Navigating the Talent Maze in Business Services

The backbone of business is not just about grand strategies or innovative products, but about the everyday heroes in support functions or services, who keep the wheels turning and the engine purring. These unsung champions ensure seamless operations, drive efficiency, and foster a culture of excellence. Yet, managing talent within these functions poses unique challenges. A recent survey reveals the top hurdles faced by managers in this domain.

The Top Challenges:

1] Skills Shortage (50%): It has been highlighted as the most significant challenge when it comes to talent management. This finding aligns with broader industry trends. 87% of companies worldwide are aware that they either already face skill gaps or expect to within a few years (McKinsey & Company, 2023). The rapid pace of technological advancement and changing business needs have created a significant skills gap in all support functions. 58% of the workforce will need new skills to do their jobs successfully (Gartner, 2023).

The Association for Talent Development (ATD) study found that organizations with comprehensive training programs have 218% higher income per employee than those with less extensive training. Well-trained employees provide better customer service, increasing customer satisfaction and loyalty. Areas such as IT support, financial analysis, and human resources are constantly evolving, requiring professionals to upgrade their skills continually. Therefore, it is crucial for businesses to invest in training and development, upskill and reskill existing talent, and leverage technology to handle routine tasks. For instance, AT&T's Workforce 2020 program invested $100 million in retraining 100,000 employees, resulting in a 30% increase in productivity.

We suggest – Implement AI and automation tools to handle routine tasks, allowing employees to focus on developing higher-value skills.

2] Clear SLAs & KPIs (25%): Setting the right expectations has always resulted in better outcomes, impressive TATs and satisfied stakeholders. Precise performance metrics, clear Service Level Agreements (SLAs) and Key Performance Indicators (KPIs), are essential ingredients for effective talent management. Hence, it is necessary to collaborate on goal setting, ensure alignment with organizational goals, and regularly review and adjust SLAs/ KPIs. Research shows that participative goal setting leads to higher performance and job satisfaction (Locke & Latham, 2002). It is also important that individual and team KPIs directly contribute to broader organizational objectives.

One such successful initiative is IBM's use of balanced scorecards to set clear goals and metrics resulted in a 10% increase in employee engagement and a 5% increase in productivity.

We believe in regular review and adjustment making SLAs and KPIs living documents, that are reviewed and adjusted periodically to reflect changing business needs and employee growth.?

3] Regular Communication (17%): From time immortal, we have acknowledged that effective communication is vital for bridging the gap in understanding, performance and final outcomes. In support functions, where cross-departmental collaboration is often a norm, right communication makes a massive impact on day-to-day tasks and can make or break the expected outcomes. Some organizations implement structured check-ins, leverage technology, and foster a culture of open communication. According to a Gallup study, employees whose managers hold regular meetings with them are almost three times as likely to be engaged as employees whose managers don't (Gallup, 2022).?

It is significant to highlight the critical role played by collaboration tools and platforms to facilitate seamless communication, especially in remote or hybrid work environments. For instance, Google's use of weekly team meetings and open feedback channels resulted in a 25% increase in employee satisfaction.

As an organization, we give 100% weightage to fostering a culture of open communication. Constructive feedback and creating safe spaces for employees to voice concerns and ideas goes a long way than any other factor.

4] Performance Reviews (8%): Traditional annual reviews are increasingly seen as inadequate in today's fast-paced work environment. It has to move beyond and become more than just an annual ritual. Through the survey responses by multiple Global organizations, we noted an urgent need to shift to continuous feedback, focus on future development, and even incorporate peer feedback. Companies that implement regular feedback have turnover rates 14.9% lower than companies that don't (Workhuman, 2023). A case in example is Accenture's switch to continuous feedback which resulted in a 20% increase in employee engagement and a 10% increase in retention.

We see an urgent need for organizations to reimagine performance reviews, which can successfully serve as an opportunity for career planning and skill development rather than just evaluating past performance.?

Propagating a Holistic Approach to Talent Management

Addressing these challenges requires a strategic approach that combines planning, technological adoption, and employee development. By investing in skills, setting clear expectations, maintaining open communication, and providing meaningful feedback, organizations can create a thriving workforce and turn support functions into strategic assets driving business success.

As we navigate the complexities of managing talent, it is crucial to remember that employees are an organization's most valuable asset. By investing in their skills, setting clear expectations, maintaining open lines of communication, and providing meaningful feedback, organizations can not only overcome these challenges but also create a thriving, engaged workforce.

In the words of management guru Peter Drucker, "The best way to predict the future is to create it." By proactively addressing these talent management challenges, organizations can create a future where support functions are not just operational necessities but strategic assets driving business success.

Disclaimer: The opinions expressed in this publication are those of the author(s). They do not purport to reflect the opinions or views of any organization/ industry body that the author(s) are a part of. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of Quintes Global (P) Limited concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers.?