Not Technology, Human Resources Are The Primary Challenge Of Enterprises

POSTED: 26.06.2019.

Digital transformation is changing business models and enterprises. It is becoming clear that new times demand greater business agility, and the victories are primarily achieved by quality personnel. How do companies attract great talent? Some domestic companies provided us with the answers.


The fact is that IT needs a lot more people. There are many jobs in the modern world of information technologies, but there are no suitable candidates to fill them. Talent management is confronted with real challenges, we are witnessing a full-blown war on talent in the market. How will companies attract the best talents?


“As CEO, I fully realize that my business needs the best possible people. Together with the HR staff, we are working intensely on attracting the best talents. We have found that (higher) salary is not the only motive. We need to offer our candidates the best work experience, so we are intensively re-updating processes to attract, develop, motivate and retain successful employees”, said Klod Kolaro, Managing Director at Comtrade SII.


“The transformation of personnel and work methods began gradually. Firstly, we implemented a pilot project, where we set up a small team of employees within the company and allowed them to function as a start-up. This approach is now slowly expanding throughout the organization. We have found that people are more creative if they have greater freedom at work”, added Vladimir Arshinov, CIO at the Slovenian Steel Industry (SIJ).



Artificial Intelligence is a threat and opportunity at the same time


The current imbalance of the skills and capabilities of personnel in enterprises may further increase in the future. On the one hand, we hear that automation and artificial intelligence will take over almost every job and workplace that can be automated. But automation is a powerful tool that needs to be treated with caution. Obviously, automation will eliminate the need for some workers and workplaces, and reduce the wages of the existing ones. A recent study predicted that by 2050 modern technology will automate almost half of jobs in the United States alone.


“People blame modern technology and digitization for these consequences. However, it has to be said that digitalization has also created a greater demand for qualified technology experts, such as machine learning experts, mobile solutions developers, data scientists, architects, designers, security experts, and others”, explained Kolaro.


A recent study by Gartner predicts that by the year 2022 a third of technological jobs will remain vacant due to the lack of talent. What can companies do about this? “Agility is part of our culture. We are preparing for major organizational changes, as the entire organizational structure will change. As an employer, we are aware that employees want to do interesting things, we are starting to recruit talents early on, already in secondary schools and at faculties; we grant more scholarships every year”, Martin Gornjec, head of information technology department, enlightened search and recruitment of talents efforts of BSH Hišni aparati.



Pressures towards greater agility in business


An agile organization is essential for the survival of businesses in the digital age. All employees, management included, will have to change. “Digital leaders must abandon old habits and learn new behaviors. Agility means strengthening the role of employees rather than relying on the old hierarchical organizational structure. Leaders need to implement a digital strategy while at the same time ensuring the consistency and autonomy of employees”, added Kolaro.

In addition to the empowerment of multi-functional autonomous groups, companies must also build the so-called innovation culture that does not punish fail-fast attempts as these help companies learn quicker. Tolerating occasional failures will be necessary. Every implementation of a project or the development of a product will need immediate customer feedback and rapid change management. In the long run, only agile companies will remain in the game as their flexibility will help them reduce business risks.

“An agile company requires agile employees. They have a lot to learn, take responsibility, not just wait for the boss to assign tasks to them. Companies are confronted by three key personnel challenges: change of generations, lifelong learning, and artificial intelligence – together with them we will be pushed into the new world”, commented Alenka Kolar, CIO at Elektro Ljubljana, and added: “We need to tackle changes with a lot of patience, we are aware that a lot of learning will be required on all sides.”