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The Supply Chain
of Talent
The Supply Chain of Talent




     contents




		       3	       A visual summary

		       4	Introduction

		       5	       Executive Summary

		       6	       Assessing Skilled Talent Challenges

		       7	Supply Chain of Talent — The New Talent Acquisition Strategy

		       9	The Supply Chain of Talent Framework in Action

		   11	Use of Supply Chain of Talent & Business Leader Satisfaction

		   13	Recommendations & Conclusion

		   14	          A Closer Look: Subgroup Analyses

		   18	          Appendix A: Respondent Demographics

		   20	          Appendix B: Works Consulted

		   21	Definition of Key Terms




     About this research
     This research was developed in partnership between the Human Capital Institute (HCI) and Kelly Services between
     April 2011 and February 2012. Two hundred eighty professionals from HCI member companies completed a
     25-item survey. The survey was supplemented with several in-depth interviews with talent management thought
     leaders from organizations such as the Wharton School of Business and Intel Corporation. HCI researchers compiled
     additional secondary research from a variety of sources, including white papers, articles, books, interviews, and
     case studies. Several of these are cited in the report, and a full reference list can be found on page 20.

     Copyright © 2012 Human Capital Institute and Kelly Services. All rights reserved.


     2
T H e s u p p ly c h a i n o f t a l e n t




14m
U.S. workers are unemployed
but there are 3.2 million unfilled
jobs across the country.
                                                       who do we
                                                         employ?
                                                                                                    just
                                                                                                                   55               %
                                                                                                     adopt the ‘supply chain of talent’
                                                                                                           framework to manage the
                                                                                                         supply and demand of talent
                                                                                                         Satisfaction with access to talent
                                                                                                                             6% non-users
                                                                                                                    33% supply chain users

less than half
of organizations consider and analyze
the external demand for talent


35    %    fail to evaluate the external
           supply altogether                                                                                              <10%
                                                                                                of organizations conduct market analysis
                                                                                                  of external supply, including a review of
                                                                                                    workforce demographics such as age,
                                                                                               education level and the unemployment rate




79       %    of business leaders are
              not “very satisfied” with
              their ability to access
              talent when needed.
                                           who will we need?

                                                                                                                              20%
                                                                                                  of organizations in north america work
                                                                                                       with search firms/agencies to better
                                                                                                      understand the availability of talent.
                                                                                                 By comparison, 39% of companies in other
                                                                                                   regions utilize this method of research.



                                                                                                                              30%
                                                                   who is available?


The frustration                                                                                       of those who obtain external supply
of Talent supply                                                                                 information rely on popular social media
is widespread                                                                              networks, such as LinkedIn—which when used as
                                                                                            the only method of research, cannot provide a
Less than 10%                                                                                    holistic view of the external talent pools
of leaders outside North America
are satisfied with their access to the
right talent for the job.

                                                                   who else is competing
                                                                        for this talent?




3
The Supply Chain of Talent




Introduction




The effects of the Great Recession of 2008-2009                                                  This understanding can be greatly informed by basic
continue to reverberate worldwide as economies                                                   Supply Chain Management principles. When applied
struggle to realize sustained growth and unemployment                                            to the challenge of managing talent, we refer to that
rates remain high. In this sluggish recovery, a talent                                           framework as the Supply Chain of Talent. By considering
paradox has emerged.                                                                             the following four questions, business and human capital
                                                                                                 leaders can assess where they are and where they need       Teresa Carroll
More talent is available today than at nearly any
                                                                                                 to be in talent procurement:
other time in history. A U.S. unemployment rate of 9
percent lends itself to an increasingly widespread pool                                          • 	Who is employed and what are their skill set profiles?
of available talent, but continued advancements in
                                                                                                 • 	What skills are needed to meet short- and long-term
technology have created a need for skills and experience
                                                                                                    strategic objectives?
that remain in short supply. A 2010 report noted,
“There are still about 3 million job openings across the                                         • 	Where are the needed skills? How will that talent be
country” and employers are struggling to find qualified                                             identified?
people for many of those positions.”3 As a result, the
current talent supply is simply unable to meet aggregate                                         • 	What other organizations are competing for this talent
organizational demand.                                                                              and what are the levers of differentiation required to
                                                                                                    attract needed talent?
To be successful and fully leverage the large talent pool
today, organizations must have a more comprehensive                                              Companies that clearly understand the talent available
understanding of the availability and competition for                                            in-house and clearly gauge the talent available outside
talent within given sectors, including inside and outside                                        the organization will be better positioned to access and
their own companies.                                                                             obtain the workforce needed for success.




3
    Arnold, Chris (Nov. 16, 2010). To Fill Job Skills, Firm Brings Training In House. npr.org.


4
The Supply Chain of Talent




executive summary




It’s a paradox of our economic times: more than                                           organizations that are satisfied tend to be those that
14 million U.S. workers are unemployed, but 3.2 million                                   manage talent according to supply chain principles.
positions are open.1 Economists call this mismatch
“structural unemployment.” Filling skill-specific                                         For most organizations, truly thinking about talent needs
positions has been a widespread problem for high-tech                                     and acquisitions in a supply chain framework is a new
companies, illustrated by Microsoft’s recent plea to the                                  idea. Just as a supply chain of raw goods and materials
Senate Judiciary Committee to allow them to “import”                                      is managed in manufacturing, access to skill-specific
more workers to fill talent gaps.2 But organizations in                                   talent can be effectively procured and managed using a
other sectors are scrambling to fill positions as well.                                   talent supply chain. Both sides – the supply of talent and
Skill shortages have been reported for jobs as varied                                     the demand for talent inside and outside the company-
as electricians, scientists, CAD/CAM (computer-aided                                      need to be diligently managed to find the right balance
design and manufacturing), truck drivers, trades people,                                  between open positions and the talent available to fill
and call-center workers.                                                                  those roles.

This report summarizes the results of research                                            Based on our analysis, we recommend three measures to
undertaken by the Human Capital Institute (HCI)                                           improve and strengthen the talent acquisition process.
and Kelly Services to explore how Supply Chain                                            Organizations must:
Management principles can effectively be applied                                          •	 Start acting and thinking like the market for talent
to Talent Management strategy in this challenging                                            has supply and demand competitive dynamics like
environment. Our research included a survey of 280                                           any other.
talent-management executives and professionals in HCI
member organizations in spring 2011.                                                      •	 Analyze supply and demand internally and externally.

