In my view the biggest threat to sustained enterprise growth is talent scarcity. This is
particularly true in the knowledge-based economies. Human capital is replacing
financial capital as the engine of economic prosperity and the yard stick that
leading organisations will be using to measure their future success. The
challenge is, of course, that real talent is already scarce and is going to get
a lot scarcer.

According to a new report prepared by the World Economic Forum worldwide Industries and countries
will require major increases of highly educated people in their workforces to
sustain economic growth. Demand for highly educated professionals, technicians
and managers will be particularly high in trade, transport and communications
industries.

Moreover, in the next two decades demand for professionals in manufacturing will peak at more
than 10 per cent in developing countries, exceeding four per cent across all
countries sampled (labour demand growth rates are compounded annually).

The report analyses projected talent shortages by 2020 and 2030 in 25 countries, 13 industries and
9 occupational clusters. The roots of the global talent risk include the widely
uneven quality of educational systems, erratic employability of the workers in
the Southern Hemisphere and demographic changes in the Northern Hemisphere,
where retirement of the baby boomers will result with an unprecedented talent
deficit.

In the United States, Germany, Canada and the United Kingdom, expected immigration and birth
rates will not offset the workforce losses caused by ageing populations.

This situation is no longer a mere talent mismatch. The scale of the predicted talent gap
requires concerted action, starting with – and going well beyond – removing
barriers to the mobility of talent. Great companies have already led changes to
talent management systems to incorporate mobility so that they can take
advantage of the competitive opportunities which are offered by the new
reality.

Believe it or not and despite the current economic climate, we are still in a war for talent and it’s a war that cannot be won by
money alone. Yes, having an attractive compensation plan for both the short and
long term is important when defining a role, however candidates look beyond
this now, especially those passive candidates who are head-hunted.

The first impression your organization makes on a candidate is the recruitment process. Whilst this needs to be robust to ensure
you are making the right hire, a balance must also be struck with the
candidates needs and the time it takes to complete the process. Far too often
clients rely on their brand to “sell” their opportunity. Just because you are
number one in a market, does not necessarily mean that every individual will be
attracted to your proposition.

Another common failing amongst clients is the lack of a planned process. Individuals run through a series of meetings, which are
often repetitive because interviewers cover off the same ground of their
colleagues. These leaves the candidate with the feeling that the company is
disorganized and unstructured which then gives them doubts over the potential
role.

To win the war for talent, the most effective method is a clearly structured process that runs efficiently and effectively
gets your candidate through the process before the competition, including their
current employer, has a chance to react. Here are my top tips for a successful
process:

1.  Have a clearly defined job specification

2.  Working with your search consultant, design an interview process and inform the candidate what
the steps are at the start of the process, including your planned time-scales

3.  Allocate sections of the job specification to individual interviewers to avoid repetition

4.  Ensure that each interviewer gives structured feedback at each stage of the process

5.  Ensure that each interviewer spends at least 10% of the meeting selling the company and the
opportunity to the potential recruit

6.  If you get to offer stage, make sure that paperwork is presented to the candidate promptly and
accurately

7.  Listen to the advice of your search consultant – there is a fair chance they know the
candidate and their motivations better than you and will also be aware of other
opportunities the candidate may be considering.

In summary, have a robust process but one with clear communication and transparency. You only get once chance to make an
impression and you never know who else is in your candidates network whom they
could influence for or against you. Retention starts at recruitment

Outplacement is not a new concept. Providing support to employees made redundant as a result of
changes to the business has been common practice in the UK for many years, in
fact the CIPD considers it best practice in such situations. However, in the
light of a weaker economy and the ever-increasing need to save costs,
organisations in both the private and public sector are questioning whether
they can afford to support those individuals who leave.

Putting aside the current pressures, whilst there is a cost associated with offering
outplacement, HR departments need to carefully consider the longer-term
business impact of doing away with such support.

Helping your employees to move on with their careers not only demonstrates that you have
truly valued their contribution to the company, but also helps them to quickly
secure new roles. It also sends a positive message to remaining employees,
which in turn helps maintain morale and productivity (and let’s face it, few
companies can afford this at the moment in time). It will also help to
strengthen and protect your brand and reputation as a good employer, key for
attracting new talent.

In terms of actual return on investment, in situations of voluntary redundancy, offering
outplacement has proven to increase the uptake of voluntary redundancy schemes,
as employees feel more confident about their future and opt to leave the company
sooner.

It can also reduce the number of tribunal cases that sometimes arise during downsizing exercises
as employees genuinely feel that the company has treated them fairly and is
supporting them. When you consider that 2009 – 10 saw a 56% increase in
tribunals, with an average award of £9000 for those cases that were
successfully awarded to the claimant, not to mention the man hours and legal
fees, organisations need to carefully consider whether not providing
outplacement actually saves money in the long run.

Making employees redundant is often a painful experience for all involved, but offering
outplacement support and handling the situation sensitively can help limit the
impact on those affected and also mitigate against unexpected financial costs
in the long run.

Competition is tougher than ever today. Companies with engaged employees outperform others by 47% to 202% (Source: Watson-Wyatt Research). Creating an environment of teamwork builds alignment and engagement, raises productivity, and leads to lower turnover rates. Here are some articles and tips to help you handle team-related issues and raise the level of engagement at YOUR workplace.