“The war for talent is over, and the talent won.”
This year, for the first time in more than five years, employees are in charge. Companies have reduced costs, restructured, rationalized spending, and pushed people to work harder than ever. More than 60% of organizations tell us one of their top is dealing with “the overwhelmed employee.
Our Top Seven predictions for 2014
1. Talent, skills, and capability needs become global.
In 2014 key skills will be scarce. Software engineering, energy and life sciences, mathematics and analytics, IT, and other technical skills are in short supply. And unlike prior years, this problem is no longer one of “hiring top people” or “recruiting better than your competition.” Now we need to source and locate operations around the world to find the skills we need.
You must expand your sourcing and recruiting to a global level. Locate work where you can best find talent. And build talent networks which attract people around the world.
2. Integrated capability Development Replaces Training.
The “training department” will be renamed “capability development.” Companies will find skills short and they will have to build a supply chain for talent. Partner with universities, establish apprentice programs, create developmental assignments, and focus on continuous learning. Companies that focus on continuous learning in 2014 will attract the best and build for the future.
3. Redesign of Performance Management Accelerates.
The old-fashioned performance review is slowly going out the window. In 2014 companies will aggressively redesign their appraisal and evaluation programs to focus on coaching, development, continuous goal alignment, and recognition. The days of “stacked ranking” are slowly going away in today’s talent-constrained workplace, to be replaced by a focus on engaging people and helping them perform at extraordinary levels.
4. Redefine engagement: Focus on Passion and the Holistic Work Environment.
Engagement and retention will become a top priority. But rather than focus on engagement surveys, you will expand your horizons to look at engagement from a holistic standpoint. Your work environment, management practices, benefits and recognition programs, career development, and corporate mission all contribute to engagement. As you seek to attract and grow Millenials, you will re-imagine employee engagement in a new, integrated way. And rather than survey annually, new tools will let you monitor engagement continuously.
5. Take Talent Mobility and Career Development Seriously.
Talent mobility is with us for good: thanks to tools like LinkedIn, Twitter, and Facebook people can find new jobs in a heartbeat. This means you, as an employer, need to provide internal talent mobility and career growth in your own organization. 2014 is the time to build a “facilitated talent mobility” strategy which includes open access to internal positions, employee assessment tools, interview guides, and leadership values that focus on internal development.Are your managers paid to “consume talent” or “produce talent?” Remember the best source of skills is within your own organization – if you cannot make internal mobility easy, good people will go elsewhere.
6. Redesign and Reskill the HR Function.
Surprise: in our global Human Capital Trends research the need to “Reskill HR” was rated one of the top five challenges in every geography around the world. Why? Because HR itself is changing dramatically and we need to continuously skill our own teams to maintain our relevance and value.
Our new High-Impact HR research, scheduled for launch in early 2014, shows statistically that high-performing companies invest in HR skills development, external intelligence, and specialization. In 2014 if you aren’t reinvesting in HR, you’ll likely fall behind.
7. Reinvent and Expand Focus on Talent Acquisition.
As the economy improves you will need to more aggressively and intelligently source and recruit. The talent acquisition market is the fastest-changing part of HR: new social recruiting, talent networks, BigData, assessment science, and recruiting platforms are being launched every month.
In 2014 organizations will need to integrate their talent acquisition teams, develop a global strategy, and expand their use of analytics, BigData, and social networks. Your employment brand now becomes more strategic than ever – so partner with your VP of Marketing if you haven’t already. Today your ability to recruit is directly dependent on your engagement and retention strategy – what your employees experience is what is communicated in the outside world.