According to a yearly ranking of success indicators for the global tech industry, talent management will a major 2022 spotlight.
In a ranking of the biggest industry success drivers based on one consultancy firm’s data, the emerging top opportunity for 2022 for the global technology industry is the imperative to attract and retain a motivated workforce.
This comes amid a trend where surveys are showing that 9 out of 10 respondents indicated they were prepared to resign if not offered flexibility in where and when they work. At the same time, demand for engineers and salespeople is growing exponentially for firms investing in growth.
According to Barak Ravid, Global TMT Strategy and Transactions Leader, EY, which revealed its 2022 forecast in an annual report: “In order to build a motivated workforce, employers must prioritize finding ways to solve the puzzle of optimizing rewards, flexibility and experience, to create a package that cultivates the best talent while managing the associated costs.”
Supply chain disruptions also a factor
Due to the COVID-19 pandemic, Brexit, market-defining geopolitical events and the massive upsurge in cyber incidents, the tech industry can expect two major bottlenecks this year: logistics and the availability of components.
EY is therefore ranking the need to de-risk the supply chain in order to secure business continuity in third place this year, as it did for 2021. Said Ravid said: “Tech companies need to holistically review their entire supply chain. Different risk profiles in the chain require different policies around inventories and sourcing contracts. Logistics issues could lead to changes in preferred manufacturing and distribution footprints. Real-time visibility will help mitigate problems at an early stage, while new technologies such as digital twins and 3D printing could reduce the degree of disruption.”
The full list of top 10 opportunities in technology for 2022 is as follows:
- Attract and retain a motivated workforce in a hybrid working environment
- Leverage mergers and acquisitions to strengthen growth profile
- De-risk the supply chain to secure business continuity
- Embed security into the design of new activities
- Lead by example in environmental, social and governance (ESG) to strengthen stakeholder relations
- Transform business to excel in consumption-based sales
- Realign tax organization with digital business models
- Streamline operations to increase agility
- Instill customer trust to drive digital engagement
- Prepare for adoption of 5G
More than just environmental sustainability
With stakeholders now demanding more from tech companies, the call to take a strong position on ESG issues is new on the yearly list.
Employees want to make a tangible difference; investors are seeking sustainable investment options; and customers are looking to the industry to implement new tech that drives sustainable outcomes. The report highlights that firms must respond by taking the initiative to draw up a long-term value proposition and adopt transparent KPI-led reporting.
Referring to item 2 on the list, Ravid said acquisitions across the tech industry “will reignite growth by adding solutions, technologies, end markets and distribution channels to companies’ portfolios. Divestments could also help companies steer away from slower growth market segments or solutions that require the business to build new capabilities. Overall, having the right M&A strategy in place will be critical to realizing a better growth profile.”