Looming Talent Crisis: Companies Unprepared for Future Work

Businesses are facing the most diverse work environment that the world has ever seen with five different generations working together, across geographies — each with different skills, experiences, and work habits, according to a new study by Oxford Economics and SAP.

More of these workers will be freelancers and long-term contractors. All of this represents a major opportunity for productivity, talent development, and employee engagement, but the Workforce 2020 report found that most companies are unprepared to capitalize on it.

It also found that most companies recognize the importance of managing an increasingly international, diverse and mobile workforce. However, the majority lack the strategy, culture, and solutions to do so.

Oxford Economics surveyed more than 5,400 employees and executives and interviewed 29 executives in 27 countries, finding that two-thirds of businesses have not made significant progress toward building a workforce that will meet their future business objectives.

“To gain an advantage in the future, businesses must understand the workforce of tomorrow and its importance to bottom-line success — today,” said Edward Cone, managing editor of Thought Leadership at Oxford Economics.

“Our research shows that the C-suite is out of touch with HR on business strategy and priorities, and workers are not getting what they want from their employers regarding incentives, benefits, and training.”

The study’s findings challenge the prevailing wisdom and highlight the most critical issues facing HR professionals. At the top of the list were: compensation matters; millennials are misunderstood; the talent gap is widening; leadership is lacking; the workforce is changing; and compensation models, development, and technology must change.

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