By Philip Whiteley
Chief executives will have to become "chief human resources
managers", the World Economic Forum in Davos heard last week.
Speakers said the shortage of key professionals and managers would intensify
with economic growth and demographic pressures.
"There is no question that human capital is going to be more important
to companies than financial capital in the future," Windle Priem, chief
executive of headhunter Korn-Ferry, told the summit meeting of political and
"Chief executives, particularly in Europe, have not traditionally paid
much attention to human resources, but now they are having to become chief
human resources managers of their companies as well as looking after the
The growth of Internet companies and the greater mobility of the most
sought-after professionals lie behind the developments, he said. Compounding
this is a demographic squeeze, as the proportion of the population of working
age is shrinking in most industrialised countries.
Korn-Ferry reported that about 800 of the 7,500 positions it placed last
year were Internet-related posts, compared with just over 100 the year before.
In the US, more than one in 10 IT posts cannot be filled.
Paul Otellini, executive vice-president of microchip giant Intel, said all
companies are addressing retention and reward strategies as a matter of
"With the Web, people can post their résumés and get job offers day in
and day out. Companies need to respond to such changes."
The summit also addressed workplace conditions for low-income individuals.
President Clinton hinted that the US would push for a global policing body
for standards in the workplace.
"We have a well-developed WTO for dealing with the trade issues. We do
not have very well- developed institutions for dealing with the social issues,
the environmental issues, the labour issues, and no forum within which they can
all be integrated."
By Philip Whitely