Given the shortage of talented professionals possessing the skill sets required by businesses, winning the war for talent seems to be the key to victory and staying ahead of the competition.
This means that talent management professionals need to deal with increasingly complex issues, such as:
- The growing role of Artificial Intelligence (AI)
- The importance of talent analytics
- Changing preferences for compensation and benefits’ structures
Bearing this in mind, as the last year of this decade rolls on, the talent management industry would do well to keep some key trends in mind.
The need to become more holistic
There is a massive influx of data on employees as well as their preferences, salaries, job roles, and performance. However, instead of an integrated approach when considering different aspects of talent management, right from talent acquisition to development and compensation, organizations look at these discretely. The need is for a data-centric approach where the organization, the team and the individual get actionable insights. This will also help to link talent management to business outcomes.
A balance between short- and long-term hiring
There is always a tussle between hiring for the short and the long term. About 77% of people engaged in acquiring talent say they are hiring for roles that came up only in the past year, according to a Korn Ferry poll. A good approach could be as explained below:
- Short term: speed up hiring with the right mix of contractors, gig workers, and full-time employees
- Long term: create a flexible strategic plan for talent acquisition with clearly defined goals that align with business imperatives
Talent analytics becoming more important
Strategy for businesses has traditionally been directed by business analytics, which suggests the course of action for matters such as:
- Location for offices and factories
- Products to manufacture, and their pricing
Successful implementation of business strategies, however, often falls victim to a shortage of the right kind of employees. This becomes more of a concern with digital disruption and the need for employees who can be skilled fast and thrive in dynamic markets. Talent analytics is the answer for talent management professionals, as it looks at the talent landscape as well as compensation norms to work out a sustainable strategy.
Artificial Intelligence on the rise
AI is looked at as the tool to solve the problem of finding suitably qualified candidates. However, AI itself could, for instance, undermine efforts of the talent management industry to increase diversity if the data it is trained on reflects a similar bias. Feeding in bias-free data is key to generating impartial results. Another recent and increasingly common practice is withholding certain personal information during the early stages of the recruiting process.
Diversity and inclusion getting prominence
It is no longer rare to see mandates for higher female representation on the boards and in the senior management teams of companies across the globe. This is part of the efforts to have a diverse talent pipeline. Applicant tracking systems are being put in place to measure progress towards these goals, and talent management professionals are using unbiased assessments to ensure the emphasis on diversity does not compromise the desire for the right talent.
Personalized compensation structures
The workforce is now comprised of multiple generations – baby boomers and Generations X, Y and Z. Each generation comes with different expectations, skill sets, and mindsets, necessitating compensation and pay packages tailored to the requirements of the particular individual. Organizations are turning to social listening, focus groups and surveys to understand the differences in what might incentivize different groups.
New job roles and titles
In line with changing strategies of organizations, the talent management industry is coming up with a number of new job roles and titles. For instance, the role of Chief Experience Officer is a recognition of the need for customers to have positive experiences at every touchpoint. Positions such as Chief Happiness Officer and Chief People Officer look to place more importance on employee well-being. For younger employees, titles such as Associate or Assistant are passé, and titles such as ‘data wrangler’ (organizing and interpreting mounds of data) and ‘legal ninja’ (legal aide) are being used.
Employment gaps low on priority
From the past, when the time is taken off to raise children, travel, or learn new skills was looked down upon, talent acquisition professionals now look to reach out to professionals who are suitably skilled but have been out of the workforce for certain reasons. This is done through talent communities, workshops, alumni networks and more.
Rethinking the performance review
For as long as one can remember, the annual performance review has been the norm, and also the subject of much scorn. Employees, however, have been unsatisfied with these for a while, and look for ongoing feedback to cater to their professional development aspirations. Talent management professionals need to bring in a mechanism of real-time feedback as most employees believe it is more effective in informing them what they need to do to grow and develop in their job roles.
Seeking feedback on recruitment
Organizations are realizing that the candidate experience during the recruitment process is key to getting the right talent on board. There is now a serious focus on getting feedback on all aspects of the process, to give insights and intelligence to recruiters and hiring managers.