Many executives foresee leadership shortages in the year ahead and are looking at programs to accelerate leadership development within their companies, according to new research from Deloitte.
The Deloitte report, Talent Edge 2020: Redrafting Talent Strategies for the Uneven Recovery, identifies a number of significant trends driving corporate talent strategies and tracks how companies are responding to shifting economic realities.
- Companies seek new sources of growth in a stalled economy: In a ranking of top strategic priorities, 38 percent of surveyed executives picked improving top- and bottom-line performance, followed by expanding into global and new markets at 33 percent.
- Executives look to strengthen leadership development pipelines and programs: Approximately one-third (30 percent) of executives surveyed ranked developing leaders and succession planning as today’s top talent priority—the highest of any response in the survey. Additionally, 29 percent predicted this specific issue will likely remain the top talent concern over the next three years.
- As talent demands expand globally, pressure is building to create talent strategies that can both scale (for size and efficiency) and focus on regional markets: Asia Pacific (APAC) executives face urgent needs with significant shortages anticipated in research & development (68 percent), operations (64 percent) and strategy and planning (62 percent). Survey participants in the Americas see executive leadership and operations as the main talent gaps (both 56 percent), while business leaders in the Europe, the Middle East and Africa (EMEA) region are far less concerned about shortfalls in talent.
- Corporate talent programs are falling short on performance and investment: Only 17 percent of executives surveyed believe their talent programs are “world-class across the board;” 83 percent acknowledge that significant improvements need to be made in their organisations. Executives that regard their talent efforts “world-class” are more likely to report —by margins of 20 percentage points or more—that their companies are investing in these programs at a “high” level.
“Today’s top talent organisations are not sitting back and waiting for a slow recovery to solve their talent challenges,” says Kwan. “These executives are more likely to invest (by a two to one margin) across the board on talent priorities and initiatives.”