A survey of senior HR managers reveals that recruitment and retention are seen as the biggest challenge for 2007.

The research by Taleo shows that 37 per cent of respondents see employee retention as the biggest challenge, while the top concern of 29 per cent is hiring the best talent.

The findings reflect a recent report in The Economist, which highlighted the increasing skills shortages in both established and new economies. Consequently, talent is becoming more difficult to attract and retain.

This trend poses particular challenges when HR budgets are constrained. Of those surveyed, 79 per cent said their budgets would either remain the same or be reduced in 2007.

Better visibility of employees’ skills (37 per cent), and better measurement of HR processes (31 per cent) were seen as the most valuable ways to improve HR effectiveness.

The study from Taleo questioned 150 senior HR managers in the United Kingdom on what they perceived to be their biggest challenges going into 2007 and which factors would help them perform better in the New Year. Key findings indicate:

• Finding and hiring – 29 per cent of senior HR managers saw hiring the best talent in the market place as the biggest challenge, while attracting good quality candidates followed closely behind, with 52 per cent of directors selecting this as one of their top three challenges




• Retention – 37 per cent viewed employee retention as their main challenge, while 59 per cent viewed it as one of their top three challenges




• Employee visibility – 37 per cent believed that better visibility of employee skills would help them perform their job better in 2007




• Measurement – 31per cent felt that the main factor in improving their performance would be better measurement of the effectiveness of HR processes such as recruitment




• Legal compliance – with 79 per cent of employers being unprepared for the new age discrimination legislation before it came into force in October 1, over 41 per cent viewed complying with the legislation as one of their top three challenges.

Chris Phillips, senior director, international marketing for Taleo comments: “It is clear that the battle for talent in the UK is hotting up. But with HR budgets constrained organisations need to look for more cost-effective ways to improve key talent management processes like recruitment and internal mobility.”