The Talent ShiftThe risks of talent blind spots

Leaders know that inadequacies in their workforce are a liability.

The Talent ShiftThe risks of talent blind spots

Leaders know that inadequacies in their workforce are a liability.

The challenges of talent planning

Many businesses may be vulnerable to reduced profitability and growth due to the inaction on the looming talent crunch. Leaders know that inadequacies in their workforce are a liability, and that others underappreciate this threat, with 59% of them agreeing that companies underestimate talent as an organizational risk.

Despite their awareness of organizational failings on talent, many business leaders fall into the same trap: A third do not believe that talent shortages will reduce their growth or limit their profitability; a further quarter have no opinion on the subject. Notably, 58% of CEOs say they haven’t faced a significant talent shortage before, meaning there’s a dearth of leaders with practical experience in dealing with a crisis in this area. This gap in C-suite experience will challenge leaders globally across the full range of industries examined by the Korn Ferry research.

Further, the current crop of corporate leaders are honest about their discomfort with people planning, with 70% of them admitting that it is easier to plan for matters involving technology and tangible assets than it is for issues affecting talent. Thus, potentially disincentivized from tackling workforce challenges, corporate leaders also show they are in denial about the consequences of unchecked talent shortages: Just 42% of business leaders believe the talent crunch will affect their organization’s growth or profitability. Korn Ferry research, however, shows that the 20 economies studied could collectively fail to grow by $8.452 trillion by 2030 if talent shortages are not tackled.

TALK TO AN EXPERT

"Great business planning is like coaching a sports team. You always know you’ve got a match coming up. You never know exactly what’ll happen, but you know what skills you need to win. If you train the whole team properly, they’ll be in the best possible position to respond, whatever happens on the field."

Alan Guarino
Vice Chairman, CEO and Board Services, Korn Ferry

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Understand the talent shift