Talent supply and demand is the balance between the availability and the need for skilled workers in an organization. It is a critical factor for talent management, as it affects the quality, cost, and retention of talent. In this article, you will learn how to manage talent supply and demand effectively, by following these steps:
The first step is to identify your current and future talent needs, based on your business goals, strategy, and market trends. You can use tools such as workforce planning, competency models, and skills gap analysis to determine the quantity and quality of talent you require for each role, function, and level. You should also consider the impact of factors such as turnover, retirement, and career development on your talent needs.
The next step is to analyze your talent supply, which is the pool of potential and existing employees who have the skills, knowledge, and experience you need. You can use tools such as talent inventories, performance reviews, and succession plans to assess the strengths, weaknesses, and readiness of your talent supply. You should also consider the sources, diversity, and mobility of your talent supply, both internally and externally.
I think it’s always a helpful exercise to analyse the skillsets you have with particular attention to those strategically important areas, and consider the feasibility & cost of replacing those individuals if they left. All too often companies are missing the opportunity to retain their top talent due to a lack of appreciation of the worth, or scarcity of the skillset their people possess.
The third step is to identify and prioritize your talent gaps, which are the differences between your talent needs and your talent supply. You can use tools such as gap matrices, risk assessments, and scenario planning to measure and evaluate the magnitude and urgency of your talent gaps. You should also consider the implications and opportunities of your talent gaps, such as innovation, competitiveness, and customer satisfaction.
The fourth step is to develop and implement your talent strategies, which are the actions and initiatives you take to address your talent gaps. You can use tools such as talent acquisition, talent development, and talent retention to attract, grow, and keep the talent you need. You should also consider the alignment, integration, and evaluation of your talent strategies, to ensure they support your business goals and talent needs.
Considering alignment, integration and evaluation of the talent strategy regularly to ensure a durable and contextual support of the business goals and talent needs is key. From blueprint of the organization to the actual talent strategy the process is clear and known. However the gap between the talent and the organization is growing today because the organisations are in fast changes and their talent strategies not agile enough. Keeping the finger on the pulse on the organisation and key talent is essential. Too few organisations invest in this.
The fifth step is to monitor and adjust your talent supply and demand, which is the ongoing process of tracking and responding to the changes and challenges in your talent market. You can use tools such as dashboards, surveys, and feedback to collect and analyze data and insights on your talent supply and demand. You should also consider the communication, collaboration, and innovation of your talent management, to foster a culture of learning and agility.
Managing talent supply and demand effectively is not a one-time event, but a continuous cycle of planning, executing, and improving. By following these steps, you can optimize your talent management, and ensure you have the right people, in the right place, at the right time, for the right cost.
I’ve noticed over the year that the total cost per employee is hardly known. Cost per employee being from hiring and throughout his/her journey until eventually the off boarding. This could be a role procurement could support HR on in order to deploy the most relevant and effective solutions for the needs of essential/ key talents. Define the added value of HR in their support to key talents as HR should be an added value, not a cost.