There is an imminent talent crisis facing most enterprises. At one end of their business, teams are facing existential change as large portions of their work are automated away or replaced entirely by digital technologies. At the other end, the impossible prospect of getting enough people with the right skills is hampering enterprise ambitions. If organizations are to survive this new world, they must take their role in the future of talent seriously or else risk becoming a victim of an increasingly acute talent war.
From influencing education to building frameworks for professionals—enterprise leaders must pick up the reins
One of the key takeaways from a recent summit is that enterprise leaders are just making it up as they go along. In Exhibit 1, we can see that even with the best intentions, most organizations simply don’t have a clue about the future of talent in their firms—whether they’re honest and admit they don’t know or they find solace in the cliched response of finding misplaced staff new technologies or more data-centric work to do.
Exhibit 1: The Future of Talent Poll, taken at the HFS FORA Summit 2018
Source: HFS Research, 2018
In reality, while enterprise leaders may feel powerless under the tide of change, they wield considerable influence across what we’re calling “the talent ladder.” At every stage of talent development, from early education to reskilling, enterprise leaders can help drive a talent strategy that furnishes their business with the skills it needs to survive. In Exhibit 2, we dig into the variety of ways enterprises can be masters of their own fate in the talent war.
Exhibit 2: How can enterprises address every level of the talent ladder?
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Talent ladder Rung |
Path to influence |
Example |
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Enterprises must: Influence education policy to ensure awareness of technology and related careers at an early age, securing future talent pools
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AWS has teamed up with educators in New York to launch a “pathway to cloud computing jobs” while also providing grants to build robotics and computer science educators and programs. |
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Higher (tertiary) education
Enterprises must: Partner with universities to develop technology, tailor degrees, and recruit from the heart of talent |
University or college is often the final step in full-time education for future employees. Enterprise leaders must partner with key establishments to drive the education agenda, building a bridge high-potential talent and their firm. Leaders’ activities should range from engaging at a traditional level—such as attending careers fairs—to directly shaping education roadmaps through partnerships.
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IBM is driving quantum computing education in partnership with Harvard University and others.
Microsoft is battling the talent gap through the London School of Economics and others, preparing students for the “jobs of tomorrow” across AI, cybersecurity, IoT, and data science. |
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Apprenticeships
Enterprises must: Promote technology and business-based apprenticeships in partnership with governments
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The UK government is one of many to partner with businesses to design national apprenticeship programs to meet skills gaps. |
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Junior professionals
Enterprises must: Ensure that early training schemes and company culture better-attracts and retains talent |
From graduate schemes to internships—recruiting and developing junior professionals is key to the success of modern enterprises. Leaders must develop training schemes that not only attract the right talent but also provide them with the skills and experience they need to meet existing and future business needs. |
Large consulting firms such as Deloitte, PwC, and KPMG are frequently ranked highly in graduate career evaluations, helping to bring in the right talent. These firms advertise the support that they offer in developing long-term careers. |
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Professionals
Enterprises must: Reinvent reskilling and continuous-learning processes
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Enterprises must rethink their internal ongoing training programs. To start with, consider partnering with unconventional education platforms such as online degrees to reskill at pace and scale. |
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Middle management
Enterprises must: Build talent strategies to give middle-management the tools and skills they need
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Candid conversations with business leaders helped us pull together a guide to successful leadership in the changing business environment. |
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Governments
Enterprises must: Ensure policymakers understand the technology and business ecosystems of today and the future
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Policymakers must be aware of how technology and business ecosystems are changing and how they as policymakers can fuel the best environment for innovation, competition, and talent development. Enterprise leaders must help shape the conversation in government about the future of talent—and the areas requiring investment to ensure the success of the modern economy. |
Business leaders are often consulted by government bodies about policy as part of specific committees or ad-hoc investigations. |
The Bottom Line: Enterprises must take the initiative at every level of the talent ladder to survive the growing talent crisis
Enterprises have the keys to unlocking the talent conundrum (presented in Exhibit 2). They can influence every rung of the talent ladder—from education and early careers to the C-suite and policymaking.
The key is balancing enterprises’ short- and long- term needs. In the short-term enterprises are very much in charge of their own destiny; a combination of existing channels such as graduate schemes and traditional HR, new partnerships with universities, and unconventional recruitment and reskilling will act as temporary advantages in the talent war. However, in the long-run, leadership teams need to comprehensively transform talent management in their organization and drive their enterprise’s role as an influencer to partnership ecosystems, governments, and educational bodies. It’s high-time business leaders embraced their critical responsibilities.