Over the years, there is a growth in the number of employers having difficulty in filling positions. Manpower Group’s annual Talent Shortage Survey has been a witness to the alarming trend. In the previous year, 2014 was considered to have the highest percentage with 36% since the year 2007’s increase to 41%. This 2015, the data collected resulted to a 2-percent rise (38%) which is now the highest percentage since 2007. No change is seen, however, in the percentage of employers (54%) who say talent shortage impacts their ability to serve clients, yet more than 1 in 5 employers is not pursuing any strategies to address talent shortages.
As if the previous data isn’t worrisome enough for organizations, the ongoing War for Talent is getting even more intense. Competing organizations are more aggressive, prioritizing strategies on how to acquire, develop, and retain skilled professionals – knowing that talent is a big factor in an organization’s success.
With the possibility of the current situation to continue on or get worse, organizations should be ready to make changes to prepare them ahead of the challenges. Here are some tips to consider when creating strategies in facing the talent war:
Develop your own by you, for you.
Organizations still prioritize searching outside their own walls for talent. While this may seem as the easy solution, we should be reminded about the shrinking talent pool. The best place to find workers who could create a positive difference in the company is in the company itself. Their strengths and weaknesses are already identified which gives you an idea on how to build them on further, creating a strong workforce that are surely aligned to your organization’s goals. Aside from that, developing internally also increases employee productivity and retention rate.
Take off your blinders.
Don’t be a slave to a position description. The “perfect” candidate is like Bigfoot – it is a myth. When looking for talent outside, stay open-minded and flexible. Be reminded that the key to finding great talent is to focus on how motivated they are to grow and reinvent themselves, not just their hard skills. These are the type of workers you can work with who’re willing to develop alongside your organization.
Maintain great culture in your organization.
To quote Peter Drucker, “Culture eats strategy for breakfast”. How people interact and get things done at work has a huge impact in keeping talent and an organization’s success. Aside from a competitive set of salary and benefits, a strong workplace culture attracts and retains employees. Creating an environment where people can form healthy relationships, enjoy each other’s company, and take pride in their work motivates employees to do their best and convince future hires to want to work for you.
Achieving success is easy with the right set of people on the job. Despite talent shortage, great talent is just around the corner, or maybe even in your very own walls. What’s important is to recognize a person’s potential and create opportunities for development to lead your organization to the top.
Create a stronger strategic orientation to the boardroom and build a bridge between the changing needs of global business and an increasingly fluid labor force with the help of Salvo’s Certified Talent Economist Program. Due to popular demand, the course will run in 5 different countries, namely Malaysia, Nigeria, South Africa, UAE, and Singapore.
New discoveries and innovations in technology have paved the way to creating a more dynamic and highly competitive business landscape. Job roles are now also becoming more specialized, requiring professionals to acquire new work skills. With strong competitors coming from every angle of the playing field, organizations need to stay sharp in making decisions and investments that can possibly help them progress in the long run.
Nowadays, purchasing additional land and equipment for business development is not enough. The whole organization is not benefitting from the investment. In fact, only a selected portion does. Organizations sometimes compromise one or two sectors, and all too often, it is usually learning and development.
Incompetency is a common issue in the work force – most especially in this fast-paced world where change is constant – yet this detail is sometimes being overlooked. Creating a multifaceted human resource management may cost a lot and investing in learning and development may cause potential delay in work, but the positive impact that it may bring to the organization is being taken for granted. They get to miss out on these opportunities which can take their business to the next level:
More work gets done.
Trainings anchored to the organization and employees’ needs allow them to broaden their knowledge and sharpen their abilities, enabling them to perform their jobs better. Exposing them to important know-hows make them competent and make you a solid contender within the industry. It’s all a chain reaction. Carrying out tasks will be easier, which brings the possibility of completing more work. And when more work gets done, more money comes in.
You can guarantee producing quality goods or services.
Learning and development programs are geared towards engraving new vital skills and honing abilities workers already have. Flaws in the organization can be addressed, reducing inefficiency in workers. They become aware of the techniques and best used practices that can ensure the quality of their input, assuring nothing but the best for your organization.
Learning produces ROI.
In Skilled Up’s article, according to Todd Tauber, the Vice President of Learning & Development Research in Bersin by Deloitte, learning and development is at the core of what high impact performing organizations do. The article stated that investing in trainings resulted with companies like Cheesecake Factory and Automated Data Processing (ADP) Inc. increasing its revenue. Vermont-based businesses like IBM and Green Mountain Coffee generally had high growth in their companies. Set aside doubts because in the long run, just like these companies, the return will be worth it.
A continuous learning environment creates proficient workers committed to reaching your organization’s goal. Only when an organization is able continuously reinvent itself will it be able to gain success.
Learn about the issues, trends, and practices surrounding learning and development by joining Salvo’s 9th Global Learning Summit on March 7-9, 2016 in Singapore.
Pumps are essential equipment because of their potential to hasten work and improve productivity. They account for around 25 percent of total motor system energy in manufacturing, making them the second most frequently used electronic machine. Being one of the most important bits in the process, interestingly, it is also quite unreliable. It has a lot of weaknesses, resulting to more expenses and disturbance to the flow of work.
Here are some interesting facts from Grundfo, together with Salvo’s insights that might affect how you deal with pumps.
Pumps are responsible for an estimate of 10% of the world’s electric consumption.
