The document discusses the challenges and opportunities in talent management for 2016, emphasizing the need for HR organizations to optimize limited resources and utilize data analytics for better decision-making. It highlights stagnation in employee engagement, leadership gaps due to retiring baby boomers, and a growing skills gap exacerbated by rapid technological changes. Organizations that leverage analytics can improve hiring, engagement, and productivity while preparing a new generation of leaders.

1. Talent Management
2016 8 TRENDING CHALLENGES AND OPPORTUNITIES

2. “Life sets us challenges
5 Challenging Trends
to test our courage and
willingness to change.”
—Paulo Coelho, Brazilian Author
2016 certainly promises
to be a year of challenges.
Armed with the right
information and analytics,
forward-thinking talent
managers are discovering
opportunities to do
more with less in 2016.
3 Practical Opportunities
2

3. Human Resources Must Do More with Less
In 2014, U.S. HR departments budgeted $4.01 per employee
per day. Last year, that number fell to $3.76. 2016 looks
equally grim.1
HR funding is not keeping pace with employment growth. Thin
budgets will challenge creativity and resourcefulness as HR leaders
work to engage employees, uncover and develop talent, and juggle
$4.01 administrative responsibilities.
CONFRONTING THE CHALLENGE
Making the most of existing resources will be the
key to success in 2016. Many HR teams are turning
to their data to help them discover efficient avenues
for improvement. A talent analytics platform is one
helpful tool for connecting the right team members
to your existing training material.
3

4. Data-Blind Organizations Left Guessing
Unfortunately, many HR teams lack the tools and insight needed to outperform
this year’s limited budgets. While most organizations gather information on
their employees, only 14% of organizations have the ability to analyze people
problems, determine the causes, and develop predictive models.2
The result? Surveys reveal that 16 out of 20 companies rely
on “gut feel,” not data, to make talent management decisions.3
CONFRONTING THE CHALLENGE
“Companies desperately need data to figure out what makes people join, what makes people
stay, who is likely to be most successful, and what we can do to build more leadership, customer
service, and innovation in the team.”
—Josh Bersin, Principal and Founder, Bersin by Deloitte
4

5. Employee Engagement Remains Stagnant
As researchers have demonstrated the bottom-line significance of
employee engagement, more and more companies have undergone
programs designed to measure and improve team buy-in.
Unfortunately, most companies aren’t seeing the desired results.
Employee engagement in the US has improved only 2%
since 2013.4
CONFRONTING THE CHALLENGE
To move forward in this area, businesses must realize that many
“engagement tools” simply measure employee attitudes, and are
not designed to increase dedication and shared vision.
The companies that manage to raise the engagement bar are
those that find ways to demonstrate that they care about
their people and their development.
5

6. Looming Leadership Needs
With Baby Boomers exiting their careers to enjoy the fruits of
retirement, a gap is growing near the top of organizations. In fact,
statistics show that 10,000 Americans are retiring every day5
—many from leadership and management positions.
Organizations looking to do more with less in 2016 cannot afford to
overlook internal leadership potential. Unfortunately, many
companies lack systems for uncovering hidden talent at an early
stage. Instead, most promote team members based only on
technical skill (which does not always indicate an ability to lead)
or pay a premium to hire outside leadership.
CONFRONTING THE CHALLENGE
HR teams will need to identify, engage, and train the
right talent for the job. A key initial step is to clarify the
attributes that exemplify potential leaders.
Learn more about identifying internal leadership potential
VIEW FULL INFOGRAPHIC
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7. Broadening Skills Gap
Filling leadership positions is only part of the challenge. Technology is changing
rapidly, and with it, the skills needed to be successful. Today’s business environment
requires proficiencies only dreamed about a decade ago—at just about every level
within an organization.
In fact, researchers say that “60% of all new
20% jobs in the 21st century will require skills that
only 20% of the workforce possesses.”6
CONFRONTING THE CHALLENGE
Talent managers who succeed in bridging the skills gap will
be those who connect the dots. Employees who need and
want to develop their career skills must be given access to
training and the opportunity to apply what they’ve learned.
Learn more about connecting the dots in L&D
VIEW FULL INFOGRAPHIC
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8. 2016 promises many challenges. Organizations that
overcome them will be well positioned to benefit from
this year’s practical opportunities.
Read on to discover the trends that
will provide the greatest advantages for
Human Resources in 2016.

