It's pretty common for most businesses to live in the now, but it’s Angela Carter’s job to live in the future. As senior client partner for global accounts at global organizational consulting firm Korn Ferry, she recently assessed what the future of work will look like, and she's noted some red flags.
“Is there human capital in the future of work? Is a talent crunch looming?” she asked at the 2018 Dreamforce conference in San Francisco. Her colleagues agree. “We're unable to meet the talent needs of the future with what's out there,” said Caroline Werner, the senior vice president of global talent at Korn Ferry. “By 2030 there will be a shortage of 85 million workers and $8.5 trillion in revenue.”
One thing businesses can do is work on employee retention, and to do this, Werner said, you need to beef up your talent management protocols. Currently, 47 percent of companies they surveyed said they needed to refresh their talent management systems, and 33 percent said they needed total disruption.
—Angela Carter, senior client partner for global accounts, Korn Ferry
This is something Sara Frisk, Salesforce senior innovation director has been looking into. She wants companies to treat employees the same as they do, “and deliver the bar they expect their experience to be,” she said. The company wants to keep their people feeling motivated and energized. She partnered with Korn Ferry to develop this; their team's rich background in data science makes them optimal for understanding the problem.
“We are in the business of helping people perform better; a strategy without talent is hopeless and talent without strategy is hopeless,” Carter said. “It's the dawning of the age of the employee as customers,” she said. “When we engage with customers we get good results.”
Her research found that treating employees with more attention is a great benefit to companies. They get high returns; two times the average increases for earnings before interest, taxes, depreciation and amortization (EBITDA) for companies improving their discretionary energy. “Human capital is 2.33 times as important as physical capital,” she said. It's a CEO's most valuable asset for improving performance, mitigating risk, delivering productivity and future success. The benefits are twofold. “The ROI on employee empowerment is good,” Carter said. “It increases productivity and they'll stay loyal to the company or loyal to the brand even if they move on.”
“It's not just making little changes in how we do things,” said Werner. “It's not about careers, it's about the journey and this brings it all together for the employee.”