The paper 'Current Human Resource Management Issue' is a wonderful example of a Management Case Study. The world of business has witnessed a paradigm shift in recent years. Previously it was human resource return on investment that was important, just as there was a need to establish business cases meant for use in human resource programs; but now, as companies yearn to register profitable growth, the focus has shifted to retaining key talent and talent acquisition (Baker et al, 2006, pp. 5-5). In the Australian context, the retention of key talent comes with twin questions of both risk and matter of business continuity for many companies in the background of the tighter labor market.
According to a survey, the talent retention competition for the skilled workforce is set to increase by as much as 90% in the coming five years. This is primarily because some companies cannot afford to bring in new talent, or even nurture the existing one, as fast as the challenges posed by the rapid growth in business. The Future of Talent Management survey was released in April this year by Mercer, a pioneer in global outsourcing, investment, and consulting segment.
The survey was done among more than 500 Asia-Pacific companies (The Australian, 2011). According to Marianne Roux, who is the team segment leader at Mercer's, the key to retaining the best talent lies in handling well the personnel involved in delivering operational excellence in a company through technical and critical pipelines, while the changing global demographics are going to further shape the act in retaining or sourcing talent. Talent management and retention critical Analysis of Retaining Key Talent PriceWaterCoopers believes otherwise since it doesn’ t opine that changing industrial relations landscape is going to plug any key talent deficit, but demographics element might be one of five identified forces that help plug it.
But whichever way, industry experts opine that it is now going to be a war for what is being dubbed as the ‘ scarcest resource of all’ — talent! Take, for example, BHP Billiton, which despite having created history in Australia by declaring the highest net profit is running short of skilled teams that can fuel its winning trail further. Western Australia is hit so acutely by this shortage that mining projects worth over a whopping $40 billion are in quandary; some of them might even have to be scrapped while almost all are going through an unbearable delay.
Until the end of 2010 the mining industry had to fill a gap of around 87,000 new workers; under such a skilled workforce resource crunch, retaining the old key talent becomes all the more important. The trend runs in a similar fashion through almost all industries, and nearly 50% of employers across the country are having a tough time getting the vacant seats occupied.
Engineering, trade, and sales segments are the worst hit, and the shortage puts Australia at the fourth number out of a survey done among 39 countries facing a talent crunch. This sends alarm bells ringing among the companies and warrants foolproof strategy on part of companies in order to sustain growth (ManpowerGroup, 2011). In a terse remark, the ManpowerGroup survey says if some companies haven’ t yet experienced this pain, the pressure for them is round the corner, even though it is established scarcity of skilled
Doris Sims & Matthew Gay, (2006), Building Tomorrow's Talent: A Practitioner's Guide to Talent Management and Succession Planning, London, UK, AuthorHouse UK Ltd,
Jack J. Phillips & Lisa Edwards (2009), Managing Talent Retention: An ROI Approach, San Fransisco, CA, John Wiley & Sons
Lance Berger & Dorothy Berger, 2011, The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People, NY, United States of America, McGraw-Hill Companies Inc
Michael Baker, Diane Kubal, Tom O’Rourke, (2006) "How to use innovative approaches to retain key talent", Strategic HR Review, Vol. 5 Iss: 6, pp.5 – 5
PriceWaterCoopers, War for Talent, The scarcest resource of all, Human resources issues and shortages in the Australian resources market, (2005), Retrieved from http://www.pwc.com/en_GX/gx/energy-utilities-mining/pdf/pwc-australia_war-for-talent-brochure.pdf
Rusty Rueff & Hank Stringer, (2006), Talent Force: A New Manifesto for the Human, New Saddle River, New Jersey, Prentice Hall
The Australian, The race is on to sign up key talent, (2011), Retrieved from http://www.theaustralian.com.au/careers/race-is-on-to-sign-up-key-talent/story-fn717l4s-1226046726043
Talent Shortage Survey, ManpowerGroup, (2011), Retrieved from http://www.experis.us/Client-File-Pile/Site-Documents/ManufacturingTalent.pdf