While 2012 continues to be challenging from the perspective of talent availability, organizations need to be prepared for the next battle of spiralling talent costs (higher salaries, attrition), a natural fallout of the talent crunch. An immediate focus on retention and nurturing of existing talent could help break out of this talent spiral. This may entail upgrading hiring and on-boarding processes, putting more emphasis on training and development (apprenticeships, internships, skills upgrade), and looking beyond financial incentives. Organizations will need to rethink their talent management strategies and redefine their employee value proposition to ensure sustainability in the long term.

Sources of the story include PwC 15^th Annual Global CEO Survey, 2012 (Sector Summary: Pharmaceutical and Life Sciences Industry); PwC Saratoga Asia Pacific Human Capital Effectiveness Programme, 2011 Gary M Stern, ‘Not letting go: Companies hang on to their baby boomers, CNNMoney (18 October 2011),] PwC Report 2012 : Breaking out of the talent spiral - Key Human Capital trends in Asia Pacific