HR departments have been exposed as lacking the skills needed to meet the challenges of today’s global business environment. According to the Deloitte Touche Tohmatsu Limited’s (DTTL) Global Human Capital Trends 2014 survey of over 2,500 business and HR leaders, less than 10% of respondents have confidence that their teams have the skills needed to meet the challenge of today’s global environment and consistently deliver innovative programmes that drive business impact.
Alarmingly, more than one-third (34%) of HR leaders believe that their HR and talent programmes are just ‘getting by’ or even ‘under performing’. The survey points to the suggestion that failure to adjust to a 21st Century workforce is jeopardising global business growth in terms of evolving to deal with disruptions in labour markets, changing workforce demographics, shifts in technology and the changing nature of work itself.
Commenting on the issue, Brett Walsh, Global Human Capital leader, DTTL said, “There’s no doubt that human capital strategies are now a major factor in business growth. One of our biggest findings in this research is the fact that doing more is not enough. Today, companies have to manage people differently—creating an imperative to innovate, transform, and reengineer human capital practices. When you add to this the rapidly changing landscape of HR technologies, such as cloud and Big Data, and their impact on attracting, retaining and developing talent, it becomes clear that reskilling HR teams is arguably the most critical mission for organisations today.”
The research also suggests that companies are not ready to address the striking shift in employee expectations, resulting in potential retention and leadership crises. Despite recognising the need to take action on critical issues including leadership development (86%), retention and engagement (79%), and reskilling the HR function (77%), many respondents expressed reservations about their teams’ ability to do so.
Jeff Schwartz, Global Human Capital Leader for Marketing, Eminence, and Brand, DTTL commented, “The challenge facing the majority of global organisations is that they are not prepared to deal with the major trends that are reshaping today’s workforce. Given the radical shifts we are seeing in demographics and technology, applying existing methods to new and emerging human capital trends will not be enough to get the job done. The 21st Century organisation is global, highly connected, and demanding. Organisations, and specifically HR leaders, need to better adapt if they want to attract and develop the right talent in today’s competitive marketplace.”
Alarming HR statistics:
The overwhelmed employee. Information overload and the always-connected, 24/7 work environment are overwhelming workers, undermining productivity and contributing to low employee engagement. More than one-third (34%) of business leaders rate this issue among their top five priorities, and fewer than one in ten believe they are dealing with it effectively.
Reinventing talent acquisition. More than half (54%) of organisations indicate that their social media practices are ‘weak’ when it comes to sourcing and advertising positions and fully utilising analytics for recruitment and staffing.
Engaging the 21st Century employee. Millennials will make up 75% of the workforce by 2025, yet 58% of executives indicate that their companies are not ready to attract and retain Millennials and report they have ‘weak’ capabilities when it comes to providing programmes for younger, older, and multi-generation workforces.
Shifting from diversity to inclusion. Nearly all organisations promote diversity, but most fail to realise the business benefits of a diverse workforce, with one-third (34%) of companies saying they are unprepared in this area, while a mere 20% claim to be fully prepared.
Developing leaders at all levels. A staggering 86% of business leaders rate leadership as “urgent” or important, however, only 13% say they do an excellent job in developing global leaders.
Corporate learning redefined. More than two-thirds (70%) of executives see new learning methods, such as free online and mobile learning platforms, as ‘urgent’ or ‘important’, yet only 6% say they have mastered the content and technology capabilities needed to make online learning accessible and compelling for their employees.
Delivering on Big Data. Big Data is increasingly enabling HR departments to make informed talent decisions, predict employee performance and conduct advanced workforce planning. However, only 7% of organisations today believe they have the capability to use data analytically.
Racing to the cloud. Two-thirds of business leaders believe that HR technologies are urgent and important and yet 56% report no definitive plans for their HR systems.
Paul Arkwright
Publisher
