More than two-thirds of senior HR managers surveyed in the UK see either recruitment or retention as the biggest challenge for next year, according to a survey from Taleo.

The findings reflect recent reports in the national media, which highlighted the increasing skills shortages in both established and new economies. Consequently, talent is becoming more difficult to attract and retain.

Finding and hiring was a key challenge for 29% of responders, while 37% saw employee retention as their main challenge.
Of those surveyed, 79% say their HR budgets would either remain the same  or be reduced in 2007.

Chris Phillips, senior director, international marketing for Taleo, says: “It is clear that the battle for talent in the UK is hotting up. But with HR budgets constrained key organisations need to look for more for cost-effective ways to improve key talent management processes such as recruitment and internal mobility.”