The global search for talent gets tougher.

• Author: Johnson, Mike
• Position: Managing

Despite thousands of layoffs in the U.S., Europe and Asia, real business talent continues to be in short supply. A European communications consultant examines the trends and outlines some of the reasons why the shortage is likely to continue for the foreseeable future.

To understand why companies need to nurture talent and find better ways to attract new talent, we need to look a lot closer at what's happening to the world of work. We are not in an economic meltdown, but a skills meltdown -- a critical situation that calls for any organization to position itself as a magnet for talent.

Every organization on the planet has seen its possible talent pool shrink hugely in the past five years. Too few of these companies appear to be aware that this has already happened. There isn't time to change anything; all we can do is act intelligently with what meager resources we have left.

This skills shortage may be worse among finance professionals, whom most firms admit are in short supply. Budget control managers, merger specialists and international taxation experts are being sought avidly on both sides of the Atlantic.

There are several key reasons for this talent crunch. The main ones are:

1. Demographics. To say we are in trouble is an understatement. Basically, across the former "West," birth rates have been declining for decades, creating a people crisis of undreamed-of proportions. Three figures are particularly telling:

   * In the U.s., 11,000 people a day turn 50.

   * By 2020, 50 percent of Europe's population will be over 50.

   * Japan's population will fall from 126 million today to less than 100 million in the next 50 years.

   How do employers fill in the gaps created as the over-50s retire, cash out stock options and pick up "part-time" jobs along the way? One, open the doors to hordes of immigrants (the United Nations estimates that 125 million will be required in Western Europe by 2025 to sustain growth), which is politically and socially unacceptable to most Europeans. Two, move your business where labor is available, and in the process kill economic growth in the West.

   The Japanese population shrinkage compounds the problem. To sustain its growth, Japan has no choice but to import talent. Many Westerners might jump at the chance if offered interesting work and new experiences.

   Another signal of the depth of the talent squeeze: China says it needs 1.5 million MBAs to complete its industrialization process. Right now, it has around 30,000 MBA...