Ask any CEO or c-level executive about the planning that drives a company and you’ll hear a lot about sales planning, financial planning, and even business planning in general. What you’ll rarely hear them speak of though is people planning. Sure they may mention workforce planning, but generally speaking, it’s quite far down the list of perceived priorities.
So why is this?
Don’t CEOs often speak of their employees being their most valuable resource?
That’s absolutely true, and while they understand that planning for future large-scale expansion makes sense, they may not realize that it’s equally beneficial for the smaller scale hiring of highly-skilled employees.
Board level discussion is often all about the numbers and an expected talent gap that can be filled by one hire won’t be too high on the agenda.
However, with proper representation at board level, both HR and talent acquisition leaders can highlight the benefits of placing more importance on people planning.
But what exactly are those benefits?
Avoid talent gaps
79% of CEOs surveyed by PWC said that they were extremely worried by any future skills gaps in their industry. They also said that they were worried about where they would find the right people for future roles and while upskilling their current workforce was certainly an option, it wasn't a permanent solution.
When recruiters and talent acquisition experts work closely with managers and executives, they can predict future talent gaps in the workforce. This then allows them to plan their talent sourcing efforts accordingly so that their candidate pipeline contains the right talent with the right skills.
When the time is right, recruiters can initiate contact with suitable candidates and ensure that productivity remains constant and that the company can fulfill its obligations. And it’s all thanks to their careful planning and talent mapping.
As we mentioned earlier, numbers play an integral role in decision-making at board level. And while it may not seem so at first glance, people planning and talent mapping can actually reduce hiring costs in the long-term.
This is because the strategic approach that recruiters take in their talent acquisition efforts helps them to manage their time and the company’s resources more effectively. With the right talent already in their candidate pipeline, recruiters will spend less time interviewing and as a result, accelerate the company’s time to hire.
Improve employee retention
Keeping the best talent on board is often just as challenging as finding that talent in the first place. In fact, if recent surveys are to believed, 60% of millennials are open to new opportunities while 50% of the same group surveyed believed they would change jobs in the next 12 months.
So why people planning and talent mapping are key to employee retention? Well, for a start, when managers and recruiters work in tandem to identify future talent gaps, they map the skills and expertise of the current workforce. As a result, they may find that existing employees have the requisite skills to step into a new role or they have the academic or work background to upskill accordingly.
When both existing and future employees see that career progression is possible within the company, retention figures will improve and the company will become a more attractive option for future candidates.
Would you believe that these are just a few of the many benefits a strategic approach to people planning can offer a company? But as we said earlier, it all depends on CEOs and c-level executives accepting that talent acquisition should be taken seriously at the highest level.
If you’d like to know more about these benefits and other aspects of talent acquisition in relation to executive-level decision-making, then watch our webinar TA securing a spot at the Exec Table.