Nearly three-quarters of HR professionals, 72%, say people challenges and talent gaps are the biggest obstacles they currently face. Just 35% believe their people-management functions use relevant digital technologies, and only 30% agree that HR is using data and analytics to anticipate people challenges.
The findings were included in a research report from Boston Consulting Group and the World Federation of People Management Associations.
Other key challenges include digital transformation and innovation, the economic downturn, sustainability transformation and data security.
“The respondents clearly recognize that improvement on priority topics — such as strategic workforce planning, upskilling and AI adoption — is important to the continued success of their companies, but also that their current capabilities in those areas are very weak,” said Jens Baier, a BCG managing director and co-author of the report. “Prioritizing proactive investment in digital and data capabilities is key to solving many of the challenges that limit the organizational impact that people functions can deliver.”
Navigating People Challenges
To prepare for future challenges, the report said people-management leaders should:
- Leverage data to accurately plan for talent supply and demand.
- Improve their talent acquisition efforts.
- Invest in upskilling and reskilling the current workforce.
- Unlock value through AI.
- Focus on change management and organizational development.
“Companies need to continuously prioritize developing the talent they already have — and upskilling and reskilling, in conjunction with effective talent acquisition, is critical to making this happen,” said WFPMA President Anthony Ariganello. “It is important for companies to see digital transformation not as a goal, per se, but rather as an enabler for other goals such as greater efficiency, improved service levels, or a better employee experience. It is a foundational element of multiple people engagement topics.”
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