Why Talent Intelligence is more important in a period of economic uncertainty than in a period of growth - it's about risk mitigation at an organisational level
In the ever-changing landscape of business, competitive advantage plays a pivotal role in determining an organisation's success. And one of the key drivers of competitive advantage is talent. But what happens during economic slowdowns? Often, businesses look to reduce costs by consolidating. However, there's a more strategic approach that companies should consider - focusing on having the right capabilities in the right place through Talent Intelligence.
Talent Intelligence goes beyond just seeking low-cost solutions. It involves joining the dots to consider various factors, such as hiring processes, attrition rates, and the cost of talent. It’s about putting access to the skills you need at the heart of your decision making, so you join the dots between labour market, economics, location, strategy and talent.
During economic downturns, traditional expectations are higher unemployment rates and a volatile labour market. However, current times have confused economists as trends have diverged from the norm. So, in order to navigate through this uncertainty, businesses must recognise the importance of Talent Intelligence in making strategic decisions.
Some organisations may consider Talent Intelligence as just a means to elevate conversations between recruiters and business leaders. But in challenging economic conditions, the real purpose of Talent Intelligence is to mitigate the risks associated with business decisions.
In turbulent times, the value of external data becomes even more clear. This data provides vital context and can change rapidly. By leveraging Talent Intelligence with external data, companies can conduct scenario planning and assess the feasibility of their strategies. For instance, understanding whether consolidating in a high-cost market is viable, considering the recovery potential in a low-cost market, is an essential aspect of strategic planning.
Companies are accustomed to conducting research on their competitors and markets regularly. However, what's often overlooked is that the most significant asset they possess is their workforce. Talent Intelligence bridges the gap between business strategy and workforce management, providing a deeper understanding of how talent can support and drive business success. To mitigate risk effectively companies should do research on their competitors, their clients, their markets AND access to the availability of the skills they need to deliver their strategy.
In conclusion, Talent Intelligence is a vital tool for risk mitigation during economic downturns. Rather than solely focusing on cost-cutting measures, businesses must recognise the potential of talent and the right strategic approach to optimise their workforce. Embracing Talent Intelligence and combining it with external data empowers organisations to make well-informed decisions and successfully navigate through uncertain times, ensuring long-term growth and sustainability.