The War for Talent is not only back, it’s becoming attritional. On one side of the barbed wire, we have one of the hottest global start-up environments right here on our doorstep in London; on the other, we have a shortage of supply and established employers digging-in to protect their best talent.
And it’s not going to get any better. Just look at the recent headline in City AM – “London’s tech firms raise record $1bn of venture capital investment”; much of that money will go into attracting talent, pushing salary demands ever higher. Allied to this is my biggest concern – that as demand increases, supply is, at best, stagnant – backed up by Boston Consulting Group’s latest research which suggests a potential hit to the global economy of $10 Trillion due solely to labour shortages1. In my previous role as Head of International HR with Informatica Corporation, we undertook research to determine future challenges around talent shortages – specifically around software engineering skills – and it quickly became clear that, on a global basis, demand is outstripping supply. As the IOT (Internet of Things)Market accelerates, companies across an ever-extending number of sectors are looking for software talent - from Walmart to Boeing and all points in between – and there are simply not enough resources to go around! Our children are just starting to learn how to code in some schools – and there are some great initiatives around engineering starting to get traction – but if ever there was a case of too little, too late, this is it!
All of which makes it even more important to make sure that you keep the great talent that you have in your business! At last, I have some good news; almost every piece of research published this year has shown that engagement levels are improving across the global workforce. The flipside is that levels in Europe have stayed largely static and, more importantly, the number of people saying that they intend to stay with their current company hasn’t increased.2 So with these data points, it’s abundantly clear that there is no room for complacency!