Dealing With Scarce Talent: Lessons from the Leading Edge

Abstract

Talent shortages are nothing new. Engineers and registered nurses are examples of professions that have had severe shortages in the past. Today, an unprecedented demand for information technology workers is creating a major challenge for the many businesses that are dependent upon these professionals' skills. This shortage, predicted to last well into the new millenium, is accelerating the need to align rewards with practical business realities. With the recognition that financial success depends on its people working together, successful companies increasingly are basing their pay systems on the individual's ability to learn, grow, and contribute to the achievement of shared goals. By designing more talent-responsive reward solutions, the authors suggest, companies can turn this challenge into an opportunity for attracting and retaining these key workers.