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2021TalentTrendsReport

rewriteyourtalentstrategyplaybookduringextraordinarytimes.

humanforward.

AsRandstadSourcerightpreparedlastyear’sTalentTrendsReport,weprojectedthat2020wouldbealandmarkyearforfuturists.Asitturnsout,itwasamosttransformativeyearforjustabouteveryone.

Forhumancapitalleaders,therewerenumerousunprecedentedchallenges—fromdevelopingsafetyguidelinesandprotocolstokeepingat-homeworkersengagedtorevampingcorporatecommunicationsstrategies.Throughitall,HRleadersbecameaguidingforcefortheirorganizationsbyenablingtheirpeopletooperateremotelyandkeepingtalentengaged.AsCNBCpointedout,thecoronavirushasclearly

elevated

theimportanceofCHROs

duringthistime.

Fast-forwardtoanewyear:inmanywaysHRisdrivingbusinesssuccessaswepivotintoatransformedglobaleconomy.Sectorsseverelyaffectedbylockdownsandrestrictions,suchas

hospitality

andtravel,areturningtotheirchiefpeopleofficersforever-changingguidanceonoperatingsafelyandplanningfortheeventualreturnofbusinessasusual.CompaniesfortunateenoughtoprosperduringthepandemicareleaningonHR

toenablegrowththroughmassivehiringinitiatives,suchastheone

undertakenbyAmazon.

Regardlessofwhetheryourcompanyishiringorretrenching,theC-suiteiscountingonyouforleadership.Atnotimehasworkforcestrategybeenmorecriticaltobusinessoutcomesthanitistoday,andyou’llneedtoelevateHR’sfunctionfurthertomeetandexceedexpectations.Yourbiggestchallengesmaystilllieahead.Howwillyourewriteyourtalentstrategyplaybookfor2021?

MikeSmith

globalCEO

RandstadSourceright

Our2021

TalentTrends

research,whichgaugedtheoutlookof850humancapitalandC-suiteleadersin17marketsaroundtheworld,affirmsthechallengesmanyorganizationsface,butalsoshowshowbusinessesareadaptingeffectivelyinthenewnormal.Nearlytwo-thirds(65%)saytheroleofHRhasshiftedsignificantlysincetheonsetoftheglobalpandemic.

Andwhenitcomestotalent,theaccelerationofdigitaltransformationhasmeantmanyoftheskillsgapscompaniesfacedbeforethepandemichavenotgoneaway.AddressingtheneedforgoodIT,HR,andfinanceandaccountingskillsremainsahighpriority.Infact,40%saytheycontinuetoexperiencetalentscarcityinIT,while28%saytheycan’tfindenoughqualifiedcandidatesforHRroles.Nearly1in5(19%)needmorefinanceandaccountingspecialists.

Withuncertaintyeclipsingyourview,howwillyouadaptyourtalentstrategytopreparefortheroadahead?Startwithgooddataandinsightstoguideyourway.AmongalltheinvestmentsHRhasundertakeninrecentyears,talentanalyticsremainthetopareaoffocusheadinginto2021;90%saytheywillcontinuetobudgetforsuchdataplatformsafterthepandemicsubsides.

Beyondbetterinsights,flexibilitywillbecriticaltoaccommodaterapidlyshiftingmarketconditions.Rightnowwe’rewitnessinganunprecedentedpushbycompanies,whichare

tappingintomorecontingenttalent

in

responsetoeconomicfluidity.Flexiblelaborisincreasinglyviewedasapowerfulwaytoaddresscriticalskillsdeficiencies,costefficienciesandrapidaccesstoagileresources.

Ourdatashowsthatamultiyeartrendofconvertingpermanentrolestotemporaryonesreversedfor2021.In2017,nearlyone-third(29%)ofourTalentTrendsrespondentsreportedtheyhadshiftedpermanentrolestotemporaryones,butthatnumberfelleachsubsequentyearto21%in2020.Our2021researchshowsexpectedconversionstotemporaryrolesroseslightlyto22%.

Thisshifttomorecontingenttalentresourceswillnotbewithoutchallenges.Companieswillneedtoconsiderhowtoattractandretainthebesttemporaryworkersorfacelosinggreattalenttocompetitorswithinandoutsidetheirindustries.

