War for talent looms for global technology companies

Global technology companies still have a long way to go to find, retain and manage their talent effectively to ensure continued success, according to a PricewaterhouseCoopers report released today.

Technology Executive Connections ñ Successful Strategies for Talent Management, found that although technology executives understand that human capital management should be their top priority, most say their firmís capabilities in this area are poor.

Graham Wyllie, director, PricewaterhouseCoopers LLP, said:

ìCompetition for talent has never been fiercer and there is likely to be another industry talent war if demand increases.

ìTechnology executives must upgrade human capital management in their companies and create innovative programmes in order to attract and retain the best people.î

To gain access to larger pools of talent, technology companies have been forced to look overseas. However, even this resource is not secure according to the report, with European and Asian executives anticipating a severe shortage of talent within the next three years.

In emerging markets, the situation is similar with 41 per cent of all technology companies indicating difficulty in finding technical talent and 48 per cent reporting difficulty retaining this talent.

Interestingly, salaries in the technology sectors of emerging markets have risen ñ a direct result of the intensifying need for talent. In fact, compensation levels are increasing to a point where China and India will no longer be viewed as cost effective, the report found.

Weaknesses were also highlighted in areas such as training for senior executives, recruiting capabilities and developing talented people.

Graham Wyllie, director at PricewaterhouseCoopers LLP, commented:

ìTechnology companies have always had to compete for the best and the brightest, but with an industry boom they are faced with a talent shortage.

ìIt is no longer adequate for technology employees to have an advanced degree in mathematics and sciences. They need a strong drive to succeed, a willingness to learn, collaborate and innovate, and the capacity to manage change.î

The report does provide some evidence that organisations are implementing ways to improve their human capital strategies. Some companies are working with schools to enhance aspects of curriculum and encourage students to study mathematics and sciences in order to combat the diminishing talent pool with these qualifications. Others are looking in-house to better manage their best assets.

Those companies realising the benefits of managing their in-house talent are using tools such as talent maps to assess their present and future talent needs, worker engagement surveys, and implementing human capital metrics at all levels of the organisation.

No longer are employees just attracted by the financial benefits of an organisation. They are demanding innovative and interesting work and a clear view of how their careers will develop. Ninety per cent of respondents said that developing and retaining existing high performers is very important.