Research reveals talent loss is the primary concern of company directors, making smaller organisations the most vulnerable.
Recent years have seen the development of a tight skills market with the baby boomer generation hitting retirement age, an increasingly flexible workforce and the gig economy changing the landscape of work.
Scoop Business NZ reports on the fourth Directors’ Risk Survey Report by Marsh and the Institute of Directors:
People risks, such as the loss of a key person and talent attraction and retention, are top of mind for directors … Directors were overwhelmingly concerned about their ability to replace a key person, with 83% of respondents rating this as the biggest internal risk to their organisation.
Concerns over talent attraction and retention also ranked highly, with respondents ranking this as the fifth largest internal risk and the second largest emerging risk.
Directors are faced with the challenge of developing work environments that are modern and engaging in order to attract and retain great talent.
Business leaders now need to build a strong sense of community, as according to the New Zealand Herald, “new talent identification may well be sideways and may be external.”
However, despite identifying this key risk with respect to talent, only 32 per cent of directors had plans to manage talent attraction and retention.
Institute of Directors chief executive Kirsten Patterson states the risk to small and medium-sized business is significant:
Sadly a number of SMEs fold each year because of the death or injury of an owner or key staff member. Having succession planning in place is vital to ensure that these instances, which often happen unexpectedly, are well-managed.
This worrying attitude comes as a surprise, considering how many directors are aware of the issue.
Business leaders should ensure their organisation’s success by focusing on meeting the needs of the modern workforce through strategies, recommended by Scoop New Zealand, such as diversity and inclusion, flexibility and employee benefit programs.
Sources
Directors stress as ‘war for talent’ heats up
Liam Dann
NZ Herald
People risks high on agenda for directors
Author unknown
Scoop Independent News
Directors Risk Survey Report 2018
Marsh & McLennan Companies
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[…] Recent research reveals that talent loss is the primary concern of company directors. As such, midsized business are most vulnerable to talent loss. […]