ACHIEVING TOTAL TALENT MANAGEMENT BY EXTENDING THE TALENT SUPPLY CHAIN
Organisations are sourcing workers in new ways to address growing talent gaps. Extended supply chains expand the talent supply chain beyond traditional temporary staffing agencies. In doing so, this strategy becomes the second building block of total talent management.
Let’s review this powerful approach in greater detail. We’ll share details on extending your talent supply chain and we’ll discuss how shaping a total talent solution can increase access to the best talent available.
Supply chain talent management
Our Workforce of the Future reporthighlights how all industries struggle with talent gaps. Nowadays, managing and optimising a traditional staffing agency supply chain is not enough to meet growing talent demands.
And talent gaps mean different things to different businesses. It’s important to remember that many different categories of workers perform services within the typical organisation. This includes employees, temporary workers, contractors, service providers and capital projects.
Each worker category has advantages and disadvantages. Each has a use case. Crucially, each has a different sourcing strategy.
Many organisations have recognised the need for broad access to talent, but struggle with the complexity. You need to get vital work done. But to do this, you need access to the right talent.
That’s where a progressive workforce solutions provider like Hays can help.
As programme management partners, we take a ‘best sourcing approach, accessing talent at the right time and place, for a fair cost, regardless of worker classification or source. This total talent solutions approach lets you get the best skills for the challenge you face.
To make this vision a reality, we advocate an agile and enabling approach to delivering an MSP service. To provide comprehensive visibility and management, all talent suppliers should be part of an integrated managed programme.
So, where should you start?
Begin with a strategic plan
Transforming your workforce will not be quick or easy. The best place to start is by gathering a team of stakeholders from across the organisation. Combine multiple perspectives to create a talent acquisition strategy. Here’s a proven framework to follow:
Review: define the “as is” state of who is doing what work across the organisation.
Map your current organisation structure, including all non-employee labour.
Define all the work being done across the organisation. Think in terms of work output, not job descriptions.
Consider the skills and experience required for each role.
Reality Check: does what you discovered above make sense?
Consider the following strategic questions:
Do we have the right people on the bus?
Are they in the right seats?
Does all the work still need to be done?
Can we outsource some work?
Could we package our outputs differently?
Could AI technology help?
Vision: define the ideal “future” state of your workforce.
Decide what the organisation structure of the future should look like.
Define the workers who should ideally be doing the work and assign their categories.
Consider how many staff you need and in what locations.
Plan: create a strategic plan to bridge the gap from “as is” to “future” state.
Clarify your objectives, to bridge the gap between as-is and the future.
Consider your key talent issues today.
Define which supply chains you will need.
Prioritise the talent categories and business units to focus on first.
Assign timelines and metrics to drive the process.
Focus on contingent workers first
Prioritise your business strategy by starting with your contingent worker population. As outlined in our 'Beyond MSP' service guide, total talent management is only possible with evolved contingent workforce management processes.
Non-employees are the fastest-growing segment of the workforce. Contingent labour touches most areas of your business, and it is typically already a managed programme. As such, you can have a quick impact and expand the programme's scope to other segments of workers.
In most of our MSP programmes, extending the talent supply chain starts organically. Then, depending on the unique client environment, you can add additional talent channels such as:
Adding a payrolling and compliance solution to accommodate workers who have been self-sourced by the client.
Statement of Work (SoW) agreements.
Small service providers.
Online staffing solutions.
Direct sourcing.
Prioritise one area of your talent pool at a time
The talent ecosystem is complex and disjointed. That’s true both inside and outside of your company. The best advice is to start small and roll up from there. Many organisations begin with one type of worker, often prioritising the following:
Most common roles.
Highest spend. Biggest risk.
Largest volume.
Geographic concentration.
Business impact.
Build a scalable and repeatable process
A key ingredient to a successful total workforce management programme is effective decision-making. Evaluate each new project and worker request before deciding what type of worker is best suited.
Give thought to the governance and management of this process. It will help to ensure you’re creating a “best source” decision-making model – one that will sort new requests into the right channel. Common talent channel examples include:
Employee requisitions.
‘Temp’ requisitions.
Supplier onboarding and accounts payable set-up.
SoW/Consulting purchase orders.
Clarify your evaluation criteria for filling skills gaps
It’s also important to consider your evaluation criteria. When determining the appropriate talent channel, consider questions such as:
Is this a short-term assignment, defined project, or long-term role?
Is this an entry-level, mid, or senior-level role?
Will it involve managing other workers?
Can the work be done remotely, or must it be on-site?
Will workers leverage company IP, or should there be external expertise and best practices?
Manage the risks of supply chain management
Total talent management promises incredible benefits, but only for those organisations that are confident enough to embark on the journey.
The strength of total talent solutions lies in its flexibility. Instead of forcing every new worker request down the path of traditional employment, we can explore alternative relationships. However, this flexibility and strength can also introduce risk into the organisation if mismanaged.
For hiring managers, remember that most countries have strict regulations defining employee and non-employee workers. Different workforce solutions come with tax implications and legal penalties if done incorrectly. A globally experienced workforce management partner can help you to navigate this potential legal minefield.
Finally, it’s important to update any old-school worker engagement policies before you begin. Gain a competitive advantage by making your organisation a “client of choice” for all categories of workers. Improve your employer brand by revisiting policies like:
Payment terms.
Indemnification and other contract provisions.
Benefits and wellness programmes.
Compensation strategy.
Insurance requirements.
Reap the benefits of extending your talent supply chain
Supply chain talent management now goes beyond traditional agencies. To make it work, you need a comprehensive total talent plan. That includes enlisting the help of an experienced MSP service partner.
To achieve the vision of total talent management, make sure your MSP partner enables rather than controls. At Hays, our total talent management services provide crtical skills, where you need it most.