The survey explored how organizations understand and                                      •	 Focus on getting real, robust and accurate talent
source talent, as well as their satisfaction with these                                      information — not fragmented information from
processes and results.                                                                       multiple and unrelated sources that have been used in
                                                                                             the past.
We find that overall, only 20% of companies are fully
satisfied with their access to talent. We also find that

1
    Sullivan, Brian (Oct. 10, 2011). Need Work? U.S. Has 3.2 Million Unfilled Job Openings. cnbc.com.
2
    McDougall, Paul (July 29, 2011). Microsoft: Thousands of IT Jobs Go Unfilled. informationweek.com. 2011 HCI Research

5
The Supply Chain of Talent




Accessing Skilled Talent
Challenges Today’s Leaders




A significant body of research demonstrates the              How satisfied are your business leaders with your
importance of human capital to overall business              organization’s ability to access talent when needed?
performance — productivity, efficiency and the bottom
line. However, fewer than a quarter (21 percent) of our      “Very Satisfied”
survey respondents say that their organization’s business
leaders are very satisfied with their ability to access       21%

talent when needed. Results for this measure and others
were examined by geography, size of company, revenue
                                                             All Others
and business sector, and they do not vary significantly by
these factors. Selected data tables may be found at the
                                                              79%
end of the report.

What can explain this lack of satisfaction among business
leaders with their ability to access talent? We believe
that companies are not thinking about their talent needs
in a comprehensive way.




6
The Supply Chain of Talent




The Supply Chain of Talent —
The New Talent Acquisition Strategy




A number of leaders in business and human capital                                  The Supply Chain of Talent leverages the principles of
have argued that talent can and should be managed the                              Supply Chain Management and applies them to talent
way that the supply chain of raw goods and materials is                            management. According to Dr. Peter Cappelli of the
managed (i.e., managing for both need and uncertainty).                            Wharton School of Business, “An employer … would
In this view, a Supply Chain of Talent mindset and                                 like HR to think about personnel from the perspective of
methodology has the potential to address the current                               money and costs, and what [would] happen if you don’t
shortcomings of the traditional methods of talent                                  have the right people in place to do the necessary jobs.”
planning and acquisition.                                                          Thus, effectively managing supply chains is principally
                                                                                   about managing uncertainty and variability. “This same
Supply Chain Management argues that a network                                      uncertainty exists inside companies. Companies rarely
of interconnected business units must be effectively                               know what they will be building five years out and what
managed to ensure that inventory levels are consistent                             skills they will need to make that happen; they also don’t
with consumer demand for them. Everything from the                                 know if the people they have in their pipelines are going
number of raw materials to the time it takes for products                          to be around.”4
to be built, to where those products are distributed
and how those products are consumed, must be clearly
assessed, evaluated, and streamlined. The integration
of each of these moving processes creates a chain of
events that, when properly managed, improves the long-
term performance of an organization and the supply
chain as a whole.




4
    Knowledge@Wharton “Talent on Demand: Applying Supply Chain Management to People” February 20, 2008, knowledge.wharton. upenn.edu.


7
The Supply Chain of Talent




The Supply Chain of Talent —
The New Talent Acquisition Strategy




In this way, an organization’s most critical supply chain                               A key premise of supply chain management is the
is its supply chain of talent. To effectively manage the                                ability to look both inward and outward at raw materials,
supply chain of talent, organizations must obtain a clear                               finances, services, and tools available — employing
understanding of when, where, and how their talent                                      that information to build a strategy to create more
needs are being met. This is no small undertaking,                                      value for both the producer and consumer. Applied to
though. “In most crises of supply and demand, we can                                    talent strategy and acquisition, a more comprehensive
manufacture a new supply. Whether it is oil, consumer                                   perspective on the supply and demand of talent is likely
goods or even money, ways are found to create more,”                                    to improve access to high-quality talent. The current
Jason Averbrook explains. “However, when it comes                                       HCI/ Kelly Services survey design allows us to examine
to individual skill sets, solving the supply and demand                                 the degree to which organizations employ a Supply
crisis is not as simple. And without visibility into what we                            Chain of Talent framework, or the degree to which they
already have, what we need, and where we will need it                                   examine the following:
in the future, it’s virtually impossible.”5
                                                                                        • 	Internal Supply — Who do we employ?

                                                                                        • 	Internal Demand — Who will we need?

                                                                                        • 	External Supply — Who is available?

                                                                                        • 	External Demand — Who else is competing for
                                                                                           this talent?




5
    Averbook, Jason (June 27, 2011). The ‘New Normal’ of Talent Management. LRP Publications


8
The Supply Chain of Talent




The Supply Chain of Talent
Framework in Action




The majority of organizations surveyed report that they     Does your organization evaluate internal supply of talent;
study their internal supply of and demand for talent        project internal demand for talent; evaluate external supply of talent;
(79 and 72 percent, respectively). However, fewer than      project external demand for talent?
half (47 percent) consider and analyze the external
demand for talent, and about one third (35 percent) fail    External Demand
to evaluate the external supply of talent.
                                                             47%

Internal supply and demand information tends to              53%
readily accessible to organizations, while external
information is more elusive. For instance, forecasting
methods are often used within succession management         External Supply
plans and inter-organizational deployment opportunities,
                                                             65%
and that data can easily speak to overall internal talent
supply and demand. Further, organizations can gather
                                                             35%
additional internal talent data as needed, tapping their                                                                     Yes
succession plans, performance reviews and career
                                                                                                                             No
development plans to gauge internal talent supply
                                                            Internal Demand
and demand.
                                                             72%


                                                             28%




                                                            Internal Supply

                                                             79%


                                                             21%




9
The Supply Chain of Talent




The Supply Chain of Talent
Framework in Action




By contrast, evaluating the external supply of and          How often does your organization use the following sources
demand for talent is considerably more difficult. Many      to better understand the availability of talent in a market?
organizations do not have the tools or data needed to
                                                            Use social network sites, such as LinkedIn
obtain this information as routinely and quickly as they
                                                             30%
do for internal information. As the Figure 3 illustrates,
                                                             70%
few organizations report frequent use of any methods
for gathering information about the external talent         Work with career centers at universities

supply. At most, about one-third of organizations rely       29%
                                                             71%
on the most popular sources, social networks such as
LinkedIn (30 percent) and university career centers         Work with search firms/agencies
(29 percent). So, routine use of these methods certainly     20%
is not widespread. And even if it were, none of these        80%

methods employed taken alone can provide a holistic         Conduct in-person events, such as open houses/orientations
view of external talent pools.                               12%
                                                             88%                                                                              “Frequently”

                                                            Conduct a market analysis including review of workforce demographics              Less Often
                                                            such as age, education level, unemployment rate, etc.                             (“Occasionally” /
                                                                                                                                              “Seldom” /
                                                             9%                                                                               “Never”)
                                                             91%

