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1、Narrowing the Talent GapHow to be a front-runner in the race for talent Narrowing the Talent Gap 2SummaryAs a result of economic growth and increasing projectization,the demand for project managers is expected to soar in the coming decade.At the same time,the collective impact of demographic trends,

2、retirements,and cultural shifts in the workplace,will create a shrinking talent pool that is insufficient to meet demand.PMI and PwCs latest global research indicates there is a lack of awareness,or perhaps some complacency,among project-based organizations of the risks that lie ahead,and the potent

3、ial detrimental impact that the talent crisis will have on projects and their ability to meet strategic goals in the future.This paper highlights what organizations can do to minimize the impact of the crisis.Our research points to actions that make it easier to attract,develop and retain talent,as

4、evidenced by the strategies taken by high-performing organizations those we have called front-runners who find recruiting project managers less challenging.And we discuss the need to refresh the image of the profession to one where project managers are viewed as strategic partners and changemakers r

5、ather than tactical troubleshooters.The talent crisis is real.Projects are at risk.Its time to make talent a strategic priority.Narrowing the Talent Gap3Successful projects are a key driver of global economic growth.As more and more industries become projectized,the demand for skilled project manage

6、rs is expected to soar in the coming decade.But at the same time,aging populations and declining birth rates in many countries are shrinking the size of their workforces.According to PMIs 2021 Talent Gap:Ten-Year Employment Trends,Costs and Global Implications report,the global economy will need a t

7、otal of 25 million new project professionals by 2030.To close this gap,2.3 million people will need to enter project management-oriented employment(PMOE)every year just to keep up with demand.The talent gap is being exacerbated by the post-pandemic Great Resignation,1 which has seen workers quitting

8、 their jobs in droves all over the world,and it seems that the situation will only get tougher.Microsofts Work Trend Index2 report estimates that over 40%of workers globally are considering quitting or changing professions in the coming year.1 The term“Great Resignation”was coined by professor Antho

9、ny Klotz to describe the worldwide increase in people voluntarily leaving their jobs from April 2021 onward,supposedly as a result of the impacts of the COVID-19 pandemic and workplace conditions.2 Microsoft Work Trend Index.2021.The Next Great Disruption is Hybrid WorkAre We Ready?Microsoft.At the

10、same time,PMI and PwCs latest global research indicates that talent strategies havent changed much.Theres a widespread lack of focus on developing and retaining existing project managers,and a lack of variety and innovation in attracting and recruiting new talent.The core problem,we believe,is that

11、there isnt a business case for investment in talentone that explicitly aligns capabilities to organizational strategy and competitive advantage.The business case should describe how hiring,training,performance,and retention strategies will be aligned to those capabilities;and critically,it should us

12、e a data-driven approach to assess capabilities,measure progress,and link that to organizational performance.Without a systematic approach and a focus on hard numbers,personal traits and behaviors will continue to be viewed as“soft”and risk being undervalued.And unless capabilities-building is recog

13、nized and treated as the central enabler of successful strategy execution,organizations will be unable to meet their goals,projects will falter,and the profession as a whole will be unable to avoid the impact of a global talent crisis.Most organizations seem unaware of the crisis,however some,albeit

14、 a minority,have begun to take action.The Talent Gap:Facts and FiguresProject management-oriented employment(PMOE)which includes skilled project managers and those in less formal project management roles,that encompass project management skillsmakes up 3%of all global employment,equating to 90 milli

15、on jobs.This is expected to grow to 3.2%or 102 million jobs by 2030.By 2030,at least 13 million project managers are expected to have retired creating additional challenges for recruitment.To close the gap,25 million new project professionals are needed by 2030.Source:Project Management Institute.20

16、21.Talent Gap:Ten-Year Employment Trends,Costs,and Global Implications.(pmi.org)In July and August 2021,PMI and PwC undertook a global survey of 4,069 people involved in leading or facilitating the delivery of projects,programs,and portfolios.The survey sample was wide-ranging and included individua

17、ls with formal project management qualifications and those with job titles such as project/program/portfolio manager,as well as those in less formal project management roles,and initiative and workstream leaders.The executive viewpoint was also well represented,with the survey capturing 1,348 C-suit

