New Trends in Human Capital Report from PWC

PwC Saratoga recently released a report on “Managing people in a changing world: Key trends in human capital a global perspective – 2010.” Below are some of the highlights:

PwC surveyed over 1000 CEOs in 50 countries to find out what their key HR challenges would be in 2010, on the heels of a global financial crisis that saw over half the respondents cutting their workforces (69% in the US) and reducing investments in their people such as training and development.

Now facing an increasingly  competitive global environment, with the BRIC (Brazil, Russian, India, China) economies thriving relative to Europe and North America, many organizations have recognized a need to invest in their trimmed-down workforces in order to stay competitive. 79% of CEOs recognize a need to help their employees deal with organizational change, 68% plan to invest in leadership development since they are recognizing an emerging talent gap, and 76% will be increasing their overall investment in training and development.

Another key challenge is talent retention as one in four high-potential employees plan to leave their current employer this year. After a number of years of frozen wages, limited development opportunities, and the threat of downsizing, companies will need to find a way of re-engaging with their employees. Many organizations will take this opportunity to review their compensation strategies as well.

While there will likely be more resources allocated to developing employees, CEOs and shareholders are demanding a return on their investments. Human Resources managers will be expected to track Human Capital ROI (Revenue – Non Wage Expenses/Compensation and Benefits Costs.)

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