                                                            Work with state employment agencies to identify types
                                                            of workers in their pipeline that meet your needs
                                                             9%
                                                             91%

                                                            Conduct a marketing campaign to evaluate potential workforce response/interest
                                                             6%
                                                             94%

                                                            Contact with competitors/other companies to explore workforce synergies/sharing
                                                                4%
                                                             96%




10
The Supply Chain of Talent




Use of Supply Chain of Talent &
Business Leader Satisfaction




Does it pay off for organizations to adopt the Supply          Breakdown of Supply Chain of Talent Users & Non-Users
Chain of Talent? We find that the answer is “Yes.”
                                                               Non-Users
In order to test our assertion that the adoption
of a supply chain framework should improve an                   45%
organization’s overall talent acquisition, we grouped our
survey companies into two categories: Supply Chain of
Talent Users and Non-Users. Our measure of the success         Supply Chain of Talent Users

of an organization’s talent acquisition is business leaders’
                                                                55%
satisfaction with access to talent.

In this analysis, Supply Chain of Talent Users are
organizations that report evaluating both the internal
supply and demand of talent, while also assessing at
least one external measure of supply or demand (or,
at least three of the four elements deemed critical for
Supply Chain of Talent success).

We found that slightly more than half (55 percent) of
respondent organizations use the Supply Chain of
Talent, while the remaining 45 percent do not.




11
The Supply Chain of Talent




Use of Supply Chain of Talent &
Business Leader Satisfaction




More importantly, organizations that employ a Supply         How satisfied are your business leaders with your
Chain of Talent have a significantly higher rate of          organization’s ability to access talent when needed?
business leader satisfaction with access to talent.
                                                             Non-Users
These findings confirm that organizations with a more
                                                              6%
holistic understanding of what talent they need, where
it comes from, and what factors influence it, are better
positioned to access and obtain the types of talent they      94%
truly need to be successful. Supply Chain of Talent Users
place a high value on understanding what drives the                                                                 “Very satisfied”

supply and demand of talent. And those that evaluate         Supply Chain of Talent Users                           all others
several, if not all, of the internal and external elements
of talent supply and demand yield leaders who are more        33%

satisfied with their ability to tap into talent pools.
                                                              67%




12
The Supply Chain of Talent




Recommendations & Conclusion




Our research uncovers that only about 20 percent of                                    In order for organizations to improve and strengthen
business leaders are fully satisfied with the access they                              their talent acquisition process, we recommend
have to the talent they need. This fact is distressing                                 the following:
alone, but even more troublesome when one considers
                                                                                       •	 Start acting and thinking like the market for talent
the current structural unemployment in the U.S. –
                                                                                          has supply and demand competitive dynamics like
“unfilled jobs in the midst of mass unemployment.”6
                                                                                          any other
A straightforward way to address the problem of                                        •	 Analyze supply and demand internally and externally.
insufficient access to talent is to redefine the strategy
around talent acquisition and planning. Like a                                         •	 Focus on getting real, robust, and accurate talent
manufacturing supply chain, effective talent acquisition is                               information — not fragmented information from
a combination of knowing what the supply and demand                                       multiple and unrelated sources that have been used in
for talent is — both inside and outside an organization.                                  the past.
Talent supply chain analysis is a fresh approach to talent
acquisition and planning, one that can help companies
solve the talent paradox they find themselves in — a
paradox that has led to companies with insufficient
talent bench strength.




6
    Samuelson, Robert, June 20, 2011, “Why Are So Many Jobs Going Unfilled?” realclearmarkets.com.


13
The Supply Chain of Talent




A Closer Look: Subgroup Analysis




When we examine business leader satisfaction with       How satisfied are your business leaders with your
access to talent by geography, we find that leaders     organization’s ability to access talent when needed?
outside of North America are even less satisfied than   By Geographic Region
their counterparts in North America are (fewer than
10 percent are fully satisfied).                        North America

                                                         23%



                                                         77%




                                                        Other

                                                         9%
                                                                                                               “Very satisfied”

                                                                                                               all others

                                                         91%




                                                        Total

                                                         21%



                                                         79%




14
The Supply Chain of Talent




A Closer Look: Subgroup Analysis




Interestingly, no significant differences exist among        How satisfied are your business leaders with your
industries, suggesting that frustration with talent supply   organization’s ability to access talent when needed?
is widespread.                                               By Industry

                                                             Industrial Goods and Services
                                                              36%
                                                              64%

                                                             Government
                                                              25%
                                                              75%

                                                             Health Care
                                                              25%
                                                              75%

                                                             Professional Services
                                                              25%                                                   “Very satisfied”
                                                              75%
                                                                                                                    all others
                                                             Other
                                                              22%
                                                              78%

                                                             Non-Profit
                                                              17%
                                                              83%

                                                             Banking/Financial Services
                                                              14%
                                                              86%

                                                             Tech
                                                              10%
                                                              90%




15
The Supply Chain of Talent




A Closer Look: Subgroup Analysis




For the most part, North American organizations and         How often does your organization use the following sources
those located in other regions behave similarly in          to better understand the availability of talent in a market?
terms of assessing the external talent supply – with the    (Percent answering “Frequently”) By Geographic Region
exception that companies outside of North America are       Use social network sites, such as LinkedIn
more likely to rely on search firms.                         30%
                                                             30%
                                                             33%
Overall, respondent companies report relatively limited     Work with career centers at universities
considerations of the external supply of talent are          29%
                                                             29%
limited. We do find differences among industries in the      36%
particular methods used. For example, professional          Work with search firms/agencies
services companies are particularly likely to rely on        20%
social networking sites such as LinkedIn, while health       18%
                                                             39%
care organizations report relatively greater consultation
                                                            Conduct in-person events, such as open houses/orientations
with college career centers. Search firms are used to a      12%
relatively low degree in the government, health care,        11%                                                                               total
                                                             15%
and health-care sectors.
                                                            Conduct a market analysis including review of workforce demographics               north America
                                                            such as age, education level, unemployment rate, etc.
                                                                                                                                               other
                                                             9%
                                                             9%
                                                             12%
                                                            Work with state employment agencies to identify types
                                                            of workers in their pipeline that meet your needs
                                                             9%
                                                             9%
                                                             6%
                                                            Conduct a marketing campaign to evaluate potential workforce response/interest
                                                             6%
                                                             7%
                                                             6%
                                                            Contact with competitors/ other companies to explore workforce synergies/sharing
                                                             4%
                                                             4%
                                                             6%


16
The Supply Chain of Talent




A Closer Look: Subgroup Analysis




How often does your organization use the following sources to better understand
the availability of talent in a market? (Percent answering “Frequently”) By Industry


                                                              Total   Banking/    Govern-   Health   Industrial   Non-Profit   Prof.      Tech
                                                                      Financial   ment      Care     Goods &                   Services
                                                                      Services                       Services

Use social network sites, such as LinkedIn                    30%     36%         7%        25%      18%          17%          54%        33%

Work with career centers at universities                      29%     14%         21%       54%      9%           6%           29%        33%

Work with search firms/ agencies                              20%     25%         4%        7%       36%          0%           25%        27%

Conduct in-person events, such as open houses/ orientations   12%     4%          7%        25%      0%           17%          14%        3%

Conduct a market analysis including review of                 9%      4%          7%        14%      9%           0%           18%        0%
workforce demographics such as age, education
level, unemployment rate, etc.

