In a constantly evolving labor market, companies are increasingly compelled to rethink how they manage human capital. With ongoing technological innovation and economic shifts, organizational adaptability has become a top priority.
Barriers to Transformation
Many companies are facing two major hurdles: the difficulty of finding adequately skilled professionals and the challenge of attracting new talent. Around 60% of companies report difficulties in sourcing qualified local professionals, while 53% cite talent attraction as a serious issue.
These challenges cut across most industries, with the exception of certain fields such as research, design, and consulting services—where outdated regulatory frameworks are seen as a greater obstacle. In highly technological sectors such as automotive, electronics, and aerospace, access to talent remains the most critical issue.
Additionally, over half of the companies in media, entertainment, and sports sectors highlight a lack of strategic understanding from leadership when it comes to leveraging new opportunities. Company size also matters: small and medium enterprises (SMEs) tend to perceive the talent gap as less severe than larger corporations do.
Talent as a Strategic Resource
For many businesses, talent represents a more pressing constraint than financial capital. The shortage of specialized skills is often seen as a greater limitation to progress than the lack of investment funds.
Geographically, the situation varies widely. Only 40% of Japanese companies see workforce skill gaps as a major issue, whereas more than 80% of companies in the Philippines, Colombia, and Sweden expect significant talent shortages by 2027.
How Companies Plan to Adapt
Looking ahead, the two main strategies that organizations plan to adopt to strengthen their workforce are: investing in continuous learning and on-the-job training, and increasing the use of process automation. Automotive, aerospace, and advanced manufacturing industries are expected to lean heavily into automation, while electronics and consumer goods will focus more on workforce development.
Regionally, companies in East Asia and the Pacific are particularly inclined to invest in workplace training, restructure their workforce, expand the use of contract work, and accelerate automation. In Europe, the picture is mixed: Switzerland, Sweden, and Poland favor automation, while the Czech Republic and France are prioritizing investments in training and upskilling.
Role Evolution
In this shifting landscape, about 46% of companies anticipate transitioning employees from declining roles into emerging ones. Only 13% expect a significant reduction in workforce size, while 22% foresee increased hiring.
This reflects an optimistic outlook: over the next five years, most macro trends and technological developments are expected to create more jobs than they eliminate.
