Investing in human capital is seen as a key to their success by organisations. But, a significant percentage of organisations have expressed lack of confidence in the capability of educational institutions in generating the talent needed for business today.

This has been revealed in Mercer’s new Talent Barometer Survey. Almost 57 per cent of the organisations surveyed are not confident that educational institutions will generate the talent they need. The sentiment among respondents does not improve even when they are looking out as far as five years from today, the survey revealed.

"This lack of qualified talent is a real concern for employers and one that requires a multi-stakeholder approach to solving. We have found companies that are most optimistic about the future are actively involved in shaping it," said Pat Milligan, Region President at Mercer and member of The World Economic Forum’s Global Agenda Council on Education and Skills.

As a result of this educational gap, the survey shows organisations are employing internships, apprenticeships, and teaching high-demand skills in secondary and tertiary institutions.

"The Asia results show that education acceleration seems to be lagging the rest of the world and that is an area in which to make great strides. Health management also seems to fall behind the rest of the world and weak access to acceptable healthcare is compounding some of the issues in Asia," Michael Piker, Partner and Lead International Consultant for Talent business, added.

Mercer’s Talent Barometer research also explores key accelerators of talent effectiveness – education, health and wellness, and career experience – and their impact on successful workforce practices.

Mercer is a wholly-owned subsidiary of Marsh & McLennan Companies.

According to the survey, 60 per cent of organisations worldwide reported an increase in their investment in talent in recent years. However, a much smaller percentage of respondents say their plans are effective in meeting the immediate and long-term human capital needs.

Additionally, 77 per cent of those surveyed have a strategic workforce plan in place. But, when asked whether it is part of their longer-term strategy, only 12 per cent said they had plans that extended for five years or more.

Julio A. Portalatin, President and CEO of Mercer, said: "With the information and data analytics available today, employers can measure and manage their talent like never before. The question is whether the increased attention and efforts deliver the intended results. Out-performance requires a blend of innovative solutions and a fact-based approach to managing talent."

The survey findings are based on responses from HR and talent management executives at more than 1,260 organisations around the globe.

The organisations surveyed vary in size from fewer than 1,000 employees to more than 10,000 employees (including Government and not-for-profit organisations) and represent a variety of industries.

On health and wellness, it revealed that less than half of organisations worldwide actively apply the basic elements of a health management programme, such as ensuring a healthy workplace and establishing health-related policies and procedures.

Less than one-third actively use a formal, written multi-year strategic plan for health and wellness, the survey showed.

The survey also confirms that encouraging diverse career experiences and opportunities for growth which allows talent to excel is an essential part of workforce planning. Organisations globally take the issue of career experience seriously, with the majority conducting regular (annual or semiannual) talent reviews.

However, far fewer actively employ other actions that enhance talent availability and quality, such as assessing supply and demand for critical talent, putting a strategic succession plan in place and developing programmes for high-potential employees

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