Work with state employment agencies to identify types         9%      0%          4%        18%      9%           17%          14%        7%
of workers in their pipeline that meet your needs

Conduct a marketing campaign to evaluate                      6%      0%          14%       7%       0%           0%           14%        0%
potential workforce response/interest

Contact with competitors/ other companies to                  4%      4%          0%        7%       9%           6%           7%         7%
explore workforce synergies/sharing




17
The Supply Chain of Talent




Appendix A:
respondent demographics


         Industry                     Industry             Industry
                                                                                 Org’s revenue                Org’s revenue Org’s revenue
                                                                                                                                        Number of employees
                                                                                                                                                        Number of employees of employees
                                                                                                                                                                    Number             Region
           Industry                                                                             Organization’s revenue                                                            number of employees




        Technology                    Technology            Technology          Less than $10 million      Less than $10 million Less than $10 million   Less than 1,000   Less than 1,000   Less than 1,000   North Amer
        Professional Services         Professional Services Professional Services
                                                                                $10-100 million            $10-100 million        $10-100 million        1,000-3,000       1,000-3,000       1,000-3,000       Asia/Pacific
        Government                    Government            Government          $100-500 million           $100-500 million       $100-500 million       3,001-5,000       3,001-5,000       3,001-5,000       Europe
        Health Care                   Health Care           Health Care         $500 million-1 billion     $500 million-1 billion $500 million-1 billion 5,001-10,000      5,001-10,000      5,001-10,000      Central/Sou
        Non-Profit/Charity            Non-Profit/Charity    Non-Profit/Charity $1-10 billion               $1-10 billion          $1-10 billion          10,000 +          10,000 +          10,000 +          Africa
        Financial Services            Financial Services    Financial Services $10 billion +               $10 billion +          $10 billion +                                                                Middle East
        Banking                       Banking               Banking             N/A Government or Non-Profit                      N/A Government or Non-Profit
                                                                                                           N/A Government or Non-Profit
        Industrial Goods and Services Industrial Goods and Services Goods and Services
                                                            Industrial
        Insurance                     Insurance             Insurance
        Retail                        Retail                Retail
        Media                         Media                 Media
        Construction and Materials Construction and Materials
                                                            Construction and Materials
        Food and Beverage             Food and Beverage Food and Beverage
        Other (each <3% of total)     Other (each <3% of total)
                                                            Other (each <3% of total)




18
The Supply Chain of Talent




       Appendix A:
       respondent demographics



yees              Region Region Region                                   Respondent’s Level Level
                                                                                Respondent’s
                                                                                         Respondent’s Level                                        Respondent’s Function
                                                                                                                                                          Respondent’s Function Function
                                                                                                                                                                   Respondent’s
                  region                                                       respondent’s level                                                                respondent’s function




                 North AmericaNorth AmericaNorth America            Director/Senior Director
                                                                                 Director/Senior Director
                                                                                                Director/Senior Director                          Human Resources Resources
                                                                                                                                                              Human        Human Resources
                 Asia/Pacific Asia/Pacific Asia/Pacific             Manager/Middle Manager Manager/Middle Manager
                                                                                 Manager/Middle Manager                                           Operations Operations Operations
                 Europe       Europe        Europe                  Team Member  Team MemberTeam Member                                           Other (each <3% of(each <3% of total) <3% of total)
                                                                                                                                                              Other total) Other (each
                              Central/South Central/South America
                 Central/South America      America                 Vice President/Sr. President/Sr. Vice President Vice President
                                                                                 Vice Vice President President/Sr.
                                                                                                Vice
                 Africa       Africa        Africa                  C-Level (CEO, CHRO, CIO etc), Executive/President etc), Executive/President
                                                                                 C-Level (CEO, C-Level CIO etc), Executive/President
                                                                                                 CHRO, (CEO, CHRO, CIO
                 Middle East Middle East Middle East                Other        Other          Other




       19
The Supply Chain of Talent




Appendix B:
works consulted




Arnold, Chris (November 16, 2010). To Fill Job Skills, Firm Brings Training In House. npr.org

Averbook, Jason (June 27, 2011). The ‘New Normal’ of Talent Management. LRP Publications

Boudreau, John W. (January 7, 2008). Supply Chain Logic for Evidence-Based Talent Management. Marshall School of Business

Burns, Susan (December 12, 2010). Planning For the Future of Talent Acquisition: Meet the Talent Broker. talentsynchronicity.com

The Center for Association Leadership (March 15, 2011). Baby Boomer Retirement and Unretirement; Talent Shortages. The Center for Association Leadership

Coombs, Bertha (March 3, 2011). Jobs Go Unfilled Despite High Unemployment. CNBC.com

Guthridge, Matthew; Komm, Asmus B; and Lawson, Emily (January 2008). Making Talent a Strategic Priority. mckinseyquarterly.com

Kelly Services Marketing Information Department (July 2009) Global Contingent Labor Workforce Trends. Kelly Services

Knowledge@Wharton (February 2008). Talent on Demand: Applying Supply Chain Management to People. knowledge.wharton.upenn.edu

McDogall, Paul (July 29, 2011). Microsoft: Thousands of IT Jobs Going Unfilled. informationweek.com

Safani, Barbara (April 18, 2011). Six Job Skills in High Demand. jobs.aol.com

Samuelson, Robert (June 20, 2011). Why Are So Many Jobs Going Unfilled? realclearmarkets.com

Sokol Ratkiewicz, K., & Krekeler Weite, A. (July 2011). Connecting the Dots: Comprehensive Career
Development as a Catalyst for Employee Engagement. Human Capital Institute

Sullivan, Brian (October 10, 2011). Need Work? U.S. Has 3.2 Million Unfilled Job Openings. cnbc.com