18、e responses.Narrowing the Talent Gap 4Gaining a Competitive Advantage in the Race for Talent:The Front-RunnersPMI and PwCs research has identified a cohort of 250 organizations that are experiencing fewer hurdles in attracting and retaining talent,relative to their peers.Their project management off

19、ices(PMOs)are more aligned with organizational strategythree quarters have C-suite representation,and 90%are considered by their executive leaders to be a strategic partner.They find it easier to recruit people with critical project skills and are more successful at nurturing project managers in the

20、ir roles.They are also more than twice as likely to have performed much better in terms of revenue growth;customer acquisition;customer satisfaction;and environmental,sustainability,and governance(ESG)metrics(see Figure 1).Throughout this article well be referencing these“front-runners”to illustrate

21、 what theyre doing differently,but it must be noted that even among this group,more could be done to attract,develop,and retain talent.Figure 1:Key Performance Indicators:Front-Runners versus other organizationsC-suite View on 2020 Performance versus 2019(%stating much better)Source:PMI and PwC.2021

22、.PMI and PwC Global Survey on Transformation and Project Management 2021.Revenue GrowthCustomer AcquisitionCustomer SatisfactionESG Metrics30%36%39%27%18%13%14%11%C-suiteOrganizations Overall Narrowing the Talent Gap5Which Skills and Capabilities Matter Most?3 PwC.2021.Who Is the Modern Project Mana

23、ger:Meet the Project Influencer.PwC report.Our research identifies the most important capabilities that project managers in general should haveand theyre very different from what they used to be.PwCs previous research3 shows that the best project managers are evolving.No longer creatures of scope,sc

24、hedule,and budget alone,they are nowenabled by new technologyfocusing on influencing outcomes,building relationships,and achieving the strategic goals of their organizations.PMI and PwCs latest research builds on this and demonstrates that,while a broad range of capabilities is viewed as important b

25、y our research participants,five key skillsa mix of interpersonal skills,and what PMI calls power skills and business acumen skillsare deemed to be critical to the successful delivery of projects.The research included a number of in-depth interviews with senior project leaders,and all of them agreed

26、 that power skills should be at the top of the list.Some interviewees expanded further on what good relationship building skills look like,emphasizing the importance of an empathetic approach.Top 5 Skills/Capabilities of project managers*(in Order of Priority)Relationship building Collaborative lead

27、ership Strategic thinking Creative problem solving Commercial awareness*Source:PMI and PwC.2021.PMI and PwC Global Survey on Transformation and Project Management 2021.*Top five skills of project managers,selected from a list of 16,including power skills,business acumen,and ways of working.*Defined

28、in the survey as“knowledge of the business,industry and ecosystem,and their implications for projects.”“Empathy is often underestimated.In building relationships we should have a connection with our stakeholders and treat them as peopleits switching to asking how are you doing rather than what are y

29、ou doingcreating a more open conversation.This kind of empathetic approach,looking at it from a human perspective,is the real skill.You will uncover so much more as a project manager with an empathetic approach.”GEETHA GOPAL Head of Infrastructure Projects Delivery and Digital Transformation,Panason

30、ic Asia Pacific Narrowing the Talent Gap 6The Image ProblemOur research highlights that project management has something of an image problem among senior leaders,with project managers being seen as tactical troubleshooters rather than strategic partners.This suggests a widespread lack of understandi

31、ng of the value and impact of project management at the C-suite level.Organizations must identify the specific and detailed set of capabilities that will confer the greatest competitive advantage in alignment with their strategic priorities.Proof that this isnt being done is evident in how few C-sui

32、te respondents associate project managers with“realizing visions,”being“essential,”or being“changemakers”(see Figure 2).Its also revealing that,while a significant portion of senior leaders do view project managers as problem solvers and relationship builders,important enablers for those traitscreat

33、ivity and flexibilityscore quite low.The image of project managers among senior leaders in front-runner organizations is more positive,demonstrating that strong strategic alignment between the PMO and the C-suite helps to reinforce the value of project management capabilities in achieving wider stra

