Skills worry causes employee benefit boom
Monday, October 8, 2007/
Chief executives must be driving their HR department nuts. A new survey has emerged showing that the skills shortage is now having such a dramatic effect on companies it has emerged as the chief executive’s biggest concern – even beating profit and growth. This follows another survey of chief executives done on Friday also showing that the skills shortage has become the major concern of chief executives.
The KPMG’s private company survey for 2007 which interviews 70 chief executives of mid-size firms shows that more than 47% of companies surveyed say that attracting qualified employees is their major challenge. Many have shifted their focus on the war for talent, says partner in KPMG’s middle market advisory practice, Don Abell.
He says there have been some significant changes in the last three years. About 43% have introduced annual salary reviews, he says. In the past they may simply have reviewed people within fixed agreements. They are also allowing more people to work from home, with 35% now saying they actively promote a work life balance. A third of businesses are now paying their employees an annual bonus.
Nearly half the employers say they have also become more inclusive by regularly keeping employees informed of the company’s progress.
And the skills shortage is also changing recruitment practices with almost 19% saying recruiting staff is a major challenge. Nearly two thirds of respondents have started advertising vacancies internally before going to the market. Abell says it seems obvious that external advertising has become more difficult in getting the results they want.