Post global recession, 2014 can be seen as a turning point – a turning point for a new wave of growth and business applicants in the 21stcentury. As authors of the Global Human Capital Trends of 2014 suggest, businesses are “dealing with a workforce with different demographics, different demands, and different expectations.” As a result, businesses have an increasing need to augment their recruiting process and career development to reach and maintain their hiring targets.
To gain insights into the human capital trends of 2014, Deloitte surveyed over 2000 businesses and HR leaders in 94 countries, covering major industries and all of the world’s geographies. The biggest talent issues that could impede organizational effectiveness were identified as retention and engagement, reskilling of HR and most importantly, the lack of leadership.
In the changing demographic, companies face the need to develop leaders at all levels – from building younger leaders to keeping senior leaders relevant and engaged. With globalization and the speed of technological change, the “modern leader” is constantly undergoing development. However, only 13% of respondents believed they provided “excellent” leadership programs, and 66% admitting weak capability in developing millennial leaders. Hence in this turning period, companies need to reflect on their leadership programs, and re-design them to reflect changing global demands and trends in their industry.
The second biggest challenge businesses face was identified as retaining and engaging human capital. However, as extremely successful social media technologies like Facebook and Twitter suggests, humans desire interpersonal connection. This is especially reflected in the millennial generation who are more motivated by work that fulfills their passion, allowing them to accomplish their personal, professional and social goals. Hence, businesses need to move away from the rigid stature of the industrial era, to a more fluid interpersonal business structure of the modern social environment. They also need to move away from strategies that “hold” employees, and towards those that engage and build commitment through alignment of employee goals to corporate purpose.