Skills gap hampering businesses’ recruitment: PwC

As organisations plan a hiring spree over the next 12 months, nearly two thirds (63 per cent) are concerned they will not be able to find the people with the skills these companies require to fill these positions, says the recent PricewaterhouseCoopers (PwC) report - ‘The talent challenge: Adapting to growth’.

According to the PwC survey of over 1,300 CEOs in 68 countries, after a number of years of headcount cuts, half of organisations surveyed are looking to hire again. Organisations in the Middle East (71 per cent), the South East Asian nations (54 per cent) and China (53 per cent) plan to make the most net hires over the next 12 months. Also, business services (51 per cent), insurance (49 per cent) and technology (46 per cent) are the sectors looking to make the most net hires.

Despite the positive outlook for jobs, PwC’s research reveals, business leaders are more concerned than ever about being able to find the right people to fill these roles. Around 63 per cent of CEOs (an increase of 5 per cent from 2013) say the availability of key skills is the biggest business threat to their organisation’s growth. 

CEOs in Africa (96 per cent), the South East Asian nations (90 per cent) and South Africa (87 per cent) are most concerned about the lack of skills. Technology and engineering firms are struggling the most with the shortage of skilled employees. 

The growing skills gap and rising cost of labour in emerging markets is forcing organisations to look to new markets for talent. Many multinationals have already raided the pipeline of graduates and skilled young workers emerging from China and India, and there are signs that employees in these regions are beginning to favour domestic employers over their western rivals. Organisations are now widening their reach for new talent into Indonesia, Vietnam and the Philippines.

“Business leaders are looking for people with a far wider range of skills than ever before," said Michael Rendell, global HR consulting leader at PwC in a press statement. Gone are the days of life-time careers; chameleon-like employees who apply their skills whenever and wherever they’re needed are now in high demand."

"The most successful organisations will combine recruitment with developing their own people to be more adaptable to its changing plans,” he added.

The research shows that business leaders are looking to the government to do more to help to plug the skills gap. Two in five CEOs say creating a skilled workforce should be one of government’s top three priorities and over half (52 per cent) believe that regulation is hampering their ability to attract the best people. Only one in five feels that their government has been effective in improving workforce skills in their region.

In contrast, an overwhelming majority of business leaders (93 per cent) say they need to change their strategy for attracting and retaining talent, but three in five haven’t taken any steps to do this yet.

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