September 10, 2012 // By: Christiane Pütter
The Euro Crisis & Generation Y
Back in the 1990s, Germany’s top model Claudia Schiffer brought cosmetics ads to life with a famous slogan that is still in use today: “L’Oréal. Because you’re worth it.” But when analysts at Boston Consulting Group (BCG) talk about the cosmetics giant, the term “worth” has a whole different meaning. BCG sees L’Oréal’s talent management as a model for other companies – because L’Oréal has recognized that employees are worth investing in.
L’Oréal rewards managers who find and promote talent from within their own ranks. Prospects for the future can advance to strategically important growth markets thanks to job rotation and career opportunities abroad. According to BCG’s analysis “From Capability to Profitability”, companies net higher revenues and profit margins when they invest in talent management. This despite an acute shortage of skilled professionals. The shortage alone is enough reason for companies to improve their HR management practices, especially when it comes to older employees and female staff.
The analysts at Accenture say the present euro crisis has exacerbated this lack of specialists. And Rainer Strack, a senior partner at BCG who is responsible worldwide for HR topics, discovered in his international comparison that Germany is “one of the hardest hit” countries. “Between 2020 and 2030, total headcount in Germany will go down by around 1.2% every year,” he reveals. “This means that the battle for qualified staff will get worse for a lot of companies.”