Human capital issues are commanding attention and, in some cases, have become a permanent fixture on board agendas. Senior business leaders consider talent to be perhaps the most critical factor in the push for sustainable growth and the need to manage new opportunities and risks. Whether growth strategies are based on innovative products and services, new market entry or through mergers and acquisitions, their success depends on people. As a result, talent is now driving decisions that touch heavily on an organization’s core strategy. Deloitte carried out a survey of more than 1,300 businesses and HR professionals in 59 countries to investigate the trends that are driving human capital decisions across the globe. More than a third (412) of respondents were from the EMEA region.
The five key trends
The trends that emerged are consistent with global findings, albeit with a difference in order of ranking.
1. The talent management trend is switching from recruitment to development.
2. HR transformation efforts are continuing to shift their focus to business priorities, concentrating on areas such as talent, emerging markets and the HR organization.
3. Boards of directors at high-performing organizations are pulling chief HR officers much deeper into business strategy – and far earlier in the process.
4. Organizations are demanding more from their change initiatives by pursuing strategies that are customized, precise, and sustainable.
5. Companies are seeking new leadership models that keep pace with today’s disruptive, agile marketplace.
Respondents from the Middle East specifically identified the trend of enhancing the talent value proposition and innovating the talent brand. Social media has erased the line between corporate brand and talent brand, which have now become two sides of the same coin.
Talent and HR concerns
When global and EMEA executives were asked to describe the most pressing talent and HR concerns that they face, they gave almost identical answers.
Almost half the EMEA executives are concerned about developing leaders and succession planning (49%), and sustaining employee engagement (46%). Global executives are even more focused on leadership development than their EMEA counterparts are, with about half (55%) reporting that it is their biggest challenge of all. Sustaining employee engagement and morale is a pressing issue, which could explain the shift from recruitment to development.