Why the concept of Total
Workforce Management symbiotically complements the Alumni concept.
Introduction
Total Workforce Management (TWM) is a
strategic approach to managing an organization's entire workforce, including
full-time employees, part-time employees, temporary workers, freelancers,
contractors, and even remote workers. The main goal of TWM is to optimize
workforce productivity, reduce costs, and improve overall business performance
by aligning workforce planning with the organization's strategic objectives.
TWM takes a holistic view of workforce management, addressing the needs
of all worker categories and considering the entire employee lifecycle
from hiring to retirement.
Elements of total Workforce Management
What are the characterizing
components of Total Workforce Management?
Key aspects of Total Workforce
Management include:
- Workforce Planning: TWM involves a comprehensive analysis of the organization's
current workforce, future workforce requirements, and potential gaps in
skills or resources. This helps organizations to identify areas where they
may need to recruit, upskill, or reskill employees to meet business
objectives.
- Talent Acquisition: TWM encompasses the process of attracting, recruiting, and
hiring the right talent for the organization. This includes developing
strategies for sourcing candidates, employer branding, and efficient selection
processes.
- Talent Management: TWM includes performance management, employee engagement,
career development, succession planning, and eventually being complemented
by alumni Management. These elements ensure employees are well-equipped to
contribute to the organization's success and have a clear path for career
growth.
- Learning and Development: A crucial aspect of TWM is investing in the continuous
development of employees' skills and competencies, which enables the
workforce to adapt to changing business needs and remain competitive.
- Compensation and Benefits: TWM encompasses the development and management of
compensation and benefits programs, ensuring they are competitive, fair,
and aligned with business objectives.
- Compliance and Risk Management: TWM involves managing compliance with labour laws,
regulations, and industry standards, as well as mitigating potential
workforce-related risks.
- Workforce Analytics: TWM leverages data and analytics to gain insights into
workforce performance, productivity, and trends, enabling organizations to
make informed decisions about workforce planning, talent management, and
resource allocation.
- Technology and Automation: TWM incorporates the use of technology and automation tools
to streamline workforce management processes, improve efficiency, and
reduce costs.
- Alumni Management: At the cross roads of Talent Acquisition, Talent Management
and Reputation Management there lies the Management of Alumni, i.e. former
members of the corporate ecosystem. Alumni Management has merits on its
own and deserve a separate conceptual treatment.
By adopting a Total Workforce
Management approach, organizations can optimize their workforce to achieve
strategic objectives, increase employee engagement, and maintain a competitive
advantage in their target market, as well as in the talent market. TWM requires
collaboration between HR, general management, and other key stakeholders like Business
Process Management and Identity & Access Management, to ensure that
workforce planning and management align with the organization's overall
strategy and goals.
What are the benefits?
What are the benefits of the
TWM approach?
The Total Workforce Management (TWM)
approach offers several benefits to organizations by providing a comprehensive
and strategic view of their workforce. Some of the key benefits include:
- Improved Workforce Optimization: TWM helps organizations optimize their workforce by
aligning human resources with business objectives, ensuring that the right
people with the right skills are in the right roles at the right time.
- Cost Savings: By managing the entire workforce more effectively,
organizations can identify areas for cost reduction and efficiency
improvements. This can include optimizing labour costs, reducing employee
turnover, and minimizing recruitment expenses.
- Increased Flexibility and
Adaptability: TWM enables organizations to
respond quickly to changing business needs, market conditions, and
workforce trends. By taking a proactive approach to workforce planning,
companies can adapt their workforce to meet new challenges and opportunities.
- Enhanced Employee Engagement: A TWM approach focuses on employee development, engagement,
and satisfaction. By creating a supportive work environment and offering
opportunities for growth and development, organizations can improve
employee engagement, which in turn can lead to higher productivity and
reduced turnover.
- Better Talent Acquisition and
Retention: TWM helps organizations attract and
retain top talent by focusing on employer branding, competitive
compensation, and benefits packages. This can lead to a stronger talent
pool and a more competitive position in the job market.
- Improved Compliance and Risk
Management: TWM encompasses compliance with
labour laws, regulations, and industry standards, helping organizations
mitigate workforce-related risks and maintain a positive reputation.
- Data-Driven Decision-Making: By leveraging workforce analytics, TWM enables
organizations to make informed, data-driven decisions about workforce
planning, talent management, and resource allocation. This can lead to
more effective and strategic decision-making. Limitations due to local
privacy regulation have to be strictly observed however.
- Enhanced Collaboration: TWM promotes collaboration between HR, management, and
other key stakeholders, ensuring that workforce management aligns with the
organization's overall strategy and goals. This can lead to more effective
execution of business objectives and improved organizational performance.
