Organizations should cultivate a culture of Cost consciousness by prioritizing Upskilling/Reskilling over Hiring to consistently achieve their goals !
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Most companies lack a strategic approach to cost optimization, but the always-on approach offers benefits beyond mere cost savings.
?? 85% of always-on programs achieve most or all of their process improvement targets, compared to just 74% for periodic programs.
?? Companies anticipate AI will play an increasingly significant role in cost optimization. CEOs, COOs, and CFOs expect AI to evolve from a tactical tool to an essential component of cost competitiveness.
?? Change is challenging, so fostering a culture of cost consciousness is crucial. While hiring can address skill gaps, upskilling or reskilling is often more cost-effective. In a tight labor market, it may be the only viable option, according to a new interesting research published by 波士顿谘询公司 using data from a survey of 770 CEOs, CFOs, and COOs across 21 countries and companies which range from $100 million to more than $100 billion in revenue and represent a diverse set of industries.
?Why Cost Management Frequently Falls Short
Researchers have observed that cost management programs frequently fall short of delivering the desired outcomes. They identified several key reasons for this:
? Expectations are set too high : many companies are overestimating their ability to achieve targets or are being affected by factors that are out of their control.
? Timeframes are often unrealistic.
? The approach lacks rigor or breadth, potentially focusing only on specific parts of the organization or certain types of costs.
?The always-on approach offers advantages that extend well beyond cost savings.
Researchers also discovered that businesses adopting an always-on approach to cost optimization, whether during prosperous times or crises, consistently outperform their peers in several key areas:
?? Investor value
?? Competitive position
?? Financial risk exposure
?? Supplier relationships
?? Employee morale
?AI Set to Play a Growing Role in Cost Optimization
Researchers noticed that 93% of companies are already using AI technology to optimize costs. Moreover, half of the CEOs, COOs, and CFOs said that AI (including generative AI) will be “integral to operational efficiency” in the next three to five years.
?Cost transformation translates into new skills requirements
Researchers have observed that cost transformation leads to new skill requirements. The growing adoption of AI further exacerbates these skill gaps: 70% of CEOs, COOs, and CFOs report that automating processes and workflows has highlighted deficiencies in workforce skills.
?? Finally, researchers offer five recommendations to companies on leveraging talent to improve cost efficiency:
?? Prioritize upskilling and reskilling, rather than hiring
?? Develop your talent strategy. Identify the roles and skills needed now and in the future— and make sure you can rapidly redeploy workers as skills requirements change.
?? Embed cost consciousness into company culture. This includes developing your change narrative and a clear and consistent communications strategy. Make sure the executive team is fully aligned on the direction of travel and goals.
?? Communicate carefully. Keep channels of communication open using town halls and oneon-one meetings.
?? Implement incentive programs across all levels to encourage cost-conscious behavior.
?? ???? ???????????????? ????????:
This insightful research uncovered that cost competitiveness is far more than just a ‘nice to have.’ Leading companies demonstrate that effective cost optimization drives superior performance and fosters lasting competitive momentum. Additionally, AI empowers companies to implement faster, more impactful changes by providing clearer insights into workflows and innovative methods to enhance productivity.
??Thank you 波士顿谘询公司 researchers team for sharing these insightful findings: Mai-Britt Poulsen Jacopo Piccolo Brunelli Paul Goydan Nicolas de Bellefonds Kevin Kelley
?? Follow me as a LinkedIn Top Voice on LinkedIn (+40 000) , and click the ?? at the top of my profile page to stay on top of the latest on new best?HR, People Analytics, Human Capital and Future of Work research, become more effective in your HR function and support your business, and join the conversation on my posts.
???Join?more than 20,000+ people and subscribe to receive my Weekly People Research
Everyday, I share a new research article about?People Analytics, Human Capital, HR analytics, Human Resources, Talent,…
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
1 天前Insightful! Thank you so much for sharing.
Unleashing talent potential with real-time people analytics: Empowering HR & leaders to enhance employee experience, save time, and cultivate a culture of high performance and well-being through personal leadership
1 天前Nicolas BEHBAHANI An interesting piece of research. In general, what this study highlights is that upskilling and reskilling must be a primary focus for every company. In line with this, it requires closer alignment with each individual within the organization. The shift in job role activities influenced by AI might impact the joy people derive from their work. Changes in competencies could also affect the other two components of the talent formula: Commitment (passion, self-efficacy, motivation to grow) and Contribution (meaning of work). (Talent = Competency x Commitment x Contribution). Therefore, companies also need to gather insights on these components to prevent declining morale or employee turnover.
Senior Manager - HRBP and People Analytics, Schneider Electric || XIMB-HR || Published Author
2 天前It's very insightful. I particularly believe an upskilling program and reskilling would be a great advantage. Re-skilling needs the HR business partners to reassess the skills within the Business in terms of the current landscape of the role and with a futuristic view as well. It will require delving further into competencies and how the employees can be assessed in the present scenario, this will open the channel to identify gaps and there we can go to reskilling interventions. Upskilling programs focussing on different cohorts basis the needs of the present business strategy is another approach that HR should explore.
A Human and NOT a Resource | Certified HR Analyst | ESTJ |People and culture | Start up mindset |Data Analytics | Views and Opinions expressed are of my own|
2 天前Nicolas BEHBAHANI - Thank you for sharing this insightful research from BCG. In my experience, I have observed two commonly used approaches in cost optimisation: - Reducing cost manpower cost which does not always mean laying off employees but hiring mediocre or inferior quality of employees in lesser compensation. - Reducing cost in employee experience related experience In my opinion, when it comes to talent buying is always costlier(whether you hire superior or inferior resources) than building internal talents through reskilling and upskilling. Redeploying these developed talents into different verticals or departments help building a resilient organisation. As rightly mentioned, the cost consciousness culture can be built only by a holistic approach and not by implementing in one or two parts of the organisation. Once again thanks for bringing out such thought provoking and insightful researches!
Head of Talent Development
2 天前Insightful and timely! Upskilling and reskilling not only foster a sustainable, cost-conscious culture but also unleash the potential of existing talent.?