Written by: Tim Saumier, CEO TYGES International
As I continue to talk to companies/clients and walk with them in their recruiting process, it is quite clear that there is a lack of an Integrated Talent Chain. Right now, I can’t tell if it is ignorance or just not a priority. I tend to think it’s a combination of both as while companies profess that people are their most valuable asset, that is not reflective in any part of the chain of events associated with recruitment, hiring, on-boarding, and retention of Talent. Yes they put up fancy words like “Human Capital” and have their websites saying all the right things but the reality it is all surface with no depth.
Last month I wrote Integrated Talent Chain – Does it Exist? Now I would like to take a deeper dive into ITC (Integrated Talent Chain), by answering the following:
• Understanding the current inventory of Talent in your organization?
• Understanding the forecasted needs in the next few years?
• Understanding the turnover (voluntary / involuntary)?
Translated in manufacturing speak:
• Current Inventory
• Sales Forecast
Companies pour so much energy in to most of their processes (purchasing, facilities, product development, marketing, manufacturing, etc.) and they spend a small fraction of their time understanding and planning their Human Capital. Yes companies do a decent job of managing headcounts that are used to produce products (direct labor) but where they normally fall down is measuring those on the indirect side. As we survey companies, most of the indirect side people management is reactive at best.
My question is why is this treated like “black magic” versus truly understanding your needs and filling your needs with the appropriate people?
An ITC that is tied to the business plan will give you what your needs are all the way down to a job description with responsibilities and expectations that you can hold the individual accountable. So back to the question – why is this not more methodical and calculable versus reactive? My supposition is companies don’t take it serious and still believe that they can recruit/hire whoever they want and whenever they want. I also think that most companies see this as an HR function primarily which is completely wrong. This should be in the top 3 priorities of the CEO and he/she needs to own it – period – no excuses.
Stop delegating ITC to everyone else in the company – own it, walk it, lead it. Yes you will need the help of your team but unless you own it, it will never be fully realized.
Where to start? Why not start with the basics
1. Take an inventory of your team (bottom to top); rate them – yes that means you have to make some subjective calls but anything is better than what you have now.
2. Look at your Business Plan over the next 3 years. Walk it down in the organization to understand the impact of the growth/decline planned for the business. Take this to the individual role level. Be Intentional.
3. Determine what your turnover is (guess if you have too initially).
With these 3 components you can create a mathematical model that will identify your gaps; Once you have this current state completed, you will need to maintain it like your checkbook – regularly. Now you can begin to proactively shift your ITC on the recruiting side and figure out how to develop your existing staff to either coach them in or coach them out. Sounds easy right? No – because it is a painful exercise initially to set up but also to maintain and revisit monthly. If your too big to do it all at once, focus on the top 2 or 3 levels and get the process down and then add another level down every few months until you have full coverage. Along the way, there will be naysayers that don’t see the importance of the ITC but stick to it.
This is not “sexy”. You are not taking a cool new product to market; developing a new product or installing a new manufacturing line but this is the lifeline that will either grow your company or kill your company.
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