Mid-sized companies most vulnerable in global war for talent

The mid-tier is losing out in the global competition for talent according to a recent report from the accounting and consulting network RSM International.

Almost 80 per cent of surveyed experts on global mid-tier business said the mid-tier is poorly equipped to compete for leading talent against deep-pocketed multinationals, and many report a critical shortage of skills in key sectors.

Economist David Bartlett, who compiled the report, said: “Mid-sized companies occupying high technology market niches and lacking the scale advantages of large firms are especially dependent on high quality employees to sustain their competitive positions.”

The growing technological sophistication of global industry heightens demand for engineers, scientists and other professionals. But the mid-tier is missing out on internationally mobile, highly skilled people who are being aggressively recruited by leading multinational corporations.

An overwhelming 93 per cent of respondents agree that middle enterprises recognise the competitive implications of human capital shortages, yet 87 per cent admit these companies lack well-developed human resource management capabilities.

These results do not reveal significant regional differences, suggesting that recognition of the urgency of the human resource management problem is widely shared among mid-sized companies headquartered in developed and emerging markets.

Bartlett commented: “These companies operate at a competitive disadvantage in the global war for talent but there are steps that can be taken to combat this, such as emphasising the absence of bureaucratic encumbrances and the potential for rapid advancement that is often not so available in larger companies. Human resource management is hugely important as a core competence in the mid-sector.”