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Reinvent
Talent
Strategies
The digital-age mandate for HR
EDITED BY
Brian Kropp, Group Vice President, Gartner
© 2019 Gartner, Inc. and/or its affiliates. All rights reserved. CM_567207
Introduction
How to reinvent talent strategy to support
digitalization
Eighty-seven percent of senior business leaders say digitalization is
a priority, and they are looking to human resources (HR) leaders to
develop the digital expertise they need to drive enterprise ambitions.
But as heads of HR try to realize the promise of digitalization, many are
87%
confronting skills gaps in their workforce today — and a run-of-the-mill
needs analysis won’t begin to address the skills gaps of tomorrow.
The tactics that HR has long used to build and buy talent are
faltering. Only 21% of HR leaders agree that current build-and-buy
approaches are helping them adjust to the demands they are facing.
As HR leaders spend more money, time and effort on seemingly
ineffective strategies, skills gaps continue to widen, and hiring costs
and time to fill are rising. of senior business leaders
HR needs a more effective way to develop employees and a talent say digitalization is a priority
acquisition strategy that is responsive to the rapidly evolving needs
of digital business. Also needed is a deliberate plan to foster innovation
to drive digital business performance.
Gartner research reveals new and more effective ways to build
and buy talent and foster innovation. Those strategies together
21%
form an approach that is agile and scalable for the digital age —
creating enterprise value today while positioning the organization
for tomorrow.
For most organizations, talent is the single biggest overhead expense
and the biggest competitive advantage, so optimizing talent strategy
is critical. To do so, HR must also leverage analytics.
Many in HR already use labor market intelligence to inform talent
strategy and tactics, but there’s the potential to go even further — Only 21% of HR leaders say that current
to educate the business about what it needs and use data to compel build-and-buy approaches are helping them
action on key issues, including whether to buy or build talent and adjust to the demands they are facing
where best to find and situate that talent.
Contents
4 9 14 19
Reskill the Adopt an Agile Foster Leverage
Workforce Recruiting Model Innovation Analytics
CHAPTER 1
Reskill the
Workforce
n = 7,101 employees
Source: Gartner 2018 Shifting Skills Survey
Adopt an Agile
Recruiting Model
72 days in 2018
38% longer to fill unfamiliar roles
67 days in 2017
58%
of heads of recruiting have difficulty acquiring
61 days in 2015 talent to maintain current business activities
How can HR be more than a responsive hiring service for
business leaders?
64%
of heads of recruiting have difficulty acquiring
Offer them guidance and agile leadership that’s highly attuned talent to support a change in strategy
to the changing needs of the business and industry.
71%
of recruiting organizations recruit for more
specialized roles than they did five years ago
Move away from fixed planning Focus on talent trends, not current Develop more sophisticated
and resourcing. business needs. predictive talent analytics.
Regularly source bottom-up hiring Organize recruiting staff to create enterprise Identify what you need, where best to find
projections, and adjust service or redeploy value through task and talent-segment it and what it will cost. Use those insights to
staff as needs change. This is a shift from specialization. Don’t be tied only to the demonstrate to the business what it needs,
today’s approach of planning and allocating internal needs of the business. instead of just going to the labor market with
recruiting resources based on point-in-time, the business’s requests. (See Chapter 4
top-down forecasts from the business. for more on predictive analytics).
1
Philips uses labor market insight to
understand the new positions for which
it is hiring.
2
Philips forecasts labor market changes
that may disrupt future strategic business
decisions.
3
Based on the labor market data gathered,
the analytics team helps the business
mitigate talent supply risks.
Foster
Innovation
4.49x 1.64x
more likely to be ahead of peers more likely to have successful
in using data and technology digital transformation efforts
Involve employees in filtering, not just Equip leaders for shared, not individual, risk Guide employees on using networks to
generating, ideas so they are responsible taking so leaders work together to accept innovate so they know who to work with
for choosing which innovative ideas the joint responsibility for the risks that inevitably and how to push ideas forward.
organization pursues. This approach builds accompany innovation.
engagement and commitment.
Compared to organizations with low innovation effectiveness, those with high IE are …
… 1.35x … 4.49x
more likely to be ahead of peer
more likely to meet their organizations in their ability to
employee performance goals use data and technology
Leverage
Analytics
1
government reports to market and organizational resources, including Mature the analytics capability of the HR
recruiters, internal SMEs, customers, job boards (LinkedIn), and more. function to improve business impact.
You can also get insight from your customers about what they value,
which hints at changes that your employees will need to meet.
