For small businesses, capabilities in the recruitment, retention and training of staff are going to be key sources of competitive advantage in the future - and a simple scan of a couple of today's papers produces evidence that this future is almost upon us now.
The leading article in the Sydney Morning Herald discusses the view that unemployment is about to reach below 4% ("The bad news is its jobs galore" - front page). The reason that this is "bad news" is that there is a risk that wages could start to spiral, feeding inflation, and ultimately, interest rates.
This view is supported by a Dun and Bradstreet survey of 1200 businesses that found that 37% expected sales and profits to increase in the next quarter, and as a result, a large proportion are looking to hirer more staff ("Optimistic companies ready to hire more staff" - AFR p3).
Another survey reported in today's AFR (undertaken by The Executive Connection) discusses the popularity of various "perks" offered by employers in order to retain key staff (these included paid study leave, gym memberships and "free use of Gold Coast holiday unit"!). So the "war for talent" is as much about retention as it is about recruitment.
How can small businesses compete for "talent" in this environment, and how can the "talent shortage" be a source of business opportunity? Looking to the older work force may become a factor when it comes to recruitment. Many large corporations shun older workers. And, according to a recent survey by career management firm linkme.com.au, most Australians (75%) believed that by the age of 50, finding new employment was almost impossible ("Past it at 50" - AFR). So one solution for small business may be to take a more open minded approach to hiring older workers - who often prove to be more loyal and committed, and usually bring valuable experience to the table.
For those small businesses that can attract and retain good staff, the "skills shortage" should also lead to opportunities. As labour becomes more scarce, large businesses will be compelled to outsource more of their production and service requirements. Small businesses then should consider how they can leverage their expertise so they can profit from filling the labour gaps as they open up.
It is often at the dawn of the new fiscal year when business owners think about how they will compete in the future. Thinking about their businesses strengths and weaknesses in "human resources management", and the threats and opportunities posed by the skills shortage should not be far from the top of their minds.
The Cash Flow Ninjas
