Balancing Talent Supply and Demand
Once key business processes and jobs are effectively designed and the capabilities for those jobs are clearly configured, the challenge is to put “the right people in place at the right time and the right cost.” Catchy phrase, but no small feat to accomplish considering the typical tensions and costs in balancing the demand and supply of labor.
Our Workplace Analytics approach to developing this “Human Capital Supply Chain” can support the effective planning and execution of this balancing act. To help create a more efficient Human Capital Supply Chain, we focus on five areas:
- Project the demand for workers using scenario planning models blending HR, Financial, Marketing and Operational data.
- Estimate the supply of the internal workforce by running statistical process models and combining them with global workforce intelligence data.
- Identify and resolve the gaps between demand and supply using linear programming and optimization techniques that configure costs, benefits, risks, and time lines for the various solutions.
- Develop systems that assist in allocating and deploying workers where and when they are needed.
- Measure and monitor the Human Capital Supply Chain to ensure that the inventory of workers is being effectively managed and maintained and that those workers are appropriately allocated and deployed to accomplish the company’s business goals.
Under pressure to find a quick solution to a changing competitive environment, companies tend to grab the easiest solution—cut labor costs—without considering the lateral and longitudinal consequences of those cuts or exploring better alternatives. This reaction can begin a downward spiral that puts the company’s reputation and profitability at risk.
We believe that our Workplace Analysis promotes fact-based understanding of the multiple forces involved in having “the right people in place at the right time and the right cost. “
Our approach clarifies the magnitude of the problem, as well as the risks, costs, and benefits of potential solutions, and produces a rational Human Capital Management system that can be monitored and fine-tuned.
Once you have developed this Supply Chain, then the focus needs to shift toward understanding how to keep the workforce engaged and ensuring you are monitoring and acting on feedback and innovation within your organization.