In a year marked by optimism amid ongoing challenges, C-suite executives are grappling with a myriad of concerns. While issues like digital disruption and cyber risks remain on their radar, it’s talent management that’s keeping them up at night.
According to a recent BCG report, nearly 60% of executives identify finding, hiring, and upskilling workers as one of their top two concerns in long-term cost management strategies. The labour market upheaval caused by the pandemic, coupled with the demand for new skills in the era of AI, has left employers scrambling to attract and retain talent.
Paul Goydan, global leader of Boston Consulting Group’s cost structure program, notes that executives are reevaluating their talent strategies, focusing on maximising the potential of existing employees rather than simply downsizing. However, with 72% of people management leaders feeling their companies lack the necessary talent, the challenge remains significant.
The shortage of digitally savvy workers poses a particular dilemma, but simply hiring new talent isn’t enough. Goydan emphasises the importance of investing in upskilling and training existing employees, citing the high cost of attrition and hiring new talent compared to training existing staff.
While executives express confidence in short-term business positioning, uncertainties persist regarding long-term workforce development, especially in adapting to AI technologies. Workers, on the other hand, are eager for direction, with many feeling they lack adequate training.
As executives navigate these complexities, the imperative remains clear: investing in talent development is crucial for long-term success in an increasingly competitive landscape.