There’s no doubt how important pumps are, but they are also a major source of energy wastage. It is also said that 2 out of 3 pumps are wasting energy. In fact, most motors of pump installations run at top speed even when not needed, making them wasteful all the time.
Sure, pumps improve a company’s productivity, but it also causes you to have twice as much expense. Pumps, then, becomes a part of a problem instead of a good investment and solution.
There are more pumps than employees in the chemical industry.
A study conducted in Germany revealed that a ratio of 1:1.25 is observed between each employee and pumps respectively in chemical companies.
This might not be true for other industries, but the importance of pumps is definitely evident. Pumps aren’t cheap, and are mostly likely more costly than human labor. Knowing that they are more needed in certain industries makes their efficiency a big deal.
On average, pump optimization has payback time of 1-5 years.
In a pump’s life cycle, most of its expenses are placed under energy and its maintenance. Switching to energy efficient pump systems and implementing better pump monitoring and maintenance may involve investment costs. These costs are simply short-term expenses because in the long run, one thing’s for sure: you can save more for the many years to come.
Overall, it can be concluded that companies spend a lot of money to run and repair pumps. The least you could get from spending a great sum is guarantee that all the expenses were worth it. Reduce costs in energy and maintenance by investing in efficient pumps.
It is a business’ goal to maximize all its available resources and be able to gain as much profit as it can from them. While there are different types of assets – be it fixed, current, or intangible – all of them are fluid and undergo change.
For long-term assets such as plant and equipment, ageing has always been an issue. According to the Health and Safety Executive, “ageing is not about how old your equipment is; it’s about what you know about its condition, and how that’s changing over time”. Because of material deterioration or damage, the equipment’s quality decreases, increasing its chance to fail over time. Common factors that contribute to the damaging of equipment are the likes of aggressive chemicals, a high operating temperature, and a history of poor maintenance and inspection. Factors like design, construction, and operating condition contribute as well.
Knowing this, is ageing now a problem?
Ageing is one of the many factors that affect the performance and durability of equipment and infrastructures. In fact, it usually goes with or strengthens the effect of other factors in increasing the vulnerability of these assets. Gradually, equipment and infrastructure will have to face threats that can potentially compromise the assets’ integrity. The quality of work that your business produces is at risk.
Usually, businesses have three options on how to manage ageing assets – continue the business as usual, applying risk-based inspections, or creating a plant lifetime management. Both simply resuming work and applying risk-based inspections still cause vulnerability because of higher risks in major accidents, more expensive cost of production, and limited insights on future investments. Plant lifetime management, on the other hand, gives a comprehensive and detailed asset life plan which can predict future damages and help in reducing cost of production.
The ageing of assets is only a grave problem if you don’t know how to deal with it. Carefully screen all key assets and identify which of them needs optimization for longer performance and lower risks. Avoiding the phenomenon to happen isn’t possible, but extending an asset’s life cycle will surely help you get the most out of it.
To have a better understanding about optimizing asset reliability while reducing operational costs, you can visit Salvo Global’s event page on Plant & Asset Reliability Optimization.
If there’s one thing all EPC contracts have in common, it is that they are complex, multi-faceted documents that comprise of agreements in engineering, procurement, and construction activities.
EPC contracts come in all shapes and sizes. While it may be a contract of single-point responsibility, it varies in all aspects – from pricing, materials and equipment, down to testing activities. Although it may vary, it has general provisions which are present in most contracts like standards of performance, obligations of both EPC contractor and owner, and the price and completion date of the project.
While it may differ from one owner or one industry to another, both client and contractor may be exposed to risks. It is important to approach EPC contracts with the right knowledge and attitude to result in a successful and high-yielding agreement.
Here are a few reminders when engaging into EPC contracts:
- Do your research.
Don’t run the race if you don’t have an idea of the distance and what the track looks like. Before plunging into agreements, the first thing you need to do is study the planned project. Whether you’re the client or the contractor, you need to identify the contract provisions you need and develop a strategy on how to negotiate to get them.
- Create a feasible budget and schedule.
Preparing a realistic financial plan and schedule helps you understand and control costs. The possibility of having contractual issues lessens, creating a dispute-free environment. Through this, both parties can deliver their best without restraints or delays.
- Set up clear scopes of roles and responsibilities.
Encourage focus and efficiency to everyone working on the project by having a set of clear directives. Structure must be present for the labor force of the project to be maximized. This also guarantees accountability not only to the contractor, but to his subordinates and to the client as well.
- Identify possible risks and prepare for them.
Expect the unexpected. By preparing for future risks, you decrease the chance of reactionary approaches to crises. Although you cannot truly foresee all possibilities in every situation, anticipating risks saves both parties the time, effort, and money.
- Negotiate in good faith.
Even though you have the opportunity and want to succeed or have the upper hand during negotiations, it is better if both parties are satisfied with the terms provided in the contract. It doesn’t mean you shouldn’t push for what’s best for your business; rather, consider the other party’s inputs as well. Establish a healthy professional relationship with the people you may be working and negotiate in good faith to avoid legal disputes and other possible future conflicts.
Building plants and other facilities require a big work force, various materials and equipment, and a ton of money. Remember these tips, face negotiations with a positive attitude and a sharp mind and for sure, you’ll be able to achieve better results!
Learn more about managing EPC projects effectively and profitably with the help of Salvo’s masterclass on Advanced EPC Contracts Management. Check out the event here.