The Workforce Crisis of the 21st Century
Can your business adapt to the changes that’s looming in the future workforce market?
We are all aware of how important human capital is in the success of our business.
People with the right skills working together in an awesome company culture is a big advantage. This kind of workforce can create opportunities, redefine standards and transcend boundaries.
Effective employee management becomes mandatory as a new generation of workforce joins the labor market.
With them comes new opportunities for both jobholders and employers. But so do risks. Experts predict that the 21st century will see employment options evolve into a more global and knowledge-based economy to appeal and cater to the needs of the 2020 workforce.
It’s not an easy job to formulate a strategic scheme for the future workforce! As a matter of fact, many of us still lag behind in answering to the needs of our current generation of workers.
Several companies across the globe don’t have the tools, knowledge and culture they need to measure the effectiveness of their HR efforts, to engage their employees and to monitor their performance.
The importance of people management is not reflected in the C-suite and boardroom. Many companies lack the culture and tools they need to engage employees, track their performance, and measure the effectiveness of HR initiatives.
This challenge is clearly summarized in an excerpt by Professor Gunter Stalh and other members of the MIT Sloan Management Review. It says:
“Not only do businesses need to adjust to shifting demographics and workforce preferences, but they must also build new capabilities and revitalize their organizations—all while investing in new technologies, globalizing their operations, and contending with new competitors”.
A research by the Oxford Economics and SAP was conducted in order to highlight the expertise and orientation of non-executives and to compare their standpoints with the management perspectives. The survey was administered in 27 countries during the second quarter of 2014.
The participants were divided into two groups: one with 2,700 executives and the other with 2,700 employees. In each of the countries assessed, live interviews with executives were also conducted. The study was conducted for the sole purpose of gaining better understanding of the complex scenario related by Stalh and his colleagues.
The results show that the 2020 workforce will be significantly different from its predecessors. Businesses are aware that big changes are coming and are now making all the necessary “adjustments”. However, according to the study, the so-called “transformation” is still hindered by two obstacles:
- Oftentimes, the boardroom does not reflect the importance of human resource management to the business strategy.
- Majority of the companies don’t have the right tools, skills and culture to foster an engaged workforce and to keep track of their performance.
These shortcoming can’t be taken for granted as it will drastically impact your company’s overall performance and productivity in the near future.
Do you know why many companies fail to meet their workforce goals? It’s because the HR personnel lack the insights, status and information to strategically contend this impending crisis.
To keep this from happening, the HR personnel must keep in touch with both the employees and executives when developing and implementing workforce initiatives.