The talent landscape has been radically altered by economic uncertainty, demographic changes, and fierce competition to acquire critical skills. Talent management efforts to achieve fluidity of talent – the right people at the right place and time – have been put under pressure. CEOs around the world have made attracting and retaining talent a priority.
Gartner’s research for June 2024 shows that 41% admit their workforce is lacking in necessary skills. 50% claim they don’t leverage the skills that they already have, and 62% cite the uncertainty of future skills as the biggest risk. Talent is simply not prepared for today and tomorrow, resulting in lower employee performance (by 26 points).
Businesses need to develop strategies that will create a fluid workforce. HR leaders are investing in a fluid workforce because they understand its importance. These investments do not pay off when it comes to delivering talent ready. Gartner found that organisations who take a targeted approach to talent flexibility see a 60% increase in their talent readiness.
How can organizations target talent flux?
Differentiating skills intelligence investments
To ensure that the organisation has all the necessary skills, it is important to have precise skills intelligence. This means gaining a comprehensive understanding of the current capabilities in the workforce as well as the skills needed for future success. Developing and maintaining skills intelligence is more resource intensive than most expected. It is necessary to invest in data, technology and analysis on a continuous basis to ensure that talent strategies are aligned and meet rapidly changing business needs.
Gartner’s research shows that only 8% HR leaders are confident they have accurate information on the skills of their employees. This makes it difficult to assess current skills gaps and anticipate future needs.
HR leaders need to adopt a strategy that is targeted by prioritising investment in intelligence on skills for roles with the biggest impact on changing business needs. Focus should be narrowed down to highly dynamic positions which are affected by rapid changes in the market.
HR can focus its resources on areas that will have the greatest impact on the business.
Only 1 in 2 managers want their employees to advance their careers, even if that means losing talented members of their team.
Reduce the cost of personal mobility
When the organisation has difficulty sourcing talent on the external labour market to fill the skills gap, internal mobility is an important element in any strategy. In this effort, talent management is faced with significant challenges to overcome traditional employee and managerial mindsets.
Today, employees don’t pursue mobility. The number one obstacle to mobility for employees is the fact that they do not find internal roles attractive. Managers share this reluctance. Only 1 in 2 managers say they want their employees to advance their careers, even if that means losing talented members of their team.
HR leaders are aware of the advantages that internal mobility can offer employees. However, they often overlook an important aspect: the risks and costs associated with these moves. HR leaders should not only focus on the benefits of internal transitions but also any concerns of employees, in order to reduce a major barrier for internal mobility.
Commit to today’s core skills
Gartner found that 79% CEOs said they would have a growth and transformation strategy in place by 2025. The skills employees need today are important, but so are the ones that will help them perform tomorrow.
Only 23% of organizations develop future skills effectively. HR leaders rate skills gaps as their number one organisational risk, and unclear future skill requirements as their number two.
Gartner research shows that HR should prioritize proficiency in core skills of today over future skills. Focusing on the skills of today has a greater impact on performance over time than learning skills for tomorrow.
Organisations need to take a targeted approach towards talent fluidity in today’s rapidly changing business environment and labour market. To do this, HR leaders need to focus their efforts on understanding skills demand and supply by investing in intelligence about skills.
The work that has already been done to convince employees of the benefits of internal mobility must be completed by focusing their attention on the costs employees and managers feel when moving internally.
They should also stop trying to balance their current and future skills and instead focus on the skills that will have the biggest impact on their performance both now and in the future. These are today’s core competencies.
