EDUCATION

An overview of the Future of Talent Management

Demand Vs. Supply doesn’t look like an HR issue, but according to the experts it has a lot to teach human resources. It’s essential to use this language with management because it’s the wording that talent management uses to talk about the products they produce.

In the present day, forecasting talent demand and supply has become very complicated

By considering it is undergoing an unprecedented economic crisis owing to COVID-19, which has made the job market highly dynamic. The HR function is required to evaluate many factors for its short, medium and long-term strategies.

Supply Chain Management

Supply Chain Management is focused on all elements of the business. It involves many basic considerations:

  • Assessing the customer DEMAND of the product and/or services. What talent does one must accomplish the business strategies?
  • Ensuring that they have enough SUPPLY to fulfill the demand. What talent do we currently have employed (plus projected attrition, retirements, hires, etc.)

Demand

Demand focuses on the revenue projections, customer demand, market considerations, competitive trends, etc.

Essential questions for assessing demand:

  • What do we plan on selling this year?
  • What is the market opportunity? Is it growing? Is demand increasing or flat?
  • Do we have new products that are entering the market while others are leaving the market?
  • What are our competitors doing? Who’s trying to take the customer base away from me?

Supply

Supply focuses on materials and/or manufacturing process for product and the talent and/or people for a services business.

Essential questions:

  • Are the materials that we require available?
  • Do we have the ability to manufacture the products?
  • Do we have the talent required to develop the product?
  • Do we have the talent required to provide services to the customers?
  • Is the talent in short supply?

Business leaders want a holistic view of talent. They don’t want separate metrics, for example, metrics concerning performance appraisals. They ask:

  • Will what they are doing or what they want to help me to meet my objectives?
  • Can they bring me a consolidated view using metrics?

Supply and Demand Meet Talent Management

What’s the difference between Talent Management and Supply and Demand?

  • Talent Management

Facilitating the development and career progress of highly talented and skilled individuals in the company using formalized procedures, resources, and processes. Talent management focuses on building the employees and leaders to meet the future demands and needs.

  • Supply and Demand Planning

Facilitating the planning process to identify the roles required in order to meet the business objectives and financial forecasts to move the company forward. Supply and demand planning focuses on talent acquisitions, talent management, and workforce balancing to meet future requirements. Look at roles, not individuals.

Backward integration in the people supply chain

As organizations run into a shrinking or slow-growing talent pool, with increasing competition, the only thing they can do to stop the wage bill from shooting through the roof is to come together and develop more skilled and talented people at the entry level.

This is the story that is being played out in the BPO (Business Process Outsourcing) as well as the BFSI (Banking, Financial Services and Insurance) industries. Several organizations with massive talent requirements, like MNCs, have tied up with education providers like to create a highly skilled talent pool, to benefit themselves as well as most organizations in their respective industries. This is making organizations think long-term about collaborating with other organizations for developing talent pools while they simultaneously compete in the marketplace.

Talent Management is more and more business essential to companies, which bring with it, new visibility and challenges, for HR people. This new age also means that other business leaders and the CEO will seek to influence the ‘Talent Agenda’. HR must welcome this reality and work to create an organizational culture where talent is accorded top priority. HR must facilitate members of the leadership team to act as talent ambassadors, constantly thinking of new innovative ways of developing their talent and keeping a track of external talent. These factors are fast becoming crucial requirements in the process of creating “talent magnets” in each industry – firms with the best employer brand among peers will ultimately contribute to market leadership.

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