Talent Management and Missed Opportunities for Business Growth
In a recent report entitled, “Workforce 2020, the Looming Talent Crisis,” jointly produced by Oxford Economics and SAP, results indicate that companies are missing key opportunities for the future of their organizations by not keeping talent management at the center of strategic conversations.
Findings demonstrate that the value that the workforce brings to the enterprise is rarely considered in terms of the growth and profitability that the right talent management approach can fuel. The importance of people to the overall corporate strategy is not generally demonstrated by their place in the C-suite or in boardroom discussions. The report shows that almost half of the executives responding indicated that human resources issues were driving strategy at their organizations. One quarter indicated that talent management tends to be an afterthought in their organization’s planning.
The impact is sure to be seen at a critical time, as executives report some difficulties in assembling the right teams to achieve goals. When asked to identify obstacles to building a workforce to support those goals, the following challenges were named:
- 21% cited a lack of available employees
- 13% cited a lack of engaged employees
- 28% said there was a shortage of skilled talent
- 35% mentioned problems related to employee longevity and loyalty
The result is companies that are lacking the talent management plan to be strategic, preventing them from meeting important corporate goals. The organization needs to be able to engage their employees, monitor their performance against key development goals and measure the effectiveness of human resource objectives.
Executives can expect that the interaction between the corporation and talent will continue to change. An astounding 83% of respondents indicated that they are utilizing intermittent employees, consultants and contingent workers as the trends toward flexibility on both sides continue. Changes are impacting the to-do list of business organizations, as well:
- 46% say they need to restructure compensation plans
- 44% report a need to invest more in training
- 41% need to update their human resources technology
The immediate task list for executives and the companies they oversee is to prioritize a few key objectives related to talent management:
- Gain a clear understanding of their employees, particularly members of the growing Millennial and Gen Z generations
- Improve engagement by offering the benefits and incentives that motivate teams
- Invest in future-proofing the organization by improving leadership training and cultivation
- Create a culture where continuous learning is a given and workers are empowered with talent development
Data is an increasingly critical asset for organizations that have spotted the important role talent will play in achieving business objectives. While many executives say they understand the need for data about their workforce to better capture the strengths and vulnerabilities in talent management, only 38% say that they have this type of data. Only 42% of these respondents say they know how to gain meaningful insights from that data.
Gathering data and even having access to analysis are just part of the talent management equation. At PI Consulting Group, we equip you to take your data analysis and apply insights to your teams for a strategic approach to achieving your growth objectives. From finding out what motivates your team members to creating a culture that fully engages employees, we help you mobilize your talent for a competitive edge. Contact us to learn more.