Align Management News Digest

May 2005

HR heads need help with spotting skills

Many people skills and talents go unrecognised in the work-place, according to a new survey by IBM. More than 300 chief human resources (HR) officers accross 320 global companies were surveyed for the 2005 IBM Global Human Capital study.

Some 60% of HR professionals operating in mature markets have difficulty identifying and developing the critical employee skills and talents that are vital to remain competitive, according to the findings.

"The lack of an up-to-date view of employee skills means that when the 'baby boomer' generation retires, many companies will find out when it is too late that a career's worth of experience and talent has 'walked out the door,' leaving insufficient talent available to fill the void. As companies don't know what skills are being lost, planning for future capabilities will be difficult- the chance to increase flexibility is now," says the report.

Looking ahead, Mary Sue Rogers, global leader, IBM Business Consulting Services Human Capital Management group, addresses possible problms with an ageing workforce in Europe.

"In the EU over the next two decades, the number of people in the 50-64 age group will increase by 25%, while those in the 20-29 age group will decrease by 20%. It's clear that if you don't have a real-time picture of employee talents and can't pinpoint where new skills are needed, flexibility is reduced. To keep ahead of the compitition, companies have to become more responsive and focused aound their people."

However, Miriam Ahern, organisation development and HR consultant and coach, believes the IBM report findings do not reflect today's Irish workplace. "It's important not to forget the majority of companies in Ireland are SMEs where there's far more face-to-face interaction between employers and their managers."

This means the talent and skills of each individual are more obvious in the typical Irish company, according to Ahern.

She cites the work of organisations such as the National Centre for Partnership and Performance (NCPP) and the recent launch of its Working To Our Advantage- A National Workplace Strategy report. The report examines Ireland's workplace of the future, particularly our drive to become a highly knowledge-intensive economy.

"The NCPP takes a much more holistic and involved view where the employee is at the centre of the company strategy rather than driving this purply from a HR agenda," says Ahern.

The NCPP also looks at continuous learning and encourages industry and academia to work together- an important element in ensuring Irish workplaces are progressive, says Ahern.

According to the NCPP report, 80% of the of the predicted worforce in 2015 in Irelnd is currently employed and an additional 300,000 people with third-level qualifications will be required in the period up to 2010. Employees will have more choice when it comes to job options- clearly underlining the need for Irish companies to ensure they recognise and develop key employee skills and talents if they want to retain the right people.

Employees interested in career advancement will have clear goals in mind and it's up to the employer to find out what these are.

"The move in Ireland is more towards non-work-related personal development," says Ahern. "It's important to establish the key motivators for each individual- and it isn't always about money. Companies have got to look at employees as individuals and match retention strategies to their requirements," she says. According to the IBM report, comprehensive employee development can pay dividends. The findings show that companies with 80% or more of managers in management development are three times more profitable than companies with 0-60% in these programmes.

However, companies that invest in management development at the staff level were found to have higher voluntary turnover at that level. According to the report, this suggests that companies that invest in developing talent internally must create opportunities for individuals or risk losing them.

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