Executive Corner Dealing with the changing workplace by Ella Lee Competition for finance and accounting executives is heating up Economic growth is dependent on peoples' contributions through their work and expenditure. Therefore, changes in the size and distribution of the population will lead to changes in the labour force and consumer spending patterns. Today, like many developed economies, Hong Kong faces the problem of an aging population. By 2031, 25 per cent of Hong Kong's population will be aged 65 or above, and 58 per cent of the population will be considered economically inactive. Maintaining an efficient workforce in an ever-changing environment is a challenge faced by many employers. Talent and skills shortages create a situation where jobs remain unfilled and there are still people unemployed. Such a skills shortage in a huge pool of labour, according to Manpower's senior vice president of global corporate affairs, David Arkless, is a paradox faced by China. There are a number of possible solutions that go towards relieving the problem of labour shortages caused by demographic changes. They include, for example, prolonging the working life of employees and increasing the number of women in the workforce. In the US, the average retirement age is projected to be 67 by 2015, while it is now 61. Today approximately 47 per cent of the US labour force is female, up from 40 per cent in 1975, and that represents about 60 per cent of the available working population. However, these measures only ensure the supply of labour, not the quality. So it is essential to match the supply and demand by synchronising training and development with economic requirements, says Mr Arkless. Employers should focus on building the careers of their staff Solution to talent shortage In Hong Kong, where a brain drain has been taking place, with talent drawn to support the robust growth in China, Mr Arkless believes both companies and the Hong Kong Government have their roles to play in keeping the labour market functioning efficiently. "Employers should focus on building the careers of their staff," he says. "It's not just the money that leads to employee dissatisfaction." He notes that companies should create an inspiring environment, providing work incentives and establishing an infrastructure that provides continuous training in response to the economic changes. He insists that the costs are not high at all, when compared with costs that they have to pay for recruitment, training and relationship building with new staff. The government, on the other hand, should be taking measures to support the small and medium enterprises (SMEs), which make up of over 95 per cent of companies in Hong Kong. "For example, you can make tax arrangements, or readjust the infrastructure to support the business and operation of SMEs." According to Mr Arkless, there are four things that the SMEs usually find the most difficult. They are cash flow management, raising new investment for a growing business, too much bureaucracy, and lack of skilled labour. He says, "For example, in Singapore, tax incentives are given for research and development in the scientific area, and Shanghai is regarded as the best place in assessing future talent needs." As one of the world's largest employment services company, Manpower provides a range of services from recruitment, employee assessment and selection, training, outplacement, outsourcing and consulting. Mr Arkless reveals that Manpower has formed a strategic partnership with the Shanghai Bureau of Labour and Social Securities to train top officials about modern employment systems that are being used in North America and Europe. The company also carries out research to forecast the talent requirements there. Separate research has also been undertaken on young people in the city that supports the government's initiative to promote SMEs by finding out the potential entrepreneurs and funding the related businesses. Mr Arkless says, "The way in which companies choose to outsource their human resources operation varies on case-by-case basis, but in general, they would start from payroll and administrative work, followed by recruitment and career transition (outplacement)." Top ten talent shortages in Hong Kong 1. Technicians (primarily product/operations, engineering or maintenance) 2. Sales representatives 3. Engineers 4. IT staff (primarily programmers/developers) 5. Management/executives 6. Buying/procurement staff 7. Designers 8. Accountants 9. Quality controllers 10. Project managers Source: Talent Shortage Survey by Manpower Hong Kong Ten ways to remain competitive in the changing workplace 1. Attract talent by being a better employer 2. Find better ways to prolong working life 3. Analyse and use competence to full advantage 4. Synchronise training and development with economic requirements 5. Improve partnership between the public and private sectors 6. Encourage inclusive workforce 7. Promote universal English and Mandarin 8. Support vocational training that makes people job-ready 9. Encourage labour flexibility and cross-training 10. Invest in education and enabling technology Source: Manpower Inc Taken from Career Times 14 July 2006 Your comments are welcome at [email protected]