A new global report by The Boston Consulting Group and the World Federation of People Management Associations has revealed that strategic workforce planning is falling far short in multinational organisations.
The report, Creating People Advantage 2010: How Companies Can Adapt Their HR Practices for Volatile Times, found that while the time horizon for strategic workforce planning should be at least as long as that for strategic planning, only 15% of respondents use workforce supply models, and only 9% use more advanced models.
It means there are worrying talent deficits on the horizon, with a dearth of leadership skills at senior levels that will peak between 2020 and 2030. Some 56% of survey respondents said there was a critical talent gap for senior management’s successors. The biggest was expected in IT. Around the world, problems were most expected in Japan and the former Soviet Union. This has a clear impact on the effectiveness of the business. High-performing companies recruit 50% of their leaders internally, compared to 13% of low-performing companies. When developing future leaders, high-performing companies consider people development and effective decision making key – more so than lower-performing businesses.