2020 is here. With an uncertain future, human capital leaders need to embrace agility and prepare their workforce for the future of work. But just 22% say they provide training or reskilling to meet business needs, even though 91% believe it is their company’s responsibility to do so. How can you enhance your workforce agility to respond to changing business needs? Are you using data and analytics to determine the best resources to get work done? Do you have the vision and the resources to deliver the full potential of your talent?
Do you have the vision and the resources to deliver the full potential of your talent?
With the Talent Trends Report 2020 Randstad SourceRight just provided an excellent and in-depth research for all its insights on how forward-thinking capital leaders together with employers, educators, government and talent, can carry out this formidable (for its complexity) task to optimize the strengths of their workforce, so that it meets the needs of the disruptive nature of technology. What are the 10 trends that shape this future?
#1. Companies with agile workforces prevail
The year 2020 will most probably be marked by uncertainty. Economic signals with positive and negative developments, reported across the globe, have business planners on edge. However, although concerns over a slowdown have already emerged, many talent leaders are committed to helping their businesses win.
More than ever, workforce agility will be key to organizational success.
More than ever, workforce agility will be key to organizational success. This agility will be achieved by building a pool of skilled talent, accessible at any time, by understanding how contingent talent best fit into their workforce strategy, by using internal and external data sources and finally by engaging an outplacement firm early on, should a restructure be necessary.
#2. Data defines the labor market
Today’s most successful hiring organisations are those that use data to drive results. Data aggregators and analytics specialists offer access to real-time data gathered from public and private sector sources. This massive volume of aggregate data is not available from any other source. The insights derived help hiring managers match candidates to the right jobs, manage expectations and offer compensations at truly competitive levels, based on the most current salary information.
Although only 21% of HR leaders believe their organization effectively uses talent data, 70% plan to increase investment in this area.
It is no wonder that the 2020 Talent Trends Research indicates that human capital leaders say that talent analytics play a critical role in sourcing, attracting, engaging and retaining talent. Also, more than 1 in 5 identify talent analytics as a top issue for their organization. Finally, although only 21% of HR leaders believe their organization effectively uses talent data, 70% plan to increase investment in this area.
#3. Workplace culture is reshaped by digital transformation
Companies that are well into their digitalization journey often mistakenly think that they should begin with technology. However, the businesses that are successfully transforming today, are those that focus first on changing their cultures. It will not be an easy process. Culture and behavioral challenges are the most significant challenges reported by companies.
By 2020, companies will spend nearly 2 trillion on digital transformation.
By 2020, companies will spend nearly 2 trillion on digital transformation much of which will definitely be on technology. It doesn’t come as a surprise that many organisations are encouraging talent to think digital first. More specifically, 77% are acquiring more digital skillsets to expand their reach and open up business opportunities. Technology of course matters but employers should also focus on changing behaviors and values as their models shift.
As more companies mature in digital transformation, they will rely on their workforce to adjust culturally and fully embrace a new era of doing business. The success of those companies will also depend on whether they can effectively solicit their people’s input and participation.
#4. Digital transformation insights drive talent strategy
Business success depends on technology performance. However, managing the impact of digitalization on business and workforce is proving to be too demanding a task to be carried out by the human capital leaders alone.
The 2020 Talent Trends research reveals that 47% of human capital and C-suit leaders are already investing in predictive analytics for talent and 54% are investing in digital specialists to support HR. Many, like Amazon are investing in upskilling and re-skilling initiatives based on insights. They are also seeking help from technologies such as Faethm, which based on industry benchmarks and company skills data, can predict the impact of emerging technology on any job, workforce, company, industry, location or economy.
47% of human capital and C-suit leaders are already investing in predictive analytics for talent; 54% are investing in digital HR specialists.
This insight helps companies develop successful talent strategies and policies, which will enable them to make smarter investments.
#5. Talent experience is a game you’ll need to win
The shift from systems of record to systems of experience is the new trend embraced by all companies with great enthusiasm. Users of these systems of experience are treated with transparent processes and are not only asked to provide feedback but to also enjoy the process. This is due to the employers’ realization that talent experience in each touchpoint along the journey, from attraction to retention, leads to a higher overall organizational performance as well as to a happier workforce.
80% of companies are willing to improve the experience by implementing a holistic approach.