20
The Supply Chain of Talent




Definition of Key Terms




Talent                                                        External Supply of Talent
The term talent includes:                                     The number of potential workers within a given market,
                                                              job classification or job type that are available to meet
• 	FTE: Full- and part-time employees who are part of
                                                              an organization’s hiring needs.
   the organization’s regular, traditional workforce.
• 	Contract Talent: Full- and part-time workers and
                                                              Internal Demand for Talent
   independent contractors who are not part of the
   organization’s regular, traditional workforce, including   A projection of the demand for certain skills and
   freelancers, temporary help, interim executives            positions a company will need in a given period of time.
   and consultants.
• 	Outsourced services within an organization,                External Demand for Talent
   i.e., a help desk or tech support desk.                    The aggregate figures of organizations looking to
                                                              hire potential workers within a given market, job
                                                              classification or job type. If demand for certain skill-
Internal Supply of Talent
                                                              based talent is high, it will be harder to find or attract
The talent and skills of those currently employed by
                                                              this type of talent.
an organization, including FTE, Contract Talent and
Outsourced Services.




21
About the author
As SVP, Centers of Excellence for Kelly Services, Teresa Carroll is responsible for
leading a team that manages the brand, develops solutions for clients, and supports
Kelly’s vision of providing the world’s best workforce solutions. .


About Human Capital Institute (HCI)
The Human Capital Institute (HCI) is a catalyst for innovative new thinking in talent acquisition,
development, deployment and new economy leadership. Through research and collaboration, our global
network of more than 138,000 members develops and promotes creativity, best and next practices,
and actionable solutions in strategic talent management. Executives, practitioners, and thought leaders
representing organizations of all sizes, across public, charitable and government sectors, utilize HCI
communities, education, events and research to foster talent advantages to ensure organizational
change for competitive results. In tandem with these initiatives, HCI’s Human Capital Strategist
professional certifications and designations set the bar for expertise in talent strategy, acquisition,
development and measurement. www.hci.org


About KellyOCG
KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider,
Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the areas
of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent Workforce
Outsourcing (CWO), including Independent Contractor Solutions, Human Resources Consulting, Career
Transition and Organizational Effectiveness, and Executive Search. Further information about KellyOCG
may be found at kellyocg.com.