2
Equip recruiters to use labor-market analytics
But in the increasingly competitive talent market, organizations need
to operate as talent advisors.
analytics that are more global and more granular than those available
from government or one-off sources. They need robust labor market
intelligence that provides deep skill and location-level insights — and
paints a holistic picture of talent market dynamics. For example, But it’s a journey. At the outset, you’ll probably use fairly basic
just understanding talent supply is not enough. You also need to operational metrics, such as time-to-fill and cost-per-hire data
understand talent demand and competition to make decisions about to track your own processes.
the sustainability of a location.
It is only later, at more advanced levels of analytics maturity, that
you can become an advisor to the business — for example, by using
predictive hiring forecasts and business-embedded analytics — to
drive decisions around where to source and locate talent that is and
will be critical to the business.
market data
It is one thing to surface new realities from labor market intelligence. It is another to demonstrate
what those findings mean for business needs — and for hiring managers.
This toolkit provides you with 9 action steps to collect, interpret and communicate labor market data.
Collect labor market data 5. Turn data into insights. Demonstrate what effect the data has on
Ensure you don’t spend more time than necessary collecting recruitment strategy. For example, do demographic trends show
labor-market insights. the workforce is aging? Do geographic trends show labor is
migrating to the suburbs?
1. Understand which types of data to collect to generate the
insights you need. Examples are occupational outlook trends 6. Select compelling graphics. Telling a story is often more effective
for skill set insights, employment rates to predict shortages, when done through visuals. Select the right visualization technique
salary benchmarks to understand candidate mindset and to convey insights in the most engaging way. A simple Venn
migration patterns to optimize search processes. diagram, for instance, can demonstrate the overlap between
different dimensions surfaced by data on industry adjacencies.
2. Find easy ways to gather labor market data. Even without a
big data engine, you can tap into available labor market data by 7. Audit the business relevance of the data representation. Before
studying macroeconomic trends, talent competitor insights, skill you actually present your insights, double-check that your message
set insights and candidate insights. is clear, relevant and aligned to business needs, and that you have
chosen the most compelling way to convey your findings.
3. Access publicly available data, including official government
labor-market statistics from, for example, U.S. Bureau of Labor Influence hiring managers
Statistics, Eurostat and publicly available data engines such as Having established the best way to portray the labor-market insights,
StateMaster, which provides statistics from individual U.S. states. show what they mean for recruiting strategy in a simple, logical way.
Interpret labor market data 8. Demonstrate the implications of labor-market analysis.
Use simple, relevant questions to extract the insights that will affect Use your analysis to communicate your competitive position
your recruiting strategy. and talent supply, as well as how these should influence talent
acquisition strategy.
4. Understand the audience to which you will present your insights.
For example, are you trying to inform, convince or drive action? 9. Create a tangible action plan. For example, optimize your
How educated is the audience on the issues? What business search criteria to take into account adjacent skill sets or
problems are they trying to solve? alternative locations/industries. Or optimize employment
branding by posting jobs in new or different places.
sourcing
Getting a holistic understanding of labor market data, such as talent supply and demand and salary costs, Key Insights
can help you make better decisions when strategically sourcing in-demand skills. Locations may appear to be
“favorable” from a talent supply perspective, but rising peer competition could increase demand — escalating Bangalore, Beijing and Shanghai are
salary costs and making it challenging for your organization to hire the right talent. At times, the demand for the most favorable locations based on
skills could be “low” and the cost point lucrative, but talent supply is nevertheless limited — so competition the combination of high talent supply,
rises, as does time to fill. Big data can surface “sweet spots” in the global labor market that your organization moderate demand pressure and low
can identify and leverage for various skills. salary cost. Additionally, these locations
have high adoption of AI technologies
What could you glean, for example, by comparing the demand, supply and cost picture for roles in various locations? and an influx of top companies setting
up their AI business operations in these
locations.
Big data drives better strategic talent sourcing
Asian locations have higher talent supply
AI roles (including blockchain, DevOps and related skill sets) and lower (average) median salary cost
Favorable locations as compared to European locations,
30%
making them more favorable locations
for the studied roles.
London
26% Mumbai Delhi NCR
Notes
Bangalore 1. Talent supply is as of 2Q18.
Beijing
2. Median salary cost is the salary
Talent Demand
22%
cost for all the job roles combined
Paris for each location.
Sydney Singapore
14%
Talent Supply
Source: Gartner TalentNeuron
© 2019 Gartner, Inc. and/or its affiliates. All rights reserved. CM_567207