With global economic uncertainty, skills shortage plaguing markets, and job avenues opening up for the gig economy, it is required that employers be aware of the global top ten talent trends in 2017.
“It doesn’t matter what industry our clients are in — everything from manufacturing to professional services and retail — every company can now be classified as a technology company,” said Futurestep CEO Byrne Mulrooney. “This has forever changed the way talent acquisition experts do their jobs, and what candidates have come to expect.”
The Futurestep division of Korn Ferry, the preeminent global people and organisational advisory firm, shared its 2017 predictions for talent acquisition. Based on insights from recruitment experts around the world, this list reflect on the trends that have emerged during the past 12 months, as well as those predicted to dominate during the coming year.
Here are the top 10 talent predictions for 2017:
Some reports estimate that by 2020 as much as 40 percent of the American workforce will be contingent workers, or independent contractors. There are two key drivers for the rise of what is now being called “the gig economy.”
From the workers’ perspective, there is demand for diversity and flexibility in their roles and the ability to showcase their unique skill sets. For some organisations, there’s a shift in strategy from ‘I need to hire a person’ to ‘I need to complete a task.’
Experts see the contingent workforce as a complementary addition to the traditional full-time workforce. They also caution organisations against using cost savings as the primary driver to ramp up the number of independent contractors.
“Don’t expect to pay contingent workers less than full-time employees,” said Jeanne MacDonald, Global Operating Executive and President, Talent Acquisition Solutions, Korn Ferry Futurestep. “While their hourly or contract rates are often more than salaried employees, employers are paying for a unique skill that only a few select people can bring to the table.”
Technology is changing the role of the ‘vital many’ — large groups of employees who traditionally carry out manual or redundant tasks. Take for example, call center employees, who once answered all customer questions, but who now, with the acceleration of omni-channel communications, must be comfortable transitioning between mediums — be it over the phone, online or via social messaging to answer those questions.
Instead of doing manual work, assembly line workers, whose roles are increasingly being phased out by robotic, now must learn how to program the robots.
In the face of sweeping technological advances, employers cannot forget the people who develop the technology and those who benefit from it. The future of work is one in which people, not technology, will still be the driving force of change.
A recent economic analysis commissioned by Korn Ferry found human capital represents the global economy a potential value of $1.2 quadrillion, 2.33 times that of physical capital, which includes tangible assets like technology, real estate, and inventory, which represented a value of $521 trillion. A key trend that will carry into 2017 is a move to more highly specialised on-the-job training to help workers shift to new roles.
Location is the key. Increasingly organisations are taking bold action in moving company headquarters or significant facilities closer to sources of specialised and available talent. For example, because of its solid highway system, favourable tax base, central location and niche talent, Dallas has become a hotbed for corporate relocation.
Toyota, Liberty Mutual, JP Morgan Chase and coffee giant Farmer Brothers are all relocating their headquarters or major facilities there. And as industries such as the auto industry become more technology focused, several car companies are establishing significant operations in Silicon Valley and others are moving to where the talent is, such as Germany.
Additionally, large U.S. banks like JPMorgan Chase, Goldman Sachs and Citigroup are moving their UK offices to fledgling financial hotspots like Paris, Dublin and Frankfurt. The talent for these roles will then continue to look outside the boundaries of their own countries for job opportunities.
Administrative tasks that were until recently done manually by talent acquisition experts, such as applicant tracking, can now be handled through Artificial Intelligence (AI) and Big Data.
This now frees up time for recruiters to work more closely with HR and talent acquisition leaders. As a team, the group can help determine the best ways to align business and talent strategies. This will offer more in-depth, longer-term workforce planning approach, as opposed to “just-in-time” recruiting.
Big data has the risk of being, well, too big, too cumbersome, too fragmented. To help simplify and make the most out of data, many clients today are moving to one integrated platform for all of their HR needs, from profile design, sourcing, tracking, interviewing, assessment, on-boarding, employee development and benefits.
These smarter platforms move the HR function from metrics gatherer to an intelligence provider. These technologies assist with improving efficiency, sourcing and tracking ideal talent, reducing time-to-hire and streamlining the on-boarding processes.
This single platform will provide a centralised, holistic view of all the aspects of talent acquisition and management. However, there will still be a requirement for local recruiters and HR specialists who can understand regional nuances.
Key performance metrics in the recruiting world have traditionally been around the hire itself, such as time-to-hire and cost-to-hire. However, today’s successful programs use longer-term metrics such as how long a person stays in a role, how many times they get promoted, and what 360 reviews say about their fit within an organisation.
To help ensure the right candidates are being chosen, there have been significant enhancements in candidate assessments that not only give a clear picture of what a person can do (skills and competencies) but who they are (drivers and traits).
Through sophisticated algorithms based on the candidate’s performance assessment, the programs offer behavioural-based interview guides that directly address the candidate’s strengths and weaknesses.
These assessments also offer in-depth development plans that new hires can take advantage of even on their first day on the job. This not only helps the new hire to succeed, but it also helps the organisation build a leadership pipeline for long-term strategic success.
This year, news of data breaches seemed to make headlines almost daily. It was clear that no type of business was exempt, including the recruitment industry. In fact, in 2016, more than 700,000 candidates on the books of one international recruitment organisation had their details hacked in one of the biggest security breaches in the recruiting industry.
While information security is not a new challenge for recruiters, as the use of technology continues to gather and store an exponential amount of data on both candidates and companies alike, recruiters are realising that data security is not simply a ‘nice to have’ — it’s a necessity. In 2017 we expect to see holistic security and data privacy as a business priority within the recruitment industry.
A recent Korn Ferry executive study found that nearly three-quarters of respondents say culture is core to the success of organisational financial performance. In another study, 73 percent of respondents said their No. 1 driver at work was doing a job that had meaning and purpose, while only 3 percent said pay was the top driver.
This highlighted that the pay check is no longer king when it comes to sourcing, retaining and motivating talent. Today’s employees, irrespective of their generation want to work for companies they believe in, from both a vision and development perspective. Company culture, ability to grow and upskill, and location of work are all key motivators above salary for candidates choosing their next employer.
This means in 2017, employers will need to focus on and invest in their employer brand to help candidates understand the company culture and motivations within the workplace. Through this investment, organisations can enhance their employer reputation in a customised, dynamic way that moves the needle to attract, engage and retain key employee groups.
The concept of social recruitment will reach a new level in 2017 as Talent Acquisition leaders look to new mobile apps to source and secure talent. Social platforms like Tinder will pave the way for similar recruitment channels where both candidates and employers will swipe left or right for desired jobs or employees.
There are new services in different parts of the globe that combine social, geo-targeting and mobile technology, whereby an employer can post a job advertisement on the mobile application that pushes a notification to everyone within the app in a 50-mile radius. Recipients can then respond instantly with the push of an ‘apply’ or ‘ignore’ button.
Due to the rise of social recruitment, usage of outdated recruitment platforms like job boards will continue to decrease in 2017. Geo-targeting is an area that will continue to develop, which will cause the job boards to become redundant.
2016 was the year when the widening skills gap was truly brought into view. By 2020, it is estimated that there will be a shortfall of some 85 million qualified workers globally. Looking at the shortage of workers in Science, Technology, Engineering and Mathematics (STEM) in particular, talent is an issue that inspires much debate.
However, even with this widening gap, there is a real lack of diversity within STEM sectors, with most estimates putting the number of women in STEM careers at less than 25 percent.
This highlights the critical need for organisations to broaden their views to source and hire talent with diversity being a crucial consideration. By diversifying their workforce, businesses can utilise a currently ‘untapped’ pool of talent to help plug this skills gap.
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