There are plenty of predictions that the U.S. labor market is on the cusp of a wide-scale talent shortage. A 2014 survey from Challenger, Gray & Christmas, Inc., found that 77 percent of companies are currently having trouble hiring the right talent. Even worse, the same survey found that 90 percent of those companies expect it will get harder to recruit good talent as the economy continues to grow.
The Conference Board expects that the next 15 years will see companies facing lower profits and hiring wages as a result of retiring Baby Boomers and a strong economy. So now is the time to think about your company’s current approach to talent—and to make changes, if needed.
Start with a simple question: what role does recruiting talent play in your organization? There are many answers to this question. For example, Douglas Ready, Senior Lecturer in Organization Effectiveness at MIT Sloan School of Management, cited a division president of a Fortune 100 manufacturing company as saying, “We don’t need to waste time building a talent management process for our company … that’s what headhunters are for!” Clearly, this is an executive who views talent as bodies to fill open positions. That may work for some companies, but certainly not for those companies who understand the strategic value talent can play in an organization.