34、tegic aims.But theres still room for improvement,even among this high-performing group.Figure 2:Perceived Attributes of Project Managers Among Senior LeadersAttribute*%of all senior leaders(n=1174)%of senior leaders in front-runner organizations(n=105)Problem-solvers6465Relationship builders4553Chan

35、gemakers3760Creative2848Essential2739Realizing visions2741Flexible2538Source:PMI and PwC.2021.PMI and PwC Global Survey on Transformation and Project Management 2021.*Respondents were provided with a list of 20 words and phrases and asked to select those that best describe how they see project manag

36、ersRegional Spotlight.Perceptions of the profession are largely similar across the globe.However,the negativity is more concentrated in North America,where project managers have an image of box checking and note-taking,and in Latin America where the profession is more likely to be associated with bu

37、reaucrats and rule followers.Narrowing the Talent Gap7The Capabilities GapWhen we asked respondents to assess their colleagues on the attributes that were most important for a project manager,it revealed a capabilities gap in all five of the most critical areas,particularly creative problem solving.

38、The ability of talent managers to measure baseline capabilities and analyze gaps is crucial in quantifying the need for investment and designing effective talent management strategies to close those gaps.External or in-house capabilities assessment frameworks and learning needs assessments,tailored

39、to each organizations needs,will help to systematically gather relevant data and insights,and serve as valuable talent health checks.Figure 3:The Capability Gap:Top Five Capabilities of a Project ManagerCapability%ranking in top three capabilities of a project manager(n=4069)%who believe project man

40、agers in their organization do not have this capability(n=4069)%of front-runners who believe project managers in their organization do not have this capability(n=250)Relationship building34164Collaborative leadership32194Strategic thinking25204Creative problem solving25236Commercial awareness22205So

41、urce:PMI and PwC.2021.PMI and PwC Global Survey on Transformation and Project Management 2021.Narrowing the Talent Gap 8Recruitment Rethink is Urgently RequiredWorryingly,the top-five capabilities that are most important for strategy execution and are lacking in a significant number of project manag

42、ers are also cited by one in three respondents as difficult to recruit for.Once again,creative problem solving tops the list.Even among front-runners its a struggle to find these critical skills,albeit to a lesser degree.Despite these challenges,most organizations globally are still relying on tradi

43、tional approaches to recruit talent.Although theyre prioritizing power skills and business acumen,theyre still searching in the same,shrinking pool of talent.Only 38%of organizations are actively working to increase the diversity of candidates,and only 15%see upskilling young people in underrepresen

44、ted communities as a priority.Among front-runners,this rises to 47%and 38%,respectively.Figure 4:The Recruitment GapCapability%ranking this in top three capabilities of a project manager(n=4069)%of hiring managers stating that the capability is difficult to find(n=1619)%of front-runner hiring manage

45、rs stating that this capability is difficult to find(n=147)Relationship building342923Collaborative leadership323226Strategic thinking253218Creative problem solving253628Commercial awareness223018Source:PMI and PwC Global Survey on Transformation and Project Management 2021Geographically,organizatio

46、ns are mainly focusing on where the role is basedfour in 10 are recruiting in other parts of the country and just one in eight outside the country.Front-runners are reaching out further to recruit project managersalmost half are recruiting beyond the area local to the role and a quarter recruiting o

47、utside the country.Only 38%of organizationsand 45%of front-runnersare embracing flexible staffing models,such as using independent contractors,part-time employees,and temporary employees.And only 50%of organizationscompared to 58%of front-runnersoffer flexible working,such as job sharing,remote work

48、,or alternative work schedules.This means theyre excluding many potential candidates,including women,who have struggled during the pandemic to combine work with caregiving responsibilities.Regional Spotlight.All regions are experiencing a hiring challenge to a certain degree,especially Latin America

49、,South Asia,and Europe.China is less likely to experience issues,but one in five organizations still finds recruiting these critical five skills difficult.Narrowing the Talent Gap9There is,of course,a trade-off when tapping into the gig economyit will help to alleviate hiring challenges but will als

50、o have an impact on organizational knowledge and learning,and on project management as a core organizational capability.Only 18%of organizations and 31%of front-runners are working to actively change the image of the profession.Given the competitive hiring landscape,and shrinking talent pool,not tak

