Resource Management Groups (RMGs) are saving the day during the COVID-19 pandemic
The sheer scale of the Coronavirus pandemic has impacted organizations of all sizes, disrupting businesses across the globe. The infectious outbreak has also forced international enterprises to change its priorities overnight.
Whilst moving the workforce into their homes to ensure overall safety and health, companies are also faced with the challenges of business continuity. The uncertainty in the economic environment has sent departmental heads into a frenzy, as they seek to overcome the daunting task of cutting down non-essential costs across functions like Marketing, Operations, Internal IT, Delivery and HR.
A direct impact of this economic speedbump is visible within the staffing strategy for global enterprises. In a bid to reduce Talent Acquisition costs, organisations are choosing to up-skill / re-skill their existing employees as opposed to hiring externally. In order to bring about this change, Resource management Groups (RMGs) need to have a clear and concise overview of the:
- Available skills possessed by the current workforce
- Billing / Revenue impact of skills by an employee
- Opportunities available to relocate employees for revenue optimization
Current challenge across organizations:
Most organizations do not have a structured skill repository. In the rare occasion where do they do have one in place, it is often not up-to date and is managed loosely on Excel sheets. And in an attempt to shed some light on the aforementioned point, it is important to know that ‘Skills’ management on an Excel sheets is not the most efficient way to collaborate across functions and service lines.
How does the RMG become a saviour?
RMGs are at a strategic vantage point, with constant access to critical insights like:
a. Skill available within the workforce
b. Skills required to fulfil existing demand
c. Skills required for upcoming/incoming demands;
If Resource Management Groups are provided with all the necessary information and insights pertaining to the skills of a candidate and their career aspirations, the RMGs can work alongside L&D and Human Resource teams to ensure the investments on training and certifications are in line with organizational demands. By doing so, they can provide the company with inputs about:
- Strategic skill investment areas
- Channelize the skills required for defining demands in the direction of the organisation`s interest
- Opportunities to re-allocate employees for better billing rates or revenue
Placing the right skill, at the right time, at the right cost / best return.
How can organizations benefit from this?
- Reduced ‘Mark to external’ saves additional costs associated with external hiring
- Optimized re-skilling improves employee satisfaction and reduces employee turn-over, which eventually improves revenue per employee.
- Enhanced Customer Experience (CX) – leading to multiple other benefits
- Help L&D teams to improve the ROI on training and certifications
- Improve the overall relevance of training to match an employee’s desirability
- Better profit margins and Revenue – Employee ratio
After all, every penny saved is a penny earned.
Why is it pertinent to have an updated skills management system now?
The rapid pace at which technological investments have changed across industries over the years, the rate at which people are equipping themselves with various skills and the sudden change in the global financial landscape has made it important for the employer to keep a track of its skill repository in real-time.
AVR EdGE Networks