The workforce environment in 2024 was far different and arguably more complex than ever. As we start the New Year, the pace and impact of technological change continue to increase. Younger generations entering the workplace have different expectations of themselves and organizations. Global economic conditions continue to ebb and flow with little predictability. All this is to say that talent management best practices are evolving to meet today’s needs.
Talent management impacts how organizations handle employees during every phase of employment, from recruiting, hiring, and onboarding to development and review processes, succession planning, layoffs, and reskilling. Being intentional about talent management builds a definable corporate culture, provides a north star for leadership practices, and enables more effective decision-making.
HR leaders’ challenges are real, and historical approaches will not address today’s needs. According to a recent article from Egon Zehnder, the problem is especially acute at the leadership level, “Shorter CEO tenures and a growing gap in talent are putting additional pressure on companies. The challenge of finding qualified leaders for senior roles has intensified, with high competition for top talent. Organizations must now focus on not only retaining their current leaders but also on developing a strong pipeline of future executives to navigate the complexities ahead.”
On the other end of the spectrum, Generation Z is beginning to enter the workforce in large numbers. Their focus is personal well-being, stability, and work-life balance over money. They are the least interested of any generation in holding a full-time job. They also value ESG and expect companies to have a high bar on social impact and DEI initiatives.
The pandemic exposed a small outlier issue and made it one of the biggest workplace challenges for companies to handle. Remote work has been around for decades, but the idea of entire offices being able to work remotely or, at a minimum, in a hybrid arrangement was only considered once the pandemic made it a reality. The desire to work remotely or on a hybrid schedule will remain the same.
We’ve all read stories about how generative AI will disrupt knowledge-based jobs. However, HR leaders also see the opportunity for AI to help with areas like onboarding, performance management, and training and reskilling. According to the article, “Technology can also be a primary enabler of a stronger learning and development ecosystem for workers. Worker empowerment is driving engagement, and businesses need to give their employees the tools to help advance themselves and their skills.”
Led by the understanding of how important employee engagement has become and the complexity surrounding employee development, the need to implement a more strategic talent management approach has also increased the number of Chief Talent Officers in the C-suite.
Talent management is critical to the success of any business. Therefore, executive leadership must empower these HR leaders to start from scratch so they can experiment and find out what works best for the organization. The traditional ways of approaching talent management won’t work anymore. To attract and retain the best talent, they must understand what is meaningful to today’s workers.
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