The traditional approaches to attracting and keeping talent are not working. Dion Love, Gartner, says that the key to success is mastering skills intelligence. This includes leveraging AI intelligently and driving DE&I.
Under the pressure of instabilities on the financial markets, labour shortages and competition to acquire skills that are in demand, today’s talent-management landscape is shifting. “Attracting and retaining talent”, has therefore become the top priority for CEOs around the world.
Despite their efforts, most (83%) HR leaders still struggle to find the right candidates. The C-suite has shifted their focus to better leveraging talent that they already possess as external hiring becomes more difficult. Only 24% of HR leaders think their organisation is doing a good job at creating a flexible workforce.
What are the key changes that HR leaders need to make in order to prepare for the future?
Ensuring advanced skills intelligence
Talent needs to be fluid for organisations to adapt to changing business conditions. In this context robust skills intelligence is becoming a key success factor. However, it has unexpectedly become resource-intensive.
Only 8% of HR managers believe that they have reliable information on the skills in their workforce. This presents a major challenge to understanding the current skills requirements and preparing for future changes in demand and supply. In a world of unprecedented change, it is harder than ever to predict what skills will be needed tomorrow.
HR leaders can manage this shift by prioritising investment in skills intelligence in roles with a higher impact on the company. They should then refine their focus and pay attention to roles which are highly dynamic and are affected by the constant and rapid evolution of the market. HR can focus on the areas that have the biggest impact on the business by focusing on roles with the most dynamic requirements and capabilities.
Embracing AI responsibly
AI is increasingly being used in the recruitment process. It offers automated solutions, from advertising to onboarding. This can reduce the time from ten days to just four.
AI will be around for a long time. It is predicted that by 2028, 10% of hiring managers, up from today’s 1%, will use an AI Avatar recruiter to fill positions. This new technology is not without its risks.
To minimise the risk of bias, organisations should prepare by being fully aware of potential challenges. They must also prioritise governance and ethics.
Double down on DE&I
DE&I plays a vital role in talent management. It can be a key strategy enabler by bringing in talent, creating cohesive teams and retaining highly valued employees. The potential of DE&I is increasing as it becomes more integrated into key business functions and processes.
Only 38% of employees believe that HR processes are fair. To ensure fairness, and to expand the pool of candidates, it is important to remove bias from job descriptions and recruitment methods. It’s important to note that it is not enough just to remove the degree requirement. It is important to de-bias the entire job description in order to include candidates without degrees.
The use of technology by HR leaders can improve DE&I results. They should map out which processes are most likely to be improved by technology, and compare them with the tools that they already have and those that they need.
Facilitating internal Mobility
This growing demand for talent mobility is accompanied by a need for increased internal mobility in order to close the skills gap. Talent teams are often required to influence a change in mentality.
Only 24% of HR leaders today say that their organization is effective at facilitating internal mobility. Employees also feel the same way. Many want to progress and stay within their organization but are faced with obstacles.
A recent Gartner study found that 1 in 3 employees believed they could make a greater impact in a different role within their organization. Less than 25% of employees believe it’s easy to switch jobs within their business unit.
HR leaders often overlook an important corollary, namely the perceived personal costs and risks that employees associate with internal mobility. HR leaders should not only focus on the potential upside of internal moves. They must also work to reduce employee perceptions of risk, which is a major barrier to internal mobility.
Building talent that is flexible for the future
HR leaders need to rethink strategies in today’s talent-driven landscape. Traditional approaches fail in the face of increasing financial instability, labour shortages and fierce competition. The key to success is mastering skill intelligence, leveraging AI in an intelligent way, driving DE&I and reimagining the internal mobility.
Organisations can create a workforce that is not only skilled but also diverse and agile, ready to meet challenges and seize opportunities by embracing and anticipating these changes.
Gartner’s ReimagineHR Conference in London last Week heard about ways businesses can build this fluidity to prepare for the future. It also included a deep dive into a new tactic of talent management called Targeted Fluidity.
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