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Top 5 Business Trends CEOs & Talent Management Executives Must Embrace or Be Left Behind

business trends2015 was a year of dramatic change in the talent management field. H. R. departments have become more aware of the critical role they play in the growth of their organizations. More than ever before, there is increased use of assessment, greater focus on stress management and the underlying causes of low levels of employee engagement and retention. 2016 will likely be more of the same, only faster.

Here are the top five trends to keep abreast of in 2016:

1. Algorithms Shape Hiring Decisions

Big data has been a much-discussed concept in the last few years, and that will continue in 2016. The new year will make big data more relevant, as talent management executives rely more on algorithms or applicant tracking systems to identify potential top talent. Will algorithms eventually replace hiring managers? Not very likely. Actually, hiring managers are needed more than ever, but their roles will shift to interpreting the data gathered in order to make more strategic decisions. The most effective systems will make use of algorithms to eliminate job misfits and free up the time previously wasted.

2. Expanded Use of Coaching

According to a recent CNN article business coaching is on the rise, a trend that will continue to grow in 2016. Corporate giants like Google, Goldman Sachs and GE, to name a few, spend more than $1 billion annually. They are investing in people first, even over products and services, as a strategy to see more black in their bottom line. With Millennials who make up the majority of the workforce and particularly want to be coached, more emphasis will be placed on providing training for mangers to become more effective coaches.

3. Millennial Values Impacting the Workforce

A new generation of 40 million professionals now entering the workforce, but with a markedly different approach to their career, will change work as we know it. We’re starting to see concrete examples of the impact of this generation playing out in the workforce. One example is a growing demand for more flexibility. An increasing number of millennials are opting for freelance or consulting work instead of a traditional full-time role. It is estimated more than 30 percent of the workforce today are freelancers, with that number expected to rise.

4. Increasing Reliance on Assessments

Assessment use is on the rise. In fact, the Wall Street Journal reports 57 percent of Fortune 500 companies are now using them, an increase from only 21 percent in the early 2000s. Now that assessment use has become a best practice for HR professionals, they now want to ensure these products are reliable and valid. In 2016, we’ll see top talent management professionals asking the validity question more frequently.

5. Engagement Becomes High Priority

According to the latest Gallup poll, 60 percent of Americans are either not engaged or actively disengaged from their work. We know when engagement is high; it’s a sign employees are happy, focused and productive. HR professionals will prioritize the measurement of engagement in the coming year to keep their organizations profitable.

There will be a significant shift how companies hire, retain and engage employees as these five trends play out in months ahead. Organizations that do it successfully will be set up to grow — and stay relevant for years to come.

The Talent Management Institute has developed an integrated talent eco-system that can solve the engagement and retention problem. We call it the Total Talent Management System™.

Click here to learn more about TTMS and get a free copy of the special executive report, “Fully Engaged Top Talent: Key to Excellence for Knowledge-based Enterprises.”

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