The megatrends challenge
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.
The talent battleground
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.
A question of trust
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?
Governments need to help
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.
HR has much to prove
CEOs feel that HR isn’t ready for the task ahead. When asked how well-prepared the major functions in their business were to capitalise on transformational trends, only 34% felt that HR was well prepared and 9% said it was not prepared at all.