In today’s leading organizations, there is no question that talent—finding it, developing it, and retaining it—affects success more directly than any other single factor. It also is among the greatest causes of concern.

Our 11th Annual global CEO survey bears this out. While 89 percent of CEOs assert that their companies’ people agendas are among their top priorities, 61 percent express concern over the availability of key skills. In addition, 62 percent maintain that their organizations need to change the way they recruit, motivate, and develop employees.

Responses such as these to questions about what, a decade ago, was a yawn-inducing issue suggest that a fundamental shift has occurred. Perhaps more than any other aspect of business, the competition for talent has changed profoundly.

The reasons are not difficult to find. They are related directly to globalization and to changes in demographics and technology.

Finding the right people

There was a time—at least in the accounting profession—when the only talent you needed involved understanding a balance sheet and an income statement. Those days are long gone.

Today, we look for people not only with technical skills, but with integrity as well. We also look for people with diverse backgrounds and cultures—people who bring a broader understanding of the world around them. Without such people, a company cannot compete globally.

However, tapping into this type of workforce is easier said than accomplished, and business leaders must work proactively to remove obstacles. But what can be done?

We can start by increasing the visa cap for international professionals who want to work in the US. This year, for the first time in history, the visa cap was reached on the first day of filing. Applications arriving after day-one were denied.

This and other policies and approaches to education and to developing talent need to change. I firmly believe that to maintain its competitive edge, America must become a magnet for talent. But until this happens, we can’t just sit on the sidelines. We’ve got to find and cultivate talent in our own backyards. We’ve got to recruit students at an earlier age. And we’ve got to learn how to use newer technologies such as mobile email and text messaging as powerful, new recruiting tools. We also need to fully exploit rich sources of new talent such as virtual online communities and social networks.

But most important, we have to find ways of ensuring that the people we want also want us. Yes, that’s right, want us. Today’s recruits have expectations about the companies they want to work for. They are looking for commitments to integrity, to social responsibility, and to flexibility. And they are in a position to demand this and more. Companies that meet and exceed these demands will win. Those that don’t will fall behind.

Some companies will find that coping with these new realities is difficult. Others will pretend they don’t exist and continue on with the old ways. However, organizations that succeed will be those that neither ignore change nor fear it. Rather, they will be those that respond to change and turn it to their advantage.

And that’s my view.

Dennis Nally is chairman and senior partner of PricewaterhouseCoopers LLP. In the next issue of View, he continues to examine this critical issue and offers his insights on developing and retaining talent.