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GTI: 68% OF ARMENIAN BUSINESSES FIND IT DIFFICULT TO RECRUIT SKILLED WORKERS BECAUSE OF SHORTAGE OF TECHNICAL SKILLS
YEREVAN, February 6. /aòëa/. Grant Thornton International, one of the
flagship audit and consulting companies, says in its International
Business Report that 68% of Armenian businesses find it difficult to
recruit skilled workers because of shortage of technical skills.
A lack of work experience (86%) and increased migration out of Armenia
(60%) also cited as the primary problem for recruiting qualified
people.
The reported shortage of technical skills is as much an issue in
developed as emerging economies. It is cited by 61% of the BRIC
businesses and 65% of their peers in the G7.
Almost four in ten (39%) businesses around the world are struggling
to recruit the right people, with a lack of technical skills cited
as the primary problem (64%).
The concern is that a lack of talent will dampen business productivity,
ultimately threatening future growth and profitability.
The impact of these workforce issues on business growth prospects is
evident: the IBR reveals that more than one in four businesses (28%)
expects their 2013 expansion plans to suffer as a result of skills
shortages, rising to more than one in three in the BRIC economies
(36%).
Paul Raleigh, Global leader of growth at Grant Thornton International,
said: "With unemployment running so high in many mature economies,
it is somewhat ironic that business leaders are concerned by a lack
of skills. In the short-term they will need to plug these skills gaps
with people from outside the organisation as best they can. But in the
longer-term they need to invest in their internal training programmes
to mould the people that will help them deliver on strategy, innovate
and ultimately grow."
He added that a business is nothing without its people. "A great
team with an average plan will be far more successful than an average
team with a great plan. The best people increase productivity, save
an organisation time and money and ultimately grow the business. So
in the long-term, business leaders need to be confident that their
own training programmes will be able to deliver talent sustainably."
Paul Raleigh said that some evidence of improved dialogue between
educational institutions, governments and business leaders is
seen today, "but this research should give fresh impetus to their
discussions".
"There is clearly a disconnect when, on the one hand, business leaders
are crying out for more skilled labour, and on the other, swathes of
unemployed people are crying out for a job," he said. "The situation
amounts to a huge waste of human capital, which is good for neither
businesses nor the unemployed. Ultimately economic growth suffers:
businesses are constrained from expanding and people without work don't
have sufficient income to create demand for products and services -
it's a vicious cycle. Efforts to boost skills should be high on the
public policy agenda." -0-
YEREVAN, February 6. /aòëa/. Grant Thornton International, one of the
flagship audit and consulting companies, says in its International
Business Report that 68% of Armenian businesses find it difficult to
recruit skilled workers because of shortage of technical skills.
A lack of work experience (86%) and increased migration out of Armenia
(60%) also cited as the primary problem for recruiting qualified
people.
The reported shortage of technical skills is as much an issue in
developed as emerging economies. It is cited by 61% of the BRIC
businesses and 65% of their peers in the G7.
Almost four in ten (39%) businesses around the world are struggling
to recruit the right people, with a lack of technical skills cited
as the primary problem (64%).
The concern is that a lack of talent will dampen business productivity,
ultimately threatening future growth and profitability.
The impact of these workforce issues on business growth prospects is
evident: the IBR reveals that more than one in four businesses (28%)
expects their 2013 expansion plans to suffer as a result of skills
shortages, rising to more than one in three in the BRIC economies
(36%).
Paul Raleigh, Global leader of growth at Grant Thornton International,
said: "With unemployment running so high in many mature economies,
it is somewhat ironic that business leaders are concerned by a lack
of skills. In the short-term they will need to plug these skills gaps
with people from outside the organisation as best they can. But in the
longer-term they need to invest in their internal training programmes
to mould the people that will help them deliver on strategy, innovate
and ultimately grow."
He added that a business is nothing without its people. "A great
team with an average plan will be far more successful than an average
team with a great plan. The best people increase productivity, save
an organisation time and money and ultimately grow the business. So
in the long-term, business leaders need to be confident that their
own training programmes will be able to deliver talent sustainably."
Paul Raleigh said that some evidence of improved dialogue between
educational institutions, governments and business leaders is
seen today, "but this research should give fresh impetus to their
discussions".
"There is clearly a disconnect when, on the one hand, business leaders
are crying out for more skilled labour, and on the other, swathes of
unemployed people are crying out for a job," he said. "The situation
amounts to a huge waste of human capital, which is good for neither
businesses nor the unemployed. Ultimately economic growth suffers:
businesses are constrained from expanding and people without work don't
have sufficient income to create demand for products and services -
it's a vicious cycle. Efforts to boost skills should be high on the
public policy agenda." -0-