As a C-level business leader, are you cognisant of the entire workforce you’re leading?
Not just your leadership team. Or your line managers.
Not just your high-performers or big-achievers.
Not just your finance team.
We’re talking full-time staff, independent contractors, part-timers, freelancers, contingent workers, even gig workers. Everyone.
No? Then read on….
What is Total Talent Management?
It’s a workforce management strategy where a business-wide, holistic approach is taken to the management of an organisation’s people.
With engagement of contingent workers on the rise, and organisations reaping the many benefits contingent talent offer, the old-fashioned approach to talent management, is rapidly becoming redundant. That is, the model whereby HR are responsible for permanent hires, and Procurement for temporary & contingent hires.
In this new era of Total Talent Management, organisations can break down the management silos of permanent vs non-permanent talent. The result is thus not focused on engaging people by category of worker (i.e. perm or non-perm), but critically, by focusing on the right worker for the job or project at hand.
As a result, a business can achieve a raft of benefits not least of which is a fit-for-purpose talent stream, suited to meeting the actual needs of a business, whilst capitalising on the biggest trend taking place in the workforce today: the rising precedence of the contingent worker.
In a 2016 study from Ardent Partners, the second most likely strategy to be adopted by organisations for adapting to the changing talent environment, was to embrace on-demand and real-time talent sources. That being the case, in the absence of a strategic approach to the management of these people, chaos will likely ensue.
So… let’s take a deeper look at the benefits of undertaking a total talent management strategy given this radical change to the workforce of today.
Why is Total Talent Management so important?
A few reasons….
- You need to keep up with – and reap greatest ROI from – the continual changes happening in the construct of today’s workforce if your business is going to survive. Total Talent Management embraces the biggest change in today’s workplace – the growth in non-permanent worker categories – so that all talent decisions can be made with strategic intent.
- Cost-savings: there are multiple avenues where you’ll achieve significant cost savings in deploying a total talent management strategy. The first, and most obvious, is via a better operational approach to talent sourcing, engagement and management. Through standardisation of talent operations, coupled with the obvious economies-of-scale, your business will cut costs on the processes, checks and operational imperatives of engaging all categories of talent.
- Other sources of cost savings include better management of the talent your business needs (so engaging contingent when in the past, perhaps only permanent was considered); you’ll likely reduce your spend on staffing suppliers; and your investment in HR technology will achieve better ROI when applied to the full gamut of talent in your business.
- Performance: your business becomes far more agile and nimble. You can respond to market demands by accessing talent from a diversity of resources, with a strategic and well-considered mindset. No more knee-jerk workforce decision making to band-aid a business problem.
- Engagement: if your perm hires are pushed to the limit due to an inability to plug skills gaps, their level of engagement and productivity empirically drops. By taking a whole-of-workforce approach, you’re able to ensure minimal disruption to your worker’s day-to-day, by ensuring you have the right people – irrespective of worker category – at your disposal when you need it most.
- Productivity: without doubt, you’ll be able to make better workforce decisions, as your talent pool is utilised more efficiently. With a birds-eye view of both your contingent and permanent workforce, you can allocate the right talent resources, with the right business requirement, at the right time.
- HR becomes a strategic, not operational, function: HR will start to support the C-Suite with strategic talent decision-making. Therefore you, as a C-level business leader, can migrate to an integrated talent approach with a resourceful underpinning – your HR team.
- Avoid the pitfalls of a talent shortage: A PwC report from 2017, showed that 77% of global CEO’s saw the biggest threat to their business, to be the availability of key skills: particularly those skills that can’t be performed by machines. If you can’t achieve your business objectives due to a lack of talent, then a holistic view of your workforce is needed to better fill the talent gaps.
Our friends from ManpowerGroup UK said it best:
You may also be interested in this report, from an event we held with PwC last year.
Let us know if your business is embracing the value of a Total Talent Management strategy. We’re keen to hear your views in the comments below!