Posted by Josh Bersin on December 19, 2013
The year 2014 will be an exciting and challenging one for HR, learning, and talent professionals.
Global economic growth will create a new level of competition for people. HR organizations will shift their focus from cost reduction to retention and engagement. Technology will continue to make the world a smaller place, forcing companies to improve their employment brand in every possible way. Data will become a new currency. Leadership will continue to be in short supply. And you, as an HR professional, will have to innovate and adapt to stay ahead.
In this post I summarize our 10 predictions for 2014, detailed in the full report. This is our tenth year publishing these predictions, and I hope you find them educational and valuable as you plan your strategies for the year ahead.
2014: The Year of the Employee:
Attraction, Retention, and Engagement Will Really Matter
For the first time in nearly a decade, this year you will find the issues of retention, engagement, and “attraction of talent” to be top on your priority list. We are just completing a major global study (Deloitte’s Human Capital Trends 2014, coming soon) and found that the top two people issues facing organizations in 2014 are leadership and retention. These are the problems we face in a dynamic, growing global economy.
“The war for talent is over, and the talent won.”
This year, for the first time in more than five years, employees are in charge. Companies have reduced costs, restructured, rationalized spending, and pushed people to work harder than ever. More than 60% of organizations tell us one of their top issues is dealing with “the overwhelmed employee.”
This year the power will shift: High-performing employees will start to exert control. Top people with key skills (engineering, math, life sciences, energy) will be in short supply. Thanks to the US healthcare laws, people will feel more free to change jobs. And companies who can’t engage and attract Millennials will lose out.
While there will still be high levels of unemployment in places, generally people have changed their perspectives. They want work that is meaningful, rewarding, and enjoyable. Top performers will seek out career growth. Mid-level staff will strive for leadership development. And you, as an HR organization, will have to compete, adapt, and innovate to stay ahead.
Among Our Top Ten Predictions for 2014
In 2014 key skills will be scarce. Software engineering, energy and life sciences, mathematics and analytics, IT, and other technical skills are in short supply. And unlike prior years, this problem is no longer one of “hiring top people” or “recruiting better than your competition.” Now we need to source and locate operations around the world to find the skills we need.
You must expand your sourcing and recruiting to a global level. Locate work where you can best find talent. And build talent networks which attract people around the world.
Engagement and retention will become a top priority. But rather than focus on engagement surveys, you will expand your horizons to look at engagement from a holistic standpoint. Your work environment, management practices, benefits and recognition programs, career development, and corporate mission all contribute to engagement. As you seek to attract and grow Millennials, you will re-imagine employee engagement in a new, integrated way. And rather than survey annually, new tools will let you monitor engagement continuously.
As one HR manager recently put it, “Our employees are no longer looking for a career, they’re looking for an experience.” Your job in 2014 is to make sure that experience is rewarding, exciting, and empowering.
As the economy improves you will need to more aggressively and intelligently source and recruit. The talent acquisition market is the fastest-changing part of HR: new social recruiting, talent networks, BigData, assessment science, and recruiting platforms are being launched every month.
In 2014 organizations will need to integrate their talent acquisition teams, develop a global strategy, and expand their use of analytics, BigData, and social networks. Your employment brand now becomes more strategic than ever — so partner with your VP of Marketing if you haven’t already. Today your ability to recruit is directly dependent on your engagement and retention strategy – what your employees experience is what is communicated in the outside world.
Talent Analytics is red hot. More than 60% of you are increasing investment in this area and company after company is uncovering new secrets to workforce performance each day. In 2014 you should build a talent analytics center of excellence and invest in the infrastructure, data quality, and integration tools you need. This market is finally here, and companies that excel in talent analytics have improved their recruiting by 2X, leadership pipeline by 3X, and financial performance as well.
The year 2014 looks to be an exciting and critically important one for Human Resources. The economy will grow, employees will be in charge, and HR’s role in business success will be more important than ever.
|Josh Bersin is a principal and founder of Bersin by Deloitte, Deloitte Consulting LLP, delivering analytics, research and tools that employers use as a foundation for day-to-day decision making. He has worked with hundreds of companies to help them deliver high impact employee learning, leadership development and talent management.|
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.