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Preparing for the talent crunch

We often read about the jobs of the future and how young children need to plan for a career in industries not yet created.

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However these discussions or - of equal importance - discussions around the jobs of the past, need to occur in tandem with conversations about talent deficits.

"The work to mitigate this potential talent crisis must start now to protect the future of companies.”

The effects of the talent deficit will have an impact broadly for economies globally and regionally over the medium to long term. 

In the Asia Pacific, the story differs between countries but it is clear this shortage will severely impact the growth of markets in the region.

New research from Korn Ferry shows an imminent talent deficit of more than 12.3 million workers by 2020, rising to a shortage of 47.0 million workers and A$5.620 trillion in unrealised annual revenue across the region at 2030.

The gap between future talent supply and demand in 20 major economies is estimated to occur at three milestones - 2020, 2025 and 2030 - and across three sectors: financial and business services; technology, media and telecommunications; and manufacturing. 

In Australia, an increasing skilled labour deficit is expected between 2020 and 2030 when demand for talent will outstrip supply.

The work to mitigate this potential talent crisis must start now to protect the future of companies.

If left to run its course, this shortage will severely impact the growth of markets in Australia and across APAC. 

Focus areas

Organisations will need to focus on a range of initiatives including:

  • Strategic workforce planning to prepare and plan for changed roles
  • Development programs to transition existing workers into new roles
  • Job design to articulate the scope of roles for the future
  • Review of remuneration structure for employees in key roles to ensure they are market competitive. 

Companies and governments must act now to future-proof their business. 

The right talent is the greatest competitive advantage there is for an organisation - and that talent is getting scarcer every day.

In the face of such acute talent shortages, workforce planning and a comprehensive understanding of the talent pipeline are critical. 

The future will be built on the effective partnership between people and technology.

The acute demand for workers with the right skills that businesses need, rather than the much-discussed domination of technology in business, could become the defining issue of our age.

Andrew Lafontaine is Senior Client Partner at Korn Ferry

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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