Published on the 04/06/2015 | Written by Donovan Jackson
CEOs are more concerned about the impact of a skills shortage on their business than at any point in the last six years, according to PwC…
With more executives seeing skills shortages as the biggest threat to their businesses, company bosses are increasing their use of contingent workers, part-time employees, outsourcing and service agreements to fill their talent gaps. They are also looking for a wider mix of skills than in the past and searching for talent in different geographies, industries or demographic segments.
That’s according to PwC, which said three quarters of 1300 executives interviewed in its annual Global CEO Survey point to talent shortages as a major problem. This represents a 10 percentage point jump from 2014 and is up from less than half (46%) six years ago.
In New Zealand, while 88 percent of CEOs are confident about their company’s growth prospects this year, some 84 percent are nevertheless concerned about the availability of key skills, up from 80 percent a year ago.
However, the study doesn’t define what those key skills are.
Little wonder then, that PwC partner and business adviser Scott Mitchell said the balance of power continues to shift in favour of skilled personnel: “Generation Y and so-called millennials are coming through and dictating the terms of where and how they do and don’t want to work. That’s a reality; people are more aware, no matter where they are in their tenure, of what they are entitled to and that they have more choice in the way that they want to operate.”
Technology, added Mitchell, means people don’t have to be sitting in a corporate office, but instead could be anywhere, doing the hours that they want to. That’s something PwC itself has taken cognisance of, with greater flexibility in its own hiring and human resources practices, he said.
“People with strong technology skills that can adapt and work across different industries are desperately needed, but these people are difficult to find and can afford to charge a premium for their skills. New places, geographies and new pools of talent must be looked at – organisations can’t afford to recruit people as they’ve always done,” he said.
