Getting Started with Total Talent Human Capital Management
Companies are increasingly reliant upon contingent workers, which poses challenges for maintaining standards as they relate to customer service, branding, and internal operations. To address issues of inconsistency, many procurement and human resource teams are taking a more holistic approach to people management, commonly known as Total Talent Management (TTM).
According to one study by HRO Today, 58% of organizations had taken action to align their talent management practices for all types of workers to a total talent model. The research also found that "these organizations are most likely to create a sourcing model for both contingent and direct applicants; implement systems for direct and contingent labor requirements; and consolidate company responsibility for contingent workers under HR.
Here, we'll explore how companies can get started with TTM when addressing their human capital management concerns, especially when it comes to integrating contingent workers.
Understanding Total Talent Management
Total Talent Management (TTM) is a comprehensive approach to optimizing an organization's workforce. It seeks to bridge the gap between traditional human capital management, which primarily focuses on permanent employees, and the management of non-traditional workers such as freelancers, consultants, and other contingent workers.
In essence, TTM considers all human resources, regardless of their employment status, as part of the strategic workforce.
The first key to understanding TTM is recognizing its holistic nature. Rather than compartmentalize employees and non-employees, TTM views the entire workforce as an integrated whole. This perspective allows organizations to leverage workforce flexibility, balance costs and risks, and ensure they have the right talent in the right place at the right time.
- Integrated Workforce: TTM eliminates the barriers and silos often associated with the management of different types of workers. It encourages a unified approach to workforce management, where decisions are made based on skills, capabilities, and business needs rather than employment status.
- Workforce Flexibility: By including all types of workers in the workforce strategy, organizations can adapt to changing business needs more quickly. This might include scaling up or down, accessing specialized skills for specific projects, or filling talent gaps in certain locations.
- Balancing Cost and Risk: TTM can help organizations achieve a more cost-effective workforce. By considering all types of workers and their associated costs and risks, companies can make more informed decisions about which workforce mix will deliver the best return on investment.
This strategy is important from a contingent staffing perspective because organizations need to think beyond just permanent employees and encompass all types of talent in their workforce planning. The gig economy and the prevalence of contingent staffing firms are both growing, and contingent workforces are increasingly making up a large share of the overall workforce.
Benefits of Total Talent Management
The implementation of a Total Talent Management strategy can yield significant benefits for organizations.
- Enhanced Talent Acquisition: With a TTM approach, talent acquisition becomes a more streamlined and efficient process. Instead of separating the hunt for permanent and contingent workers, companies can recruit from a larger pool of candidates, ensuring they secure the best talent for their needs.
- Improved Workforce Planning: TTM allows organizations to draw from all available resources when planning workforce strategies. This flexibility enables the company to be more agile and responsive to changes, effectively addressing any emerging skill gaps.
- Cost Savings: By considering all types of workers in their strategic planning, organizations can optimize costs. This holistic vision allows a better understanding of where resources are best spent, contributing to overall operational efficiency.
- Increased Competitiveness: In an ever-evolving business landscape, the ability to quickly adapt and leverage the right talent at the right time can give organizations a competitive edge. TTM enables this by providing a flexible, adaptable workforce.
- Greater Employee Engagement: TTM creates a more inclusive work culture, where all types of workers feel valued. This can lead to higher levels of engagement, productivity, and loyalty among the workforce.
Total Talent Management can optimize talent acquisition and workforce planning, leading to cost savings, increased competitiveness, and greater employee engagement.
The Comprehensive Workforce: Who to Include?
The decision to include full-time employees and the non-employee workforce as part of a comprehensive workforce hinges on several factors.
Firstly, organizations should consider the nature of the work to be done. If the tasks require intimate knowledge of the company and its culture, or involve sensitive information, then full-time employees might be the most suitable. On the other hand, for project-based or specialized tasks, contingent workers could be the ideal choice.
Secondly, cost considerations should also influence the decision. A mixed workforce can provide a balance between the stability of full-time employees and the cost-effectiveness of contingent workers.
Lastly, workforce data is crucial to make informed decisions. A single-source data aggregation tool for accurate reporting can help organizations understand their workforce better and make strategic decisions. This can further be bolstered by innovative technology such as Artificial Intelligence (AI) and Machine Learning (ML) to predict future workforce needs.
In the end, the choice to include full-time employees and non-employee workforce in a comprehensive workforce should be determined by the unique needs, goals, and resources of each organization. With a strategic approach, businesses can leverage the best of both worlds, maximizing productivity and efficiency while minimizing costs and risks.
Reporting and Analytics in Total Talent Management
One of the challenges of TTM is data aggregation for reporting.
Given the diversity of the workforce and the potential variety of data sources, finding a single-source tool that can efficiently and accurately capture all necessary information can be a significant hurdle. Despite these challenges, the strategic value of implementing TTM is clear: It enables organizations to leverage their entire talent pool, promote agility, and enhance competitive advantage.
To address these challenges, companies need a single-source data aggregation tool for reporting on talent. This system should be able to capture data from a variety of sources and integrate it into one unified dashboard. This will provide organizations with valuable insights and analytics, enabling them to make informed workforce decisions.
Such tools also often include AI and ML capabilities, allowing for predictive analytics that can aid in identifying future talent needs and potential risks. By leveraging technology, organizations can gain a competitive advantage in their workforce planning and management.
Navigating Your Total Talent Journey
In today's complex business landscape, organizations must have a comprehensive understanding of their entire workforce to remain competitive. Total Talent Management offers a holistic approach that encompasses all types of workers, allowing for strategic decision-making and optimization of costs.
By leveraging technology and data analytics, companies can gain valuable insights into their workforce, leading to increased efficiency, productivity, and competitiveness.
To learn more, don’t miss ProcureCon Contingent Staffing 2024. It’s happening from April 3rd to April 5th at the JW Marriott LA LIVE in Los Angeles, California.