Workforce Optimization: Using Data to Find the Right Mix of Employees

Without the right balance of team members, organizations put their employees’ productivity and well-being at risk as well as their own bottom line. To solve these challenges, organizations need to innovate and invest in new strategies instead of relying on legacy processes and good intentions. Traditional ‘workforce & headcount planning’ is being replaced. Organizations are using data analytics to streamline workforce optimization, an approach that integrates business performance considerations with workforce management. A holistic approach to people, skills and needs helps organizations advance their hiring strategies, maximize innovation, and help their employees succeed.

See More: Data Driven HR: The Key To Retaining Talent and Enhancing Employee Experience

The Challenges of a Permanent Hiring Strategy

It’s not surprising that the disruption of work norms that came with the onset of the pandemic has been followed by mass resignations. Compounding the issue is the skills gap that continues to burden HR departments. In fact, 87% of organizations say they’re facing skill gaps or expect to within a few years.

HR departments’ concerns about filling up an organization’s talent pool are justified. It’s difficult to staff hard-to-fill roles and attract employees that will stay long-term and help drive innovation. Many HR leaders may believe contingent workers are the right choice to fill the gap. But this isn’t always the case. You need to find the build-buy-borrow balance that is right for you.

Old strategies that involve disruptive structural changes (outsource, offshore etc.) or expensive and time-consuming technology deployments aren’t enough to overcome hiring challenges anymore. It’s time to take it a step further and identify areas of optimization. To find the right mix of employees that works for your organization, you need to start by diving into data analytics and workforce optimization.

Three ways To Use Data for Workforce Optimization

There is no one-size-fits-all solution to workforce optimization. That’s why you need data analytics and actionable insights tailored specifically to your business model and culture. By combing through data and identifying optimization opportunities, you can help your organization achieve several key objectives:

1.Find the right mix of employees

Pairing hiring data with internal movement, tenure, and skills data enables you to unlock the insights you need to make the right hiring decisions. With this information, you determine how to motivate employees to stay for the long term and drive innovation. These insights can help direct the right talent towards your permanent hiring strategy while placing contingent workers in hard-to-fill roles. For organizations with an hourly workforce, you have to be explicit in how to balance hiring that maximizes productivity and      helps control overtime. To strike the right balance, analyze your productivity, overtime, and shift data. With this information, you can determine how to best use full-time staff to minimize overtime or build a bench of part-time workers to offset the need for it.

2. Optimize team productivity

Mix the experience levels and skills of your team members in a way that increases productivity and elevates energy. To start, identify and monitor top-performing teams and then recreate that formula on teams that aren’t stacking up. Track junior team members’ new skills development to see if exposure alone leads to skills growth or if senior team members need to      coach them more actively. This data can help reveal areas of improvement and how to best optimize your team to increase productivity.

3. Future-proof your organization

Taking the time to analyze your organization’s productivity data can also help you identify any upskilling and coaching opportunities. A data-driven approach helps future-proof your organization by providing junior team members the chance to work with more senior members who can help train and guide them. For industries facing a retirement wave, this is a critical step in ensuring your teams can endure if a colleague resigns. Considering 45% of employees said they would be more likely to stay with their current employer if they were offered skills training, investing in upskilling and reskilling programs can also help attract and retain top talent, furthering the longevity and success of your organization.

See More: Leverage Technology and Data to Measure Impact of Company Initiatives

Regardless of your industry, data analytics provide the insights you need to make your workforce more resilient and productive in the face of talent shortages. Don’t rely on outdated solutions; instead, invest in your hiring strategy and streamline workforce optimization by identifying the right mix of employees.

With a data-driven approach, you can maximize productivity, encourage upskilling, improve recruitment and retention, and empower your most important asset — your people — to do their best work.