Theimportanceoftalentduringandafterthepandemiccannotbeoverstated.Andit’syourjobtoanswerthe"hows."Howwillyoufindandacquirethebesttalent?Howcanyoureachtheoptimalbalanceofcontingentandpermanentworkerstofuelyourbusinessengine?Howwillyouensuretimelyandcost-effectivedeploymentoftalentacrosstheorganization?Howcanyoucreateatransformedexperiencefortalentandhiringmanagers?Howareyouintroducingjust-in-caseandjust-in-timetalentsupplychainstrategies,andhowwillyouensureyourorganizationisbestenabledtodeterminehowworkgetsdone?

Thesearetoughquestionsyouprobablyaskeveryday.Butyoucandrawuponlessonslearnedin2020toprovidethedata-drivenadvice,resourcinginsightsandunwaveringleadershipthatwilldrivegrowthin2021.Addressingthe10workplacetrendsthatfollowinthisreportwillhelpyourorganizationrethinkhowworkgetsdonetoadvancecriticalmissionsthisyear.

Atnotimeinrecentmemoryhavehumancapitalleadersassumedamoreessentialroleinthesuccessoftheirbusinesses,andnowyoumustcontinuetohavethecouragetoboldlyfaceunprecedentedchallenges.Wherewillyouleadyourorganizationnext?

MikeSmith

globalCEO

RandstadSourceright

whatare2021’stoptalenttrends?

01020304

focusonskills,notjobs,

tocreatevalue.

remainflexibleinafluid takeworkforcehealth& sustainproductivitygains

economytowin. wellnesstocenterstage. withdigitaltransformation.

05

06

07

08

driveworkforce

getaheadofastill-growing

reshapethesupplychain

amplifythebusinesscasefora

decision-makingwithdata.

skillsgap.

withborderlesstalent.

cultureofdiversity&inclusion.

09

10

successstories

•intimesofuncertainty,Philipsspeedsup

buildasustainableworkforce

fuelemployerbrandstrategies

workforceinnovation.

byrepurposingtalent.

withyourtalentexperience.

•UCBimprovestimetohirewhilefillingan

unprecedentednumberofrequisitions.

01

focusonskills,notjobs,

tocreatevalue.

Canaligningyourstrategywithskillsetshelpyouachievegreaterbusinessperformance?

Foryears,humancapitalleadershavebeenconsideringhowtodrivegreatervaluefromtheirtalentstrategies,but2021appearstobetheyearthatseparatesthevisionariesfromthedaydreamers.Evenascountlesscompaniesfacecontinuedrestructuringandlooktocontrolworkforcecosts,theinnovatorsareprioritizingvalueoversavings.Theyknowthatinthelongtermtheirorganizationswillemergemorecompetitiveandagile.

Clearlythepandemichaselevatedtheimportanceofhumancapitalleadersoverthepastyear.Infact,inour2021

TalentTrends

research,65%saytheroleofHRhasshiftedsignificantly,and77%saytheirtalentstrategiesarenowmorefocusedonworkforceagilitythaneverbefore.

home

Humancapitalleaderscanmakeagreaterimpactonbusinessperformancebyadoptingavalue-orientedmindset.Withmany2021budgetsreduced,companiesarerethinkingavarietyofinvestments,includingthosethatimpacttheirworkforces.Forward-thinkingleadersaren’tjustfocusedonhowtocutcosts,however,butratheronhowtoredeploytheirspendinmoreefficientandeffectiveways.Thismeansembracinganoptimizedblendoftemporaryandpermanenttalentandfocusingonskills,ratherthanjobs.Thisholisticapproach,whichwasslowlybeingadoptedinrecentyears,isnowseeingbroaderinterest.

Theuseofcontingenttalenthasgrownsteadilyatmanyorganizationsoverthelastfewyears.Contingentworkforceprogramsarebeingthrust

intothe

spotlight,

and

StaffingIndustryAnalysts

projectsthatthestaffingmarketmaygrow10%thisyearasavaccineismadeavailable.

Butcompaniesarenowtakingafreshlookathowtheycanleverageflexiblelabortoachievebetterbusinessresultsanddriveefficiencies.Accordingto

McKinsey,

temporarylaborcanbethelinchpintoacompany’ssuccessin2021.Byrealigningstrategiesaroundthecontingentworkforce,companiesgainenhancedflexibilityandresilienceatatimewhenthesecompetenciesaregreatlyneeded.

