Reducing Human Capital Risk in a global war for talent (PDF)

Inhaltsangabe:Abstract:
It was in 1982 as the oil price reached more than a hundred dollar a barrel for the first time. The limit of resources and the vulnerability of economies were then discussed widely in the public as it is today. Stock prices were affected heavily due to the economical risks a high priced commodity exposes to shareholders.
In a few years time, a similar scenario seems to be possible for Human Resources. A company¿s availability to recruit and to retain key talent could have the same or an even higher impact on investor¿s expectations in the future.
This study examines actual ways Human Capital Risk is handled, shows scenarios of future development and discusses ways to optimize sourcing and retaining personnel in the future.
In a first step, it is shown that the threat of missing ability to attract and retain key talent is increasing strongly within the next couple of years. The availability will reduce, for example due to an over proportional retirement of knowledge workers in the developed countries. On the other hand, the global demand for high qualified staff will increase constantly, since economies like India and China will continue to grow.
Furthermore, ways of analyzing the structure of company¿s personnel are introduced, which allow a well founded understanding of Human Capital Risk. Even if not applicable today, the meaning of Human Capital within rating systems will increase as the impact on company¿s performance rises. It is argued that, a company with less ability to recruit will face consequences in a lower rating and therefore higher interest rates in the future.
In order to asses recent recruitment and retaining activities a survey between companies in Germany and The Netherlands has been conducted for this study. The results show a statistical correlation between the use of recruitment agencies and the ability to recruit faster and more successfully. Recruitment processes in Germany seems to be much longer than in The Netherlands. Exit Interviews are not exploited to its full extend and a structured retention management is not yet in place in the majority of the companies.
Recruitment companies are specialists in indentifying key personnel. With their knowledge they could be an independent partner in ensuring a high retention by providing after placement services to both, the placed candidate and the employer. Repeating candidate surveys about his experiences with in his new job towards personal [...]