Increasing shortages of skilled professionals in the Asia-Pacific region will continue to affect business productivity and profitability across numerous industry sectors, and as a result, competitive advantage, especially in the IT sector, will be at the mercy of effective talent sourcing and management strategies.
As such, the HR role has an opportunity to accelerate its evolution from its traditional function and be taken seriously by executive management teams for directly influencing profit in 2007.
Although it is still very rare for HR directors to make it to the boards of Australia’s listed companies, predictions are that the number of human resources committees reporting to boards will continue to grow, reflecting an increased respect for, and focus on, HR issues that now have the attention of boards.
As skills shortages continue to bite, organisations will increase investment in employer branding initiatives and talent management programs to position themselves as employers of choice, competing for an ever shrinking pool of skilled professionals. Organisations will have to match external perceptions with internal realities to ensure that employee retention and engagement rates do not fall.
In a recent Hudson survey, for example, 80% of Australian managers believed their employment brand met employee expectations, while only 63% of employees felt that they experienced the promised employee experience.