“Double whammy” to strike when recession ends

by 24 Jun 2009

Companies should carefully consider the fact that people will soon again be a scarce resource before hastily cut ting their workforce, a European HR study has warned.

The “double whammy” of falling birth rates and rising numbers of baby boomers entering retirement will reduce the size of the work force – meaning companies may soon face key shortages in skills.

However, despite this, only 15 per cent of European companies say they plan their workforce more than three years in advance.

The report, published by The Boston Consulting Group (BCG) and the European Association of People Management (EAPM), states that in 10 years, the scarcest resource for a com pany will be people and that, therefore, companies should understand how their work force will develop and how demand will evolve.

“With the uncertainty prevailing today, the human resources department should analyse different scenarios to figure out whether and how to find, hire, retrain, outsource, or lay off employees,” said Rainer Strack, a co-author of the report.

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