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PWC Ceo Survey Talent
PWC Ceo Survey Talent
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2 | PwC’s 21st CEO Survey: Talent
Contents
4 6 10 14 17 20 22 X
Accelerating Hiring and Worries about Competing for The importance As businesses Five 24 Conclusion
digital rebalancing finding the the best talent of trust change, so recommendations
transformation the workforce right skills must HR to move ahead 25 21st CEO
Survey
Methodology
26 PwC contacts
3 | PwC’s 21st CEO Survey: Talent
Introduction
This year CEOs are more optimistic than ever about the Capitalising on these prospects is as much
prospects for global growth over the next 12 months, about talent as technology, if not more
according to PwC’s 21st CEO Survey. Growth is there so. People, not systems, drive innovation
and realise its full commercial potential.
for the taking – but leaders need to navigate a maze of
Artificial intelligence (AI), automation, and
business threats to get there. new ways of working bring the potential for
huge benefits, but they also bring anxiety for
employees and threaten societal disruption.
Automation and AI put the promise of As more individual tasks become Q How disruptive do you think changes in core technologies of production or service provision (e.g. artificial intelligence,
increased efficiency, productivity, and automatable, jobs are being redefined, robotics, blockchain) will be for your business over the next five years?
profitability within reach, but only if CEOs re-categorised and revalued. Success in
can work out how to best access that potential an automated world will mean people and i Chart shows percentage of respondents answering ‘somewhat’ or ‘very’ disruptive
through the right mix of humans and machines working together, rather than
machines. For organisations it’s a balancing one replacing the other. Exceptional skills 76% 75%
act between business opportunities and the and leadership will be needed through this
66%
inevitable impact on jobs and trust. transformation and beyond. 64%
55%
Yet many CEOs are struggling to identify There are also questions about organisational 50%
those business opportunities at the necessary culture, as a business becomes as much 47%
43%
speed: less than half (47%) say they know a technology company as a traditional 41%
how automation will improve customer business. Indeed, the road to automation is
experience. a complicated one.
47%
of CEOs are clear on how automation
All Banking
and capital
markets
All FS Business
services
Automotive Engineering
and
construction
Pharma Hospitality
and leisure
Consumer
goods
Exhibit 1
39%
37%
1 in 7
say they plan to cut headcount due to
automation (up from 1 in 8 in 2017)
52%
Exhibit 3 The level of concern varies geographically More than three quarters (76%) of CEOs
– 98% of CEOs based in South Africa, 94% are concerned about the lack of digital skills
80% of CEOs worried about the of those in China, 93% in Japan, 83% in (22% are extremely concerned) within their
availability of key skills the UK, and 78% in the US said they worry
about availability of key skills, compared,
own workforce – and 23% are extremely
concerned about the digital skills of their
Q How concerned are you about the following business threats to your business? Availability of key Skills. with 51% in Canada and 57% in Brazil – and leadership team. This is a significant business
from sector to sector. CEOs in technology threat. How can leaders truly make the right
i Chart shows percentage of respondents who stated ‘Extremely concerned’ or ‘Somewhat concerned’
(86%), engineering and construction (86%), choices if they don’t fully understand the
business services (85%), communications digital possibilities and dangers for their
80%
77% (85%) and healthcare (83%) were more business?
73% likely to be concerned than those in the
72%
consumer goods sector (63%).
56%
53%
58%
63% The challenge of finding the people with needed
skills will become even greater as business
models evolve; 91% of CEOs agree that they
69%
are concerned about the digital skills
need to strengthen their organisation’s soft skills
to sit alongside digital skills. of their leadership team
91%
2011 2012 2013 2014 2015 2016 2017 2018
Source: PwC’s 21st CEO Survey, Talent
Exhibit 5
Neither/nor 22%
CEOs worry about where they’ll draw The ultimate prize are those workers with
65%
tomorrow’s talent: 65% are concerned about the critical skills that organisations need to
changing workforce demographics, and a work alongside automation. These pivotal
quarter are extremely concerned. This rises to people contribute outsized value to their
88% in Japan and 83% in China. concerned about changing workforce organisation. Finding and keeping these
demographics important people will be a big challenge.