Thisrevampedstrategyshouldexaminehowworkgetsdone,insteadofhowjobsarefilled.Byfocusingonskillsthatcanbedeployedacrosstheenterprise,businessesbuilddeepproficienciesandflexibility.Thistypeofholisticapproachalignswithwhatmanyorganizationshavebeenstrivingtoachieveforsometime:creatingatotaltalentmodelthatenhancesaccesstotalent,reducestimetodeploy,andoptimizesspendandagility.

01.focusonskills,notjobs,

tocreatevalue.

CasperZoetekouw,globalcommodityleader,ExternalWorkforceforPhilips,explainsthathiscompanycallsthisapproach"rightsourcing."Aspartofthecompany’stotalworkforcedemandmanagement(TWDM)solution,itdrivestremendousvalueandacompetitiveadvantageforPhilips.

"WithourTWDMsolutions,weanticipateandhelpourbusinessinchoosingandplanninghowworkneedstobedone.Andwedothisbyintegratingallofourworkforceoptionsintooneoverallprogram."

CasperZoetekouw

globalcommodityleader,ExternalWorkforce

Philips

Amongcompanieswesurveyedthathaveadoptedatotaltalentapproach,successfuladoptionandoutcomesareexceptionallyhigh.Nearlyall

(97%)saytheyareextremelyorverysatisfiedwiththemodeltheyhaveimplemented.AsmorecompaniessuchasPhilipsexecuteontheirtotaltalentambition,it’sexpectedthatsimilarresultswillbereported,leadingtogreaterworkforcevalue.

home

77%

saytheirtalentstrategiesarenowmorefocusedonworkforceagilitythaneverbefore.

97%

saytheyareextremelyorverysatisfiedwiththetotaltalentmodeltheyhaveimplemented.

01.focusonskills,notjobs,

tocreatevalue.

"Withsomanyorganizations

undergoingtransformation

now,humancapitalleaders

shouldconsiderthisan

opportunitytoeffectchange

throughaholisticapproachfor

fulfillingworkrequirements."

SueMarcus

regionalpresident,NorthAmericaRandstadSourceright

home

3questionsyoushouldask

01.focusonskills,notjobs,

tocreatevalue.

01

Dotheworkforcemeasureswehaveinplaceorareimplementingcreatelong-termvalueorshort-termgains?

02

Areweconsultingwithhiringmanagerstoconsiderhowbesttogetworkdoneregardlessofworkarrangements?

03

Doesourtalentstrategy

empowerbusinessleaders

toreachtheirgoalsmore

effectivelyandefficiently?

5waystocreatevaluewithaholistictalentapproach

01

Considerhowtoaccesstheresourcesandskillsyourbusinessneedsthroughalternativeandscalableworkarrangements,suchason-demandtalentorpayrolling.

02

Identifyhowskillscan

bedeployedacross

yourorganization

oncross-functional

agileprojects,notjust

acrossonefunction

ordepartment.

03

Eliminatesilosthatpreventyoufromaccessingalltypesoftalenttobestachieveyourdesiredoutcomes.

04

Buildadataengine

andtechnologystack

thatcangiveyou

greaterinsight—and

control—overhow

talentisacquired

anddeployed.

05

Buildtalentpoolsthat

driverapidselection

andacquisitionof

permanenthiresand

temporarystaff.

home

02

remainflexibleina

fluideconomytowin.

Areyoureadytorespondtotheneedsofyourworkforceandshiftingmarketdevelopments?

Akeyenablerformanyorganizationsinthepastyearwastheirabilitytooperatewithgreateragilityandflexibility.Thiswasevidencedbyhowquicklycompaniesadaptedtotheconstraintsofthepandemic,whichsentmillionsofworkersoutoftheofficeandbackhome.

CompaniesthatcouldflextothechangingdynamicsoftheCOVID-19crisis—fromshiftingbusinessmodelstohiringtalentinresponsetoincreaseddemandtoreskillingandredeployingemployees—emergedasthewinnersduringthistime.Havinglearnednumerouslessonsalongtheway,manybusinesseswillhavetostayflexibleinthemonthsandyearsahead.

home

Flexibilityisespeciallyneededinmanagingtheworkforce.Althoughmillionswerelaidofforfurloughedinitially,millionsofjobshavereturnedandmanynewroleshavebeencreated.WiththeglobaleconomywitnessingasecondwaveofinfectionsinQ4oflastyear,employerswereagainfacedwithadditionalrestrictionsandreductionineconomicactivity.Innovationwasbornoutofnecessityandnowemployeeshavenewexpectations.

