Human Resources: single biggest resource constraint

This increased mobility, along with rapidly ageing work forces is focusing company attention on human resource issues more than ever. “Companies are appointing their top talent to human resources positions,” said Siderman. “The role that these managers play is now akin to that of an oil minister in an OPEC country.”

Traditionally, executives have worried about change in ownership, currency risk, new consumer tastes, technological revolutions, accounting scandals and government regulations. “Today, however,” observed Siderman, “human resource issues often make up not only the No. 1 concern, but also numbers two and three as well.”

Six global megatrends, in Siderman’s view, will affect international and Taiwanese talent and labor markets through 2020: rapidly ageing work forces and younger workers are facing a difficult transition from school to work. Compliance needs and risk are higher every year, and the changing shape of future jobs means increased focus on knowledge and skills. In addition, he pointed to the wired and social networking revolutions as well as the resurgence of labor unions.

Siderman observed that, by 2026, one in every five Taiwanese adults will be over 65. Aware of this fact, governments are passing legislation to outlaw discrimination against older workers. In addition, “children will become a rare species,” he said, questioning whether immigration levels will rise to alleviate this. Taiwan, he said, now has 350,000 foreign-born spouses, accounting for 15 percent of children born.

The available younger workers are not always an easy fit. Generation Y (born 1979 to 1997) is characterized by people who learn quickly, love technology, and are pro-education, goal-oriented, socially conscious and highly tolerant. That said, they suffer from short-term loyalty, need supervision, have unrealistic expectations and, often, poor communication, interpersonal and team-work skills. Siderman suggested that managers develop mentor, rather than boss, relationships to retain these workers.

Unions are “back in the game,” said Siderman. Union leaders, he said, were “sleeping” for a decade as globalization, and demographic and technological change crept up on them. The new unions of the 21st century, he continued, are more realistic and collaborative.

To survive, management must be open about facing its inability to meet growth plans because of ageing populations that may lead to declining consumer demand. Siderman stressed that executives will need to make better use of all available human capital; likewise, they must understand their similarly ageing customer bases. He urged corporate leaders to empower human resource leadership and acknowledge that people may be interested in more flexible options.

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