Companies are still losing key staff to dotcoms as the new cyber economy is high in capital but short on suitably trained managers.
Group director of resource management at Ericsson, Martin Kirke, claimed headhunters from the booming Internet-driven cyber economy were still poaching management talent from other areas – meaning many firms could be in danger of losing key staff.
The lure of huge salary bonuses and the promise of generating lump sums of money are pulling staff from other sectors, and he urged companies should tackle issues fast to keep employees on board.
He said, “Rumours about headhunters have sent out waves – and this has caused a change in the climate of the job market.”
He called on companies to improve their business drive using methods such as competence planning and working partnerships with other firms to keep the interest of their staff.
Culture changes could also be key to retention in today’s economy, although Kirke warned they should be approached with care.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
“You need to be absolutely sure of your culture change strategy before you go ahead with it,” he said.
Delegates at the conference reported staff had been tempted away by rivals who offered to double their current salary.
