When did you first hear the term “war for talent”? For many business leaders, thinking about the future triggers a certain sense of urgency, not least because of this phrase. Digitalization and other major transformation processes have set a ball rolling that will probably trigger change in every business area of organizations as we know them today.
A well-developed People Strategy allows you to respond appropriately to technical and demographic changes. To counteract the impending impact on your business model and the consequences it will have for personnel management, you should start preparing your company for future trends right away.
However, a traditional understanding of talent recruitment and skills management is no longer sufficient at this point. If you want to be successful in the future, you should understand what a prominent position employees will occupy in the company in the coming years. Your employees should not only be seen as strategic resources needed to achieve your business goals. Rather, we should see current and potential employees as investors who choose to invest precious time and energy into our company.
What are the determining factors of these changes? How do you design a People Strategy that equips your business for the future? You will find answers to these questions in this blog post.
The workforce of the future will be distinguished by a number of characteristics that you should already include in your personnel planning today. However, what are the key developments when it comes to employee management and the future workforce in your organization?
Cutting-edge technologies are increasingly having an influence on how we work. Cloud, social media, the internet of things (IoT) and a high degree of automation are altering the way people work by opening up new possibilities for digital, automated work. Increasing virtual connectivity is leading to a delocalization of many work processes, such as talent management.
These technological developments are driving social changes as well. Many employees will continue working beyond retirement age, while there will be fewer young employees out there. As a result, we can expect a greater age diversity in our workforce.
Highly qualified women will make up a large proportion of the workforce in the workplace of the future. More employees will choose to work as freelancers or on flexitime. Talent management will become more targeted and employee-oriented.
An effective People Strategy will already be addressing these turning points. Therefore, anyone who wants to enjoy success in the future should tailor their People Strategy to the following criteria:
Easier said than done? Absolutely! Below are some practical tips that will ensure you adopt a successful People Strategy for your business.
From large companies to SMEs, your People Strategy is a crucial building block for the future success of your company. Here you will discover 3 reasons why it’s paramount for SMEs in particular to implement a People Strategy.
If you want to retain your leading position in a dynamic environment, you should not react to changes as soon as they occur. Use the following questions to align your People Strategy with future trends right away.
Optimize your personnel plan with an eye on the future. The following questions will help you determine your personnel requirements:
Based on these assessments, you can already reduce your costs today and make your processes more efficient.
In the future, we can expect the war for talent to become increasingly intense. On the one hand, employees belonging to the Baby Boom generation (born between 1946 and 1964) will leave companies and head into retirement. On the other hand, Millennials (born between 1980 and 2000) and Generation Z will not be sufficient to replace them. As a result, your organization’s ability to attract young talent will become a key competitive advantage in the future.
Technological developments will certainly have an impact on the recruitment process. The search for talent will increasingly take place online and will not be limited by geographical location. It is becoming more and more important to understand who you want to reach as well as to know the networks in which young professionals are active. This is where digital know-how plays a critical role. Recruitment will increasingly take place via “targeted ads” on social media platforms and with the help of software.
All the points mentioned above also affect whether you can retain talent in your company in the long term (see key question 4).
Though it may not seem that way today, workforces in 2025 will be composed of many different age groups. You will be able to observe the following developments in your personnel portfolios in the future.
To ensure you have effective skills management that prepares your organization for this generation change, you should take note of the following:
Talented job seekers will receive a wider range of job offers in the future. As a first step, you need to attract people to your company (see key question 2). What ensues after hiring will become increasingly important in the future to ensure that talented employees remain in your company:
Around 90% of newly recruited employees decide whether they want to stay in their new job within the first six months. This means you should make sure have an excellent onboarding process.
According to a study by SAP, 98.7% of the most successful SMEs already use intelligent technology for their workforce management.
A positive employee experience begins with the recruiting process and continues through to the onboarding process and organizational structures. The more satisfied your employees are, the more likely they are to remain loyal to your organization.
Master new challenges together – that’s exactly how teams bond. As a manager, make it clear that you want to grow together with your employees and would welcome any change requests.
Are you preparing your organization for the future with a winning People Strategy and wondering if you are on the right track? We would be happy to support you in this challenge and assist you by providing a professional assessment! We look forward to hearing from you!
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