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Leveraging data to make workforce related decisions was not common until a few years back. Some would say it is not common even today. However, a few things are changing very rapidly presenting HR and business leaders with unprecedented challenges.
- A truly multi-generation workforce where each of the four generations has a very different attitude towards work. Gen Y has become a reality representing anywhere within 15% to 55% of the workforce.
- The massive technology-driven disruptions over the last decade affecting the way we used to manage our business. The world is going digital, more can be expected over next few years.
- The not-so-long-ago recession and its devastating impact on the business and macro-economic environment.
- Increased globalization, diversified business model and decentralized multi-location operating model
- Talent shortage. An attrition costs an organization 20% to 150% of the annual salary (impact is higher for skilled senior level roles) whereas the cost of bad hiring decision can be as high as five times the annual salary [according to a study by the Society for Human Resources Management] of the role.
To stay ahead of the curve, the best-performing organizations are investing heavily to understand their workforce better, improve the quality of their people-related decisions and to align their workforce strategy with the business strategy. What that means is if the priority for the business is to diversify and grow in new frontiers, then the appropriate workforce-level intervention will be to measure and manage the frequency of the workforce upskilling itself in the required emerging skill areas than monitoring a metric such as ‘average hours of training per employee’, which, may not have an apparent relationship with business performance.