Companies that are shedding staff during the recession face a skills shortage when the economic growth returns, according to a new report.

The report, by The Boston Consulting Group, (BCG) and the European Association of People Management (EAPM) warns that companies’ failure to plan their workforce will be compounded by the ‘double whammy’ of falling birth rates, and rising rates of retirement.

The report urges employers to consider the long-term impact of their actions even - or especially in a time of crisis.

“In ten years, the scarcest resource for a company will be people,” says Rainer Strack, a co-author of the report and senior partner in BCG’s Düsseldorf office.

Stephanie Bird, board member of EAPM and director of HR capability at the Chartered Institute of Personnel and Development (CIPD), says: “We know many organisations are weathering the storm by placing greater emphasis on selecting and developing high performing individuals, based on clear and robust criteria.”  
 
“Unfortunately our research also shows this is not yet being felt by employees themselves.  For employer strategies to attract, retain and develop the people they need for the future to be truly effective, they need to be well communicated in a way that generates enthusiasm and motivation.”