2014 Economic Impact on Talent

Friday, January 3, 2014

 

Evidence is mounting, 2014 will be a better year for the economy, businesses, and job hunting employees. CNNMoney, Forbes, and the Society for Human Resource Management (SHRM) are suggesting the US and global economies will see positive growth in 2014.  So with 2013 proving to have been a good year for many businesses, what’s the problem with 2014 being an even better year?  Competition for talent and the cost of that talent is going to heat up in 2014.

 

CNNMoney: Europe is on the re-bound, US housing is recovering, the Fed will back-off on QE2, and unemployment is falling.  Result: Increased competition for goods and services is up, available labor is down, and costs will rise.

 

Forbes: Global economies look significantly brighter in 2014.  US growth will outpace Europe, but lag behind China.  Result: Increased competition for resources, including labor.

 

SHRM: US job creation up over 2012 and 2011, 25% of employers will add jobs, more college graduates to be hired, technology labor cost up by 5%, active and passive jobs seekers on the rise.  Result: Increased competition for labor, labor will cost more, and renewed focus on talent management.

 

Josh Bersin a contributor at Forbes and founder of and principal at Bersin by Deloitte suggests organizations in 2014 will face renewed challenges in the battle over talent.
 

● Talent Acquisition Is a Global Issue

● Continuous Skills Training

● Coaching vs. Over Forced Ranking

● “Holistic Work Environment”

● Career Development Center Stage

● New Skills Needed for HR

● Reinvent/Re-Brand Talent Acquisition

● New and More HR Technology

● Talent Data Moves To Forefront

● HR Becomes “Data Driven”

 

What Bersin is describing is nothing less than revolutionary changes in how employers must embrace their management of human resources, a.k.a., talent.  Yes, many organizations have begun the process of implementing some or even all of these transformations.  So, what is the big deal, it is on my To Do list.  The problem is the world is changing faster than many organizations and those organizations are losing the war on talent and thus on customers, clients, and their ongoing existence.

 

What is the path forward?  Know thy organization!  If you are responsible for managing talent in your organization, know who your customers are and what their needs are today, tomorrow, and next year.  If your organization manufactures or provides services, what, where, and how do they produce products or deliver services.  Who are their customers and when and how do they sell those products or services.  What skills are needed in your organization’s mills, plants, factories, stores or offices?  Where are those facilities located?  What does the demographic, census, and other data (Big Data) look like at these facilities?  Do you have data on who, when, where, and how current and past employees were hired and how well they performed?  Gap analysis; identify the gaps between your customer’s expectations and your ability to delivery.