The War for Talent is Heating Up
Organizations are loading up on HR technology and AI to try to separate themselves from the pack. Many claim that advanced technology like Artificial Intelligence is going to completely transform how HR is done, and for the better – but how true is that? Let’s explore.
More talent or the RIGHT talent?
Based on numbers from the Bureau of Labor Statistics, from 1950 to 2000 the labor force grew by 127%, from 62 million to 141 million. However, as baby boomers retire there are far fewer people moving in to take their place – it’s projected that between 2000 and 2050, the number will only increase to 192 million, or a 36% growth rate.
With the decline in the growth of the labor force, it has become more and more difficult to find talent. So, companies have invested significantly in online search capabilities to access pools of global talent as well as on internal tools to manage the flood of volume that comes with it. While the focus on accessing more talent continues to deliver incremental returns, the key issue we should be asking is whether it’s about finding MORE talent or finding the RIGHT talent?
The real problem is that we aren’t getting the RIGHT talent.
Although the talent shortage is a real issue, it turns out that it’s not the biggest issue facing companies. Despite billions of dollars invested, there has been NO improvement in tenure or turnover in over 30 years.
At the very core of that issue is one simple fact: 70% of people are in the wrong jobs! Yes, you read that right. Just one example of the research that supports this is from a recent Gallup study that found that 70% of Americans and 85% of global workers are disengaged with their job. This problem affects over 125M people in North America alone and causes nearly $2 trillion in drag on the economy every year! Needless to say, what we’re talking about is an epidemic that amounts to the greatest business problem that exists today. So this begs the questions – what’s being done about it and why haven’t we fixed it yet?