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.