time when they graduate. Many people study one area and end up working in another, depending on the needs of the economy, the company they're working for etc so there is plenty of time to decide for these people."In terms of students graduating now, perseverance is key. Due to the downturn in some markets in the region there is increased competition for jobs, especially in cities such as Dubai. More candidates are applying for the same jobs, so candidates must be prepared for rejection and try not to lose heart if they do not get the first role they apply for. Keep trying," Luby said. Flexibility is also important, in terms of salaries, benefits and location of jobs. Countries such as Saudi Arabia are not experiencing the same economic slump and therefore those candidates who are open to relocation are in a better position than those who are not."Factors that fuel talent shortageDemographic evolution: Across the globe, a variety of demographic developments have led to too few people in the right age or skill groups or the right locations. Moreover, in many parts, fewer people will be entering the workforce in the next 20 years. Flattening (United States and Japan) or declining (much of the EU and China) birth rates in many countries mean fewer young people are entering and progressing through the labour market's employment life cycle, which will affect their economies' abilities to sustain growth. Moreover, as life spans lengthen, those active in the labour market will be insufficient to generate the wealth needed to sustain those who have retired or are economically inactive and the living standards to which they have become accustomed – or at least aspire. In some emerging countries, skilled expatriates may be lured back home by opportunities resulting from economic growth fuelled by foreign direct investment. Economic development: While economic development may not take place at the same pace in every country, it is occurring everywhere, bringing a number of competing forces into play. And in those countries currently experiencing an economic slowdown, it is only a matter of time before the engines of economic growth recover and proceed at a robust pace. This is why it remains vital for employers to have strategies in place that improve the talent supply even though the talent crunch may not currently be impacting their organisations. On the one hand, it is plainly evident that many companies have attempted to maintain their competitive edge by moving manufacturing jobs out of talent-poor developed countries and into lower-wage emerging and developing economies. However, there is growing evidence that these emerging economies, such as India and China, are having difficulties accommodating the increased demands for talent and, thus, are experiencing talent shortages of their own. Global competition: As global competition for customers intensifies, with emerging economies joining the fray, major enterprises have responded by running lean organisations, both to enhance their strategic agility and to reduce costs. In doing so, they have outsourced those elements of their business that are not proprietary, strategically sensitive or essential to their strategic advantage.Technological progress: Advances in computer technology and its application in automation have already made a considerable impact on productivity, and employers have enjoyed the benefits of dramatically improved operational efficiency. But as new jobs are created, requiring new skills and technological competence, employees will need to upgrade their own to adapt to the changing world.
Sources: Emirates Business 24/7
Posted byJobs at 12:56 AM
Labels: CareerUAE