The EY 2024 Work Reimagined Survey reveals that work is becoming less and less tied to old conceptions of career, compensation and workplace, identifying new drivers that guide business and Talent Advantage. According to the study, only 32% of organisations have the strategic capacity to build a Talent Advantage with a positive impact on productivity and business results.
The study also draws a pertinent conclusion about the growing mobility of the workforce between companies and sectors. If, on the one hand, turnover and the competitiveness of a global talent market are often seen as threats, they are now seen in a new light and identified as a key element in creating Talent Advantage.
Talent Flow, as a metric that assesses which employees are willing to leave and which are interested in joining an organisation, has therefore taken centre stage. It is important to accept that the workforce will become increasingly dynamic, making it essential to adjust the people management strategy, otherwise organisations will not be able to attract, retain and motivate employees who now have a different mindset from the past.
In this way, turnover is no longer a measure of so-called ‘organisational health’. This assessment is now related to the likelihood of employees recommending their employer to friends and family. There are three key factors that influence this recommendation: culture, compensation and development.
Companies that invest in developing Talent Advantage are 7.8 times more likely to successfully face external pressures, as well as a significant 6.5 per cent increase in productivity over the last two years. It is therefore imperative to reflect and act on these dimensions.
Although the concept of Talent Advantage has a global reach, it is essential to consider the particularities of markets such as Mozambique, where talent management presents specific challenges. Some of the main obstacles facing companies are highlighted below:
1. The need to align people management policies with market expectations
In many organisations, talent management continues to be influenced by policies that do not fully reflect the expectations of today’s workforce. The demand for clear career progression opportunities and motivating work environments remains a priority for employees and plays a decisive role in their decisions.
2. Investment in Training and Skills Development
With the accelerated digital transformation and the constant evolution of markets, the need for reskilling and upskilling is increasingly evident. Companies need to invest in development programmes that equip employees with skills in line with new market demands, ensuring that they remain competitive in an environment of continuous change.
3. Lack of flexibility in labour policies
Despite the growing call for flexibility at work, many organisations in Mozambique still operate under rigid policies, with fixed hours and few opportunities for teleworking. The growing competitiveness of the global labour market requires companies to modernise their policies, offering alternatives that promote work-life balance. Organisations that don’t adopt more flexible ways of working run the risk of losing their best talent to more agile competitors.
4. Deficiency in corporate wellbeing initiatives
The physical and mental health of employees is a critical factor for organisational success, but it continues to be neglected by many Mozambican companies. The growing pressure for corporate wellness programmes reflects the changing mentality of employees, who are now looking for more humanised work environments focused on integral wellbeing.
How to achieve Talent Advantage?
The EY study identifies five key dimensions on which organisations should reflect in order to adjust their positioning and define strategic actions:
Talent Health and Flow
Implementation of advanced tools for workforce planning, recruitment and talent management.
Integration of market data to support the hiring and retention strategy. Is your company prepared for the current challenges of recruiting and retaining key competences?
Work Technology and GenAI
Supporting the adoption of Artificial Intelligence (AI) in employee roles to drive efficiency, agility and innovation.
Are you providing your employees with an optimised technological experience and mitigating the risks associated with its implementation?
Total Rewards Priorities
Developing optimised and segmented remuneration packages aligned with the diverse needs of employees.
Is your organisation structuring remuneration strategically to maximise the employee experience and guarantee a sustainable return on investment?
Learning, Skills and Career Pathways
Promoting personalised learning programmes, supported by behavioural methodologies and analysis of workforce metrics. Are you creating the right environment to maximise the productivity and retention of your talents?
Culture and Workplaces
Continuous assessment of workspaces, design and use, ensuring that they favour human connections, organisational culture and investment in location.
How does your company balance the need for remote working with the importance of face-to-face interaction?
Talent Advantage is a vital factor for the future of organisations, but around 70% of companies have yet to achieve it. The year 2025 will be decisive for redefining talent strategies, and organisations will have to explore new approaches to ensure competitiveness and long-term success. The central question remains: which statistic will define your organisation in the future? EY’s People Consulting team can help you discover new paths and turn challenges into strategic advantages.
