In this regional analysis of Boyden's global report, Strengthening the human-centric core of Industry 5.0: How can organizations thrive in a complex world of risk?, we highlight findings and trends in North America with sector insight from Boyden partners.
Findings show North American respondents are well placed to succeed through Industry 5.01; clients, customers and employees. Respondents particularly concerned about:
- Balancing employee and business needs
- Leadership skills in attracting/retaining talent
- Competing for the right talent
- Employee burnout
- Retention challenges
- HR skills
Respondents in North America are the least confident in their organization’s growth potential, with 59% very confident or confident; this compares with 85% in South America, 80% in Europe, and 65% in Asia/Pacific. The technology sector is the most confident, with average confidence pulled down by the industrial sector.
Growth drivers are therefore spread across the fundamentals; product or service diversification, human capital and customer/client needs. The drivers of cultural shifts run parallel to these fundamentals; customer and employee needs, hybrid working and organizational agility.
Low confidence reflects top external risks of inflation, industry competition and national economic volatility, while top internal risks are employee burnout, rising business costs and rising employee costs.
In this tough environment the top driver of structural change is ‘competing for the right talent,’ and HR expertise is the executive skill most in need of strengthening. Recruitment and retention challenges are addressed through financial reward and lifestyle, notably hybrid working.
Looking ahead through 2023, recruitment and particularly retention challenges are expected, with an increase in hiring including the use of interim solutions.
The most valuable soft leadership skills are, correspondingly, attracting & retaining talent, inspiring teams and balancing employee and business needs.
In such a challenging environment, how are organizations addressing ESG imperatives? Data shines a spotlight here on the board. ESG skills are among the top three areas for strengthening skills at board level; board members need to analyze how to operationalize a net zero strategy, enabling senior leaders to focus on human resources, marketing & sales and operations as they steer the organization through Industry 5.0.
