Feature
The working world has gone through considerable upheaval in recent years, leaving the people engine of most organizations in need of a lot of work. Given that, you might expect CEOs would rank talent, skills and workforce strategy as one of their top priorities for 2024.
Yet a look at McKinsey’s eight CEO priorities for 2024 shows scant attention paid to talent. New technologies, the macro environment and economic growth get plenty of notice, but as I read the report I kept asking myself, "What about the people?"
Talent is a key differentiator in a constantly changing business landscape. An oversight like this is therefore not just surprising, but potentially detrimental. Has talent strategy really fallen as a CEO priority or is it an assumed part of an overall organizational strategy going forward?
What McKinsey Gets Right
McKinsey nails its one mention of talent, namely the importance of middle managers. As it rightly point out, leaders at all levels are the linchpins of any organization. The role of middle managers in translating strategy into action is severely undervalued and deserves more spotlight. The positive impact of middle management goes frequently disregarded, yet it still is often blamed for attrition rates or creating bureaucracy and hurdles to success.
With so many managers unprepared for their unique role in the organization, it's sensible to make them a part of your 2024 strategy.
McKinsey also spotlights generative AI as a transformative force. No arguments there, but let's be real: while AI is a game-changer, focusing solely on its tech risks overlooks the human element in the equation. You can't separate the two.
Technology comes up again in the context of how organizations need to outcompete with technology. Yet, who is it that's using the tech? Technology competitiveness isn't just about having the latest innovative solutions, it's about how well your workforce can wield these tools. The focus should be as much on upskilling and training as on technological procurement.
McKinsey's focus on growth is spot-on, but growth isn't just about increased market share and expanding into new markets. It's also about nurturing a culture that fosters innovation and employee engagement to drive sustainable growth from the inside out. And while the emphasis on macroeconomics is also strong, it should be balanced with readiness to embrace change — driven by the leaders and people inside of the organization.
Related Article: What HR's Top 5 Priorities Say About the Year to Come
What's Missing in McKinsey’s CEO Priorities
The lack of focus on talent might stem from an assumption that talent development and strategy is a given or perhaps an underestimation of the evolving talent challenges. As Deloitte Insights highlights, organizations are struggling to find the talent they need, with a growing need for agility and a shift to skills-based organizations.
As we look forward to the rest of 2024, I see four areas every leader, especially CEOs, should be focussing on.
1. Embracing a Skills-Based Approach
Part of the move to skills-based organizations means a move away from traditional job titles to focus more on skills, capabilities and interests. This shift aligns well with an ecosystem mindset, as Mercer highlights. The workforce ecosystem is expanding beyond traditional full-time employees. Integrating nontraditional workers — including freelancers, part-time employees and remote workers — into the organization is critical for tapping into a diverse talent pool.
The approach values all workers for their skills, regardless of their employment status.
2. Reimagining Diversity, Equity and Inclusion (DEI)
DEI efforts need to be completely reimagined. As McKinsey's Women in the Workplace report shows, there's a noticeable lack of progress in spite of the high levels of ambition among women, especially in the transition from entry-level to managerial positions. That’s just one example of the many DEI shortcomings inside of organizations. A more inclusive approach is needed to ensure fair advancement opportunities for all.
Related Article: Here's How a Chief Belonging Officer Can Revive DEI Efforts
3. Focusing on Employee Experience Amid a Changing Landscape
I doubt I'll ever stop beating the employee experience drum. Mercer's Global Talent Trends highlight the importance of employee experience, which includes aspects like flexible working, skills development and well-being. We've also seen hybrid work models grow more prevalent in the wake of the pandemic. Organizations need to adapt their talent strategies to be more flexible and resilient in the face of ongoing disruptions while placing employee contributions at a premium.
4. Leveraging Technology for Talent Strategy
The rise of digital technology offers new avenues for managing and engaging talent. But contrary to McKinsey's take, technology should always be seen through a human lens. Remote work technologies, collaboration tools and AI-powered workplace solutions can enhance the overall talent strategy of an organization, improving performance and efficiency, while creating a great experience for employees.
Related Article: Forrester Predicts an EX Winter Is Coming. How to Prepare
Talent Is the Key
The absence of talent from McKinsey's list of priorities is concerning. CEOs must realize that talent is the cornerstone of all their strategic initiatives and shouldn't assume it will take care of itself. It should be a priority this year and every year.
Conference
Sep
16
HR Tech Conference Las Vegas 2025
Register
Conference
Oct
27
Gartner HR Symposium/Xpo Orlando 2025
Register
Good luck achieving business goals without a skilled, engaged and diverse workforce. So as we move into 2024, the focus must shift to holistic talent strategies that encompass the changing nature of work. Only then can organizations truly thrive in our dynamic, turbulent times.
