Sarah Green column
Jun 5 2007 By Sarah Green, The Journal
If there is one challenge faced by most businesses within the region, it is the need to attract and retain talented people.
Many believe this is a unique North-East problem with the image of our industrial legacy making it difficult for our businesses to attract or retain talented people. Others blame the lack of a critical mass of senior roles meaning potential recruits while believing there are good jobs in the North-East do not believe they have a career here.
But is it really a North-East specific problem? Historically the North-East has relied on its position in the UK as a relatively low wage economy. However as the economy becomes increasingly global, it is clear that the UK cannot compete on costs but must rely on raising its game in terms of skills, training and knowledge. And this is particularly true for the North-East.
Furthermore as well as the competitive pressures on wage costs, we face a demographic timebomb with people living longer resulting in an ageing workforce.
It is therefore clear that the war for talent is an increasing concern for all UK businesses. It is recognised within the Regional Economy Strategy that to achieve the goal of increasing the economic success of the region by 10% in 10 years to 90% of the national average we need to create approx 65,000 new jobs. This creates two challenges for the region - to create the jobs and to find the people to take them. What is clear is that if we are successful in creating the jobs, we don't have enough people currently in the region to fill them - so we need to spread our net wider.
For many sectors this will require a focused approach to attracting skilled people from abroad and this process has already started with many manufacturing and service businesses employing Eastern European workers to fill long term vacancies. In conjunction, sectors where they recognise the shortage of skilled labour, for example in science and engineering skills, are working with schools, colleges and universities to ensure the region's young people are aware of the job opportunities and have the right skills to take the job.
CBI and the North-East Chamber of Commerce have jointly created the Aspire project to help tackle this issue. The CBI Annual Business Summit in London next week focuses on the War for Talent and promises to map the way forward for UK business with discussions on: how do British companies compete in the world-wide battle for talent? What strategies really work? And do they differ around the world? I will listen carefully.
Sarah Green is regional director of CBI North East
