Financial decision-makers are prioritizing upskilling and outside talent in addition to headcount
RGP Media Contact:
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.
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)
“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.