Overall, adopting a Total Workforce
Management approach represents an acceleration of the process maturity of
HR-related management processes. It can hence result in a more efficient,
effective, and engaged workforce that is better equipped to meet the
organization's strategic objectives and drive business performance.
What challenges are to be expected
Is there on the other hand a
downside to the introduction of TWM? Which challenges have to be expected
during its implementation process?
While Total Workforce Management (TWM)
offers numerous benefits, there can be some downsides and challenges associated
with its implementation. Some of these challenges include:
- Complexity: Implementing TWM involves integrating multiple workforce
management processes and systems, which can be complex and time-consuming.
This requires a clear understanding of the organization's workforce
structure, existing processes, and future requirements.
- Organizational Resistance: Changing existing workforce management practices can be met
with resistance from employees and managers who are accustomed to current
processes. Overcoming this resistance requires effective change management
and communication to demonstrate the benefits of TWM and gain buy-in from
stakeholders.
- Resource Constraints: Implementing TWM often requires additional resources,
including technology, skilled personnel, and financial investment.
Organizations may face challenges in securing the necessary resources and
budget to support the implementation of TWM initiatives.
- Data Quality and Integration: Leveraging workforce analytics is an essential component of
TWM, but this requires access to accurate, timely, and comprehensive data.
Organizations may face challenges in gathering, integrating, and
maintaining high-quality data from multiple sources.
- Technology Adoption: Implementing TWM often involves the adoption of new
technology tools and platforms to automate and streamline workforce
management processes. This can pose challenges in terms of technology
selection, integration with existing systems, and user adoption.
- Skills Gap: Implementing TWM may reveal skills gaps within the
organization, requiring investment in training and development programs to
upskill employees. Addressing these gaps can be challenging and may
require significant time and resources.
- Maintaining Consistency and
Compliance: Ensuring that TWM practices are
consistent across the organization and compliant with labour laws,
regulations, and industry standards can be challenging, particularly for
large or geographically dispersed organizations.
- Measuring Success: Defining and measuring the success of TWM initiatives can
be difficult, given the broad scope and complexity of the approach.
Organizations may struggle to identify appropriate key performance
indicators (KPIs) and assess the impact of TWM on their overall business
performance.
To address these challenges,
organizations should invest in change management, stakeholder engagement, and
communication strategies, and allocate sufficient resources for implementation.
Additionally, organizations should prioritize data quality and technology
adoption, and consider partnering with external consultants or vendors with
expertise in TWM to ensure a successful implementation.
Whom to include?
What types of employees should
Total Workforce Management encompass?
Total Workforce Management (TWM) is
designed to encompass all types of employees and non-employee workers within an
organization. This holistic approach ensures that all aspects of workforce
management are considered, providing a comprehensive view of the workforce and
enabling organizations to optimize their resources. The types of workers that
TWM should encompass include:
- Full-time employees: These are permanent employees who work a standard number of
hours per week and receive a full range of employee benefits, such as
health insurance, retirement plans, and paid time off.
- Part-time employees: Part-time employees work fewer hours per week than
full-time employees and may have different benefits and entitlements. TWM
should consider their unique needs and contributions to the organization.
- Temporary employees: These employees are hired for a specific period or project
and may be employed directly by the organization or through a staffing
agency. TWM should account for their short-term nature and specific skill
sets.
- Contract workers: Contract workers are engaged on a contractual basis for a
specific project, task, or period. They may be self-employed or work for a
third-party contractor. TWM should consider their specialized skills and
the flexibility they provide to the organization.
- Freelancers or independent
contractors: These are self-employed
individuals who provide services to clients, including organizations, on a
project or task basis. TWM should account for their expertise and the
potential cost savings of utilizing their services.
- Remote or virtual employees: These employees work remotely, either from home or another
location outside of the organization's primary office. TWM should consider
the unique management and engagement strategies needed to support remote
workers effectively.
- Interns or apprentices: Interns and apprentices are typically engaged on a
temporary basis to gain work experience, training, or education in a
specific field. TWM should account for their development and potential
future contributions to the organization.
- Contingent workforce: This category includes any non-employee workers who are
engaged on a temporary or project basis, such as consultants, advisors, or
gig workers. TWM should consider their specific skills, expertise, and the
flexibility they offer to the organization.
By encompassing all types of workers
within Total Workforce Management, organizations can gain a comprehensive
understanding of their workforce, identify gaps and opportunities, and make
more informed decisions about workforce planning, talent management, and
resource allocation.
