Rate of transformation impacting the mid-market future workforce

Wed 17 Jan 2024

The relentless pace of transformation in the consumer sector has created skills gaps and is impacting decisions on hiring new talent or investments in upskilling. Both new and emerging technologies and change in values across generations have shifted the work landscape. This presents new challenges for mid-market consumer businesses especially.

Skills gaps are now developing more quickly as companies work towards new strategies, offerings and operation models that incorporate ESG commitments and technology advances.

In our recent Sustainable, smart, and synchronised consumer report, we identified that 74% of consumer CxOs said it was ‘essential’ or ‘very important’ for their organisation to understand and exploit machine learning and artificial intelligence. To support this and keep up with industry change, businesses need the skills and knowledge across their workforce to remain competitive and retain success.

Mid-market businesses should start by taking a holistic view of their business. “Once you have a clear view of the business strategy, then you can implement an action plan for each service or department. This allows you to identify any skills or knowledge gaps,” according to Olivier Gramling, Partner at Mazars in France.

Rochelle Murugan, Partner at Mazars in South Africa emphasises that “a business needs to identify its goals and objectives and what it wants to achieve first and what will add more value long-term, before investing in one solution or a combination of the two.”  

The upskill or hire quandary

Once the strategic direction and skills gaps have been identified businesses need to decide where they want to invest to achieve their objectives. It might sound simple, but many people skills are often overlooked when it comes to introducing new technology – whether it’s to replace or complement delivery. Susan Truter, also a partner at Mazars in South Africa advises “it’s crucial to understand industry trends and what the customer of the future looks like. Doing that means a business can identify what type of team, skillset and supporting resources it needs both now and in the future.”

We’ve already seen the demands in E-commerce being a key driver of change. Getting the balance right when it comes to deciding whether to upskill, hire, or both is essential for retaining success and avoiding potential issues. The pressure to digitise is particularly acute in some regions, such as for Chinese organisations whose customer base is rapidly adopting more social commerce and digital payments.

Many mid-market businesses are now facing this crucial decision. Should you upskill existing staff or hire new talent? It’s rarely an ‘either/or’ solution according to Olivier. “Businesses shouldn’t just fall into the trap of hiring new people to fill gaps. “If you roll out new technology or processes across the business, or hire someone responsible for ESG or digitalisation, that one solution or person is not enough. People still need to be trained and customers need more communication to support delivery.” Rochelle highlights, “it’s also important to have proper performance measures in place for the various roles within your organisation and to support your people through this change.” Not doing so means a business won’t recognise the areas of development for its people, and the demands of its customers will not be fulfilled. Where it can, a business should try to upskill and develop within its own workforce.”

Olivier agrees, advising “there’s always real value in having people who are committed to, and understand, your processes and culture. If you have someone within the company who is motivated to build their knowledge, then you should invest in that.” According to Rochelle” it may appear as a significant cost initially but, implemented well, it will result in a more successful long-term investment.”

Board transformation

Upskilling effectively is important at all levels of a business. “In mid-market businesses there are often several hands-on members of the Board responsible for the business drivers,” Emer O’Riordan, Partner at Mazars in Ireland, says. “Often non-executive directors will be brought in specifically to address skill gaps, such as funding or business development, and give a more rounded view. This is where the diversity and make-up of a Board can make a distinct impact. “Ideally the board should be able to reflect a representative view of customers and stakeholders. If the challenge the company is facing is being driven by a cohort of the board that doesn’t understand their requirements and values, that can be a problem.”

For larger scale digital transformations, Emer says, “you don’t necessarily need to have a digital transformation expert on the board. You just need everyone on the board to understand why you’re doing it and secure their buy-in.  To achieve that, some board members may also need some upskilling.”

What is clear is that there is not a one-size-fits-all approach when it comes to talent management as part of a transformation. It’s rarely as simple as just bringing in new operational talent. Instead, it is important to assess the best integrated people and technology solutions to support the growth of your business.

For more information on our global consumer report, or how Mazars can help you to transform your business, please get in touch.

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