Filling the talent gap: companies must assess--and address--the coming talent gap.

In both developed and developing countries, the evolving workforce is creating a talent shortage. In developed nations, retiring baby boomers will drain the talent pool. Meanwhile, developing countries are growing rapidly but lack experienced managers. What's more, 60 percent of new jobs in the 21st century will require skills currently possessed by only 22 percent of U.S. workers, according to the Commerce Department. Clearly, it's time for talent to be viewed as a significant issue in boardrooms worldwide.

Addressing the Gap

Companies must assess their talent gap and react accordingly. A systematic work force audit and planning initiative reveals where gaps will occur and their impact on customers and shareholders. From there, the talent pipeline should be managed to ensure that the supply of qualified talent will meet the demand forecast for critical growth positions. These efforts can bring millions of dollars of savings through improved employee selection and reduced turnover and training time. According to the Corporate Executive Board, one-third of managers hire below-average candidates "just to fill the positions quickly."

The EVP Advantage

An Employee Value Proposition (EVP) targets both current employees and candidates, including programs for attracting, retaining and developing employees. It defines the relative importance of succession planning, career development and linking total rewards to performance.

Common threads in developing a global work force include:

* Make retention a key business imperative by holding managers accountable for improvement.

* Attract and select the right talent from the start by providing candidates with realistic job previews--a practice that can reduce turnover by 10 percent or more.

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* Combat the 50 percent probability that a new executive will not meet expectations through onboarding programs.

* Differentiate with pay and long-term incentives, as opposed to traditional annual merit cycles.

The Business of Benefits

Nothing impacts a company's bottom line and a worker's employment decision quite like health care and retirement benefits. Top companies realize health care programs play a critical role in employee productivity and, ultimately, business success and take a business-centric view of health care to understand underlying drivers of rising costs. These companies are exploring ways to deliver improved outcomes and simultaneously reduce costs, such as consumer-driven health care, comprehensive wellness programs, disease management and on-site counseling.

In retirement benefits, employers must address three key challenges:

* Offering retirement programs for a global work force

* Protecting and providing for employees as they age

* Managing the risk inherent in providing new paths to retirement for employees

Beating the Curve

Leading companies view these workforce challenges as opportunities to gain an edge. As technology evolves and facilitates the speed at which work is performed, virtual teams will be able to work seamlessly worldwide on projects more efficiently than ever. For example, a drug manufacturer's R & D department could experience significant speed-to-market benefits that come with continual efforts. While barriers related to technology, communication, priority and responsibility must be overcome, truly innovative companies will find a way to benefit from this talent revolution.

Andrew Appel is CEO of Aon Consulting Worldwide.