The fast-paced and unpredictable global business environment has made effective talent management essential to supply chain performance and productivity. Successful strategies involve going beyond the normal HR processes, such as development and recognition, to deliver an outstanding employee experience. They also call for creating a motivated workforce, likely to stay with — and add value to — your company in the long run.

A closer look at the significance of talent management within the scope of the supply chain landscape offers insights into how businesses can advance their efforts now and in the future.

What is talent management?

Talent management entails bringing compatible and capable talent on board and developing, motivating, and retaining high-performing team members for the long term — helping you reach optimal performance and productivity. When organizations take the time to implement this process strategically, it can drive business success and ensure it remains competitive.

Exhaustive talent management should touch on all critical functions of HR, including:

• Recruitment and onboarding,
• Hiring,
• Performance management,
• Engagement,
• Rewards and recognition, and
• Learning and development.

Every team member directly impacts the bottom line, whether good or bad. Prioritizing talent management is a critical factor in retaining skilled workers, increasing business performance, and helping organizations recoup investments in development. It also ensures employees are well-equipped to succeed. By one estimate, 83% of HR leaders believe the employee experience is “very important” to organizational success.

Recognizing talent as a driving force behind business success

Talent acquisition and retention have become a critical focus for businesses. The Great Resignation resulted in workers leaving their jobs in droves in recent years. The U.S. Chamber of Commerce reported that more than 50 million workers quit their jobs in 2022 alone. As of January 2023, the unemployment rate in the U.S. had decreased to 3.4%. As a result, businesses are continuing to navigate skilled labor shortages, which poses their own set of unique obstacles.

Although supply chain processes have become increasingly digitized through advanced solutions such as artificial intelligence and automation, many industries still struggle with a lack of skilled laborers. According to a new Korn Ferry report, more than 85 million jobs could go unfilled by 2030 because there will not be not enough qualified professionals to fill them. This shortage could result in a massive $8.5 trillion in unrealized annual revenues and underscores the need for businesses to revitalize and reprioritize their approach to talent management.

With a more comprehensive talent management strategy in place, businesses stand to reap several benefits, including:

• Recruiting and retaining in-demand talent: Boosting the employee experience with learning and development opportunities can drive worker satisfaction and enhance reputation. That, in turn, supports improved retention and more effective recruitment in the long term.
• Improving communication and collaboration: Efforts to ensure talent is satisfied, engaged, and continuously growing fosters teamwork and knowledge sharing while promoting innovation and problem-solving.
• Mitigating disruptions: Strong talent strategies build skilled and flexible workforces that help organizations reach optimum performance and minimize disruptions. This agility and resilience are critical amid supply chain volatility.
• Reducing human capital costs: Leveraging comprehensive talent management to increase productivity, engagement, and retention helps minimize human capital spending.
• Driving efficiency and productivity: Effective talent management aims to arm employees with the knowledge, skills, training, and resources that they need to maximize their performance, which serves as a boon to efficiency and the bottom line.

Strategies to enhance talent management

To ensure workforces are well prepared to meet the challenges and unpredictability of today and tomorrow, it is critical to invest in talent management efforts. Effective talent management strategies include:

1. Positioning talent as a pillar of business strategy and ensuring it is always an integral focus for the company.
2. Aligning organizational objectives with talent goals to improve workforce planning and reduce human capital costs.
3. Strengthening diversity, equity, and inclusion efforts to foster a more welcoming company culture.
4. Improving training and development programs for effective upskilling that supports employee satisfaction and business productivity.
5. Adopting processes and solutions that help to optimize workforce management and forecast future labor needs and challenges.

An innovative, enterprise-wide talent management strategy aligned with supply chain priorities enables businesses to remain efficient, agile, and resistant to unforeseen obstacles. Learn how Inpsirage, Part of Accenture, helps organizations achieve those goals by contacting us.