Findings Indicate Need to Replace Traditional Approaches with Flexible Work Models as Organizations Reach Talent Tipping Point
Allegis Group, the global leader in talent solutions, today released a report that examines how the skills and talent shortage is being influenced by the changing nature of work, employee demographics and emerging technologies. In “The New Meaning of Talent: Adapting to the Work and the Workforce of Tomorrow,” Allegis Group explores successful strategies employers are using to evolve their talent management practices to align with a world of low unemployment, talent scarcity, a multigenerational workforce, global sourcing, digital talent acquisition and other factors.
The report uses survey data collected from over 1,000 HR decision-makers to illustrate how the market for talent has changed over the last decade and to shed light on the need for employers to move from rigid, full-time, industry-centric approaches, and instead embrace more flexible, innovative employment models and fulfill needs through transferable skills.
“The world of work looks significantly different than it did just a few years ago. Critical skills are scarce, demand is high, and new trends and innovations are changing the talent landscape every day. As a result, organizations are challenging old assumptions about the people they need to do the work, the trends that shape how they acquire talent and the evolving nature of the work itself,” said Andy Hilger, president of Allegis Group. “Talent strategies must evolve to stay ahead of change. It’s a priority that is important not only for the future of talent acquisition but for the success of the business itself.”
Survey research finds that companies today rely on outdated workforce strategies, even amid a talent shortage and changing markets.
Finding: Companies are slow to adopt flexible models for talent
- A majority use updated engagement models; however, some organizations are still trailing. Three-fourths of HR leaders say their organizations recognize the importance of strategically evaluating how work gets done, and 56 percent say their organizations use different engagement models — from traditional employment to contractor, contingent worker or outsourced services — to their full potential. This means that 44 percent still have work to do when it comes to utilizing all worker types.
- 90 percent of those surveyed are beginning to adopt technology that allows flexibility. While 90 percent of HR leaders agree that embracing digitally enabled practices (i.e., flexible scheduling, remote working, virtual meetings and online chat) would position them for future talent management success, just 15 percent of HR professionals say their companies fully adopt all four practices.
- Most organizations are rethinking job descriptions; 63 percent feel they have too many must-have demands. Many newly emerging skills are causing companies to rethink their requirements for a minimum number of years of experience as a priority. While signaling the fading of experience as a priority, organizations continue to struggle with excess requirements in job descriptions.
Finding: Technology underutilized in creating talent visibility and availability
- HR professionals need more access to talent-related data. Thirty percent of HR leaders say their organizations cannot see the total demand for talent across the organization, 29 percent lack visibility into the total talent supply, and 34 percent do not have a central system to measure talent acquisition success.
- Digitizing talent sourcing remains a challenge, but most are adapting. A minority of respondents (40 percent) say digitizing how talent is sourced is a challenge for their organizations, and roughly a third of HR leaders are not confident in their organizations’ ability to leverage digital sourcing channels to their maximum effectiveness.
- A large percentage of organizations have begun executing on digitization and automation strategies. HR leaders believe that within 10 years, 25 to 35 percent of current processes will be automated. While 42 percent of HR decision-makers say their organizations have begun executing a strategy to map work processes or identify areas for future digitization and automation, 17 percent of HR leaders say their companies are years away from considering a strategic approach to automation or are not even thinking about it.
“In our 35 years of delivering talent solutions, placing the right people in fulfilling jobs and adopting new technologies, we’ve found that the most successful workforce model is one that evolves with changing times,” Hilger said. “Companies are increasingly committed to a future-focused talent approach, and through our dedicated expertise, services and innovation leadership, we’re proud to be a part of that vision.”