UK companies that employ successful talent management practices have an immediate opportunity to gain the talent advantage over their competitors. Here’s why:

A study by KPMG and the Recruitment and Employment Confederation (REC) showed that “Recruitment is now the top problem for more than half of all UK companies ahead of business strategy or management.”

Onrec.com reports in War for Talent worsens with further tightening of Labour Market that more than 80% percent of UK companies see hiring problems ahead, according to the Recruitment Confidence Index (RCI).

A study of more than 42,000 managers by the Chartered Management Institute and Remuneration Economics has found that eight out of 10 British firms are facing chronic problems when it comes to attracting managers, and are being forced to offer an ever greater range of incentives to lure them in. A third are now offering “golden hellos”, compared with just 16 per cent in 2006.

The UK Talent Report from Capital Consulting and Cranfield School of Management reveals that while 60% think talent management is important, only about 40% are doing something about it. About half cite financial investment as an obstacle.

Their findings are consistent with the Taleo Research report, Careers Site Recruiting in the FTSE 100 Companies: A Missed Opportunity, that describes how only half (51%) of all FTSE 100 companies allow candidates to apply online through a structured application form to support an automated process.

In addition to confirming that the business environment has changed, the UK Talent Report states these reasons for focusing on talent:

• mounting global competition for increasingly itinerant talent;
• a shrinking pipeline of new talent due to an ageing workforce; and
• a burgeoning knowledge economy requiring highly skilled managers and technicians.

The challenge—and opportunity—is there now for UK companies.