Organisations have long found creative ways They’re hard to find and difficult to keep.
of drawing in talent when and where it’s That’s why organisations will need to
59%
needed; international mobility and, more pay careful attention to the employee
recently, harnessing the growing army of value proposition (the reasons why these
gig workers have been important elements extraordinary people were attracted to
of talent strategy. But these are fraught with concerned about rising employee work with them in the first place) and the
risks and unintended consequences, as some benefits costs employee experience.
organisations that have led the charge in
67%
the gig economy have discovered. CEOs are
also concerned (59%) about rising employee
benefits and pension costs – with 86%
concerned in China, 71% across ASEAN and
68% in the US. expect to grow through internships
and apprentices
16 | PwC’s 21st CEO Survey: Talent
Exhibit 6
The right working environment tops the list of ways to attract talent
CEOs know that attracting, keeping, and Q To what extent is your organisation using the below startegies and tactics to attract or develop digital talent?
nurturing the right digital talent for their Not at all To a large extent To some extent
business means the right employee value
6% Modernising working environment 44% 42%
proposition. But they’re not just improving
compensation packages, although 79% of
8% Implementing continuous L&D programmes 42% 43%
them are doing this: they know it’s crucial to
create the right employee experience too 16% Partnering with external providers 30% 49%
(see exhibit 6).
15% Improving compensation packages 26% 53%
The right working environment is top of their
list of things to get right: 86% say that they’re 15% Implementing flexible ways of working 35% 42%
modernising their working environment,
with 77% implementing flexible ways of 19% Outsourcing to external providers 25% 51%
Businesses and their leaders are at the frontline of the automation transition
and know they will bear the consequences if the workforce feels betrayed;
60% of CEOs worry that a lack of trust in business would harm their
company’s growth.
18 | PwC’s 21st CEO Survey: Talent
Exhibit 7
To a large extent
21%
Your organisation’s Employees’ Your people Your diversity and Your compensation The impacts of
values contribution to the strategy inclusion policies and benefits automation and AI
overall business strategy on your workforce
67% 82%
say they have a responsibility to retrain make decisions on automation of work
Business trust and society
High-profile debates on the automation of work, diversity,
employees whose jobs have been primarily on delivering their purpose immigration, social inclusion, and pay equity have put the role
replaced by technology of businesses in society in the spotlight and raised employees’
expectations of leadership to engage in political and social issues.
CEOs themselves say they’re feeling the heat: 38% agree that
With technological disruption looming, 67% Overall, CEOs are confident that they are organisations are under pressure from employees and customers
of CEOs agree that they have a responsibility maintaining trust with their workers, with to take a stance on social and political issues (33% disagree).
to retrain employees whose tasks and jobs only one in five saying they’ve seen a decline This pressure is most keenly felt in the US (51% agreeing),
are automated out of existence and 73% say in trust between their workforce and senior China (41%), and the UK (38%).
that their organisation is collaborating with management. And they are taking the
educators and policymakers to improve the trouble to find out: 71% of CEOs already
employability of future workers. When we measure trust between the workforce and
also consider that individual workers are senior leadership; 27% do not (2% said they
taking responsibility for their own future don’t know). The exceptions are Japan and
– 74% of workers said they were ready to the UK, where only around half (44% and
learn new skills or retrain in order to remain 51% respectively) of organisations actively
employable, according to ‘Workforce of the measure trust.
Future’ – this paints an encouraging picture
for the future.
20 | PwC’s 21st CEO Survey: Talent
58%
60%
Global
60%
are rethinking their HR function
Source: PwC’s 21st CEO Survey, Talent
22 | PwC’s 21st CEO Survey: Talent
Give workers clarity on what Focus on the skills people have, not A clear strategy for matching skills gaps with Organisations need to understand how well
automation and AI means for them. just the jobs they do. training is a must. So is closer involvement they’re delivering on this expectation.
