How is Workforce Optimisation helping Enterprises save millions each year?
The average expenditure for hiring and training a new employee can range anywhere between 6,000 – 18,000 USD a year.
One of the most cost-effective practices in an enterprise today is workforce optimisation, because it allows organisations to find the right talent from within.
Organisations around the globe spend millions each year to source, interview, recruit and train new hires. Yet, it was found to be financially more suitable to locate efficient workers from within. By up-skilling these internal resources, the need for external hiring dipped for large conglomerates, thereby flattening talent acquisition costs.
Today, as the world grapples with the deadly Coronavirus outbreak, automation has arrived to pick up the pieces. Companies are automating every single redundant task, to speed up processes and produce results.
HR Tech systems coupled with intelligent tools like AI are helping these enterprises identify future demands, and thus, successfully up-skill the employees to undertake newly evolving roles and job requirements.
By studying all the skills and skill-sets that are present within the confines of a company, intelligent HR Tech systems can study the pain points associated with skill gaps and make the required recommendations.
However, when addressing the idea of Workforce Optimisation, we need to understand that it goes beyond the rudimentary conversation surrounding Bench Optimisation and Employee re-skilling. The real conversation surrounds the primary notion: which is automation.
Whilst costs are down with regard to Talent Acquisition and successful Internal Mobility practices, organisations all also saving millions by automating roles across the RMG (Resource Management Group) function.
By utilising intelligent algorithms to scan, study and allocate employees to right jobs within, the need for larges RMGs with hundreds of executives ceases to be a reality. By reducing the number of excess resources in these RMGs, an organisation can save anywhere between 40,000 – 115,000 USD a year per employee.
Another form of optimisation is the integration of HR Tech systems with existent ESS (Employee Self Service) tools. Most employees do not update information pertaining to skills and overall experience gained in real-time. This often makes it difficult for RMGs to accurately search and match resources to right job roles.
By having a dedicated career portal, employees are encouraged to regularly update their skills and experience, in order to have greater visibility into the internal talent pool. A career portal helps employees get their career on track, which has been attributed to the reduction in overall attrition. It has been noted that companies with a dedicated Employee Career portal saw a decline of over 12% in overall attrition rates, with some enterprises reporting numbers as astounding as 40%.
Automating the fulfilment pipeline serves as a double entendre: which is to not only reduce the number of resources required within an organisation, but also as a vessel to help manage talent. With stiff competition on the rise for talent, organisations need to invest more heavily into retaining skilled resources. And by moulding them appropriately, turn them into the workforce of the future for the future of business.