Faced with Volatility in the Job Market, the CHRO Must Remain Flexible
In 2022, one of the biggest challenges that a Chief Human Resource Officer (CHRO) will face is increased volatility in the job market along with the reshuffling of the workforce. Large numbers of workers are leaving their roles searching for more fulfilling work and increased flexibility.
Accelerated by the pandemic, workers have changed their views on how and where they want to work and are demanding more flexibility, higher pay, and the option to work remotely. Managers are left with gaps in their workforce which can further stress already strained supply chains.
External workers have never been more in demand – both to supplement full-time staff and to replace the 41% of people who say they intend to leave their current jobs in the imminent future. However, with an increase in the use of the external workforce come challenges. According to a recent survey by SAP SuccessFactors and SHRM:
- One in three managers don’t feel sufficiently trained to manage external workers
- Nearly nine in ten HR professionals agreed or strongly agreed that external workers positively contribute to the business productivity of the organization
- HR, as a group, is quite worried about the legal implications of external work with nearly three-quarters of HR professionals reporting some level of concern and one in ten were very concerned
A Total Workforce Management (TWM) Strategy Can Help
With the integration of two best-in-class solutions, SAP SuccessFactors and SAP Fieldglass, SAP offers a TWM strategy that can help organizations optimize how they plan and manage all workers. The CHRO will gain a single source of truth for their people data, providing them visibility into their total workforce, and enabling them to provide all employees and workers with a consistent and engaging experience. This leads to increased organizational agility and improved business outcomes.
A TWM strategy provides the CHRO with visibility into the entire workforce which can lead to increased satisfaction of workers. By having a single view into the workforce with a common data model, leaders can effectively manage headcounts, performance, and projects. This also allows for a reduction in compliance risk as accurate and complete reporting is available in real-time.
Increased agility allows for optimization of how organizations plan, staff, onboard, develop, and pay all workers. Onboarding is consistent across all types of workers leading to accelerated productivity that strengthens the employer’s brand. Training and certification requirements are monitored and learning and growth opportunities can be provided to all workers. This allows incentives to be aligned to individual and team performance as well as business results, so the right people are rewarded at the right time.
The CHRO can create engaging experiences for every worker by using embedded feedback and analytics tools to continuously listen to employees, measure sentiment, and automatically determine the right actions to improve experiences for everyone at work. Organizations can further differentiate on experience and extend their HR capabilities by using SAP Business Technology Platform to easily build apps that integrate with SAP SuccessFactors and SAP Fieldglass or to tap into a robust partner ecosystem of more than 300 HR apps to address their unique needs.
Proactively planning for future growth is accomplished when organizations quickly respond to short-term needs by reallocating staff thanks to “what-if?” simulations. SAP SuccessFactors and SAP Fieldglass are localized in 101 countries and are backed by a deep understanding of local labor, tax, and regulatory compliance laws. Organizations also have access to an intuitive total workforce management dashboard and analytics to determine the effectiveness of their talent mix and strategies for how to staff resources based on forecasted or projected needs.
Staying agile to address challenges and volatility in the workforce remains an important focus for the CHRO in 2022 and beyond. Leveraging SAP SuccessFactors and SAP Fieldglass for a Total Workforce Management strategy will lead to better visibility, increased agility and compliance, and the ability to proactively plan for future needs.
Learn more about how Africa’s leading financial services group, Sanlam, built a future-ready workforce using SAP’s TWM strategy here.