Clearing the career path

How employers can fill their talent pipeline from within.


 
Felicia Lyon

Felicia Lyon

Principal, Human Capital Advisory, KPMG US

+1 406-425-5878

Brock Solano

Brock Solano

Managing Director, Human Capital Advisory, KPMG LLP

+1 858-750-7063

Daniel Seto

Daniel Seto

HCA, Advisory Director, KPMG US

+1 858-750-7100

Brianne Lumley

Brianne Lumley

Managing Director, Human Capital Advisory, KPMG US

+1 312-882-3722

 
ANCHOR TITLE FACTS

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Survey highlights

  • 62% cite unforeseen geopolitical risks as a top organizational challenge in MANAGING impacts of inflation
  • 82% expect to raise prices by the rate of inflation (52%) or more (30%)
  • 72% envision passing on price increases in three to six months
  • 74% are looking at right-sizing staff as a means of offsetting the impact of inflation
  • Nearly 40% plan to allow all employees to work remotely to reduce real estate and related spending
  • 65% anticipate increasing their technology spend by 5% to 20% to mitigate inflationary impacts

Transform current employees into your workforce of tomorrow

Instead of layoffs, invest in modern career pathing and an internal talent marketplace to fill your talent pipeline from within.

Economic uncertainty and a potential recession are driving businesses to plan worker layoffs. A recent survey by KPMG found that more than half of U.S. CEOs would reduce headcount in the near term to help manage through the downturn.1 At the same time, a labor shortage persists, with November 2022 marking the 18th straight month of more than 4 million U.S. employees quitting their jobs.2  During these times, it is more important than ever for your company to retain and invest in existing talent.

Modern career pathing, along with a technology-enabled internal talent marketplace is essential to developing employees and addressing your talent pipeline. Career pathing can help you drive a better employee experience, improve profitability, and build an agile workforce of the future. A talent marketplace prioritizes internal candidates—saving your company time and money on onboarding and related costs. 

Growth in 2022, Outlook for 2023


80%

of retail executives surveyed reported increasing top line revenue from 2021 to 2022, with 75% reporting increases in operating profit.


72%

of executives anticipating a recession lasting a year or less, which was less optimistic down 9 percentage points from 81% in August                                                                                              


Operational Challenges and Priorities


Inflation is the most significant concern with the top 3 ranking challenges unchanged from August to December: 80% increased operating costs, 75% increased product input costs, and 50% eroded margins. The largest increasing concern since August is challenges to long term planning at 45% up from 38% in August.                                                                                                                                            

Retain successful employees longer

Career pathing can help your organization increase your overall profitability through various employee development and retention methods. Some examples:

  • Customized, on-the-job, formal learning along with clearly defined career pathways for workers
  • Exposure to different areas of the company through short- and long-term job rotations
  • Continuous learning in parallel to your employees’ current roles
  • Pathways to growth opportunities for a wider variety of strengths and career goals
  • Career progression opportunities for contingent workers that match your future needs

Create an agile workforce with a talent marketplace

A talent marketplace can support your workers’ internal career mobility and help create the agile workforce you need to meet future business demands. Technology enables the talent marketplace to match employees with jobs based on skills. Empowered employees can then expand their skill sets and grow their careers within your organization.

A talent marketplace allows companies to:

Reduce organizational silos

Talent Marketplace break down barriers so that people can share their skills with colleagues across the organization. Employees can collaborate cross-functionally, assist when they have additional bandwidth, and develop critical skills to help the organization to achieve performance goals.

Upskill and
reskill

Elevate training to the next level by matching people to projects, gigs, and mentorships that will provide the hands-on experience to improve productivity gains. This also develops adjacent (versus core) skills that help provide the right on-the-job opportunities and adapt the workforce for the future needs.

Provide equal access and opportunities

Talent marketplaces have emerged as a powerful tool for breaking down barriers and democratizing career development. Internal candidates that the marketplace platform suggests are recommended based on their primary skills. This identifies qualified internal candidates who may have been previously overlooked.

Create a high-performance culture

Every business operates with staffing holes. A talent marketplace can alleviate some of that tension and fulfill both short- and long-term business needs by motivating high-performing teams.

Benefits of modern career pathing

Modern career pathing can help your organization build an agile workforce, address talent pipeline challenges, drive a better overall employee experience, and help retain diverse workers.

  • Increase your company’s overall profitability
  • Attract and retain a diverse workforce
  • Improve employee behavior and productivity3
  • Develop and activate a high-performance culture
  • Strengthen customer and supplier relationships
  • Realize material savings through improved retention

Companies that don’t offer a proven internal career mobility program don’t retain employees as long as organizations with stronger programs. Upskilling talent is critical to retaining employees and building their resilience so your organization can navigate future business demands.

Read the paper below to learn how modern career pathing and an internal talent marketplace can help you drive a better employee experience, improve retention, and build an agile workforce.

How KPMG can help you deliver results

Elevate your employee’s development and experience by matching them to projects, gigs, and mentorships that help improve productivity gains and adapt them for future needs. We use human capital technology that can enable you to access real-time employee skills and performance data so you can meet urgent staffing needs, increase employee engagement and support retention. Our services include:

  • Career pathing design and implementation
  • Talent strategies to address market changes
  • Human capital transformation that supports:
    • Effective leadership
    • Upskilling and reskilling
    • Diversity and inclusion
    • High performance
    • Career mobility
    • Succession planning
    • Organization design
    • Talent management 

Retaining talent and driving workforce agility within your organization is more important than ever. KPMG Human Capital Advisory professionals can help your company achieve this by creating and fostering a high-performance culture. Contact us to learn how you can provide employees with the right training, growth opportunities, and job satisfaction so they succeed in a dynamic future environment.

Footnotes

1 KPMG, "2022 U.S. CEO Outlook", 2022
2 Jennifer Liu, CNBC, “What the job market could look like in 2023, based on a surprisingly strong end to 2022,” January 5, 2023
3 “The importance of career pathing: A definitive guide,” Indeed, April 25, 2022

  

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Contact Us

Felicia Lyon

Felicia Lyon

Principal, Human Capital Advisory, KPMG US

+1 406-425-5878
Brock Solano

Brock Solano

Managing Director, Human Capital Advisory, KPMG LLP

+1 858-750-7063
Danny Seto

Danny Seto

Managing Director, Human Capital Advisory, KPMG US

+1 858 750 7100
Brianne Lumley

Brianne Lumley

Managing Director, Human Capital Advisory, KPMG US

+1 312-882-3722