Dive Brief:

• Thanks to tightening labor markets, increased sophistication in hiring tools, and a more demanding employee population, business growth is tightly connected to redefining how talent is managed, developed and incentivized, according to a new report from Mercer.

• Mercer's 2016 Global Talent Trends Study, which looks at the perspective of both employers and employees, found that a lack of development, outdated processes and discontent with the role of managers are the main drivers of today's workforce dissatisfaction. 

• An unexpected 85% of employers report that their talent management programs and policies need an overhaul. To help manage such changes, leadership needs to buy in. But only 4% of HR professionals report that their HR function is viewed as a strategic business partner within their organizations. 

Dive Insight:

Nine out of 10 employers anticipate the competition for talent will increase in 2016, with 35% expecting the increase to be "significant."

The importance that organizations have placed on developing a diverse workforce has not translated into actions that employees see, Mercer's report found. While 73% of companies are working towards diverse leadership teams, for example, only 54% of employees say their organization has effective programs in place.

The job seeker's market continues to be a problem for employers, as talented employees have more options than ever. Additionally, more employees (especially millennials) expect flexibility, increased learning opportunities and improved career development support.