51、ing action to better communicate the value of project management capabilities,both internally and externally,is a high-risk strategy.Many also arent considering candidates who dont have project-related qualifications.Indeed,many more are increasing the requirement for their qualifications than those

52、 who are reducing it.Talent managers will also have to consider how technology will impact hiring needs.For example,whether scheduling or cost estimation skills will still be needed as much in the future,or if such tasks are going to be replaced by automation.Currently only one-quarter of organizati

53、onsand half of front-runnersare utilizing technology to automate lower-value processes.A further third expects to use automation,along with other technologies including artificial intelligence(AI)and virtual reality,more frequently in 5 years time.Talent managers need to monitor this trend and build

54、 it into their strategies and forecasts.Attracting the U.S.Veteran Community into Project Management Roles“For the veteran community,mentoring is very important.We know we have skills that are very well aligned from a leadership perspective for project management,but there are gaps in things like to

55、ols,methodologies,and managing budgets.The challenge is often that we dont even know what is out there in industry so we can tailor our experience to find a role.For the veteran community,finding mentors or even additional sources of information,like videos of interviews,where someone explains the d

56、ay in the life of an agile project manager,construction project manager,etc.,would truly enable us to make better decisions.”MICHAEL QUINN CEO,HireMilitary&Tenova LLC,which helps U.S.military veterans transition into employmentRegional Spotlight.In China and Sub-Saharan Africa,where flexible staffin

57、g models are more typical,finding the right talent is less challenging.Initiatives to Increase Diversity and Upskill Young PeopleSome ExamplesLocalized is an example of an app designed to help connect students and recent graduates with industry experts,employers and other talent hubs in the Middle E

58、ast.https:/www.localized.worldJPM Chase is investing in career education to create pathways to well-paying jobs across the United States.Summer employment opportunities for youth are also providing early work experience.The Coca-Cola Foundation 5by20 program has provided more than 6 million women ac

59、ross the globe with access to business skills training,mentoring,and financial services or assets.Narrowing the Talent Gap 10Elevating Learning and Development If capabilities arent aligned to organizational strategy,capabilities building isnt going to get the attention it deserves.Thats why the num

60、ber one barrier to developing project manager capabilitiescited by 37%of respondentsis that learning and development(L&D)isnt enough of a strategic priority.This is the case even for 28%of front-runners;being seen as a strategic partner to the C-suite is certainly important,but its no substitute for

61、 systematically mapping capabilities to strategic goals and creating a quantifiable business case for investment.This disconnect is obvious to project managers though,with over one-quarter saying that training isnt aligned to organizational strategy.This is an area that front-runner organizations al

62、so need to work ona quarter of this high-performing group also reported a lack of alignment between their organizational strategy and their L&D activities.So its perhaps no surprise that the biggest share of investment,according to 40%of respondents,goes to training in tools,processes,and methodolog

63、ies,rather than power skills and business acumen skills.And notably,just 32%of organizations41%of front-runners prioritize the development of collaboration and management skills for remote working.Yet 89%of respondents have had to work remotely in some capacity since the pandemic began.And up to one

64、-third say that developing power skills and business acumen skills is one of the most difficult things to do remotely.Lack of strategic prioritization is also evident in how training and development is being done,with organizations largely not embracing a diversity of learning preferences and opport

65、unities(see Figure 5).Just 29%of organizations,for example,offer on-demand,microlearning tools,or encourage social and Figure 5:Initiatives Used to Support RecruitmentInitiative to support recruitment%of organizations using this method(n=4069)%of front-runners using this method(n=250)Promoting a cul

66、ture of continuous learning5172Providing in-house coaching,mentoring,and shadowing4463Using tech to facilitate agile,innovative,continuous learning3861Providing team-based training3759Partnering with external training providers3452Providing on-demand micro learning opportunities2945Encouraging socia

67、l and informal learning2947Adapting training to diverse employee needs2346Source:PMI and PwC.2021.PMI and PwC Global Survey on Transformation and Project Management 2021.Narrowing the Talent Gap11informal learning.And only 38%use technology to facilitate agile,innovative,and continuous learning.Yet

