RGP Poll Provides a Pulse on Workforce Investment Priorities in 2024
RGP (Nasdaq: RGP) released research on workforce investment decisions for U.S. businesses in 2024. Over 80% plan to increase workforce development investment. Skills gaps in AI, automation, project management, data management, and soft skills are prevalent. Financial decision-makers prioritize upskilling, outside talent, and AI impact on workforce development. Lower interest rates could boost investments in workforce strategy.
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Over 80% of businesses plan to increase workforce development investment in 2024.
Skills gaps in AI, automation, project management, data management, and soft skills are prevalent.
Financial decision-makers prioritize upskilling, outside talent, and AI impact on workforce development.
Lower interest rates could boost investments in workforce strategy.
The proactive shift towards workforce development, as highlighted by the RGP research, underscores a strategic pivot that businesses are making to navigate the evolving labor market. The emphasis on reskilling and upskilling reflects a broader trend where companies are recognizing the importance of nurturing internal talent to fill skill gaps, particularly in AI and automation. This internal development is not only cost-effective compared to hiring new talent but also promotes employee retention and satisfaction.
Furthermore, the data suggests that businesses are becoming increasingly agile, blending traditional full-time roles with external consultants and contractors. This flexible approach to workforce management may provide businesses with a competitive edge, enabling them to scale operations up or down quickly in response to market demands. It's indicative of a more dynamic, project-based economy where adaptability and specialized skills are at a premium.
Investment decisions in workforce development can have tangible impacts on a company's financial performance. The anticipation of a lower interest rate environment could lead to an increase in available capital for businesses, which, according to the survey, is likely to be channeled towards balancing headcount and investing in employee development. This strategy can potentially lead to increased operational efficiency and innovation, driving long-term growth.
However, it's important to consider the financial implications of these investments. While they may lead to increased productivity and adaptability, there is a cost associated with training and integrating outside talent. The survey's findings suggest that financial decision-makers are weighing these costs against the benefits of closing the skills gap and are leaning towards making these investments, anticipating a positive return on investment in the long run.
The survey's findings on workforce investment reflect broader economic trends, such as the evolving nature of work and the increasing importance of technical skills in the labor market. The focus on AI and automation skills gaps signals a recognition of the transformative impact of technology on productivity and economic growth. By investing in these areas, businesses are not only preparing for immediate needs but also positioning themselves for future technological advancements.
Moreover, the potential lower interest rate environment mentioned could stimulate broader economic growth by making capital more accessible. This could lead to an increase in investments across various sectors, potentially boosting job creation and consumer spending. However, it is also essential to monitor inflationary pressures that could arise from increased spending and to consider the balance between workforce investments and other capital allocation priorities.
02/13/2024 - 09:00 AM
Financial decision-makers are prioritizing upskilling and outside talent in addition to headcount
IRVINE, Calif. --(BUSINESS WIRE)--
RGP (Nasdaq: RGP), a global consulting firm, today released new research around the key market factors that are shaping workforce investment decisions for U.S. businesses in the year ahead. More than 80% of businesses are currently planning to increase overall investment in workforce development in 2024, according to the poll of 202 U.S. full-time professionals who influence finance decision-making within their organizations.
“There’s a lot of work out there, but the lingering labor market imbalance is causing employers to embrace new ways of finding the skills they need, and our latest research validates this shift,” said Kate Duchene, Chief Executive Officer of RGP. “Our latest research shows that nearly one in five businesses are planning to increase investment in outside talent this year, which is only slightly behind the level of investment that organizations plan to make in internal headcount. Meanwhile, one in three businesses are planning to increase investment in reskilling and upskilling current employees.”
Nearly half of financial decision-makers (45% ) said their organizations experienced a skills gap in AI and automation in the past year, with 42% indicating that their finance function is currently facing a skills gap in these areas. Other top-cited skills gaps included project management (31% ), data management (31% ) and soft skills (31% ).
Outlook for a Lower Interest Rate Environment
The research indicates that investment in workforce strategy would be further bolstered by a lower interest rate environment, with more than half of respondents (53% ) saying they would invest new capital in balancing full-time headcount with outside talent (consultants, independent contractors, staffing firms) and in upskilling or reskilling current employees. More than one-third of financial decision-makers (36% ) said they would invest newly unlocked capital in full-time headcount.
“As skills gaps for technical and knowledge-based work widen due to an uptick in large-scale transformation initiatives, investment in workforce development will remain a top priority, especially once the Fed begins making expected rate cuts later this year,” added Duchene.
AI’s Impact on Workforce Development
Financial decision-makers also cited growing urgency to better leverage AI and automation as the market factor that could have the biggest impact on investment in workforce development over the next 12 months, followed by hiring challenges and widening skills gaps. More than half (58% ) of respondents also said they would prioritize digital transformation and AI if a lower interest rate environment were to unlock new capital, followed by investments in business process optimization (BPO) and enterprise resource planning (ERP).
The findings are based on a poll that YouGov conducted on behalf of RGP in the first half of January 2024. YouGov polled 202 U.S. full-time professionals at director level or above who influence finance decision-making within their organizations. Read more about the findings here: https://rgp.com/pulse-survey-workforce-trends-cfo-priorities .
About RGP
Recently named among Forbes’ World’s Best Management Consulting Firms for 2023 , RGP is a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, expert and diverse talent. As a next-generation human capital partner for our clients, we specialize in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. Our engagements are designed to leverage human connection and collaboration to deliver practical solutions and more impactful results that power our clients’, consultants’ and partners’ success.
We attract top-caliber professionals with in-demand skill sets who seek a workplace environment characterized by choice and control, collaboration and human connection. The trends in today’s marketplace favor flexibility and agility as businesses confront transformation pressures and skilled labor shortages even in the face of macroeconomic contraction. Our client engagement and talent delivery model offers speed and agility, strongly positioning us to help our clients transform their businesses and workplaces, especially at a time where cost reduction initiatives drive an enhanced reliance on a flexible workforce to execute transformational projects.
With approximately 4,000 professionals collectively engaged with over 1,900 clients around the world from 40 physical practice offices and multiple virtual offices, we are their partner in delivering on the “now of work.” Headquartered in Irvine, California , RGP is proud to have served 88% of the Fortune 100.
The Company is listed on the Nasdaq Global Select Market, the exchange’s highest tier by listing standards. To learn more about RGP, visit: http://www.rgp.com . (RGP-F)
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213747033/en/
RGP Media Contact:
pburek@finprofiles.com
Source: RGP
What percentage of businesses plan to increase overall investment in workforce development in 2024?
What are the top-cited skills gaps among financial decision-makers?
Skills gaps in AI, automation, project management, data management, and soft skills.
What could have the biggest impact on investment in workforce development according to financial decision-makers?
AI and automation, followed by hiring challenges and widening skills gaps.
How could a lower interest rate environment affect investments in workforce strategy?
It could boost investments in balancing full-time headcount with outside talent and in upskilling or reskilling current employees.
Who conducted the poll on behalf of RGP?
YouGov polled 202 U.S. full-time professionals at director level or above who influence finance decision-making within their organizations.
