Chicago, Illinois (PRWEB) July 6, 2005
A survey of 115 companies by Capital H Group, a human capital consulting firm, indicates that companies are clearly experiencing increased rivalry for top talent. And as the talent competition intensifies, costs are escalating as companies rely almost entirely on monetary means to attract and retain key employees.
Fifty-five percent of the nationwide companies responding to the survey said their greatest challenge in recruiting top talent is a small pool of qualified candidates. Fifty percent of the respondents plan to increase their workforce over the next six months and 22% also project they will lose 10-25% of their top performers to retirement over the next five years. Compounding the issue, these companies are competing to hire and retain the same type of employees, with salaried non-management positions Â such as accountants, engineers, and IT professionals Â ranking highest on the list.
Costs are being driven higher as the most popular method used to attract top candidates, cited by 84% of respondents, is offering competitive salaries/rewards. When asked how they keep top performers engaged in their work, 79% of companies again cited monetary awards. Not surprisingly, 55% of the respondents said that recruiting top candidates is more expensive than only 12 months ago.
However, the survey reveals that while companies may recognize the urgency of improving their ability to attract top candidates, 27% who say it is among their companyÂs top three Âpeople issuesÂ have not yet dedicated plans or resources to it. Likewise, 33% of those who say that their ability to identify and engage top employees is a priority have no plans or resources in place to tackle the issue.
ÂAs these trends reminiscent of the late 1990s labor market slowly start to re-emerge, our survey shows that many companies may be ill-prepared to deal with them,Â said Dan Weinfurter, CEO of Capital H Group. ÂWhile few, if any, companies can sit on the sidelines in this competition for top talent, throwing money alone at this issue will only make it worse. As a first step, companies must seek to understand what talent is required to drive their business strategy and plan accordingly.Â
About the survey
Capital H Group surveyed 115 business leaders and human resources professionals in May 2005 from a cross-section of company sizes, industries, positions and geographies. The respondents represent HR Directors/Managers as well as line managers. The companies represented are almost equally divided among mid-sized companies (those with 5,000 or fewer employees) and large employers (5,000 and more employees).
About Capital H Group
Capital H Group (http://www.capitalhgroup.com) is a rapidly growing human capital consulting group, with headquarters in Chicago and operations in Boston, Dallas, Detroit, Houston, Los Angeles, Milwaukee and New York and over 100 professionals recruited from the major firms in the field. Team members average over 15 years of experience, with a combination of consulting and industry backgrounds. Capital H Group's mission is to discover fast, focused smart ways to enhance the value of clientsÂ human capital.
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.