Boyden Executive Survey
North America Regional Analysis: Strengthening the human-centric core of Industry 5.0
How can organisations thrive in a complex world of risk?
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.
Sector Insights
Consumer & retail: top growth drivers are jointly agility/ability to pivot, customer expectations, human capital and capital expenditure. Supply chain issues are the top driver of structural change; customer needs are the top driver of cultural shifts.
The most concerned about recruitment and retention challenges through 2023. Innovation/business transformation is the top priority for strengthening executive expertise, while at board level it is technology/cloud/cybersecurity. Understanding employee needs is the most valuable soft skill for leaders.
Together with industrial, the most concerned about supply chains: the top internal risk is supply chain resilience, the top external risk is supply chain disruption.
Financial services: the top driver of growth is human capital, and competing for the right talent is the top driver of structural change. Hybrid working is the top driver of cultural shifts. Most focused on hiring new talent; an outlier in board assessment, with a strong majority extremely likely/likely to conduct a review. Most focused on hiring more diverse executives and most likely to use more interim solutions.
With such a focus on people, expertise in human resources is the top area for strengthening executive skills, while on the board it is digital expertise. The most valuable soft skills for leaders are understanding employee needs, balancing employee & business needs, attracting & retaining talent, learning ability and empathy.
People-related issues dominate top internal risks; industry competition and national economic volatility are joint top external risks.
Healthcare & life sciences: M&A is, distinctively, the top driver of growth. Customer/client needs is the top driver of cultural shifts and competing for the right talent is the top driver of structural change. One of the most active in hiring new leadership talent. Operations is the area where organizations most need to strengthen executive talent; at board level it is expertise in supply chain/logistics. The most valuable soft skill for leaders is driving change.
The top internal risk is employee burnout; the top external risk is industry competition.
Industrial: innovation, agility/ability to pivot and customer expectations are the joint top drivers of growth. Competing for the right talent is the top driver of structural change; customer needs is the top driver of cultural shifts. Most likely to retrain/deploy existing people. Risk/legal/compliance is the area where executive skills most need to be strengthened; at board level it is ESG-DEI. The most valuable soft skill is attracting/retaining talent.
Together with consumer peers, industrial respondents are the most concerned about supply chains; supply chain disruption is the top external risk, while supply chain resilience is the top internal risk.
Professional services: top driver of growth is human capital. Industry transformation is, distinctively, the top driver of structural change. The top driver of cultural shift is employee needs. Need to strengthen executive skills in human resources, and at board level, expertise in supply chain/logistics. The most valuable soft skill is the understanding employee needs.
Inflation is the top external risk; rising business costs is the top internal risk.
Technology: top drivers of growth are jointly innovation and product/service diversification, while the top drivers of structural change are jointly digital advances and competing for the right talent. The top drivers of cultural shifts are jointly customer needs, employee needs and hybrid working.
Second most likely to see an increase in hiring. Greater expertise in human resources is needed at executive level, health & safety at board level. The most concerned about retention challenges through 2023. The most valuable soft skill is inspiring teams.
Top external risks are jointly industry competition and inflation; the top internal risks are jointly rising employee costs, legacy business models and staying on top of digital transformation.
[1] The Fifth Industrial Revolution, also known as Industry 5.0, is a new phase of industrialization, whereby humans work alongside advanced technologies and AI-powered robots to enhance processes within the workplace. Source: The Manufacturer
