Organisations finding it tough to manage talent
ENGAGE, INSPIRE Firms must build diverse talent pools and embrace new work equations
Business growth can be achieved by radically redefining how talent is managed, developed and incentivised. With tightening labour markets, increased sophistication in hiring is a must to find the best fit.
According to Mercer’s 2016 Global Talent Trends Study the main reasons for workplace dissatisfaction are lack of development, outdated processes and discontent with the role of managers. The study incorporates the views of both employers and employees on key workplace issues and priorities, and is based on the perspectives of more than 1,730 HR leaders and over 4,500 employees in all industries across 17 countries.
Astonishingly, 85% of organisations report that their talent management programmes and policies need an overhaul.
Managing these changes requires support from leadership; however, only 4% of HR professionals report that the HR function is viewed as a strategic business partner within their organisations.
Additionally, Mercer’s study finds that nine out of ten organisations anticipate that the competition for talent will increase in 2016 and more than one-third expect this increase to be significant.
However, despite 70% of organisations reporting that they are confident about filling critical roles with internal candidates, 28% of employees say they plan to leave in the next 12 months even though they are satisfied with their current role in their organisations.
While 66% of companies in Asia feel confident about filling roles internally, 29% of employees plan to leave this year even though they are satisfied, primarily due to the lack of career progression opportunities.
“In India, our clients are increasingly talking about a build versus buy strategy to both create a talent pipeline, and provide employees a compelling career value proposition. However, creating the right infrastructure to identify the right workforce numbers and capabilities required to support a dynamic business environment, and then to invest in building the talent pool is a two-four year process. Organisations have to identify tactics to hold on to critical talent while this infrastructure is being created,” says Shanthi Naresh, India business leader - talent consulting and information solutions, Mercer.
In today’s global environment, successful talent strategies depend on an organisation’s ability to engage, inspire and retain employees of different genders, ages, races and backgrounds.
According to Mercer’s study, leveraging an increasingly diverse labour pool is the third most important workforce trend impacting business, following the rising competition for talent from emerging economies and talent scarcity.
“Employers are experiencing ever-growing competition for labour. At the same time, unemployment remains high in many countries around the world. The issue goes well beyond lack of available talent,” says Ilya Bonic, senior partner and president of Mercer’s Talent business.
“It’s a lack of the right talent where and when it is needed to drive competitive advantage and deliver business results. For talent that has analytic skills, inspirational leadership capability, and a global mindset, demand continues to exceed the supply,” he says.
The importance that organisations have placed on developing a diverse workforce has not translated into actions that are visible to employees.
While 73% of companies are working towards diverse leadership teams, only 54% of employees say their organisation has effective programmes in place to do so, says the study.
In tackling talent issues, employers need to make sure that their efforts to build the workplace of the future have a material impact on attraction and productivity.
Mercer’s study identified five priorities for organisations to address this year namely; build diverse talent pools, embrace the new work equation, architect compelling careers, simplify talent processes and redefine the value of human resources.
Employees in Asia are the least likely to report that flexible work schedules would improve their work situation. This is 38% compared to 46% globally.
Organisations in Asia recognise the importance of human resource skills and are more likely to invest in upskilling; 44% in the region and 53% in China have plans in place to build this capability in 2016.