The Global Skills Shortage
The scarcity of skilled workers, so long bemoaned by U.S. employers, is becoming an international problem. Studies show that managers in both Europe and Asia increasingly are worried about the problem. For example, the annual European Business Survey reveals that 1999 saw the largest annual increase in concern about skills shortages since 1994. Over the seven years of the survey, the percentage of companies citing a skills shortage has almost doubled, from 15% in 1993 to 29% in 1999. Information technology (IT) and, in some areas, management skills are in particular demand.
The situation is similar among many Pacific Rim nations. Only about half of Asian executives participating in a 1999 Asian Executives Poll said the supply of skilled labor in their countries is adequate. And a large percentage of top executives in Indonesia (61.1%), Singapore (70%) and Malaysia (72.7%) said the pool of skilled labor in their country does not meet their nation’s economic needs. Again, IT workers often represent the scarcest type of labor. "In fact, the skills shortage remains one of the greatest bottlenecks to building a broad Asian base of new technology development," reports Computerworld magazine. Australia has also experienced a critical IT skills deficit, and the situation is worsening.
One of the most alarming implications of this trend is that the so-called war for talent is fast spreading to the international arena. Firms in nations that can’t retain skilled employees will be economically handicapped, and companies in nations that have traditionally been "brain magnets" may eventually find it increasingly expensive and otherwise difficult to bring in top talent originating in other countries.
What are firms doing to develop and keep skilled employees? The answers are legion, ranging from focused tactics -- such as establishing skill-based pay programs -- to broader strategic initiatives, such as becoming an "employer of choice." As Fortune magazine recently put it, "In an ultratight labor market, companies primp to woo and retain talent. They offer perks and amenities like concierge services, unheard of until recently. They listen to employee input, adjust schedules to suit family obligations, provide training, and cut workers into stock-purchase, stock-option, and stock-award programs formerly reserved for the management elite."
But simply wooing and even pampering skilled workers will not, in the long run, be an answer to shortages. Employers will need to help expand the supply of talented employees. One idea is to form partnerships with government entities. For example, Cisco Systems, Inc. has created its Networking Academy Program, a joint venture with the public sector established to train individuals to fill a projected 600,000 vacant networking positions throughout Europe. During the space of only six months, reports M2 PressWIRE, the program was instituted in more than 16 countries, with 80 academic institutions teaching or preparing to teach students basic and advanced networking skills. Cisco Systems, known as a worldwide leader in Internet networking, began its worldwide Career Certifications program in June of 1998 after learning how serious the skills gap surrounding global networking really was. Juergen Ruthotto-Doubek, Cisco’s manager for Training Partner & Business Development in Europe, the Middle East and Africa, stated that "the need to train networking professionals to the right standard is one of the most pressing issues facing all industry sectors today."
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For more information on Cisco's Networking Academy, Click Here
For information on how firms are retaining employees, Click Here
The situation is similar among many Pacific Rim nations. Only about half of Asian executives participating in a 1999 Asian Executives Poll said the supply of skilled labor in their countries is adequate. And a large percentage of top executives in Indonesia (61.1%), Singapore (70%) and Malaysia (72.7%) said the pool of skilled labor in their country does not meet their nation’s economic needs. Again, IT workers often represent the scarcest type of labor. "In fact, the skills shortage remains one of the greatest bottlenecks to building a broad Asian base of new technology development," reports Computerworld magazine. Australia has also experienced a critical IT skills deficit, and the situation is worsening.
One of the most alarming implications of this trend is that the so-called war for talent is fast spreading to the international arena. Firms in nations that can’t retain skilled employees will be economically handicapped, and companies in nations that have traditionally been "brain magnets" may eventually find it increasingly expensive and otherwise difficult to bring in top talent originating in other countries.
What are firms doing to develop and keep skilled employees? The answers are legion, ranging from focused tactics -- such as establishing skill-based pay programs -- to broader strategic initiatives, such as becoming an "employer of choice." As Fortune magazine recently put it, "In an ultratight labor market, companies primp to woo and retain talent. They offer perks and amenities like concierge services, unheard of until recently. They listen to employee input, adjust schedules to suit family obligations, provide training, and cut workers into stock-purchase, stock-option, and stock-award programs formerly reserved for the management elite."
But simply wooing and even pampering skilled workers will not, in the long run, be an answer to shortages. Employers will need to help expand the supply of talented employees. One idea is to form partnerships with government entities. For example, Cisco Systems, Inc. has created its Networking Academy Program, a joint venture with the public sector established to train individuals to fill a projected 600,000 vacant networking positions throughout Europe. During the space of only six months, reports M2 PressWIRE, the program was instituted in more than 16 countries, with 80 academic institutions teaching or preparing to teach students basic and advanced networking skills. Cisco Systems, known as a worldwide leader in Internet networking, began its worldwide Career Certifications program in June of 1998 after learning how serious the skills gap surrounding global networking really was. Juergen Ruthotto-Doubek, Cisco’s manager for Training Partner & Business Development in Europe, the Middle East and Africa, stated that "the need to train networking professionals to the right standard is one of the most pressing issues facing all industry sectors today."
====================================================
For more information on Cisco's Networking Academy, Click Here
For information on how firms are retaining employees, Click Here