How is Technology re-shaping the entire Talent Supply Chain (TSC)?
The idea and methodology behind Supply-Chain Management (SCM) was introduced early on in the 1900s. However, it was Henry Ford who first took the Assembly-Line setup and reinvented it for Automotive Manufacturing and Mass Production.
Supply-Chain Management has found its way into every nook and crevice of the global economy, ensuring operations are streamlined and the output is standardized. The influx of innovative designs, technologies, solutions and processes has improved the traditional SCM model over the years.
For every bottleneck in an industry that relied on market supply, SCM has managed to sandpaper the edges and make it more efficient.
So what is the Talent Supply Chain (TSC)?
A Talent Supply Chain (TSC) deals with the acquisition, management and transformation of Human Capital.
In the year 2019, more than 6.6 million jobs were created in the United States’ IT sector alone. However, close to half of those openings went unfulfilled. Hence, more than 20% of recruiters have concluded that it’s becoming increasingly difficult to locate candidates that fit a job description accurately. Also, 43% of Hiring Managers have declared that they lack any confidence in being able to source skilled employees.
With pressure mounting on HR professional all over the world, technology has arrived to save the day.
Intelligent ATS, AI-ML and Data Analytics is now being infused into pre-existing HR platforms to add a layer of cognitive intelligence for the management of human resources. But what role does technology have to play?
The acquisition of skilled talent is one of the largest pain-points for a HR professional. Lack of relevant skills, shortage of experienced candidates and a narrow talent pool has resulted in millions of jobs going unfulfilled. This directly affects a company’s top-line, especially in the services sector.
A single job opening attracts around 250-1,000 applicants, and this number increases seismically for Fortune 500s. Often, recruiters sift through a few resumes before selecting a candidate. This leads to efficient candidates being passed over and an increase in human bias. AI algorithms are now used to parse through these resumes in just a matter of seconds, analyse and extract relevant information and score a candidate’s profile based on relevancy. This has ensured the most ideal candidate is sourced for a job in the least amount of time.
Prior to the onset of smart technologies and tools, the average time taken to fulfil an open position ranged between 15-60 days. This timeframe has been reduced to just under 10 days (for certain instances).
Skill Gap Analysis
Most organisations have a limited view of the available skills across diverse domains and functions. The lack of skill visibility gives rise to skill-gaps, which could hamper business operations. As an enterprise evolves, so does its business demands. And each incoming demand might require updated and relevant skills.
With the help of these intelligent technologies, companies can now realise the absence of particular skills, coordinate with L&D departments in real-time and upskill their employees without much effort.
Hiring Channel Mix
Another important and salient feature is the broadening of the hiring pool and increasing the number of acquisition channels. As most individuals spend around 2 hours a day on Social Media platforms, intelligent ChatBots are now being deployed to engage with potential candidates and drive resources towards a dedicated career site. In addition to this, these intelligent platforms engage with existing employees to increase referrals for an open position.
Another crucial role is the creation of accurate job descriptions. More than 75% of new employees believe that job descriptions (JDs) are often erroneous. Intelligent platforms can now understand all the requirements of a job to deliver accurate and concise JDs.
One of the most important functions of these systems lies in its ability to harness vast amounts of Data, in order to deliver actionable insights.
Analytics is now being utilised to calculate a variety of crucial metrics for the entire TSC, such as joining probability, overall attrition, demand prediction, generation of accurate job descriptions and creation of Employee Experience (EX) reports.
With a hoard of technologies and tools at a recruiter’s disposal, to accurately source talent, the entire TSC is now being automated to help HR professionals devote their time to more pressing concerns within an enterprise.