CEO's cite skills shortage as biggest threat to growth

The global accounting consultancy PricewaterhouseCoopers has last week released its highly respected CEO survey. Here is the summary:

- As one of the top three sources of competitive advantage, people issues look to dominate the UK CEO agenda in 2008.

- Concern about the availability of key skills is cited globally as the biggest threat to growth

This top of the agenda in both the UK, and Asia Pacific. Given the UK’s expansion plans, perhaps surprisingly, language skills and global experience were perceived as critical by only 45% and 44% of UK CEOs respectively – well behind the global averages of 65% and 55% respectively.

- The largest skills shortage comes in combined technical and business expertise and the ability to develop and lead others. Reflecting the current culture and outlook of innovation in the UK, almost two thirds of UK CEOs said they were having difficulty recruiting people who were creative and innovative.

- Addressing the skills gap, almost two thirds of UK CEOs said that fundamental changes in the way they recruit, motivate and develop employees needed to occur to help them compete for talent. Investing in training and development and providing a more flexible working environment would also play a key role.

- With 43% of UK CEOs planning for a merger or acquisition in the coming twelve months they are confronting a significant skills gap in the ability of their people and company to lead and adapt to change, and realise the financial and growth benefits needed from their plans.

Of course, here at Harvey Nash our consultants are continually talking to clients and candidates so we are fully aware of the shortage on the supply side of executive and technical talent. This is exacerbating the demand gap and is the key driver of remuneration.