18/10/2017 by Andy Winterburgh
The skills gap is widening
Whether your company is comprised of mainly older workers or millenials or a good mix of both there is no doubt that the skills gap is widening. Any lack of future planning to ensure that the right talent is recruited and retained in order to fill this gap is a significant operational risk and internal audit need to ensure that businesses are future proofing their talent.
83% of companies do not believe they have planned for the future with their workforce
A recent report compiled in association with the Chartered Institute of Internal Audit called Risk in Focus identifies key trends in internal audit across Europe for 2018 identified several trends. One of these trends identified that only 13% of companies believe that they have planned for the future with their workforce despite 88% believing that creating the organisation of the future is a priority. The way we work is changing with flexibility and work life balance key factors for workers millenials are also more likely to look externally for new roles which makes retention a key part of company planning.
7 key questions for Internal Audit
The report identifies 7 key questions that Internal Audit functions need to ask when reviewing HR against the future planning risks:
- The most basic of questions is whether consideration has been given the future skills gap any organisation faces?
- Digital and IT skills are seen as key areas of development where skills are often lacking. Has your business specifically reviewed these skills and how they can develop them through recruitment and training?
- Is the HR strategy in line with the organisation's plans and are they ready to support through recruitment and retention where the company plans to be in 5 years time?
- What consideration has been given to the demographic mix of the workforce? As many baby boomers head towards retirement organisations need to ensure that they are ready to replace them at a rate that will ensure continuity within the organisation.
- Has enough been done to attract and retain young talent with flexible working and career opportunities?
- In industries likely to be disrupted by automation and technology advances, of which financial services is seen to be a key candidate, have HR considered the effect this may have on the workforce and are they prepared for it?
- A 'liquid workforce' where companies hire on a more ad hoc basis the skills they require is becoming more of a requirement and a more common way of employing. Is your HR department ready and able to deal with identifying and hiring a liquid workforce to meet the organisations changing demands?
If you'd like to discuss the approach the best Internal Audit functions are using to attract and retain top talent, or you’re an Internal Audit professional and you'd like to find the best employer to future proof your career get in touch with Hybridge today.