Widening skills gap threatens employers’ ability to compete

Ironic as it may be, despite high unemployment and the perception of a surplus of talent, HR/benefits professionals and hiring managers may be forced to choose from limited quantities of high-skilled workers, a new Deloitte study shows.

The 2012 survey reveals talent issues as the most significant challenge to organizations over the next three years. One quarter of all survey respondents expressed concerns about talent, particularly the shortage, motivating and retaining talent, a substantial increase over 16% last year. Talent shortage concerns are highest among insurance and professional services firms.

“The survey exposes a widening gap between the dwindling supply of skilled workers in America and the growing demands of the modern workplace,” says David Lusk, principal at Deloitte Consulting LLP and author of the report. “A key challenge ahead for employers will be working to help close this skills gap to maintain a competitive edge in the global marketplace.”

Among employees, 45% are worried about the future of their own job security according to the survey.

“Being constantly attuned to the shifting forces within the jobs and talent marketplace could lead to a higher level of anxiety about one’s own position,” says Scott Cole, senior manager at Deloitte and co-author of the report.

Employers also cited the cost of health care and the impact of health care reform legislation as a top concern, the fourth consecutive year the cost of health care topped the list. While companies seem to have aggressive ideas for cost-containment measures, most lack plans to make changes to employer-sponsored coverage required by the Patient Protection and Affordable Care Act. In fact, 48% of those surveyed seem to be taking a “wait and see” approach, indicating no plans to make any changes to their coverage. Of those planning to make changes, 17% are simply looking to avoid the new mandates by making plans to consider dropping employer-sponsored coverage for full-time employees and pay the penalties. Another 37%  are planning to maintain their grandfathered health plans as long as possible and 23% are considering reducing the hours below the threshold for part-time employees to avoid mandatory health coverage.

Among the divergences in employer-employee responses, employees ranked health care costs fifth overall while employers ranked it the number one challenge. Financial concerns, such as affording retirement, inflation, job security and investment performance, dominated personal challenges. In contrast, employers are focused on more strategic concerns around talent, health care reform and rewards program strategy and alignment.

Other findings included:

• More than two-thirds (68%) of employers surveyed planning a redesign of their rewards program expect to re-evaluate their benefits strategy in light of PPACA.

• The majority of survey respondents (70%) are considering expanded wellness programs to help manage health care costs.

• Overall, one in five organizations has integrated social media into their communication campaigns.

• Outsourcing is gaining high marks among employers, but organizations are still looking for improvements.