68、digital technologies such as virtual reality are particularly suited to harder-to-teach skills,and can create powerful learning experiences.The focus of development is also squarely on individuals,with team-based training overlooked by nearly two-thirds of organizations;yet teams are the backbone of

69、 projects,and are critical to organizational success.Its no wonder that respondents have a litany of complaints,chief among them that training isnt engaging enough(30%),isnt of high-enough quality(29%),uses an insufficient variety of learning methods(27%),and takes too long(21%).Crucially,only 22%of

70、 organizations monitor the use and progress of training.This could indicate that 78%dont know whether L&D programs are actually improving capabilitiesand executives have no idea what return theyre getting on investment in these programs,which in turn feeds the lack of strategic prioritization.It als

71、o creates no incentive to review and evolve approaches to training,which is why only 23%of organizations do it regularly.In comparison,45%of front-runners monitor their training programs and 51%regularly review them.Organizations also need to get creative about harnessing the power of staff who dont

72、 have formal project management training,many of whom are already responsible for bringing lower-risk projects to fruition.Only 13%of respondents say that training these“accidental project managers”is given high priority across the organizationcompared to 43%of front-runners.Narrowing the Talent Gap

73、 12A Call to ActionThe message is clear:talent,projects,and strategic goals are at risk unless organizations invest now in building winning capabilities to gain a competitive advantage.Take it to the top:Make talent management a C-suite priority,with clear alignment of capabilities and strategic pri

74、orities.Follow the numbers:Use a systematic,data-driven approach to assessing key capabilities,identifying gaps.and measuring progress.Reinvent recruitment:Get smarter at attracting talent to plug capabilities gaps.Elevate your L&D:Invest in fostering critical capabilities,using diverse learning met

75、hods.Monitor,evaluate,and monitor again:Review and evolve talent strategies in line with feedback,progress,and the changing priorities of the business.Further Reading:PMIs Talent Management Thought Leadership Series reports about building project management talent.It provides a lot of great“how”sugg

76、estions that address the“what”and“why”opportunities and challenges identified in this report.AcknowledgementPwC and PMI would like to thank everyone who took part in the survey and in the qualitative interviews referenced in this report.Narrowing the Talent Gap13About PwCAt PwC,our purpose is to bui

77、ld trust in society and solve important problems.Were a network of firms in 155 countries with over 284,000 people who are committed to delivering quality in assurance,advisory,and tax services.Find out more by visiting us at .PwC refers to the PwC network and/or one or more of its member firms,each

78、 of which is a separate legal entity.Please see for further details.This report is a collaboration between PMI and PwC Research.PwC Research is a 100 strong team of research professionals based in the PwC UK,providing evidence and insight to drive strategic change,support decision making,mitigate ri

79、sk,and enhance performance.www.pwc.co.uk/pwcresearch.About Project Management Institute(PMI)PMI is the worlds leading professional association for a growing community of millions of project professionals and changemakers worldwide.As the worlds leading authority on project management,PMI empowers pe

80、ople to make ideas a reality.Through global advocacy,networking,collaboration,research,and education,PMI prepares organizations and individuals to work smarter so they can drive success in a world of change.Building on a proud legacy dating to 1969,PMI is a“for-purpose”organization working in nearly

81、 every country around the world to advance careers,strengthen organizational success,and enable changemakers with new skills and ways of working to maximize their impact.PMI offerings include globally recognized standards,certifications,online courses,thought leadership,tools,digital publications,an

82、d communities.Visit us at PMI.org,ProjectM,Facebook,Twitter,and LinkedIn.2021 Project Management Institute.All rights reserved.“PMI,”the PMI logo and the slogan“Powering the Project Economy”are marks of Project Management Institute,Inc.For a comprehensive list of PMI trademarks,contact the PMI Legal

83、 Department.“PwC”and the PwC logo are marks of PricewaterhouseCoopers International Limited(PwCIL).All other trademarks,service marks,trade names,trade dress,product names and logos appearing herein are the property of their respective owners.Any rights not expressly granted herein are reserved.CNT-21-027-TL(11/2021)Powering The Project EconomyProject Management Institute|Global Headquarters|14 Campus BlvdNewtown Square,PA 19073-3299 USA|Tel:+1 610 356 4600PMI.org