On Total Workforce Management (TWM)

 

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:

1. 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.
2. 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.
3. 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.
4. 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.
5. Compensation and Benefits: TWM encompasses the development and management of compensation and benefits programs, ensuring they are competitive, fair, and aligned with business objectives.
6. Compliance and Risk Management: TWM involves managing compliance with labour laws, regulations, and industry standards, as well as mitigating potential workforce-related risks.
7. 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.
8. Technology and Automation: TWM incorporates the use of technology and automation tools to streamline workforce management processes, improve efficiency, and reduce costs.
9. 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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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:

1. 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.
2. 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.
3. 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.
4. 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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.