Who did it before?
Are there companies known to
have successfully implemented TWM?
While specific examples of companies
that have successfully implemented Total Workforce Management (TWM) are not
widely publicized, many large organizations have adopted TWM-like approaches to
manage their diverse workforce effectively. Companies that have developed
sophisticated workforce management strategies often share certain
characteristics, such as operating in highly competitive industries, having a
global presence, or managing complex and diverse workforces.
Some examples of companies known for
their advanced workforce management practices include:
- IBM: IBM has implemented a comprehensive workforce management
approach that encompasses various types of workers, including full-time
employees, contractors, and remote workers. They utilize data analytics
and AI-driven tools to optimize workforce planning, talent acquisition,
and employee engagement.
- General Electric (GE): GE has long been recognized for its focus on human capital
management and has adopted a strategic approach to managing its global
workforce. Their workforce management practices include robust talent
acquisition, development, and retention strategies, as well as the use of
advanced analytics to drive decision-making.
- Procter & Gamble (P&G): P&G is known for its strong focus on talent management
and has implemented strategic workforce planning practices to ensure they
have the right talent in place to drive business growth. Their approach
includes comprehensive talent acquisition, development, and retention
strategies, as well as a focus on diversity and inclusion.
- Accenture: As a global consulting and professional services firm,
Accenture places a strong emphasis on managing its diverse workforce,
which includes full-time employees, contractors, and remote workers. They
utilize sophisticated workforce planning, talent management, and analytics
tools to optimize their human capital and drive business performance.
While these companies may not
explicitly label their approach as "Total Workforce Management,"
their practices and strategies align with the principles of TWM. These examples
demonstrate that companies can successfully implement comprehensive workforce
management strategies to optimize their human capital, drive business growth,
and maintain a competitive edge in the market.
Which steps are to be taken?
If a company intends to
introduce and implement TWM, which steps should be planned for, how long might
it take and which set of skill should be involved?
Implementing Total Workforce
Management (TWM) in a global organization lien Roehm, which is operating in the
base chemicals industry and has 5,000 employees can be a complex and
time-consuming process. However, by following a structured approach, the
company can successfully adopt TWM to optimize its workforce. Here's a
suggested plan, including steps, timeline, and skills required:
- Assess the current state: Begin by evaluating the existing workforce management
practices, systems, and tools. Identify any gaps or areas for improvement.
This step may take 1-2 months and involve HR professionals, team leads,
and managers.
- Define TWM objectives and
strategy: Align TWM with the company's overall
business objectives and develop a clear strategy that outlines the goals,
scope, and desired outcomes. This step may take 1-2 months and involve
senior management, HR leaders, and key stakeholders from various
departments.
- Establish a TWM team: Form a dedicated TWM team responsible for overseeing the
implementation process. This team should include HR professionals,
workforce planners, talent management experts, data analysts, and IT
specialists.
- Develop a TWM framework: Design a comprehensive TWM framework that encompasses all
aspects of workforce management, including workforce planning, talent
acquisition, talent management, learning and development, compensation and
benefits, compliance and risk management, and workforce analytics. This
step may take 3-6 months and involve HR professionals, subject matter
experts, and IT specialists.
- Select and implement technology: Identify and invest in appropriate technology tools and
platforms that support TWM processes, such as HRIS, workforce analytics,
and talent management systems. This step may take 3-6 months and involve
IT specialists, HR professionals, and technology vendors.
- Develop and implement TWM
policies and processes: Create standardized policies
and processes for all aspects of TWM, ensuring consistency across
subsidiaries and compliance with local labour laws and regulations. This
step may take 3-6 months and involve HR professionals, legal experts, and
local HR representatives from each subsidiary.
- Train and engage stakeholders: Provide training and support to managers, HR professionals,
and employees to ensure successful adoption of TWM practices. Develop
communication strategies to keep stakeholders informed and engaged
throughout the implementation process. This step may take 1-3 months and
involve HR professionals, trainers, and change management experts.
- Monitor and evaluate progress: Continuously monitor the implementation of TWM, track
progress against objectives, and adjust the approach as needed. Utilize
workforce analytics to measure the impact of TWM on workforce performance,
productivity, and overall business outcomes. This step may take 6-12
months and involve data analysts, HR professionals, and senior management.
Overall, the implementation of TWM in
a large, global organization may take 12-24 months or longer, depending on the
complexity of the existing workforce management practices and the level of
change required. The process should involve a diverse set of skills, including
HR professionals, workforce planners, talent management experts, data analysts,
IT specialists, legal experts, and change management experts.
The results however may justify the
overall effort.