Business leaders are realizing that skill shortages and disruptions in the workforce will change everything. The link between effective talent management and profitability becomes more evident every day. As a result, the C-suite is looking to HR to attract, build, engage and retain the talent their business needs to compete and grow. If you and your team haven’t yet adopted a talent-focused and service-delivery model, conditions are perfect for making this leap.
Why now?
The looming skills shortage and changing nature of the workforce has a lot to do with it. According to research by PricewaterhouseCoopers, 72 percent of CEOs list the availability of key skills as one of the biggest threats to their business.
To offset this potential negative impact, CEOs increasingly have become involved in decisions regarding talent. Many have explored options like outsourcing certain business functions or departments, and utilizing staffing agencies and independent contractors to fill the gaps. Business leaders have begun to revisit their talent strategies and embrace nontraditional employment structures in order to have the workforce they need to achieve organizational goals.
But as technology continues to revolutionize the way people communicate and work, talent strategies must evolve continuously as well. The rise of the “gig” economy and the growth of telecommuting will continue to challenge both CEOs’ and HR leaders’ ideas of what the workplace – and an employee’s career – looks like. Employers are taking a proactive stance.
According to Deloitte’s 2017 Global Human Capital Report, 87 percent of U.S. companies rated preparing for the future “very important.” However, only 11 percent of companies reported knowing how to build “the organization of the future.”
Moving forward
Because an organization’s workforce ultimately drives its performance, and business leaders acknowledge the link between talent and performance, Deloitte’s findings represent an exciting opportunity for HR leaders and their teams. To become the talent enhancement department and drive the business of the future, consider these four tips:
1. Use all of your payroll and HR software.
Focusing on cultivating talent means shifting your time and resources away from other HR functions; but compliance, payroll, benefits and more still must be managed flawlessly. This is where your human capital management (HCM) technology can act as a real load-lifter – if you’re using it properly.
If you or your team is underutilizing your HCM tech, think about what’s holding you back. Are paper-based processes still alive because your new system isn’t user-friendly? Does your team find it easier to do things the old way? If so, ask your provider for training. Then, help keep your team’s collective eyes on the prize. Reiterate how turning the administrative work over to the tech will give them the time they need to focus on talent strategy.
2. Use behavioral profiles to recruit top talent.
Identifying top performers and create behavioral profiles of those individuals. Giving these profiles to recruiters and hiring managers can help them find similar candidates who have the skill set and personality to succeed in specific roles.
The use of behavioral profiles can also increase employee retention. A study by PI Worldwide reveals that establishing behavioral profiles for specific roles helps managers create succession plans and performance incentives that work.
3. Work with front-line managers to build engagement.
According to Gallup, managers can influence employee engagement by as much as 70 percent. But not every person in a managerial role has the ability to inspire and drive his or her employees. Luckily, there are several ways HR can help business leaders give managers the tools they – and their employees – need to succeed.
4. Tie your metrics to business outcomes.
According to ERE Media, traditional HR metrics tend to focus more on departmental efficiency than business performance. Instead, find and report on new-hire productivity, the costs associated with losing key employees and filling their vacancies, and revenue per employee. These metrics paint the big-picture view leaders need to make informed workforce decisions.
Following these steps can help you become the high-impact HR organization your company needs, now and in the future.
