Lack of sufficient leadership talent is a top issue currently facing 86% of HR and business leaders, according to findings highlighted in Deloitte’s “Southeast Asia Human Capital Trends 2015: Leading in the New World of Work” report.
Global business and HR leaders, including those in Southeast Asia, must adapt to a new world of work that requires tailoring human capital solutions to the culturally diverse markets and evolving business environments, or face a crisis in leadership and workforce capability, said the report.
All respondents to Deloitte’s survey reported that leadership was at least somewhat important to their business. However, the majority of organisations are still struggling to develop a pipeline of leadership talent. This current struggle jeopardises future growth.
The 2015 Southeast Asia report looked specifically at 57 responses surveyed from the region while the global report reviewed survey responses received from more than 3,300 HR and business leaders in 106 countries, making it one of the largest global studies of talent, leadership and HR challenges.
Only 5% of SEA respondents rated themselves as “very ready”
The leadership gap, which was identified as the second most important issue in 2014, became even more critical for Southeast Asia HR and business leaders this year.
Only 5% of SEA respondents rated themselves as “very ready” to address the leadership challenge through programmes such as leadership assessment and development, succession planning, and talent mobility.
Lack of skilled talent, struggle to drive desired culture
Besides the gap in leadership talent, respondents recognised that a general lack of skilled talent is likely to impede business growth and cited workforce capability as the second most important issue. This area also had the largest capability gap.
Overall, respondents are noticing difficulties in understanding the competencies required by their businesses today, and even less clarity on what competencies will be needed in the future. The third most important issue for HR and business leaders was found to be culture. Deloitte’s findings highlighted organisations’ struggle to effectively drive the desired culture within their organisations and a lack of preparedness for addressing this issue.