In the Marketplace simulation this week you will be assessing strategies for hiring and compensating employees to support your growth plans in a world economy that is experiencing a talent shortage. Dobbs, Lund, and Madgavkar (2012) state, “According to a 2011 survey by employment-services company Manpower, 34 percent of employers around the world had difficulty filling jobs as a result of a lack of available talent, up from 30 percent in 2009” (para 4). The cost of replacing employees is often not calculated into the bottom line, but yet can have a significant impact on company profitability. “According to a conservative estimate by the Bureau of Labor Statistics, the average cost to replace an employee is $13,996” (O'Connell, 2007, p. 14).
Hiring and retaining good talent requires a comprehensive strategy that includes the types of compensation as seen in the simulation but goes much further and includes many other elements. As leaders of your new and growing international firm, you will need to create this comprehensive strategy and integrate it into your future plans.
For this discussion question you will:
Discuss in detail why there is a worldwide talent shortage
Research best practices on retaining talent
Identify at least three companies who have integrated these best practices into their growth plans and how these strategies have worked
Describe your plans to integrate this information into your simulation growth plans
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There are a number of reasons why there is a worldwide talent shortage. The first reason is the decline in the working population due to low birth rates especially in developed economies. This means that the number of qualified people joining the workforce is lower than the number of retiring workers. Another core reason for talent shortage is the rapid technological evolution which has not only been drastically changing the skills needed for job performance, but also shortened the lifecycle of job skills....