Deloitte Research, a part of Deloitte Services LP, recently published this Point of View (POV) defining and addressing the critical talent crisis emerging worldwide across all industries.Within the next five to ten years, an alarming number of Baby Boomers are set to retire from both the private and public sectors. At the same time, it is anticipated that there will be fewer graduates with the right critical skill sets entering the marketplace. These converging events will result in an unprecedented talent shortage and skills gap. A summary of the report:
Globalization is a force for both collaboration and competition. It is also proving to be a contest for resources—both natural and human. In an age in which growth is largely a product of creative and technological advancements, companies that want to dominate their industries must be able to attract and retain talented employees. They must also engage people like never before if they want to innovate and grow. Only those companies that win the hearts and minds of their top talent will be able to deliver value over both the short and long terms. The contest for human capital is evident everywhere, although the nature and significance of trends vary from country to country. Throughout the Western world, the retirement of the Baby Boom generation will create large vacancies across industries. In Europe, that trend will be particularly potent due to low birth and immigration rates. In China, the single child policy has led to a deficit of skilled workers, especially in urban areas. These massive shifts in the workplace population will be exacerbated by educational trends. In the United States, Germany, and Japan, for example, the percentage of students graduating with science and engineering degrees hovers in the single digits, far below the percentage figures for India and China. Such trends suggest a talent market unlike any that we have seen. The game is changing in other ways as well. Jobs are no longer static. Companies must continually train and develop employees if they are to keep pace with the speed and complexity of technological innovation. Individuals need greater flexibility in their career paths, and organizations need greater flexibility from employees. People must connect across businesses, divisions, and regions in ways that promote high quality decisions and fast execution. Responding to today's workplace demands means that firms must offer more than a good paycheck. Record-high numbers of disaffected workers already cost organizations millions of dollars in lost productivity. In the face of such challenges, traditional approaches to managing talent fall short. In the 1990s, companies responded to shifting labor markets by launching a "war for talent." The report delineates a" Develop-Deploy-Connect Model" for coping with the crisis. Read on..