Talent Transformation: Why companies are spending big
Annual marketing surveys and reports have predicted a steady climb in employee attrition rates over the next financial year, whilst the gap between open positions in a company versus employable resources has reached an impasse.
With a conflicting battle between ‘Employee Quit Rates’ and ‘Happy Campers’ (idle employees), companies have started to look at tangent solutions to help tackle this dilemma.
Talent Transformation sprung up from the abyss like a knight in shining armour, to help organisations mould resources from within.
Hence, corporate spending on talent transformation and upskilling/ reskilling has started to peak rapidly. In India alone, companies have observed an annual expenditure between Rs. 16,000 – 53,000 per employee. The aggregate value constitutes nearly 25 to 38% of the yearly L&D budget!
So where exactly are companies investing when it comes to Talent Transformation?
Training and Transforming
Due to the ever-evolving marketplace, companies around the world have seen an immediate requirement to adapt or suffer the inevitable blow from upcoming competitors. Hence, organisations require their employees to function at a higher capacity.
So, as the job descriptions began to evolve and change over the course of time, employees are often left stranded without adequate skill-sets. An expensive solution for the company would be to liquidate these resources and hire new manpower to combat these emerging needs. Yet, the needs of a company changes at regular intervals with respect to the pace of the industry. This irregular wave and method will only end up costing the company millions over a period.
However, merely upskilling/reskilling the employees isn’t enough. Organisations also need to evolve and adapt new methods in order to help employees embrace the role. Companies will need to also design newer competency models to predict the requirements from an employee which correlates to business needs, operations and future growth.
By becoming invested in the employee’s future and skill development, a sense of loyalty brews, which inevitable reduces flight-risks and voluntary resignations.
The Work Environment of the Future
Whilst industry conglomerates have managed to put their feet into water by establishing a futuristic work environment and attitude, HR professionals believe it doesn’t just end with extended coffee breaks and nap-pods!
An upcoming trend is the concept of working remotely. The idea that breeds an inclusive environment, has witnessed a spike in interest over the last few years. A study found that over 40% of employees in the US chose to work remotely and in Australia, there has been a 30% increase since 2017 involving individuals who worked remotely.
The approach of working remotely isn’t only attributed to the millennial working culture, but rather promotes an equivocal balance between work and an employee’s personal life. It promotes a feeling of wellbeing and trust, which have adjudged as major contributing factors towards career advancement and fulfilment.
Even the basic design and layout of the workspace proves to be an important factor for employee satisfaction and productivity. Offices that are designed by keeping in mind an array of requirements, such as cosy lounges for informal meetings and isolated workspaces for deeper work, has ensured employees can attain the maximum from their workplace for heightened output.
After completely reinventing industries like Transportation, Real Estate, SCM & Logistics, Healthcare, Finance and Biomedicine, Data Analytics in Talent Transformation is en route to becoming the next big game changer.
Since nurturing employees is the first step to reinventing human resources in a company, industries are turning to data for some help. BPOs around the world have started using data to monitor an employee’s calls to understand their communication skills, ability to resolve complex challenges and overall reliability. By doing so, the BPOs can launch the required training sessions and upskilling courses to help employees improve in specific areas of expertise.
Furthermore, by leveraging data analytics to understand ROI in the hiring process as well track employee fulfilment, organisations can chart out their workforce demographics and predict output.
Yet, very few companies are equipped with the right tools and software to intelligently process the unstructured data to deliver insights. Deployment costs and training of HR personnel has become a hurdle that some entities are refusing to jump over. However, with the advent of Artificial Intelligence and Machine Learning, scaling this solution to the right extent is just around the corner.
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