It’s clear that CEOs need to recognise Workforce planning should focus on the skills with educational institutions: as the end
user, business has an important role to play Transparency builds trust.
their responsibility to their employees as that people have and which organisation
in encouraging a shift in the educational Workers want to identify with their
automation and AI continues to seep into needs, rather than on jobs.
syllabus. employer’s values and purpose – as business’s
the workplace, and this starts with clear
Good workforce planning begins with role in society is emphasised, this will
communication.
tracking and mapping the ‘skills footprint’ Get the people experience right. become even more critical. Transparency
Start a mature conversation about the you have against the model for where you The employee experience is a critical weapon underpins the relationship between
future, which talks frankly about how your want to be. This data informs recruitment in attracting hard-to-find skills, from the employer, employees, and the wider world of
organisation is going to operate and what and internal job mobility but also learning workplace environment to innovative stakeholders in the digital age.
roles might be affected. It is important to and development. and helpful use of technology to work-life
balance. And from applying online for a Transparency begins with communication of
communicate how automation/AI will
augment work in many cases rather than Take control of reskilling. job through to interactions around pay and the organisation’s vision and culture, it also
Organisations can’t sit back and wait for benefits. Everything matters. means openness around people strategies,
just replace roles, and clearly lay out the
society to produce the talent they need – and diversity and inclusion, compensation and
organisation’s responsibility to employees
that means taking the lead on reskilling. Your workers expect those touchpoints to benefits strategies, and more.
whose roles are displaced.
Innovative technology and communication rival the other service experiences in their
channels are changing the landscape for lives and to be on demand, user-friendly and
learning and development. engaging. Today’s employees, like customers,
want to feel their opinions are valued.
24 | PwC’s 21st CEO Survey: Talent
Conclusion
The workforce transformation demanded CEOs are looking for support and guidance
in the digital economy is about much more from HR; in turn HR needs to take a leap into
than simply automating routine processes; the future. To do that HR professionals will
it’s about the collaboration between need an in-depth understanding of advancing
technology and talent to unleash an technology and its possibilities to transform
organisation’s full potential. Business leaders the human workforce.
need to be clear about that, and where the
real opportunities lie.
PwC conducted 1,293 interviews with CEOs • 40% of companies had revenues of We also conducted face-to-face, in-depth
in 85 countries. Our sample is weighted by $1 billion or more. interviews with CEOs and thought leaders
national GDP to ensure that CEOs’ views are • 35% of companies had revenues between from five continents over the fourth quarter
fairly represented across all major countries. $100 million and $1 billion. of 2017. Their interviews are quoted in this
The interviews were also spread across a report, and more extensive extracts can be
range of industries. Further details by region • 20% of companies had revenues of up to found on our website at ceosurvey.pwc.com,
and industry are available by request. Eleven $100 million. where you can also explore responses by
percent of the interviews were conducted by • 56% of companies were privately owned. sector and location.
telephone, 77% online, and 12% by post or
face-to-face. All quantitative interviews were Notes The research was undertaken by
conducted on a confidential basis. PwC Research, our global centre of excellence
• Not all figures add up to 100%, as a result
for primary research and evidence-based
of rounding percentages and exclusion of
The lower threshold for all companies consulting services
‘neither/nor’ and ‘don’t know’ responses.
included in the top 10 countries (by GDP) www.pwc.co.uk/pwcresearch
was 500 employees or revenues of more than • The base for figures is 1,293 (all
US$50 million. The threshold for companies respondents) unless otherwise stated.
included in the next 20 countries was more
than 100 employees or revenues of more than
$10 million.
26 | PwC’s 21st CEO Survey: Talent
PwC contacts
Bhushan Sethi
Global People Strategy Consulting Leader,
People and Organisation
+1 646 471 2377
bhushan.sethi@pwc.com
27 | PwC’s 21st CEO Survey: Talent
Bhushan Sethi Peter De Bley Middle East Chaitali Mukherjee Gerald Seegers
+1 646 471 2377 +32 2 7104321 +91 124 626 6620 +27 (11) 797 4560
bhushan.sethi@pwc.com peter.de.bley@pwc.com David Suarez chaitali.mukherjee@pwc.com gerald.seegers@za.pwc.com
+971 4304 3981
david.suarez@ae.pwc.com
ceosurvey.pwc
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