Is There a Talent Shortage or Not?

 

According to a recent report there are 3.3 unemployed individuals available for every vacancy -- a ratio that likely will worsen as the recession deepens. Research suggests that workers let go during a recession face job hunts that last at least four months, and when they do find work, they accept a 20% to 30% pay cut, on average.

 

However, just a few short years ago labor analysts were predicted more than 25% of the labor force would reach retirement by 2010, resulting in 10 million fewer employees than needed.  Several surveys conducted in 2003-04 (just four to five years ago) revealed that 50-75% of the workers surveyed said they would leave their present positions when the job market improved.  All of this added up to predictions the shortage of talented workers would become so severe that organizations with a stable workforce of talented workers would have a significant competitive advantage.

 

What has really changed?  Are we in a "catch-22" situation?  Has the economy gotten so bad that production of goods and services must be cut back to the point that even the most talented workers are laid off?  Yet, an optimistic attitude suggests that the economy will rebound in the next 12 to 18 months particularly with the resources being poured into the economy through numerous stimulus packages proposed by various political camps.

 

Someone once said of another era, "It is the best of times and the worst of times."  This suggests we have been down this road before! Or not?  What is different this time around?  In many respects, history is not repeating itself.  Yet, in many ways, we must manage the best we know how even when the strategy must change. For sure, the human resource strategy must become very different.

 

What is your human resource attraction, retention and development strategy?  Are you planning to return to full capacity at the first sign of economic recovery?  Or will you be among the increasing percentage who will continue the cost cutting and workforce reducing strategies of the past?  Where will the talent required to renew your company's vision for growth come from?

 

What do you see from where your viewing point?  What strategies are you planning to execute in 2009 and beyond?  How do you plan to be fully prepared when it is time to get back to business? 

 

I welcome your comments

 

Enthusiastically,

 

Bob