21 June 2011
Managing talent has overtaken risk as top of the CEO agenda, according to analysis from PwC’s 14th annual CEO survey.
Some 83% of the 1200 CEOs surveyed globally plan to change their firm’s talent management strategy over the next 12 months and for 31% these changes will be major. The next priorities are risk management and investment, with 77% and 76% of CEOs respectively anticipating changes in these areas. Last year risk management was the number one priority for 84% of CEOs, followed by investment (81%), and talent third (79%).
Globally the picture varies from region to region. In Asia-Pacific and the Middle-East, 92% and 89% of CEOs respectively plan to make changes to their people strategy, whereas in North America the figure drops to 78%
Michael Rendell, Global Human Resource Services practice leader at PwC, says:
“As we move out of the downturn, CEOs are putting the focus firmly on their people. Competition for talent is intensifying as recruitment activity picks up in some sectors and there are increasing difficulties finding staff with the right skills. CEOs often speak of the importance of talent, but there’s not enough evidence of action being taken. The survey findings are encouraging, suggesting talent will be reflected more in company strategy. HR professionals need to help CEOs see what can and should be done.”
CEOs anticipate the main change to talent management will be using more non-financial rewards to motivate staff (65%), with CEOs in Latin America (80%) and Russia (77%) the most focused on this issue .
The most recent data of PwC Saratoga (www.saratogapwc.co.uk) highlights the impact workplace culture can have on absence. US workers have an average (median) 5.5 days unscheduled absence from their jobs each year, around their counterparts in Asia-Pacific - 4.5 days, in Western Europe - 9.7 days.
Absence levels, and how employers approach the problem, vary significantly for different industries globally. According to PwC, technology companies have the lowest absence rates of any sector, at 7.6 days. Banking and finance is just behind technology, with absence averaging 7.8 days. The public sector has the highest absence levels, averaging 12.2 days. Absenteeism is also a problem for retail and leisure, at 11.5 days.
Michael Rendell comments:
“Staff are not motivated by pay alone. With labour markets more buoyant, firms need to make sure employees are engaged financially and emotionally. Non-financial rewards can include increased responsibility and developmental opportunities, anything which can help people see how they can reach their full potential. This in turn can help improve workforce skills, another priority for CEOs.”
The other significant changes to HR strategy planned by CEOs will be sending more employees on international assignments (59%) and increased work with government and education systems to improve skills (54%).
Michael Rendell, Global Human Resource Services practice leader at PwC, comments:
“This is good news as secondments can provide a way to develop employees’ skills and keep them motivated, particularly where there is an absence of opportunity at their current location.”
CEOs believe the main challenge to talent over the next few years will be a limited supply of candidates with the right skills (66%). Another major challenge according to the survey will be recruiting and integrating younger employees (54%).
Adds Michael Rendell:
“Attracting and integrating younger employees, the so-called ‘millenials’, who have grown up with technology, may help bridge some of the skills gaps. Working with schools and universities to tap into this talent and harness it to business needs is also important.”
Women are another important source of potential talent and while some businesses have taken note, there is still a long way to go. Only 12% of CEOs surveyed say they see poor retention of female leaders as a key business challenge over the next three years and 56% of businesses have no plans to change their policies. And only 11% of CEOs globally are planning to make significant changes to their strategies for attracting and retaining more female employees.
Note to the Editor:
For more information or to read the full report, visit: www.pwc.com/hrs.
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