The “highly connected and global 21st-century” workforce is here, but organizations are not prepared to respond to the challenges it represents, according to the Deloitte Global Human Capital Trends 2014 report.

"As the world's population grows, the global workforce is simultaneously getting younger, older, and more urbanized," Josh Bersin, principal and founder of Bersin by Deloitte, part of Deloitte Consulting LLP, said in a statement. "Millennials are reshaping the talent markets with new expectations; new technologies are changing work in countless ways; and we are more frequently competing and racing with machines for knowledge work.”

The findings of the firm’s survey show that a majority of global organizations are not prepared to deal with these trends that are reshaping the workforce, Bersin said. According to the report, the single biggest challenge cited by most respondents (86 percent) is leadership development, followed by retention and engagement (79 percent), and “reskilling” the human resources function (77 percent).

"Given the radical shifts in demographics and technology, doubling down on the human capital practices of the past will not be enough to get the job done," Bersin said. "The research shows that organizations should re-imagine their approach to engaging people and move to re-engineer many of their HR practices. Attracting top talent has become a serious competitive issue that demands attention at the highest levels of the organization."

Talent analytics is starting to enable HR departments to make informed talent decisions, predict employee performance, and enable advanced workforce planning. While 78 percent of respondents from large organizations rated HR and talent analytics as "urgent" or "important," 45 percent rated themselves "not ready" when assessing their readiness in HR analytics.

The Deloitte report includes surveys of more than 2,500 business and HR leaders in 94 countries.