Inlightofthis,companiesneedtoremainflexible.Organizationssuchasthe

InternationalMonetaryFund

(IMF)haveforecastedaglobalreboundof5.2%ineconomicgrowththisyear,butitalsoconcedesthisisbasedonahighdegreeofuncertainty.Thismeansbusinessesmustbeextremelycarefulintheirtalentacquisitionefforts.Mostimportantly,theyneedtobereadywhendemandreturns.

Atthesametime,employersshouldbeattunedtotheneedsoftheirworkforce.Becauseofthefluidnatureofthepandemicanduncertaintyaroundhowlongitwilltakeforvaccinestobewidelyavailable,revertingtoworkplacepracticespriortopre-pandemictimesmaytakealongtime.Humancapitalleadersfacecontinuedhighpressureofinspiringengagementandproductivityforremoteteams,whileaddressingworkforcefatigueandstressasthepandemiclingerson.

Overthepastyear,organizationshavelearnedtomanagetalentinnewways.Withsomanyworkingfromhome,dailycheck-insoverCiscoWebEx,MicrosoftTeams,GoogleMeetandZoomareapartofpeople’sdailyroutine.Forthemostpart,theflexibilityhasnotresultedindecliningproductivity.Infact,

somecompanies

suchasCiscoandMicrosoftreportedhigherproductivitylastyear,andothershave

embracedpermanentremote

work

options.

02.remainflexibleinafluid

economytowin.

Our2021

TalentTrends

researchrevealsthat64%ofhumancapitalleadersviewflexibleworkingarrangementsasimportanttotalentattraction.Amajority(59%)alsosayafamily-firstcultureisastrongemployeevalueproposition,with55%reportingthattheircompaniesaredeliveringonthispromise.Sixtypercent(60%)saytheycurrentlyoffertotaloragreatdealofflexibilitytotheirworkforce.

Supportforworkingparents

andcaregiverscontinuestobeespeciallyimportant,astheseindividualsarestillchallengedtobalanceworkandhomeresponsibilities.Employersmayoffersupport,suchasfinancialassistancetoworkingparentsandcaregiverstosupplementadditionalcareexpenses,buttheyshouldalsooffergreaterflexibilityinhow,whereandwhenworkiscompleted.Allowingcaregiverstoadjusttheirhours,blockno-callzonesandfosteringacultureofunderstandingcanmakeabigimpact.

Asthepandemicebbsinsomemarkets,morecompaniesmayconsidermandatingin-officeattendanceagain.Evenso,hybridscheduleswilllikelybepreferredbytalentastheirviewsofwork-lifebalancehavefundamentallyshifted.

Workmonitor,

researchconductedbyRandstadN.V.inthefourthquarterof2020,showsthat35%oftheworkingpopulationpreferahybridschedule,andone-quarterwantflexibleschedulestoaccommodatetheirdesiredwork-lifebalance.Mosthumancapitalleaderswesurveyedarerespondingtothisshift;80%saytheirbusinesswillconsidersomesortofpermanentwork-from-homepolicy.

Althoughcorporateleadershavemoreclarityanddirectiononwhat’saheadfortheirbusinessinthecomingmonths,agreatdealofuncertaintystillexists.Humancapitalleadersmustremainflexibletoshiftingconditions,considerhowandwhentoreturntoworksites,andbalancenewtalentexpectations.

home

64%

ofhumancapitalleadersviewflexibleworkingarrangementsasimportanttotalentattraction.

80%

saytheirbusinesswillconsidersomesortofpermanentwork-from-homepolicy.

02.remainflexibleinafluid

economytowin.

"Toensureyouhaveaflexible

andagilewayofworking,

analyzethelatestmarketand

internalsurveydatatohelp

guideyourtalentdecisions.

Knowingwhatistocomeand

theneedsofyourworkforcewill

becriticaltosuccessin2021."

GrahamTrevor

HRdirector,RandstadSourcerightEMEAHRandCorporateServicesdirector,RandstadUKandIreland

home

3questionsyoushouldask

02.remainflexibleinafluid

economytowin.

