PricewaterhouseCoopers Report Warns of a Looming Talent Shortage, Need for More Effective Management Strategies
NEW YORK, 6 NOV 2006 — Technology companies around the world still have a long way to go in effectively finding and retaining talent and in managing their human resources to ensure continued success, according to a PricewaterhouseCoopers report.
Titled ‘Technology Executive Connections – Successful Strategies for Talent Management,’ the report found that although executives at technology companies understand that human capital management should be their top priority, most say their firm’s capabilities in this area are lacking.
Scott Pollak, director, PricewaterhouseCoopers, said:
“Competition for talent has never been as fierce as it is now. Technology executives must upgrade human capital management in their companies and create innovative programs in order to attract and retain the best people.
“The technology industry has experienced steady growth in hiring over the past three years, and even a small increase in demand would signal the beginnings of another industry talent war.”
To find new sources of talent, technology companies have been forced to look offshore in order to gain access to larger pools of talent. However, even this resource is not secure, with European and Asian executives anticipating a severe shortage of talent within the next three years. Nor is the talent gap shortage limited to developed markets, with 41 percent of all technology
companies indicating difficulty in finding technical talent in emerging markets and 48 percent reporting difficulty keeping this talent.
In addition, emerging markets have experienced a rise in tech salaries – a direct result of the intensifying need for talent. Compensation levels are also increasing to a point where China and India are no longer viewed as cost effective, the report found.
Weaknesses were also highlighted in areas such as training for senior executives, capabilities for the recruiting and development of talented people and career development.
Graham Wyllie, director at PricewaterhouseCoopers, commented:
“Technology companies have always had to compete for the best and the brightest, but with an industry boom they are faced with a looming talent shortage. It is no longer adequate for technology employees to have an advanced degree in mathematics and sciences. They need a strong drive to succeed, a willingness to learn, collaborate and innovate, and the capacity to manage change.”
The report does provide some evidence that organizations are implementing ways to improve their human capital strategies. Some companies are currently working with schools to enhance aspects of curriculum and encourage students to study mathematics and sciences in order to combat the diminishing talent pools with these qualifications. Others are looking in-house to better manage their best assets.
Those companies realizing the benefits of managing their in-house talent are using tools such as talent maps to assess their present and future talent needs, worker engagement surveys, and implementing human capital metrics at all levels of the organization. No longer are employees just attracted by the financial benefits of an organization. They are demanding innovative and interesting work and a clear view of how their careers will develop. Ninety percent of respondents said that developing and retaining existing high performers is very important.
Added Wyllie:
“It’s no longer a mere battle for talent. The real contest will be won through the development of superior tools and strategies for managing human capital across the enterprise.”
Notes to Editor:
- For more information on PricewaterhouseCoopers Technology Industry practice or to download a copy of the white paper visit www.pwc.com/techconnect.
This report is the result of a global online survey of 153 executives in June 2006, supplemented with 22 in–depth executive interviews, conducted by the Economic Intelligence Unit and PricewaterhouseCoopers.
- PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively using connected thinking to develop fresh perspectives and practical advice.
“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
Additional media contact:
Monique Halliday, Porter Novelli
Tel: +1 (212) 601 8238 or 646 238 8338