                                                                                                          EXIT

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The Supply Chain of Talent

  • 2. The Supply Chain of Talent contents 3 A visual summary 4 Introduction 5 Executive Summary 6 Assessing Skilled Talent Challenges 7 Supply Chain of Talent — The New Talent Acquisition Strategy 9 The Supply Chain of Talent Framework in Action 11 Use of Supply Chain of Talent & Business Leader Satisfaction 13 Recommendations & Conclusion 14 A Closer Look: Subgroup Analyses 18 Appendix A: Respondent Demographics 20 Appendix B: Works Consulted 21 Definition of Key Terms About this research This research was developed in partnership between the Human Capital Institute (HCI) and Kelly Services between April 2011 and February 2012. Two hundred eighty professionals from HCI member companies completed a 25-item survey. The survey was supplemented with several in-depth interviews with talent management thought leaders from organizations such as the Wharton School of Business and Intel Corporation. HCI researchers compiled additional secondary research from a variety of sources, including white papers, articles, books, interviews, and case studies. Several of these are cited in the report, and a full reference list can be found on page 20. Copyright © 2012 Human Capital Institute and Kelly Services. All rights reserved. 2
  • 3. T H e s u p p ly c h a i n o f t a l e n t 14m U.S. workers are unemployed but there are 3.2 million unfilled jobs across the country. who do we employ? just 55 % adopt the ‘supply chain of talent’ framework to manage the supply and demand of talent Satisfaction with access to talent 6% non-users 33% supply chain users less than half of organizations consider and analyze the external demand for talent 35 % fail to evaluate the external supply altogether <10% of organizations conduct market analysis of external supply, including a review of workforce demographics such as age, education level and the unemployment rate 79 % of business leaders are not “very satisfied” with their ability to access talent when needed. who will we need? 20% of organizations in north america work with search firms/agencies to better understand the availability of talent. By comparison, 39% of companies in other regions utilize this method of research. 30% who is available? The frustration of those who obtain external supply of Talent supply information rely on popular social media is widespread networks, such as LinkedIn—which when used as the only method of research, cannot provide a Less than 10% holistic view of the external talent pools of leaders outside North America are satisfied with their access to the right talent for the job. who else is competing for this talent? 3
  • 4. The Supply Chain of Talent Introduction The effects of the Great Recession of 2008-2009 This understanding can be greatly informed by basic continue to reverberate worldwide as economies Supply Chain Management principles. When applied struggle to realize sustained growth and unemployment to the challenge of managing talent, we refer to that rates remain high. In this sluggish recovery, a talent framework as the Supply Chain of Talent. By considering paradox has emerged. the following four questions, business and human capital leaders can assess where they are and where they need Teresa Carroll More talent is available today than at nearly any to be in talent procurement: other time in history. A U.S. unemployment rate of 9 percent lends itself to an increasingly widespread pool • Who is employed and what are their skill set profiles? of available talent, but continued advancements in • What skills are needed to meet short- and long-term technology have created a need for skills and experience strategic objectives? that remain in short supply. A 2010 report noted, “There are still about 3 million job openings across the • Where are the needed skills? How will that talent be country” and employers are struggling to find qualified identified? people for many of those positions.”3 As a result, the current talent supply is simply unable to meet aggregate • What other organizations are competing for this talent organizational demand. and what are the levers of differentiation required to attract needed talent? To be successful and fully leverage the large talent pool today, organizations must have a more comprehensive Companies that clearly understand the talent available understanding of the availability and competition for in-house and clearly gauge the talent available outside talent within given sectors, including inside and outside the organization will be better positioned to access and their own companies. obtain the workforce needed for success. 3 Arnold, Chris (Nov. 16, 2010). To Fill Job Skills, Firm Brings Training In House. npr.org. 4
  • 5. The Supply Chain of Talent executive summary It’s a paradox of our economic times: more than organizations that are satisfied tend to be those that 14 million U.S. workers are unemployed, but 3.2 million manage talent according to supply chain principles. positions are open.1 Economists call this mismatch “structural unemployment.” Filling skill-specific For most organizations, truly thinking about talent needs positions has been a widespread problem for high-tech and acquisitions in a supply chain framework is a new companies, illustrated by Microsoft’s recent plea to the idea. Just as a supply chain of raw goods and materials Senate Judiciary Committee to allow them to “import” is managed in manufacturing, access to skill-specific more workers to fill talent gaps.2 But organizations in talent can be effectively procured and managed using a other sectors are scrambling to fill positions as well. talent supply chain. Both sides – the supply of talent and Skill shortages have been reported for jobs as varied the demand for talent inside and outside the company- as electricians, scientists, CAD/CAM (computer-aided need to be diligently managed to find the right balance design and manufacturing), truck drivers, trades people, between open positions and the talent available to fill and call-center workers. those roles. This report summarizes the results of research Based on our analysis, we recommend three measures to undertaken by the Human Capital Institute (HCI) improve and strengthen the talent acquisition process. and Kelly Services to explore how Supply Chain Organizations must: Management principles can effectively be applied • Start acting and thinking like the market for talent to Talent Management strategy in this challenging has supply and demand competitive dynamics like environment. Our research included a survey of 280 any other. talent-management executives and professionals in HCI member organizations in spring 2011. • Analyze supply and demand internally and externally. The survey explored how organizations understand and • Focus on getting real, robust and accurate talent source talent, as well as their satisfaction with these information — not fragmented information from processes and results. multiple and unrelated sources that have been used in the past. We find that overall, only 20% of companies are fully satisfied with their access to talent. We also find that 1 Sullivan, Brian (Oct. 10, 2011). Need Work? U.S. Has 3.2 Million Unfilled Job Openings. cnbc.com. 2 McDougall, Paul (July 29, 2011). Microsoft: Thousands of IT Jobs Go Unfilled. informationweek.com. 2011 HCI Research 5
  • 6. The Supply Chain of Talent Accessing Skilled Talent Challenges Today’s Leaders A significant body of research demonstrates the How satisfied are your business leaders with your importance of human capital to overall business organization’s ability to access talent when needed? performance — productivity, efficiency and the bottom line. However, fewer than a quarter (21 percent) of our “Very Satisfied” survey respondents say that their organization’s business leaders are very satisfied with their ability to access 21% talent when needed. Results for this measure and others were examined by geography, size of company, revenue All Others and business sector, and they do not vary significantly by these factors. Selected data tables may be found at the 79% end of the report. What can explain this lack of satisfaction among business leaders with their ability to access talent? We believe that companies are not thinking about their talent needs in a comprehensive way. 6
  • 7. The Supply Chain of Talent The Supply Chain of Talent — The New Talent Acquisition Strategy A number of leaders in business and human capital The Supply Chain of Talent leverages the principles of have argued that talent can and should be managed the Supply Chain Management and applies them to talent way that the supply chain of raw goods and materials is management. According to Dr. Peter Cappelli of the managed (i.e., managing for both need and uncertainty). Wharton School of Business, “An employer … would In this view, a Supply Chain of Talent mindset and like HR to think about personnel from the perspective of methodology has the potential to address the current money and costs, and what [would] happen if you don’t shortcomings of the traditional methods of talent have the right people in place to do the necessary jobs.” planning and acquisition. Thus, effectively managing supply chains is principally about managing uncertainty and variability. “This same Supply Chain Management argues that a network uncertainty exists inside companies. Companies rarely of interconnected business units must be effectively know what they will be building five years out and what managed to ensure that inventory levels are consistent skills they will need to make that happen; they also don’t with consumer demand for them. Everything from the know if the people they have in their pipelines are going number of raw materials to the time it takes for products to be around.”4 to be built, to where those products are distributed and how those products are consumed, must be clearly assessed, evaluated, and streamlined. The integration of each of these moving processes creates a chain of events that, when properly managed, improves the long- term performance of an organization and the supply chain as a whole. 4 Knowledge@Wharton “Talent on Demand: Applying Supply Chain Management to People” February 20, 2008, knowledge.wharton. upenn.edu. 7
