The Increasingly Critical Partnership Between Operations and HR

Over the past few years, we have seen a new trend in our consulting work – what would have traditionally been considered “HR” talent projects are being driven by Operations leaders.

There are many reasons for this, not the least of which has been the heated job market and the increasing challenges in acquiring and retaining talent. Other factors such as increasing retirements, challenges in retention, “ghosting” by candidates, and intense wage competition are also driving this trend. The bottom line is many organizations are having challenges staffing their day-to-day operations or are experiencing unacceptable increases in cost and decreases in productivity because of changing workforce dynamics.

Unfortunately, many organizations are taking piecemeal approaches to trying to address these critical problems. Many are focused on understanding turnover and its causes. Others are trying to make the recruiting process as quick and as candidate-friendly as possible. A few are focused on their work environment and how it may be impacting their ability to staff. Some are focused on compensation and ensuring they are competitive (or leading) in the market.

While each of these are important levers, organizations who are taking a single-threaded approach are tending to have superficial or short-term gains in staffing, and quickly finding their challenges return. Even worse, some companies are doing very little, assuming a market downturn will eventually cure the labor supply problem.

It is critical that organizations sustainably address the challenges posed by the current job market, as well as prepare for a potential downturn. A comprehensive approach will help ensure whatever the economy and the job market are doing, companies can get more than their share of top talent and manage their costs effectively.

That comprehensive approach starts with an understanding of the company’s employment brand and how that positions them in the marketplace. Research shows that companies with stronger employment brands do better in terms of talent acquisition and retention whether the economy is up or down. It is critical to understand where your brand stands against those with whom you compete for talent. That isn’t necessarily just your business competitors, but also includes anyone you compete with for talent.

There are key metrics related to recruiting pipelines, Net Promoter scores, offer to accept ratios and others that can help your organization know where it stands in terms of brand.

Once you understand the power of your brand, you can determine how much work you need to do in terms of levers for attraction and retention. All of this is enabled by robust analytics.

Companies need to take a comprehensive look at:

• Turnover, including drivers and predictive turnover modeling
• Competitiveness of your Total Rewards package (not just compensation)
• Manager capability and effectiveness
• Work environment (especially vs those with whom you compete for talent)
• Work content and satisfaction associated with the job itself
• Preferences of the talent segments that you need
• Market supply for your key talent
• Sources and methods for talent acquisition (including candidate experience)

These factors can help companies build robust workforce planning and management models that allow them to stay ahead of the talent curve.  It will ensure they are taking the actions that will make a difference in their staffing, and not spending money they don’t need to on levers that won’t make a difference.

The “right” strategy for each organization will vary based on their brand (as a foundation), their talent needs, the markets they compete in, and several other factors. The right talent strategy will help ensure Operations has a steady flow of talent to fulfill their needs and that the business can meet its goals.