The Deloitte Global Human Capital Trends 2014 report compiled data from a survey of 2,532 business and HR leaders at organizations from 94 countries around the world. In the poll, 86 percent of respondents cited leadership development as the biggest challenge for their organization, followed by employee retention and engagement (79 percent).
At 77 percent, “re-skilling the HR function” ranked as the third most-pressing issue, with many executives feeling their HR teams lack the skills and data they need “to understand today’s global business environment, local labor markets, evolving workforce demographics, shifts in technology and the changing nature of work itself,” according to a Deloitte press release.
For example, while 75 percent of respondents rated “workforce capability” as an “urgent” or “important” challenge, only 15 percent said they believe they are ready to address it. More than two-thirds of those polled (70 percent) see new learning methods such as free online and mobile learning platforms as urgent or important, but just 6 percent say they have mastered the content and capabilities necessary to make online learning accessible and digestible for employees.
Overall, more than one-third of the business leaders polled (34 percent) said their HR and talent programs are just “getting by” or even “underperforming,” with less than 8 percent of HR professionals expressing confidence that their teams have the requisite skills for today’s global environment.
While leadership may be underwhelmed with HR’s performance, it seems many organizations aren’t doing a great job of equipping HR teams with the tools they need to keep pace, either.
In the study, 43 percent of respondents described their organizations as “weak” in terms of providing HR with the appropriate training and experience, with 47 percent saying the same with respect to preparing HR to deliver programs aligned with business needs.
With “radical shifts in demographics and technology” occurring, “doubling down on the human capital practices of the past” won’t be enough to help HR teams do more than just get by in the future, said Josh Bersin, principal and founder of Bersin by Deloitte, in a statement.
“The research shows that organizations should re-imagine their approach to engaging people and move to re-engineer many of their HR practices,” according to Bersin. “Attracting top talent has become a serious competitive issue that demands attention at the highest levels of the organization.”