  • 8. The Supply Chain of Talent The Supply Chain of Talent — The New Talent Acquisition Strategy In this way, an organization’s most critical supply chain A key premise of supply chain management is the is its supply chain of talent. To effectively manage the ability to look both inward and outward at raw materials, supply chain of talent, organizations must obtain a clear finances, services, and tools available — employing understanding of when, where, and how their talent that information to build a strategy to create more needs are being met. This is no small undertaking, value for both the producer and consumer. Applied to though. “In most crises of supply and demand, we can talent strategy and acquisition, a more comprehensive manufacture a new supply. Whether it is oil, consumer perspective on the supply and demand of talent is likely goods or even money, ways are found to create more,” to improve access to high-quality talent. The current Jason Averbrook explains. “However, when it comes HCI/ Kelly Services survey design allows us to examine to individual skill sets, solving the supply and demand the degree to which organizations employ a Supply crisis is not as simple. And without visibility into what we Chain of Talent framework, or the degree to which they already have, what we need, and where we will need it examine the following: in the future, it’s virtually impossible.”5 • Internal Supply — Who do we employ? • Internal Demand — Who will we need? • External Supply — Who is available? • External Demand — Who else is competing for this talent? 5 Averbook, Jason (June 27, 2011). The ‘New Normal’ of Talent Management. LRP Publications 8
  • 9. The Supply Chain of Talent The Supply Chain of Talent Framework in Action The majority of organizations surveyed report that they Does your organization evaluate internal supply of talent; study their internal supply of and demand for talent project internal demand for talent; evaluate external supply of talent; (79 and 72 percent, respectively). However, fewer than project external demand for talent? half (47 percent) consider and analyze the external demand for talent, and about one third (35 percent) fail External Demand to evaluate the external supply of talent. 47% Internal supply and demand information tends to 53% readily accessible to organizations, while external information is more elusive. For instance, forecasting methods are often used within succession management External Supply plans and inter-organizational deployment opportunities, 65% and that data can easily speak to overall internal talent supply and demand. Further, organizations can gather 35% additional internal talent data as needed, tapping their Yes succession plans, performance reviews and career No development plans to gauge internal talent supply Internal Demand and demand. 72% 28% Internal Supply 79% 21% 9
  • 10. The Supply Chain of Talent The Supply Chain of Talent Framework in Action By contrast, evaluating the external supply of and How often does your organization use the following sources demand for talent is considerably more difficult. Many to better understand the availability of talent in a market? organizations do not have the tools or data needed to Use social network sites, such as LinkedIn obtain this information as routinely and quickly as they 30% do for internal information. As the Figure 3 illustrates, 70% few organizations report frequent use of any methods for gathering information about the external talent Work with career centers at universities supply. At most, about one-third of organizations rely 29% 71% on the most popular sources, social networks such as LinkedIn (30 percent) and university career centers Work with search firms/agencies (29 percent). So, routine use of these methods certainly 20% is not widespread. And even if it were, none of these 80% methods employed taken alone can provide a holistic Conduct in-person events, such as open houses/orientations view of external talent pools. 12% 88% “Frequently” Conduct a market analysis including review of workforce demographics Less Often such as age, education level, unemployment rate, etc. (“Occasionally” / “Seldom” / 9% “Never”) 91% Work with state employment agencies to identify types of workers in their pipeline that meet your needs 9% 91% Conduct a marketing campaign to evaluate potential workforce response/interest 6% 94% Contact with competitors/other companies to explore workforce synergies/sharing 4% 96% 10
  • 11. The Supply Chain of Talent Use of Supply Chain of Talent & Business Leader Satisfaction Does it pay off for organizations to adopt the Supply Breakdown of Supply Chain of Talent Users & Non-Users Chain of Talent? We find that the answer is “Yes.” Non-Users In order to test our assertion that the adoption of a supply chain framework should improve an 45% organization’s overall talent acquisition, we grouped our survey companies into two categories: Supply Chain of Talent Users and Non-Users. Our measure of the success Supply Chain of Talent Users of an organization’s talent acquisition is business leaders’ 55% satisfaction with access to talent. In this analysis, Supply Chain of Talent Users are organizations that report evaluating both the internal supply and demand of talent, while also assessing at least one external measure of supply or demand (or, at least three of the four elements deemed critical for Supply Chain of Talent success). We found that slightly more than half (55 percent) of respondent organizations use the Supply Chain of Talent, while the remaining 45 percent do not. 11
  • 12. The Supply Chain of Talent Use of Supply Chain of Talent & Business Leader Satisfaction More importantly, organizations that employ a Supply How satisfied are your business leaders with your Chain of Talent have a significantly higher rate of organization’s ability to access talent when needed? business leader satisfaction with access to talent. Non-Users These findings confirm that organizations with a more 6% holistic understanding of what talent they need, where it comes from, and what factors influence it, are better positioned to access and obtain the types of talent they 94% truly need to be successful. Supply Chain of Talent Users place a high value on understanding what drives the “Very satisfied” supply and demand of talent. And those that evaluate Supply Chain of Talent Users all others several, if not all, of the internal and external elements of talent supply and demand yield leaders who are more 33% satisfied with their ability to tap into talent pools. 67% 12
  • 13. The Supply Chain of Talent Recommendations & Conclusion Our research uncovers that only about 20 percent of In order for organizations to improve and strengthen business leaders are fully satisfied with the access they their talent acquisition process, we recommend have to the talent they need. This fact is distressing the following: alone, but even more troublesome when one considers • Start acting and thinking like the market for talent the current structural unemployment in the U.S. – has supply and demand competitive dynamics like “unfilled jobs in the midst of mass unemployment.”6 any other A straightforward way to address the problem of • Analyze supply and demand internally and externally. insufficient access to talent is to redefine the strategy around talent acquisition and planning. Like a • Focus on getting real, robust, and accurate talent manufacturing supply chain, effective talent acquisition is information — not fragmented information from a combination of knowing what the supply and demand multiple and unrelated sources that have been used in for talent is — both inside and outside an organization. the past. Talent supply chain analysis is a fresh approach to talent acquisition and planning, one that can help companies solve the talent paradox they find themselves in — a paradox that has led to companies with insufficient talent bench strength. 6 Samuelson, Robert, June 20, 2011, “Why Are So Many Jobs Going Unfilled?” realclearmarkets.com. 13
  • 14. The Supply Chain of Talent A Closer Look: Subgroup Analysis When we examine business leader satisfaction with How satisfied are your business leaders with your access to talent by geography, we find that leaders organization’s ability to access talent when needed? outside of North America are even less satisfied than By Geographic Region their counterparts in North America are (fewer than 10 percent are fully satisfied). North America 23% 77% Other 9% “Very satisfied” all others 91% Total 21% 79% 14
  • 15. The Supply Chain of Talent A Closer Look: Subgroup Analysis Interestingly, no significant differences exist among How satisfied are your business leaders with your industries, suggesting that frustration with talent supply organization’s ability to access talent when needed? is widespread. By Industry Industrial Goods and Services 36% 64% Government 25% 75% Health Care 25% 75% Professional Services 25% “Very satisfied” 75% all others Other 22% 78% Non-Profit 17% 83% Banking/Financial Services 14% 86% Tech 10% 90% 15
