Talent and workforce management is now an integral part of strategic planning, topping the list of executive concerns and tied to business plans and growth targets. Almost 60% of US CEOs are planning to hire this year. Business leaders focus on how their talent and hr strategy can help achieve the following strategic priorities: Power growth, realize ROI, manage risk, and enable transformation.
Almost 80 percent of U.S. CEOs are worried about the growing talent gap in our country.
Bob addresses the Talent Gap in the Huffington Post.
Big data brings big insights: Rapid globalization and rising activity in emerging markets have increased the need to source talent globally. Executives we surveyed have sacrificed new markets, initiatives, growth and strategy in the name of talent. A way for companies to stay ahead of growth is through using "big data" for workforce analysis and planning for the future. Read how the manufacturing industry has used big data to gain insight.
Anticipating generational growth: Consider that in 2007, nearly 1 in 2 workers was born between 1943 and 1960, but less than 1 in 3 made this cohort in 2012. Baby boomers are departing the workforce every day leaving gaps in leadership, knowledge, and experience. Companies must manage the process and costs of this retirement wave, as well as fill knowledge and skills gaps.
The right people in the right location: Talent mobility programs are an effective strategy in meeting workforce demands. Mobility is now central to strategy. New mobility strategies need to respond to Millenial needs--including rotator assignments, long-distance commuting, and project-based relocations. The future calls for a borderless workforce, moving jobs where talent is or vice versa.
Its all about ROI: Human capital costs are understandably one of the largest investments. Businesses need to know how these people costs contribute to the bottom line. Using workforce intelligence, companies can now measure what their workforce investments are and if they are getting the right return on their investments. It is also advisable to compare their findings to industry average. Once these investments are calculated, companies can begin applying workforce planning strategies in order to anticipate how future talent needs will effect ROI. Read about the difference in workforce investment in manufacturing vs healthcare industries.
Managing escalating healthcare costs: A sizeable chunk of those labor costs go toward healthcare benefits, with plan costs continuing to outpace inflation. To maximize their investments, companies are determining the right mix of incentives, wellness programs, and other benefits. Some companies are experimenting with new care delivery options like workplace clinincs that reduce costs, and boost productivity.
Matching cost and benefits: In making smart workforce investments, forward looking companies are being fortright about matching costs and benefits. For example, a company could structure a wide variety of global mobility programs, depending upon the employee. For a business unit leader, critical to a new market, the company would provide a very different package than that for a less experienced worker.
In 2010, less than half of the organizations drew upon their internal pipeline to fill key positions. Last year, that number had risen to nearly 2 in 3.
Source: PwC Saratoga Human Capital Benchmarking Survey
The roles that make things happen: Companies risk overlooking other roles that are essential to the business when they focus primarily on developing and retaining the star performers within the organization. Read about pivotal talent.
Filling the talent pipeline: Succession planning used to be solely about whether the company had identified its next CEO. That's changed: Today, driven by compensation planning committees in particular, succession planning discussions delve three or four levels down the org chart to ensure a deep bench.
Managing pension risk: A growing area of concern is pension plan risk: Can the company meet its obligations without severely impacting its balance sheet? To better manage this liability, pension committees must quantify risk using tools from the financial investment analysis.
Keeping an eye on new risks: As companies rethink their talent strategy to support global growth, they also need to be mindful of new risks. For instance, changing tax rules for short-term business travellers is one new area to watch. Rising immigration barriers that limit the movement of skilled workers, being another.
"As we expand around the globe, one-size-fits-all will not work. For example, Chinese leadership and needs are so different from those in India, Brazil, Canada, and Belgium. Talent has to be regionally directed, and that’s what we’re working on. Frankly, it’s a big challenge, because as we’re new to some of these places and our growth is strong, we’re having trouble teaching what we want our leaders to do and know."
Catching up to technology's far-reaching impact on the workforce. Technology has altered how work gets done, how workers engage with one another, and the companies supply chain. Companies can't lose sight of how these changes affect their people. This is especially true where technology transforms internal functions such as IT, Finance, or HR. Learn how technology can facilitate mobility.
Making the most of M&A transactions and their impact on talent. Identifying potential people changes is crucial in M&A transactions. There are risks throughout the integration process. Well-conceived communications and change management strategies are essential for reaping the full ROI on the transaction.
Remaking HR so its relevant: Companies are rethinking the way HR delivers value to the business. This requires a shift in emphasis from tactical activities like managing job requisitions to more strategic activities like workforce planning using big data.