The 2020 Talent Trends research shows that 80% of companies are willing to improve the experience by implementing a holistic approach, such as new recruitment process tools, empowered by the experience-centric technology, eliminating the application black hole and wasteful activities, facilitating connections and enhancing collaboration within the organization, with the aim of allowing the top talent to manage their time better and integrate workflows.
#6. Bionic recruiters build better relationships with talent
The abundance of sourcing, screening and other innovative tools have elevated recruiters, making them better and faster than ever before. The 2020 Talent Trends research shows that 71% of the companies say that technology has made the process simpler and more efficient for them.
In the past two years recruiting and other people technologies have been a magnet for investment.
In the past two years recruiting and other people technologies have been a magnet for investment. Among the top investment technologies are those aimed at talent acquisition and training. The flow of venture capital money has led to an outpouring of innovative tools designed to automate repetitive tasks and allow recruiters to develop more meaningful touchpoints with candidates. AI is powering many of these tools to further the personalization of recruitment interactions. Recruiters also have more time to engage with hiring managers, resulting in more accurate job descriptions and more effective job postings.
#7. Hire for today; upskill for tomorrow
Employers everywhere are searching for people who have mastered the so called soft skills such as problem solving, critical thinking, innovation, creativity, communication, emotional intelligence and more. According to SHRM these are the top skills job candidates lack. On the technical side, the most cited missing areas of expertise are trade skills and data analytics.
To help address this talent scarcity, the 2020 Talent Trends Research shows that 48% of the employers say that upskilling is central to their talent strategy. 38% also view reskilling as an important measure for deploying at-risk employees to different roles. Training and reskilling will be provided to areas such as AI, soft skills, analytic skills, technical capabilities and cloud computing.
More and more companies are hiring on potential and aptitude rather than degrees.
To support this strategy, companies are hiring on potential and aptitude rather than degrees. The reason being that company performance rises when managers choose potential over experience, as well as that employers can more easily teach a technical skill than aptitude.
#8. Internal mobility accelerates during a dynamic time
Talent scarcity nowadays is forcing 55% of the companies to increase investments in internal mobility programs and also to turn to integrated talent strategies and total talent management to bridge the skills gap. All it took them was to develop a new ingenious model of work. Instead of setting up teams by department, they are creating shared teams or networks that operate across the entire enterprise.
Talent scarcity nowadays is forcing 55% of the companies to increase investments in internal mobility programs.
Their expertise is brought in on the projects that need it the most regardless of function, business or geography. This creates highly agile development cycles with many profitable results for the companies, such as high quality of their new hires, who will likely be retained as well, costs savings and a faster time to productivity. This, together with a more engaging experience for the workers, who also see it as an opportunity for career progression, drive companies to proceed with this approach.
#9. It is not about the degree, but the skills
Due to the scarcity in talent market, companies have decided to overcome this challenge by eliminating education requirements and assessing candidates on skills and experience. Companies like Google, Apple, Siemens USA, Hilton, IBM, Penguin Random House and others say that requiring only degrees simply narrows their search. Their talent leaders now see an opportunity to recruit non-graduates who are self-taught and possess highly keen skills and experience.
49% of employers are already investing in new assessment technologies.
To solve the challenge of assessing those applicants, the 2020 Talent Trends research shows that 49% of employers are already investing in those technologies. Tools such as Hacker Rank by building the assessments around real-world challenges, help employers determine the actual capabilities of recruits. Companies that recruit non-graduates are embracing an inclusive culture that reflects well on their brand, attract more applicants and retain their talent.
#10. Diversity and inclusion at work become table stakes
Helping talent of different background to feel appreciated and to unfold their talents is not just a mere social responsibility, but also a business practice that can be beneficial to the companies on many levels. Creating and implementing diversity and inclusion strategies is becoming a priority to all organisations.
80% believe their diversity and inclusion strategies are critical to attracting and retaining talent.
Results from different researches show that higher innovation revenues and fortified relationships with customers are all attributed to diverse workforces. The 2020 Talent Trends research uncovers that 80% believe their diversity and inclusion strategies are critical to attracting and retaining talent and 45% say they are increasing investments in these areas as a result. Moreover, employers of the Professional Golfers’ Association are using data to reach diverse candidates and to raise awareness, access and accountability in their hiring. Others, like McAfee, target schools and programs with diverse populations. Finally, companies around the world celebrate their place among diversityInc’s top 50 rankings annually. It looks that the rewards are likely to outweigh the effort finally.
About the author
Dionysios Skandalos is a blogger for ToTalent on actual issues of HR.