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As the competition for talent intensifies and the workforce continues to evolve – particularly with trends like hiring a diverse and distributed workforce – progressing towards talent advisory and embracing strategic workforce planning becomes increasingly imperative, writes Nadine O’Regan.
One of the key pillars driving the pace of change in the HR landscape over the past few years is the emergence of talent advisory: a function that transcends traditional HR and talent acquisition (TA) models to enable HR to meet the multifaceted needs of both current employees and the future workforce, while at the same time aligning with the strategic objectives of the business. I talk about this concept in depth in this article here.
Strategic workforce planning
At the heart of talent advisory lies strategic workforce planning (SWP), a critical component that enables organisations to navigate the increasing complexities of talent management in an ever-changing environment. SWP involves proactively identifying current and future workforce needs and developing strategies to address them effectively.
There are many advantages of incorporating SWP into talent advisory processes. Firstly, establishing a separate talent advisory function enables organisations to dedicate resources and expertise specifically to strategic talent planning, internal mobility, and workforce development. This focus ensures that talent strategies are aligned with broader business objectives, driving organisational success.
Moreover, specialised roles can be developed to focus on areas like workforce planning and talent market analysis. These roles enable the cultivation of expertise in understanding talent dynamics, both internally and externally, which is crucial for informed decision making.
How to make SWP a success
Organisations require a comprehensive understanding of external and internal talent landscapes to effectively execute SWP. Externally, organisations need to gauge the supply and demand of skills to identify scarcities in talent access. This involves leveraging data and intelligence from sources such as LinkedIn Insights and Talent Neuron to gain a deep understanding of the needs and skills of their permanent workforce. Organisations must also explore contingent and gig marketplaces to tap into alternate talent sources, particularly during periods of skill shortages or market downturns.
Internally, organisations need to assess the skills, competencies, and composition of their existing workforce. Traditionally achieved through HR Information Systems (HRIS), organisations are increasingly turning towards talent marketplaces to generate deeper insights into their internal talent pools. This holistic understanding of the internal and external talent landscape forms the foundation of effective SWP.
Why a talent marketplace is critical for your SWP
A talent marketplace that effectively matches the skills of your people with the work your business needs to do is crucial for the success of your SWP. It allows the organisation to address skills gaps within its existing talent pool, predict talent shortages based on future work or market factors, and recruit effectively by leveraging detailed knowledge of the talent already within the business.
In this dynamic environment where technology and talent demand evolve daily, and the competition for talent persists in certain areas, it makes sense to integrate SWP with a talent marketplace. Such integration empowers the business to maximise its talent pool while also enabling individuals to discover new and engaging internal opportunities that enhance their skills and maintain their motivation.
How to build a talent marketplace that’s right for your business
To build an effective talent marketplace (TM) for your business, these three criteria are essential. This isn’t an exhaustive list, but what’s essential for your business’s talent marketplace won’t be for another organisation:
- Executive support and business integration: A TM must have robust support from senior leadership, aligning with the business strategy. This ensures it receives resources and drives organisational change, fostering a culture that values continuous learning and talent mobility.
- Systematic and skill-centric approach: A TM should be an ongoing effort, focusing on critical skills essential for the organisation’s future. These skills should be integrated across all HR processes, ensuring consistent development. Regular updates that are informed by business needs and market trends keep the TM relevant.
- Seamless user experience and data integration: A TM’s success hinges on usability, so it must integrate seamlessly with existing systems to avoid duplicated efforts. Accurate and comprehensive data is also crucial. HR teams should train AI systems with high-quality data and keep it updated to reflect current workforce capabilities and market demands.
Once you have these essentials locked in, here are some additional considerations for your business:
- Understand business problems: Define the challenges your TM aims to solve, ensuring it directly contributes to strategic objectives.
- Career development focus: Highlight how the TM enhances employee careers, benefiting individuals and driving organisational performance.
- Cultural transformation: Invest in change management to develop advocates across the organisation, promoting a mindset of continuous development and internal mobility.
Strategic workforce planning (SWP) and your TM that evolves out of this strategy are live tools that will regularly be tweaked and adapted. This helps organisations address talent trends and align talent strategies with business goals, which are also regularly adapting to the market, other pressures, and opportunities.
As the competition for talent intensifies and the workforce continues to evolve – particularly with trends like hiring a diverse and distributed workforce – progressing towards talent advisory and embracing SWP becomes increasingly imperative. Talent advisory services play a crucial role in helping organisations achieve their business goals by ensuring that talent management strategies are not only responsive to current needs but also forward-looking and strategic, directly contributing to the achievement of overarching business goals. Hopefully, the insights and tips above help you and your organisation incorporate SWP into your transition to a talent advisory model.
Nadine O’Regan is the general manager of people solutions and organisational excellence at TQSolutions.
RELATED TERMS
The term "workforce" or "labour force" refers to the group of people who are either employed or unemployed.
Assessing the business's present and future demands to ensure there is an adequate supply of competent workers and leadership talent is the definition of workforce planning.