01

Areweregularlysurveyingourworkforcetounderstandhowwecansupportindividualneedsduringchallengingtimes?

02

Howarewealigningwith

businessleaderstorespond

rapidlytoworkerand

businessneeds?

03

Howwillweuseflexible

workingarrangementsinthe

longtermbasedonshifting

talentexpectations?

5waystobuildanagileandflexibleworkforce

01

02

03

04

05

Allowflexible

Considergiving

Providestipendsor

Earmarkdaysinthe

Offerjobsharingto

schedulesthatare

employeeschoices

othersupporttohelp

weektominimize

thosewhoprefer

bothmoreconducive

aroundin-office

withcaregivingor

meetings,allowing

toworkonlyafew

toindividual

attendance,whether

childcareneeds.

employeestofocus

daysperweekto

circumstances

that’sahybrid

ontheirwork.

accommodate

andtotheneedsof

schedule,fullyremote

homeobligations.

theorganization.

oralwaysonsite.

home

03takeworkforcehealth&wellnesstocenterstage.

Isyourcompanydoingenoughtoprotectphysicalsafetyandensurementalwellness?

Healthandwellnesschallengesemergedasoneofthemostpressingworkforceissuesfacingmanyhumancapitalleadersin2020.Astheglobaleconomycontinuestoadapttonewwaysofworking,theseconcernsremaintopofmindfortalentleaders.Theuncertaintycompaniesandworkersfacedlastyearledtoconsiderablestressearlyon,butayearsincetheoutbreak,itappearsthatorganizationsareeffectivelymanagingthesafetyandemotionalneedsoftheirworkers.

home

Accordingto

Workmonitor,

71%ofworking-ageadultsfeeltheyareemotionallysupportedbytheircompanies.Fromtheemployers'perspective,ascapturedbyour

TalentTrends

research,62%sayawellnessprogramisextremelyorveryimportanttoattractingtalent.Thisincreasedattentiontoworkforcewell-beinghasresultedinsurprisinglygoodoutcomes.

Accordingto

HRDirector,

whichstudied10millionemployeesurveyresultsinJulyoflastyear,engagementactuallyrose2%globallybetweenJanuaryandJuly2020.Benefitssuchasflexibleschedules,saferworkenvironmentsandmoreautonomywerecitedasfactorsfortheenhancedscore.Oursurveyshowsthatnearly39%ofcompaniesbelievetheirworkforceismoreproductiveworkingfromhomethanbeforethepandemicoutbreak.Anadditional30%saytheirpermanentworkforceisasproductivefromhomeastheyareintheoffice.

Whilethework-from-homemovementof2020deliveredbetterresultsthanmanyanticipated,itisn’tallgoodnews.Accordingtoastudyconductedby

HarvardBusinessSchool,

theaverageworkdayincreasedby8.2%(48.5minutes)earlyoninthepandemic.And69%ofthosesurveyedby

Ginger

said2020has

beenthemoststressfultimeoftheirentirecareers.Soeventhoughremotearrangementshaveproveneffectiveforgettingworkdone,someemployeesarestrugglingwithitssideeffects.

JonathanBerlan,globalheadofCandidateExperienceforUCB,saysheencourageshisteamtoobserveahealthyworkscheduletoavoidstressandburnout,andtoensuretheyhavepersonaltimeseparatefromworktime.

03.takeworkforcehealth&

wellnesstocenterstage.

"Companieshaveadutytopromoteemployees’abilitytoswitchofffromworkwhileworkingathome."

JonathanBerlan

globalheadofCandidateExperience

UCB

Lastyearwasaperiodofhighstressformost,whetherquarantinedathomeoron-siteatwork.Despitevaccinesnowrollingoutaroundtheworld,ensuringworkplacesafetyisstillatoprequirementformany.Accordingto

LinkedIn,

talentwillprioritizesafety,securityandhealthwhenconsideringjob

offers.Companiesthatfailtomeettheseexpectationswillloseoutoncriticaltalent,andsmallchangescanmakeabigdifference.Recognizingthestressofvideocalloverload,employerssuchasGooglearepromotinghealthierworkscheduleswith

"nomeetingweeks."

