Media Advisory: Boston Consulting
Group Experts Available to Discuss Landmark ‘People’
Study
Recruiting, Retaining and Developing Talent is Biggest ‘People’
Challenge Facing Companies in U.S. and Worldwide—and
It’s the One They Are Least Prepared to
Handle, Says New Global Study
Talent Management Is a More Urgent Priority Than Performance
Management, Restructuring, Globalization, Diversity, Social
Responsibility and Other Issues Typically Involving Human Resources
Other Top People Challenges in U.S. Relate to the Talent Problem:
Leadership Development, Dealing With Changing Work-Force Demographics
and Managing Cultural Change
Study Is Based on Survey of Nearly 5,000 Executives in 83 Countries
and Markets—Largest and Most In-Depth of Its
Kind
BOSTON (Business Wire EON) April 16, 2008 --
Recruiting, retaining and developing talent is the biggest “people”
challenge facing companies in the United States and worldwide,
and it’s the one they are least ready to
handle, according to a major new survey of nearly 5,000 executives in 83
countries and markets.
Talent management emerged as the most urgent priority not only among
companies in the United States, but also among companies in every region
of the world and in every industry. Other people challenges requiring
urgent action, both in the United States and globally, are improving
leadership development, managing demographics, and managing change and
cultural transformation—issues closely linked
to talent management.
Among U.S. executives and many others worldwide, these four challenges
rank far above the more traditional imperatives of modern people
management, such as measuring HR and employee performance, managing
work-life balance, managing globalization, managing diversity and
managing corporate social responsibility.
Managing demographics—i.e., adapting to an
aging workforce and the shifting needs of incoming “Gen
Y” employees—was
rated the challenge whose importance will grow the most between now and
2015.
These are among the key findings and insights of “Creating
People Advantage: How to Address HR Challenges Worldwide Through 2015,”
a report based on a global study conducted by The Boston Consulting
Group (BCG), the World Federation of Personnel Management Associations
(WFPMA) and the Society for Human Resource Management (SHRM). The study,
which included over 200 in-depth interviews with senior executives
worldwide, is the most comprehensive review of global HR practices ever
conducted.
“The corporate world is fundamentally
shifting, and companies around the globe are ill-prepared to meet the
challenges of an increasingly globalized marketplace,”
warned Anna Minto, a BCG partner and leader of the firm’s
People Advantage Initiative in the Americas. “While
most CEOs and their executive teams are focused on quarterly results and
managing the financial side of the business, they are at risk of
neglecting the people side. The anticipated gap between the
talent-related capabilities companies have now and what they expect to
need by 2015 is significant across a number of dimensions. CEOs and
other leaders need to ask themselves whether they’re
doing enough today, and putting the right resources in place, to prepare
for the people challenges they’ll face in
just a few years.”
Added Chuck Scullion, a BCG partner and leader of the firm’s
Organization practice in the Americas, “Human
resources should be at the center of most companies’
strategies—not an afterthought once the
strategy is set. How can an organization manage a far-flung
multicultural work force and find the talent needed in rapidly
developing economies? How can it develop globally-minded leaders, and
replace the knowledge and skills of retiring employees? These are
difficult questions, and they require boardroom attention now to avoid a
boardroom crisis later.”
As examples of talent shortfalls, Scullion pointed to U.S. hospitals
having a perennial shortage of nurses and other health care
professionals; India not being able to meet its demand for IT experts;
China lacking a sufficient number of experienced managers; and Germany
having too few engineers.
“In the near future, finding and keeping
talent may become harder than raising money in an IPO,”
Scullion said.
Ms. Minto and Mr. Scullion are available to speak about and elaborate
on the findings. During a conversation, they can discuss, among other
issues…
-
The talent management and retention initiatives that U.S.
executives say they will need to step up between now and 2015.
|
-- About 20% of the respondents said their companies now source
talented employees globally; nearly half said they will in the near
future.
|
|
|
|
-- Fewer than 10% of respondents said their companies have moved to
new locations to access talented people. More than 20% said they
will in the near future.
|
|
|
|
-- Just over 40% of respondents said their companies now have
tailored career tracks--but more than 70% said their companies will
have them in the near future (2010-2015).
|
|
|
|
-- While 40% of respondents said their companies now have specific
compensation schemes for talented people, nearly 65% said their
companies will in the near future.
|
|
|
|
-- 70% of companies expect to offer flexible work programs by 2015.
|
-
What companies believe they’ll do to
manage the capacity loss that is resulting from the aging workforce.
