Every marketing organization would likely seize the opportunity to secure an additional $1 million. According to the Spring 2024 edition of The CMO Survey, co-sponsored by the Fuqua School of Business, Deloitte, and the American Marketing Association, the largest proportion of marketing leaders indicated they would allocate these funds toward “hiring and developing talent.” This conclusion is drawn from a sample of 292 marketing leaders, 94% of whom hold VP-level positions or higher.
This finding resonates with a cross-industry survey conducted by BCG, which revealed that 72% of human resource leaders believe their companies lack the necessary talent. However, we were surprised by this emphasis on talent development, particularly given the recent surge in artificial intelligence tools and marketing technology stacks. We had anticipated that marketing leaders might prioritize investments in digital tools and platforms to drive business growth.
We propose three key reasons why marketers have prioritized hiring and talent development, and we offer cautionary advice for those fortunate enough to receive a budget windfall.
1. Address Fundamental Issues Before Expanding Talent Pools
Resorting to hiring and talent development can serve as an easy escape for organizations grappling with significant operational challenges. However, addressing underlying issues is essential, as employing solely recruitment and training strategies may inadvertently sustain organizational inefficiencies. Simply put, organizations with flawed strategies cannot hire or train their way out of their problems.
Marketing leaders must first pinpoint the root causes of systemic problems before embarking on hiring or talent development initiatives. Are existing strategies outdated? Are the capabilities required to deploy talent lacking? Are training programs aligned with the right skill sets? Are suitable leaders in place? Such issues are typically more intricate than simply increasing hiring rates, yet they are often overlooked.
If fundamental issues are resolved and a talent gap persists, we recommend that marketing leaders consider two follow-up questions:
First, do the skills available within the organization align with the tasks at hand? Is there a discrepancy between employees’ current competencies and the new responsibilities expected of the marketing department? Identifying whether this gap stems from inadequate training or a lack of talent can be pivotal. Targeted training often proves to be more efficient, cost-effective, and impactful than large-scale hiring.
Second, is it possible to enhance the organization by refining existing processes, or is there a need to create entirely new approaches? Is there a demand for new expertise, or can innovative processes be developed internally? As with other business functions, marketers are increasingly leveraging automation and analytics to streamline operations and facilitate critical decision-making, which may enable them to reduce skill requirements for certain roles.
By addressing these pivotal questions, leaders can ascertain the most effective hiring strategies to overcome existing business challenges, thus optimizing the return on investment that marketing leaders seek.
2. Collaborate with HR to Enhance Employee Engagement and Retention
With the labor market for top talent remaining competitive, employees now possess greater autonomy, particularly in the context of remote work. Whether optimizing work-life balance, engaging in “quiet quitting,” exploring new job opportunities, or managing multiple roles, employees are reclaiming power from employers.
Marketers recognize that cultivating and sustaining an appealing workplace culture is vital for retaining talent and maintaining organizational momentum. Furthermore, platforms such as Indeed, Glassdoor, and Kununu offer prospective hires insights into various aspects of a company, including interview processes, salary ranges, and employee sentiments regarding leadership and professional development.
Consequently, marketers should regularly assess employee perceptions of their organizations. Are employees satisfied? Do they intend to remain with the company? What aspects of their professional development are most important to them?
Marketing leaders should collaborate closely with human resources (HR) to conduct these evaluations. According to the Spring 2023 edition of The CMO Survey, marketers rated their collaboration with HR below the average (3.5 on a seven-point scale), highlighting it as one of their weakest cross-functional relationships. This disconnect may limit valuable opportunities for gaining insights into employee acquisition, engagement, and retention. By working alongside HR, marketing leaders can identify employee challenges and develop resources and processes to enhance the overall work experience.
Top talent will expect a highly digital and automated work environment with access to the best tools for experimentation and innovation. A 2024 Guild survey found that approximately 81% of business executives are concerned about losing disengaged top performers. To mitigate this risk, marketing leaders should deploy engagement and pulse surveys alongside roundtables to solicit feedback regarding workplace conditions. They must also demonstrate progress in addressing concerns to sustain morale and retain valuable talent.
3. Strategize Recruitment in an Evolving Marketplace
Marketing organizations are competing fiercely to attract top professionals, recognizing that a skilled and talented team can serve as a key differentiator. Marketing and HR should co-develop talent roadmaps that align with the overarching business strategy and update them frequently, given the rapid pace of changes in the marketplace and technology. By concentrating on core needs—such as insights, strategy, data science, and technology—marketing leaders can ensure that they allocate resources efficiently and refrain from inflating costs unnecessarily for skills that are not essential.
Moreover, top talent can serve as a powerful recruitment magnet; seasoned leaders and practitioners often draw in their talented peers, eager to collaborate and grow professionally.
However, there are critical cautions when engaging in the “buy versus build” mentality. Business strategies evolve continually, skill requirements shift rapidly, and economic downturns may strain available talent budgets. Therefore, marketers must be cautious about overpaying for talent or overhiring, as seen during the pandemic when organizations faced challenges in retaining newly acquired employees.
Hire and Develop Marketing Talent to Grow
Marketers today have access to an abundance of data and tools that can guide strategic development, facilitate key investments, and enhance customer connections. Nevertheless, some challenges persist and require attention.
Marketers should critically assess business challenges and address them directly, rather than masking systemic issues with hiring strategies. Collaborating with HR to cultivate a thriving workplace culture that not only attracts new talent but also retains existing employees is paramount. Furthermore, it is essential to avoid the pitfalls of overpaying or overhiring in response to potential changes in business requirements.
By thoughtfully considering growth imperatives alongside emerging opportunities, and evaluating them against business processes, skill requirements, and tools, marketers can allocate budgets effectively to address the right priorities. This approach may entail hiring and developing talent or investing in alternative strategic priorities that yield substantial returns.