This report frames the scope and range of the emerging talent crisis and provides an alternative model for addressing the issues-one that we believe gets to the heart of the matter. Critical talent is scarce, and about to become much scarcer because of two looming trends: the retirement of the Baby Boom generation and a growing skill gap. Read on to learn the six questions CEOs need to ask their HR leaders.
It's 2008: Do You Know
Where Your Talent Is?
Why Acquisition and Retention Strategies Don't Work
A Deloitte Research StudyForewordGlobalization is a force for both collaboration and competition. It is also proving to be a contest for resources-both naturaland human. In an age in which growth is largely a product of creative and technological advancements, companies thatwant to dominate their industries must be able to attract and retain talented employees. They must also engage peoplelike never before if they want to innovate and grow. Only those companies that win the hearts and minds of their toptalent will be able to deliver value over both the short and long terms.The contest for human capital is evident everywhere, although the nature and significance of trends vary from country tocountry. Throughout the Western world, the retirement of the Baby Boom generation will create large vacancies acrossindustries. In Europe, that trend will be particularly potent due to low birth and immigration rates. In China, the singlechild policy has led to a deficit of skilled workers, especially in urban areas. These massive shifts in the workplacepopulation will be exacerbated by educational trends. In the United States, Germany, and Japan, for example, thepercentage of students graduating with science and engineering degrees hovers in the single digits, far below thepercentage figures for India and China. Such trends suggest a talent market unlike any that we have seen.The game is changing in other ways as well. Jobs are no longer static. Companies must continually train and developemployees if they are to keep pace with the speed and complexity of technological innovation. Individuals need greaterflexibility in their career paths, and organizations need greater flexibility from employees. People must connect acrossbusinesses, divisions and regions in ways that promote high quality decisions and fast execution.Responding to today's workplace demands means that firms must offer more than a good paycheck. Record-highnumbers of disaffected workers already cost organizations millions of dollars in lost productivity. In the face of suchchallenges, traditional approaches to managing talent fall short.In the 1990s, companies responded to shifting labor markets by launching a "war for talent." We challenge this thinking.Even the best recruitment tactics will not suffice in the struggle ahead. Rich compensation packages and "hot skills"bonuses are easily matched by competitors. Instead, a more thoughtful response is required-one that lures critical talent,but more importantly engages them in ways that promote the flexibility and productivity you need to compete. Talent-richcompanies such as SAS and Southwest are not forced to engage in bidding wars. Instead, highly talented people vie forthe limited spots these companies offer.In a compelling fashion, this report frames the scope and range of the emerging talent crisis and provides an alternativemodel for addressing the issues-one that we believe gets to the heart of the matter.We hope you find this Deloitte Research report useful as you create your own solution to this looming challenge.
James H. Wall Ainar AijalaGlobal Managing Director, Vice Chairman & Deputy CEOHuman Resources Global Managing Director,Global Office Managing Director Human Capital PracticeDeloitte Touche Tohmatsu Deloitte Consulting LLP
About Deloitte ResearchDeloitte Research, a part of Deloitte Services LP, identifies, analyzes, and explains the major issues driving today's businessdynamics and shaping tomorrow's global marketplace. From provocative points of view about strategy and organizationalchange to straight talk about economics, regulation and technology. Deloitte Research delivers innovative, practical insightscompanies can use to improve their bottom line performance. Operating through a network of dedicated researchprofessionals, senior consulting practitioners, and academic and technology partners, Deloitte Research exhibits deepindustry knowledge, functional understanding, and commitment to thought leadership. In boardrooms and businessjournals, Deloitte Research is known for bringing new perspective to real-world concerns.It's 2008: Do You Know
Where Your Talent Is?
Why Acquisition and Retention Strategies Don't Work
Despite millions of unemployed workers, there is an acute Who Is Critical Talent?shortage of talent: science educators to teach the... [download for more]