  • 16. The Supply Chain of Talent A Closer Look: Subgroup Analysis For the most part, North American organizations and How often does your organization use the following sources those located in other regions behave similarly in to better understand the availability of talent in a market? terms of assessing the external talent supply – with the (Percent answering “Frequently”) By Geographic Region exception that companies outside of North America are Use social network sites, such as LinkedIn more likely to rely on search firms. 30% 30% 33% Overall, respondent companies report relatively limited Work with career centers at universities considerations of the external supply of talent are 29% 29% limited. We do find differences among industries in the 36% particular methods used. For example, professional Work with search firms/agencies services companies are particularly likely to rely on 20% social networking sites such as LinkedIn, while health 18% 39% care organizations report relatively greater consultation Conduct in-person events, such as open houses/orientations with college career centers. Search firms are used to a 12% relatively low degree in the government, health care, 11% total 15% and health-care sectors. Conduct a market analysis including review of workforce demographics north America such as age, education level, unemployment rate, etc. other 9% 9% 12% Work with state employment agencies to identify types of workers in their pipeline that meet your needs 9% 9% 6% Conduct a marketing campaign to evaluate potential workforce response/interest 6% 7% 6% Contact with competitors/ other companies to explore workforce synergies/sharing 4% 4% 6% 16
  • 17. The Supply Chain of Talent A Closer Look: Subgroup Analysis How often does your organization use the following sources to better understand the availability of talent in a market? (Percent answering “Frequently”) By Industry Total Banking/ Govern- Health Industrial Non-Profit Prof. Tech Financial ment Care Goods & Services Services Services Use social network sites, such as LinkedIn 30% 36% 7% 25% 18% 17% 54% 33% Work with career centers at universities 29% 14% 21% 54% 9% 6% 29% 33% Work with search firms/ agencies 20% 25% 4% 7% 36% 0% 25% 27% Conduct in-person events, such as open houses/ orientations 12% 4% 7% 25% 0% 17% 14% 3% Conduct a market analysis including review of 9% 4% 7% 14% 9% 0% 18% 0% workforce demographics such as age, education level, unemployment rate, etc. Work with state employment agencies to identify types 9% 0% 4% 18% 9% 17% 14% 7% of workers in their pipeline that meet your needs Conduct a marketing campaign to evaluate 6% 0% 14% 7% 0% 0% 14% 0% potential workforce response/interest Contact with competitors/ other companies to 4% 4% 0% 7% 9% 6% 7% 7% explore workforce synergies/sharing 17
  • 18. The Supply Chain of Talent Appendix A: respondent demographics Industry Industry Industry Org’s revenue Org’s revenue Org’s revenue Number of employees Number of employees of employees Number Region Industry Organization’s revenue number of employees Technology Technology Technology Less than $10 million Less than $10 million Less than $10 million Less than 1,000 Less than 1,000 Less than 1,000 North Amer Professional Services Professional Services Professional Services $10-100 million $10-100 million $10-100 million 1,000-3,000 1,000-3,000 1,000-3,000 Asia/Pacific Government Government Government $100-500 million $100-500 million $100-500 million 3,001-5,000 3,001-5,000 3,001-5,000 Europe Health Care Health Care Health Care $500 million-1 billion $500 million-1 billion $500 million-1 billion 5,001-10,000 5,001-10,000 5,001-10,000 Central/Sou Non-Profit/Charity Non-Profit/Charity Non-Profit/Charity $1-10 billion $1-10 billion $1-10 billion 10,000 + 10,000 + 10,000 + Africa Financial Services Financial Services Financial Services $10 billion + $10 billion + $10 billion + Middle East Banking Banking Banking N/A Government or Non-Profit N/A Government or Non-Profit N/A Government or Non-Profit Industrial Goods and Services Industrial Goods and Services Goods and Services Industrial Insurance Insurance Insurance Retail Retail Retail Media Media Media Construction and Materials Construction and Materials Construction and Materials Food and Beverage Food and Beverage Food and Beverage Other (each <3% of total) Other (each <3% of total) Other (each <3% of total) 18
  • 19. The Supply Chain of Talent Appendix A: respondent demographics yees Region Region Region Respondent’s Level Level Respondent’s Respondent’s Level Respondent’s Function Respondent’s Function Function Respondent’s region respondent’s level respondent’s function North AmericaNorth AmericaNorth America Director/Senior Director Director/Senior Director Director/Senior Director Human Resources Resources Human Human Resources Asia/Pacific Asia/Pacific Asia/Pacific Manager/Middle Manager Manager/Middle Manager Manager/Middle Manager Operations Operations Operations Europe Europe Europe Team Member Team MemberTeam Member Other (each <3% of(each <3% of total) <3% of total) Other total) Other (each Central/South Central/South America Central/South America America Vice President/Sr. President/Sr. Vice President Vice President Vice Vice President President/Sr. Vice Africa Africa Africa C-Level (CEO, CHRO, CIO etc), Executive/President etc), Executive/President C-Level (CEO, C-Level CIO etc), Executive/President CHRO, (CEO, CHRO, CIO Middle East Middle East Middle East Other Other Other 19
  • 20. The Supply Chain of Talent Appendix B: works consulted Arnold, Chris (November 16, 2010). To Fill Job Skills, Firm Brings Training In House. npr.org Averbook, Jason (June 27, 2011). The ‘New Normal’ of Talent Management. LRP Publications Boudreau, John W. (January 7, 2008). Supply Chain Logic for Evidence-Based Talent Management. Marshall School of Business Burns, Susan (December 12, 2010). Planning For the Future of Talent Acquisition: Meet the Talent Broker. talentsynchronicity.com The Center for Association Leadership (March 15, 2011). Baby Boomer Retirement and Unretirement; Talent Shortages. The Center for Association Leadership Coombs, Bertha (March 3, 2011). Jobs Go Unfilled Despite High Unemployment. CNBC.com Guthridge, Matthew; Komm, Asmus B; and Lawson, Emily (January 2008). Making Talent a Strategic Priority. mckinseyquarterly.com Kelly Services Marketing Information Department (July 2009) Global Contingent Labor Workforce Trends. Kelly Services Knowledge@Wharton (February 2008). Talent on Demand: Applying Supply Chain Management to People. knowledge.wharton.upenn.edu McDogall, Paul (July 29, 2011). Microsoft: Thousands of IT Jobs Going Unfilled. informationweek.com Safani, Barbara (April 18, 2011). Six Job Skills in High Demand. jobs.aol.com Samuelson, Robert (June 20, 2011). Why Are So Many Jobs Going Unfilled? realclearmarkets.com Sokol Ratkiewicz, K., & Krekeler Weite, A. (July 2011). Connecting the Dots: Comprehensive Career Development as a Catalyst for Employee Engagement. Human Capital Institute Sullivan, Brian (October 10, 2011). Need Work? U.S. Has 3.2 Million Unfilled Job Openings. cnbc.com 20
  • 21. The Supply Chain of Talent Definition of Key Terms Talent External Supply of Talent The term talent includes: The number of potential workers within a given market, job classification or job type that are available to meet • FTE: Full- and part-time employees who are part of an organization’s hiring needs. the organization’s regular, traditional workforce. • Contract Talent: Full- and part-time workers and Internal Demand for Talent independent contractors who are not part of the organization’s regular, traditional workforce, including A projection of the demand for certain skills and freelancers, temporary help, interim executives positions a company will need in a given period of time. and consultants. • Outsourced services within an organization, External Demand for Talent i.e., a help desk or tech support desk. The aggregate figures of organizations looking to hire potential workers within a given market, job classification or job type. If demand for certain skill- Internal Supply of Talent based talent is high, it will be harder to find or attract The talent and skills of those currently employed by this type of talent. an organization, including FTE, Contract Talent and Outsourced Services. 21
  • 22. About the author As SVP, Centers of Excellence for Kelly Services, Teresa Carroll is responsible for leading a team that manages the brand, develops solutions for clients, and supports Kelly’s vision of providing the world’s best workforce solutions. . About Human Capital Institute (HCI) The Human Capital Institute (HCI) is a catalyst for innovative new thinking in talent acquisition, development, deployment and new economy leadership. Through research and collaboration, our global network of more than 138,000 members develops and promotes creativity, best and next practices, and actionable solutions in strategic talent management. Executives, practitioners, and thought leaders representing organizations of all sizes, across public, charitable and government sectors, utilize HCI communities, education, events and research to foster talent advantages to ensure organizational change for competitive results. In tandem with these initiatives, HCI’s Human Capital Strategist professional certifications and designations set the bar for expertise in talent strategy, acquisition, development and measurement. www.hci.org About KellyOCG KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider, Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources Consulting, Career Transition and Organizational Effectiveness, and Executive Search. Further information about KellyOCG may be found at kellyocg.com. EXIT