More than two thirds of British HR managers feel that either staff recruitment or retention is going to be their biggest challenge of 2007, according to a new poll from Taleo.
The survey of senior HR managers revealed that 37 per cent regard employee retention as their biggest concern moving into next year, while 29 per cent think that recruiting the best talent is going to be the difficulty.
Taleo said that the findings reflected a recent Economist report which highlighted skills shortages in both established and new economies.
Among the most effective ways that firms said they could improve their HR effectiveness was through a better visibility of employee skills (37 per cent) and a better measurement of HR processes (31 per cent).
"It is clear that the battle for talent in the UK is hotting up," said senior director, internal marketing for Taleo, Chris Phillips.
"But with HR budgets constrained organisations need to look for more cost effective ways to improve key talent management processes like recruitment and internal mobility," he added.