FINDING AND MANAGING TALENT REMAINS A CHALLENGE FOR TECHNOLOGY COMPANIES WORLDWIDE

PricewaterhouseCoopers Report Warns of a Looming Talent Shortage, Need for More Effective Management Strategies


NEW DELHI, 10 November 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.

Mohinish Sinha, Associate 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 programmes 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 per cent of all technology companies indicating difficulty in finding technical talent in emerging markets and 48 per cent 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.

Weaknesses were also highlighted in areas such as training for senior executives, capabilities for the recruiting and development of talented people and career development. As per Mohinish, “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 organisations are implementing ways to improve their human capital strategies and looking in-house to better manage their best assets. Those companies realising 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 organisation. No longer are employees just attracted by the financial benefits of an organisation. They are demanding innovative and interesting work and a clear view of how their careers will develop. Ninety per cent of respondents said that developing and retaining existing high performers is very important.


ENDS
Notes to Editor:
This report is the result of a global online survey of 153 executives in Jun 2006, supplemented with 22 in–depth executive interviews, conducted by the Economic Intelligence Unit and PricewaterhouseCoopers.

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