Globally there are some interesting challenges for talent management emerging as we enter the last half of 2014. Deloitte’s 2014 Human Capital Trends survey reports and examines what organizations are facing as they develop their employees. Human resources is being urged to rethink their position as “people administration to a focus on people performance.” Thus, they need to increase their understanding of the financials and overal business goals and focus more on advising,training, coaching or other resources employees may need to fulfill their jobs.
What are the overall trends?
Jeff Schwartz, Josh Bersin and Bill Peltser wrote in their summary of the Human Capital Trends survey that the top ten findings are
- Leadership, retention, HR skills and talent acquisition are the top global trends in perceived urgency.
- Companies report low readiness to respond to the trends
- The largest capability gaps are reported in leadership, analytics, reskilling HR, talent acquisition and access and the overwhelmed employee
- Leadership is the top priority in developed and growing economies
- While global trends are similar around the world, program needs to vary by region
- Human capital priorities vary by industry, with one exception: Leadership
- “Excellent” HR companies and teams focus more on the urgent human capital trends
- Business leaders have less confidence in their organization’s readiness to deal with future trends than HR leaders
- HR and talent executives grade themselves a C-minus for overall performance
- Companies worldwide plan modest increases in talent and HR investments in 2014
Two things definitely stand out in these trends. The need for leadership and that HR has not been able to respond to the trends effectively.
What is getting in the way?
If you do a search on how people perceive human resources, the results come up with very negative descriptions. In a recent post on the HBR Blog Network, Tomas Chamorro-Premuzic outlines what he believes are the reasons for the ineffectiveness by human resources and talent professionals. He cites the following reasons:
- Being unaware of one’s actual company culture
- Confusing employee engagement with happiness
- Ignoring the toxic effect of office politics
- Misunderstanding leadership
- Relying on intuition instead of data
In fact, Chamorro-Premuzic calls these reasons toxic. He states that the best way to reduce or eliminate these obstacles is a “rational, data-driven, and scientifically informed approach.”
Is it that simple?
Misunderstanding leadership appears to be consistent with the findings in the Human Capital Trends survey. Chamorro-Premuzic focuses mainly on how an individual company self-sabotages itself. It is not clear that it is as simple as that. According to the survey, each region weights the human capital priorities differently and human resource and talent professionals, as a whole, do not seem to exhibit readiness to respond. As human resources goes through a transformational process and regions show varying degrees of economic recovery, navigating the challenges of talent management will need both grand and localized solutions.
What do you think? What is the best way to navigate the current challenges of talent management? Join us on the Twitter chat, #KaizenBiz on Friday, July 18, 2014 at 5pm GMT/12pm ET/9am PT and share your insights and expertise.
Since the global recession, has the role of human resources changed? If so, how?
What is the difference between employee engagement and employee happiness?
What are the greatest misunderstandings of leadership?
If you look at only business global trends, how are these misunderstandings of leadership affecting organizations?
What outside (social, political, economic, legal) variables interfere with an organization’s ability to respond to the global tends described in Human Capital Trends survey?