Companieswillbetakingacloserlookathealthandwellnessneedsin2021.Thisisimperativebecauseemployersthatoffercomprehensivesupporttotheirstressedworkerswilllikelyseereturnsontheirinvestmentintheformofahealthierand

moreproductiveworkforce.

home

62%

sayawellnessprogramisextremelyorveryimportanttoattractingtalent.

69%

believetheirworkforceisasproductiveormoreproductiveworkingfromhome.

03.takeworkforcehealth&

wellnesstocenterstage.

"Workforcewellnesshasnever

beenmoreimportant,so

companiesshouldconsider

theevolvingneedsoftheir

employeesascircumstances

change.Morefrequent

communicationsand

assessmentsshouldbeapartof

youroveralltalentstrategy."

WesleyConnor

vicepresident,GlobalLearningandDevelopmentleaderRandstad

home

3questionsyoushouldask

03.takeworkforcehealth&

wellnesstocenterstage.

01

Whatkindsofdataareweusingtoguideourworkplacesafetyandwellnesspolicies?

02

Doourmanagersregularlyassesstheworkloadandstresslevelsoftheirpeopleandtrackchangesovertime?

03

Haveweimplemented

measuresthatenableworkers

tolimitthetimetheyspendon

worktoavoidburnout?

5waystokeeptalentengagedandpreventburnout

01

02

03

04

05

Mandatemoretime

Assessyouremployee

Buildexercisetimeinto

Createmore

Nurtureacultureof

awayfromthe

assistanceprogramto

eachdaytoallowyour

transparencyabout

empathytoprovide

desk—eitherthrough

trackutilizationandjob

teamstomentallyand

yourcompany’s

moreemotional

additionalpaidtime

satisfaction.

physicallyunwind.

plansaboutlayoffsor

supporttoworkers

off,opportunitiesto

furloughsandother

whomaybesuffering

performvolunteerwork

organizationalchanges

fromCOVID-19fatigue.

orevenshorterwork

toreducestressand

weeks—andbesure

buildtrust.

thatworkloadsare

adjustedaccordingly.

home

successstory:

intimesofuncertainty,

Philipsspeedsup

workforceinnovation.

IfyouaskPhilips’CasperZoetekouwwhatkeytakeawaylessonshehas

learnedduringthepast12monthsofthepandemic,hemighttellyouto

checkbackinthesecondhalfofthisyear.That’sbecause,astheglobal

commodityleaderforthecompany’sexternalworkforce,Philipsisstill

learningandimplementingsolutionstoamyriadofchallengesthat

continuetocropupeveryday.

"Weareinthelearningandimplementationphase.Welearneachand

everydaymoreandmore,"Zoetekouwaffirms.

Philipsisinthemidstofcreatinganewparadigmaroundtalent

managementandutilization.Inhelpingtooverseetherolloutofthe

company’stotalworkforcedemandmodel(TWDM),Zoetekouwispartof

ateamthatiselevatingPhilips’abilitytoinnovatemorequickly,bemore

competitiveinitsbusiness,andcreatemoreexcitementandengagement

foritstalent.

home

TWDMlaunchedaheadofCOVID-19

Whentheoutbreakinitiallyoccurred,Philipswasalreadyworkingtowarditsgoalofbringingtotaltalentmanagementtolifeatitsoperationsaroundtheworld.Explorationandimplementationofthisholisticapproachtotalenthavebeenontheriseinrecentyears,butfeworganizationsaredoingitatthescaleandbreadthseenatPhilips.

Totaltalentmanagement,whiledeliveringexceptionalbenefitstoitsadopters,canbehighlycomplexandtime-consumingtogetright.TogetherwithTalentAcquisition,thebusinessstakeholdersandtheMSPpartner,procurement’sjobistogetitright.

RandstadSourceright’s2021

TalentTrends

researchfindsthat69%ofcompaniesintendtoimplementatotaltalentmodeloverthenext12months,andtheywilldosoforavarietyofreasons.Amongthetopexpectedbenefitsare:creatingefficienciesinthehiringprocess(citedby35%),buildingforthefuture(34%)andbringingstrategicfunctionintotheHRfunction(33%).Andamongcompaniesthathaveimplementedtheirtotaltalentvision,97%saytheyareextremelyorverysatisfied.

AndthatisZoetekouw’sgoal—tocreategreatersatisfactionfo

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