Organisations across America — and in India — are facing problems attracting and retaining talent

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In December, workers at Palmerston North in New Zealand had running battles with their managers because their call centre jobs had been shipped to the Philippines. There was a bit of bloodshed and much acrimony.

But in the US, where anti-outsourcing once saw much venom being spewed, this may have become a non-issue. Wired magazine reports that “the anti-outsourcing activists have mostly melted into the woodwork”. Four years ago, Wired had written about the many lobby groups and websites devoted to “protecting” US jobs. Its take now: “Of the four political action groups we cited, only one seems to still exist… One website we mentioned —nojobsforindia.com — is riddled with Google ads for (oh, the irony) outsourcing firms… In fact, the reason there aren’t more tech jobs in the US is a shortage of talent.”

As we usher in 2008, that perhaps is the key issue facing most economies and countries — the shortage of talent. A number of surveys in recent times have highlighted this. A study by the Society for Human Resource Management (SHRM) Foundation says that across America, organisations of all sizes are facing problems attracting and retaining talent. Some 75 per cent of corner office executives see succession planning as their main problem.

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Earlier in 2007, the Conference Board, a research organisation best known for its consumer confidence index and leading economic indicators, found that the cost of healthcare was no longer the main headache for American CEOs. It had been replaced instead by “finding qualified managerial talent and management succession”. Another survey by Bersin & Associates, a research and advisory service in talent management, found that more than 50 per cent of the businesses surveyed reported a talent crisis among middle managers.

Other surveys put just as much emphasis on talent scarcity. Development Dimensions International, a consultancy, and the Human Capital Institute surveyed more than 700 HR executives, directors and managers in the US and Canada. A key finding: 90 per cent feel that “talent will be a primary differentiator of business success”. A study by Chartered Management Institute, UK, has also found that management skills top the scarcity spectrum.

It is then small wonder that the latest Manpower survey on Net Employment Outlook presents a rosy picture on hiring intentions across the world. “No negative outlooks were reported for Quarter 4, 2007,” says the survey. Nearly 52,000 employers were interviewed across 27 countries to measure anticipated employment trends between October and December.

It should be no surprise that India is very much there with the leaders of the pack. The Net Employment Outlook (a measure of optimistic hiring intentions) was 47 per cent for this country. Only Peru (55 per cent) and Singapore (49 per cent) were higher. Curiously, China was relatively in the dumps at 12 per cent. This has come down from 18 per cent in the third quarter. The problems Chinese exporters are having over quality could be taking a toll.

What are the implications of this abundance of research? “First, there will be jobs aplenty, particularly in places like India,” says Mumbai-based HR consultant Shashi Rao. “Secondly, salaries will go up as companies scramble for available talent. Third, companies will devote more resources to growing talent internally; it will be easier for those who have the will to climb the corporate ladder.”

For jobseekers, it looks like a happy 2008.

Sources: The Telegraph (Kolkata, India)