Businesses and their leaders face some pressing questions about their future talent pipelines and human capital strategy. Global megatrends are changing the talent landscape at the same time that the global economy regains its confidence and looks towards growth.
CEOs are well aware of the extraordinary challenges ahead but seem less certain about how to tackle them. 93% say that they recognise the need to make a change, or are already changing, their strategy for attracting and retaining talent. But there’s still an enormous gulf between intention and action; a staggering 61% of CEOs haven’t yet taken the first step.
This paralysis is familiar. In 2013, 77% of CEOs said they had plans to change their strategy for managing talent in the coming 12 months – but if we look back at the past seven years of CEO surveys, talent management has been identified as the main target for strategic change in every year. And every year, their concerns about availability of talent have increased. CEOs are well aware that something needs to be done, but are less sure of exactly what that is.
This is no time for tinkering at the edges. The magnitude of the changes underway mean that a fundamental rethink of talent strategy is needed, and right now. New sources of labour to build tomorrow’s workforce must be found, and the way in which people work, and where they’ll work, needs to be reconceived.
CEOs see better times ahead; 44% believe the global economy will improve over the coming 12 months, compared with just 18% in 2013. But they also know that the rules have changed. Megatrends, including technological development, demographic change and urbanisation, are creating profound challenges for the future of business and their workforces.
Megatrends are redrawing the skills map for global businesses; the supply of talent is shifting at a time when demand is increasing. This is exacerbating a familiar worry for CEOs; 63% said availability of skills was a serious concern, an increase of 5% on 2013. With half of CEOs planning to hire more people in the next 12 months, competition for talent will be intense. Wage arbitrage is a growing concern; 58% of CEOs are worried about rising labour costs in high growth markets.
In a competitive talent market, the employer value proposition becomes critical. CEOs have worked hard to rebuild trust between employer and employee, and 39% report an improvement. But will trust translate into loyalty?
CEOs lay much of the blame for the skills shortage at the feet of government and legislators; 52% say that regulation is hampering their ability to attract and retain the best people, and only one in five felt their government had been effective in addressing skills shortages.
CEOs see that there are serious talent management challenges ahead – 93% say that they recognise the need to change their strategy for attracting and retaining talent. But an enormous 61% haven’t yet taken the first step. CEOs are well aware that something needs to be done, but are less sure of exactly what that is.