Dealing With Talent in the Downturn

My Gartner colleague Jeff Woods is preparing to respond to some questions from the Wall Street Journal about the impact of the economy on the software market.  He asked me and some other analysts what we are seeing in the different markets we cover.  He specifically asked if we are seeing demand for something like layoff modeling capabilities.  Here is the answer I provided:

We would consider that functionality as part of a broader workforce planning solution.  There are some clients looking at these solutions to model different workforce reduction scenarios to understand the impacts on a variety of different variables (costs, critical skills, knowledge/experience, etc.), but they are still somewhat few and far between (and the technology to do this is relatively new and immature).  I did discuss this in the note I wrote on Building the Benefits Case for Talent Management Investment (Gartner subscription required) for the Quest for Talent Special Report last month.

I would say there is more of a move towards the basics.  HR, like everyone else, is facing lower budgets and potential headcount reductions so they are looking at opportunities to improve HR efficiencies.  Unfortunately, they are missing the bigger opportunity to help the business.

Do you agree?  Is Finance running roughshod over everyone including HR?  Whenever there are challenges, there are opportunities as well.  HR should be leading the charge in advising senior executives as to the most optimal workforce composition.  I will be interested to see if we see successful CEOs during the downturn credit their HR organization for aligning their workforce with the business realities in a way that maximizes competitive advantage and minimizes costs.  That would be something, wouldn't it.  What do you think?  Will we see that story written in the Wall Street Journal in the next two years?

Comments

[Joanne Bintliff-Ritchie]

Jim

I noted in a recent guest blog on Jason Averbook's Knowledge Infuser blog that companies that have workforce analytics capabilities have real advantages in playing this role. http://www.knowledgeinfusion.com/coe/blogs/infuser/2008/12/15/guest-post-at-infuser-by-joanne-bintliff-ritchie

Without data based evidence, any advice HR provides will be based on anecdote and therefore not credible. We have to get better at the information and intelligence game before we can take on Finance.

[Coursework help]

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