Tuesday, April 04, 2006

Talent Crisis in America

Shortage of quality technical manpower is not the only worry being faced by American industry today. In a survey conducted by Ernst & Young LLP, ExecuNet Inc., and the Human Capital Institute reveals that, although corporate America foresees a significant workforce shortage as boomers retire, it is not dealing with the issue at present and may be underestimating the strategic challenges ahead.

Some highlights are.

Of survey respondents who believe that the aging workforce is an issue that must be dealt with, 53 percent said it will lead to a workforce shortage.

Sixty-three percent said that retirements will lead to a “brain drain."

While almost 15 percent of respondents’ employees are eligible to retire in the next 5 years, they estimate that just over 10 percent of their current workers are likely to do so.

Approximately 40 percent noted that their top human capital concern is the availability of talent over the next five years. Other highly ranked areas of concern include retention of key employees and talent management (i.e., ensuring that the right employees are in the right positions).

Over 85 percent had no formal retention programs in place. Of those who did, hiring retirees as consultants or contractors, retention bonuses, promoting a culture of generational diversity and pre-retirement planning programs proved to be the most popular.

Survey findings are based on responses from a sampling of senior human resources executives from a cross section of some of the largest employers in the U.S. in a variety of industry sectors.The survey was conducted electronically from November 11, 2005, to December 21, 2005.

The crisis of talented skilled workforce has lead to repeated request by the Industry in America to raise the cap on H1 B visa ,the govt is likely increase the cap.Reports suggest that US Senate committee has approved a bill which seeks to double the number of H1B visas and Green Cards issued annually from the current cap of 65,000 to nearly 1.15,000.

No comments: