Horizon Management Group

We have been discussing the coming talent shortage for some time now and what is required to attract and retain good people. Here are more thoughts from the experts, BIS Shrapnel, researchers and forecasters, and a longstanding client of Horizon.

 

BIS Shrapnel believes solid demand in the face of capacity constraints and a shortage of skilled labour are now setting the scene for stronger wage increases over the next two years.

 

Indeed, evidence suggests wages are already increasing. The head-hunters are back, businesses are competing more aggressively for skilled labour. Although the bidding war has only just begun, it is already apparent in measures of wages growth (average weekly earnings and the wage cost index have both risen significantly since 2004).

 

Project Manager and Senior Economist, Mr Matthew Hassan explains:

 

"Until recently, rising wage pressures had been confined to the construction and mining sectors, with little spill-over to other parts of the labour market. But now we're starting to see a more generalised pick-up in wages growth, and a noticeable acceleration at the skilled end of the labour market."

 

BIS Shrapnel believes Australia is heading into a 'skills drought'. Continued demand for labour is forecast to push the unemployment rate towards 4 per cent by the end of 2006. Widespread skill shortages will continue to push wages growth up, eventually to over 6.5 per cent, with the premium on skilled labour rising even faster.

 

In addition to having key employee management processes, looking forward and developing your people with formal management training is an excellent investment.

 

Employees working together in a management development program is very powerful and produces immediate results.

 

What should be studied? All managers should cover certain key areas. While some managers will have previously dealt with these areas, many will benefit from revisiting these areas and sharing their experiences with colleagues.

 

You should start by defining your business needs. This is part of a development needs analysis. You can collect this information from business plans, performance management systems, recruitment results, succession planning and other processes we have in place.

 

Non-technical (management skills) fall into broad categories of people and relationships, self management, communications and organization.

 

It is important to define what outcomes you require - ie what do you want people to be able achieve after training? You want your return on investment as soon as possible.

 

If you would like a table with the breakdown of the management skills within these areas please click on Reply and request it.

 

A systematic approach is required to decide who needs training. This way you will have a group of people able to do a range of management tasks. Starting early means if there is someone who is a border line case - er on side of including them. It is unlikely to be a negative and you just may help someone blossom. The field of today's leaders is full of people who were given an early chance to grow.

 

Be very careful in selecting who provides this training for you. Check their track record and the material they use. Speak to past participants. Be very clear on the outcomes you want.

 

Many businesses have trouble releasing key people for any length of time so a staged and flexible approach is often necessary. We have found that including a carefully selected business based project in the program has been very beneficial. It allows participants to put into practice what they are learning and get immediate feedback and also delivers a return to the business with a problem solved or a project delivered.

 

Over several years Horizon has developed a Management Development Program and if you would like an outline of this please go to the Free Downloads section of this website.