|
-- A quarter of the U.S. respondents said their companies now offer
employment options to attract or retain semi-retired or retired
workers. About 65% said their companies will in the near future.
|
|
|
|
-- Fewer than 20% of respondents said their companies analyze the
demand per job group for the next 10 years. 50% said their companies
will begin doing that analysis.
|
|
|
|
-- Just over 40% of respondents said their companies currently
conduct internal training to help people qualify for other kinds of
jobs. About 65% said their companies will be doing that in the near
future.
|
|
|
|
-- 40% said their companies now use increases in productivity to
compensate for a diminishing workforce; 55% expect that will happen.
|
|
|
|
-- About a quarter of the respondents said their companies outsource
work. 45% say their companies will be doing that.
|
-
Other steps that HR will take to help companies managing an aging
workforce.
|
-- Just over 30% of U.S. respondents said their companies now train
employees to respond to generational differences in the workplace;
more than half said their companies will be doing this by 2015.
|
|
|
|
-- Nearly a quarter of respondents said their companies have changed
health and safety policies to reflect the aging workforce; nearly
half say those changes will take place at their companies in the
near future.
|
|
|
|
-- About 5% of respondents said their companies have created
age-specific incentive systems; a quarter says their companies will
do so soon.
|
-
How companies and the HR function expect to spring into action to
prepare leaders.
|
-- Only about a quarter of U.S. respondents said their companies now
provide financial rewards for good leadership; more than 60% believe
they will in the near future.
|
|
|
|
-- Fewer than half the respondents said their companies now measure
leadership skills through 360-degree feedback; just about 65% said
they will in the near future.
|
|
|
|
-- Fewer than 20% of respondents said their companies have developed
leadership seminars with business schools. 40% expect that to be in
the cards in the near future.
|
|
|
|
-- Only about 10% of respondents said their companies currently have
an internal virtual leadership institute. 35% say they will in the
near future.
|
To arrange a conversation with BCG experts Anna Minto or Chuck
Scullion, and/or to receive a copy of the report and supporting
materials, please contact Alexandra Corriveau at Sommerfield
Communications, Inc., at 212-255-8386 or alexandra@sommerfield.com.
About the Study
BCG and the European Association for Personnel Management (EAPM)
conducted the Web survey in Europe through January 2007, receiving 1,355
responses from HR and other executives in 27 European countries. In
conjunction with that survey, during May 2007, we interviewed 102 senior
executives in Europe. Between September and November 2007, a global Web
survey was conducted in cooperation with the WFPMA, eliciting an
additional 3,386 responses from participants in 56 countries. The SRHM
assisted with data collection for the survey in the United States. This
survey was rounded out with 118 interviews with executives from those
countries. In all, the two Web surveys elicited 4,741 responses from 83
countries and markets, and BCG conducted 220 interviews with senior
executives.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm
and the world’s leading advisor on business
strategy. We partner with clients in all sectors and regions to identify
their highest-value opportunities, address their most critical
challenges, and transform their businesses. Our customized approach
combines deep insight into the dynamics of companies and markets with
close collaboration at all levels of the client organization. This
ensures that our clients achieve sustainable competitive advantage,
build more capable organizations, and secure lasting results. Founded in
1963, BCG is a private company with 66 offices in 38 countries. For more
information, please visit www.bcg.com.
About the World Federation of Personnel Management Associations
The World Federation of Personnel Management Associations (WFPMA) is a
global network of professionals in people management. It was founded
in 1976 to aid the
development and improve the effectiveness of professional people
management all over the world. Its members
are predominantly the continental federations, which are made up of more
than 70 national personnel associations representing over 400,000
people-management professionals. For more information, please visit www.wfpma.com.
About the Society for Human Resource Management
The Society for Human Resource Management (SHRM) is the world’s
largest association devoted to human resource management. Representing
more than 225,000 members in over 130 countries, the Society serves the
needs of HR professionals and advances the interests of the HR
profession. Founded in 1948, SHRM has more than 575 affiliated chapters
within the United States and subsidiary offices in China and India.
Visit SHRM Online at www.shrm.org.
Post Comment:
Trackback URL: http://eon.businesswire.com/pingpr.php/VGhpci1Db3VwLVRoaXItUGlnZy1GYWx1LVplcm8=
Bookmark -
Del.icio.us |
Digg |
Furl It |
Spurl |
RawSugar |
Simpy |
Shadows |
Blink It |
My Web
|
