The importance of people management is not reflected in the C-suite and boardroom. Many companies lack the culture and tools they need to engage employees, track their performance, and measure the effectiveness of HR initiatives.
|Scooped by Kenneth Mikkelsen|
Preparing for the 2020 workforce is critical to business strategy, growth, and performance. To understand the challenges and opportunities, Oxford Economics and SAP surveyed over 2,700 executives and more than 2,700 employees in 27 countries during the second quarter of 2014.
Here are the key findings from the survey:
The New Face of Work
Businesses must understand the workforce of the future and its importance to bottom-line success.
The 2020 Workforce will be increasingly flexible.
- 83% of executives surveyed said they plan to increase use of contingent, intermittent, or consultant employees in the next 3 years forcing change on companies.
The 2020 Workforce will be increasingly diverse.
- HR management will need to become more evidence-based to deal with these realities.
A lack of metrics and tools keeps HR from developing strategies for building the future workforce.
- Most lack sufficient data on their strengths and vulnerabilities, and do not use quantifiable metrics and benchmarking in workforce development.
- Only 42% say they know how to extract meaningful insights from the data available to them.
- Nearly one-fifth of executives say they have made slight progress; 47% say they have made moderate progress; and just 33% say they have made good or significant progress.
HR often works with the C-suite but does not drive board-level strategy.
- Companies are executing on operational plans but lack strategic vision for the workforce.
The Millennial Misunderstanding
Millennials are different, but not as different as companies think.
Several myths about Millennials are challenged by the research, including:
Millennials care more about making a positive difference in the world through work.
Achieving work/life balance is more important to Millennials.
Finding personal meaning in their work is more important to Millennials.
- Meeting income goals is less important to Millennials as long as they are learning and growing.
- Millennials rely more on formal training and mentoring to develop their skills.
- Millennials want informal feedback from their managers 50% more often than older peers.
What Matters Most at Work
When it comes to satisfied employees, compensation matters—a lot.
The most important attraction and retention benefit for employees is compensation.
Only 39% of executives say their company offers competitive compensation; other corporate offerings often fail to match up with employee preferences.
- Just 39% of survey respondents say they are satisfied with their job overall.
Executives value loyalty more than job performance.
Despite this preference, they are not focused on effective ways to engender loyalty.
Employees have a distorted view of the qualities their bosses deem most important. The top three attributes executives want in employees are a high level of education and/or institutional training (33%), loyalty and long-term commitment 32%), and the ability to learn and be trained quickly (31%). The top three attributes employees think their leadership desire are the ability to learn and be trained quickly (34%), loyalty and long-term commitment (31%), and job performance and results (31%).
The Leadership Cliff
- Executives cite a lack of adequate leadership as a major impediment to achieving workforce goals; only 35% say talent now in leadership positions is sufficient to drive global growth.
- About half of executives say their team has the skills to manage talent or to inspire and empower employees; leadership is not equipped to lead a global, diverse workforce.
Just 44% of employees say that leadership at their company can lead the organization to success; even fewer say their company is committed to diversity.
- Ratings across a range of leadership attributes are middling at best.
- Employees don’t cite direct manager quality as something that would improve their engagement, suggesting that upper-level quality should be improvement focus.
Most companies are not cultivating leadership within their organizations.
Planning for succession and continuity in key roles is not common.
- Few employees or executives say management values leadership ability in employees.
Bridging the Skills Gap: The Learning Mandate
Better training and education opportunities would benefit employees and businesses alike.
For employees, obsolescence is a bigger concern than layoffs.
Employees say their top concern is their position changing or becoming obsolete.
Millennials are dissatisfied with options for development and a clear career path.
The need for technology skills will grow over the next three years, especially in analytics and programming/development. 48% say analytics skills will be needed by employees in three years, and 59% say programming/development skills will be needed.
- Ample training on essential technology is in short supply, as is access to the latest technology.
Firms have difficulty finding skilled employees, but invest little in developing their own people.
Nearly half of executives say difficulty finding base-level skills affects their workforce strategy.
- An increase in the number of non-payroll positions may force new thinking on development.
Firms struggle to develop a learning culture within their organization.
Roughly half of executives say their company is capable of retaining, updating, and sharing institutional knowledge,
and 47% say their company has a culture of continuous learning.
Only 41% of employees say their company offers them opportunities to expand their skill sets.