| | Citing exceptional
employees as the key to
their success,
fast-growth CEOs admit
that finding, hiring and
retaining qualified
employees is their
biggest operational
challenge. This is a key
reason why they are
tapping overseas markets
for talent, according to
a survey by Deloitte.
The 2007 CEO Survey of
the fastest growing
companies in North
America, as ranked on
Deloitte's 2006
Technology Fast 500,
also suggests that this
is a trend that will
increase over the next
five years. At the same
time, it says, these
CEOs are shying away
from doing business
outside of North
America.
The survey was
conducted during the
first quarter of 2007 by
Deloitte's Technology,
Media &
Telecommunications (TMT)
Group. Deloitte's
Technology Fast 500 is
an annual ranking of the
fastest growing
technology companies in
North America based on
percentage of fiscal
year revenue growth over
five years.
"It's not unexpected
that CEOs of fast-growth
companies would look
offshore for the talent
they need to continue
growing in a tight
market," said Tony Kern, | |
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| | offered by 38% of the
companies, up from 35%
last year, and 31%
provide a career path,
up from 28% last year.
"When it comes to
talent, supply and
demand are out of
balance, making
employees more like
consumers," explained
Jeff Alderton, a
principal at Deloitte
Consulting. "And like
consumers, if employees
with those in-demand
skills sets are not
receiving the
satisfaction they seek
from their workplace,
they will find it
elsewhere – with the
competition. This will
put an even greater
strain on employers for
available talent."
CEOs say their
companies are turning to
overseas talent, with
45% of those surveyed
saying that they are
currently offshoring,
and 55% saying they plan
to offshore in the next
five years. In fact, in
five years, 30% plan to
have up to 10% of their
workers offshore; 27%
plan to have up to 20%
offshore; 19% expect to
have up to 30% offshore;
and 15% expect to have
up to 40% offshore.
Overall, 43% of the CEOs
said it was critical or
very important to look
overseas for talent.
However, even in five
years, CEOs envision the
vast majority of the | |
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| | workforce will remain in
North America.
CEOs confident
about growth
CEOs remain confident
about company growth,
with 82% of those
surveyed very or
extremely confident.
Virtually all (98%) said
they will be hiring over
the next 12 months. Just
under 40% say they will
grow their workforce
26%-50% over the next 12
months, up from 30% last
year. Half the CEOs will
grow their headcount up
to 25%, the same as last
year. And 11% plan to
grow their headcount
more than 50%, down from
17% last year.
Almost 60% of the
CEOs surveyed believe
they will continue
growing organically, up
from 55% last year.
Slightly fewer than last
year plan to acquire
other companies, down
from 17% to 15%. Just 7%
plan on merging with
another company, up from
6%.
Government
regulation threatens
growth
CEOs are far more
concerned about
government regulation
and terrorism than
access to capital. In
fact, 34% of the CEOs
surveyed said the
biggest threat to
success is excessive
government regulation, | |
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| | followed by 19% who said
the biggest threat was
increased competition
from emerging powers
like China and India;
and 18% citing
terrorism. Only 9% were
concerned about access
to capital, and 10%
expressed concern about
rising interest rates.
Growth depends on
lower interest rates
A fifth of the CEOs
surveyed said that lower
interest rates were
needed to spur growth,
up from 8% last year,
while 18% prescribed
lower personal and
corporate taxes, down
from 31% last year.
Protecting
intellectual property
(IP) a priority
CEOs have chosen a
variety of methods to
protect their valuable
intellectual property.
The most popular with
those surveyed (40%) is
to restrict distribution
of products to markets
with a strong reputation
for protecting IP. They
also favour building in
IP protection to
minimise theft (38%),
hiring third-party
specialists to advise
them on IP protection
(32%), and training
staff on measures to
reduce IP theft (32%).
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