The research explores key accelerators of talent effectiveness and their impact on successful workforce practices.
According to Mercer’s new Talent Barometer Survey, organisations are increasingly questioning if their investment in human capital is paying off. 60% of organisations worldwide report increasing their investment in talent in recent years. However, a much smaller percentage of respondents, 24%, say their plans are highly effective in meeting immediate and long-term human capital needs. Additionally, 77% of those surveyed by Mercer have a strategic workforce plan in place. But when asked whether it is part of their longer-term strategy, only 12% said they had plans that extended for five years or more.
The survey, which assesses the effectiveness of workforce practices in driving the short- and long-term success of organisations’ talent plans, includes responses from HR and talent management executives at more than 1,260 organisations around the globe. The research explores key accelerators of talent effectiveness – education, health and wellness, and career experience – and their impact on successful workforce practices.
Significantly, more than half (57%) of the organisations surveyed are not confident that educational institutions will generate the talent needed by their businesses today. The sentiment among respondents does not improve even when they are looking out as far as five years from today. The survey findings also reveal that as a result of this educational gap , organisations are employing internships, apprenticeships, and teaching high-demand skills in secondary and tertiary institutions.
As for health and wellness, the survey finds that less than half of organisations worldwide actively apply the basic elements of a health management program, such as ensuring a healthy workplace and establishing health-related policies and procedures (as reported by 48% and 44% of organisations, respectively). Less than one-third (31%) actively use a formal, written multi-year strategic plan for health and wellness. “The research suggests a strong link between employers’ focus on health and wellness and employee engagement and productivity. This means that employers are missing out on one of the greatest tools available to enhance their strategic workforce plans,” said Dave Rahill, President, Mercer Health & Benefits.
The research also confirms that encouraging diverse career experiences and opportunities for growth which allow talent to excel is an essential part of workforce planning. Organisations globally take the issue of career experience seriously, with the majority (80%) conducting regular (annual or semi-annual) talent reviews. However, far fewer actively employ other actions that enhance talent availability and quality, such as assessing supply and demand of critical talent, putting a strategic succession plan in place and developing programs for high-potential employees.