MANAGING TALENT
People matters at forefront of boardroom agenda
The economic downturn has elevated “people matters” to the top five concerns for business leaders across Europe and the Middle East, a new survey by KPMG reveals.
Managing and retaining the right people within the organisation is critical for one in four senior executives (24%). It is an issue only beaten to “top spot” in the list of priorities by concerns over cash flow, with business leaders focusing on how they can change operations to become:
cost efficient (43%)
improve cash management (32%)
exploit growth opportunities (30%)
prepare for major business model changes (25%).
Anna Marie Detert, director in KPMG’s People and Change consulting practice, said:
“Last year, people issues didn't even figure as a top ten priority for global business leaders; this year they rank in fifth place. The simple fact is that boardrooms have realised that they cannot afford to lose good people. Their major challenges, as our survey proves, are cost efficiencies, improving cash management and finding new avenues for growth – yet each of these hinges on identifying new people capabilities to deliver on revised business models.”
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Managing and retaining top talent
Asked what managing and retaining top talent actually means, respondents to the survey suggest that “motivating people is their highest priority” (43%). A third (30%) also claim that offering development opportunities to their key people is critical. Given concerns over cash management, it is telling that just 12% still focus on pay and reward as a retention tool.
A final word
“Clearly, lessons have been learned from past recessions. Without high-potential future leaders and individuals with business critical skills, it is simply not possible to drive through important initiatives that can restore or improve an organisation's economic status. This fact is further validated by the 90% of business leaders who do not prioritise cutting the cost of the workforce.” - Anna Marie Detert, director in KPMG’s People and Change consulting practice.
Want to know more?
Title: Business Leaders Survey 2012, KPMG.
Survey details: The survey is based on the views of 3,000 business leaders.
Availability: The full results can be viewed here.
KPMG is a global network of professional firms providing audit, tax, and advisory services. It operates in 152 countries and has 145,000 professionals working in member firms around the world. To find out more, visit www.kmpg.com.