9. Young Talent Eager to Lead
Though they will require development, talented young employees are eager for more
responsibility. 91% of surveyed millennials responded that they aspire to lead, and many
are eager to experience more leadership development opportunities.7
91% aspire to lead
9

10. Data Makes a Difference
In light of 2016’s complex and competitive talent management environment, it’s no surprise that
organizations with robust analytic capabilities are surging ahead. Fueled by improved decision
making capabilities, data-driven organizations achieve 6% higher productivity and are 5%
more profitable.8
1

11. Technology Empowers HR Analysis
Faced with tight budgets and a need for accurate insight, HR teams are turning to talent
analytics for answers. 80% of HR professionals believe that data analytics skills are
becoming more important.v
80%
These teams realize that good data allows them to:
Support better, more predictive hiring
Identify the hidden talent within their company
Connect team members to the right training tools
Improve employee engagement
Reduce turnover by as much as 50%
11

12. can help
Talent Management in 2016 takes more than numbers and statistics—you need actionable
insight. That’s what the right talent analytics platform will deliver.
YouLab is built for today’s talent, delivering real value through an intuitive interface that
catalyzes interaction through immediate, practical feedback. The customized career development
insight available through YouLab gives your team a reason to engage, in turn giving you the
knowledge you need to leverage the power of your people.
Get the insight you need to find the hidden talent in your organization,
direct the development of your team’s capabilities, and deploy your people
effectively. Visit us at www.youlabonline.com or
SCHEDULE A FREE DEMO
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13. Sources:
1Calculated from Bloomberg BNA, HR Department Benchmarks and Analysis 2015-2016 http://www.bna.com/uploadedFiles/
BNA_V2/HR/Products/Surveys_and_Reports/HR%20Department%20Benchmark%20and%20Analysis%202015-16_Execu-
tive%20Summary.pdf
2Bersin by Deloitte (2016). Talent Analytics Maturity Model. https://www.linkedin.com/pulse/people-analytics-takes-off-ten-
things-weve-learned-josh-bersin
3HCI and Oracle (2015). Insightful HR: Integrating Quality Data for Better Talent Decisions. http://www.oracle.com/us/products/ap-
plications/human-capital-management/hci-insightful-hr-executive-report-2565528.pdf
4Crowley, M. (2015) Employee Engagement Isn't Getting Better And Gallup Shares The Surprising Reasons Why. https://www.
linkedin.com/pulse/employee-engagement-isnt-getting-better-gallup-shares-mark-c-crowley?trkInfo=VSRPsearchId%3A29465
39751453970072586%2CVSRPtargetId%3A6080088187659698177%2CVSRPcmpt%3Aprimary&trk=vsrp_influencer_con-
tent_res_name
5Kessler, G. (2014). Do 10,000 baby boomers retire every day? The Washington Post. https://www.washingtonpost.com/news/
fact-checker/wp/2014/07/24/do-10000-baby-boomers-retire-every-day/
6Craighead, C. and Ruamsoom, K. Forecasting a Supply Chain Talent “Perfect Storm.” Supply Chain 24/7. http://www.supply-
chain247.com/article/forecasting_a_supply_chain_talent_perfect_storm
7WorkplaceTrends (2015). The Millennial Leadership Survey. https://workplacetrends.com/the-millennial-leadership-survey/
8Davenport, T. H., Harris, J. and Shapiro, J. (2010). I. Harvard Business Review, 88(10), 52-58.
9http://www.baselinemag.com/analytics-big-data/how-analytics-helps-companies-improve-talent-roi.html
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