Cost management and workforce planning
COVID-19 has had an unprecedented effect on organizations’ workforces. The workforce implications of hiring freezes, curtailed revenue pipelines, and the need for evolving jobs and skills are weighing on enterprises. Many organizations are sharing talent temporarily to balance short-term talent surplus and deficits.
Given the current economic environment, many organizations are focused on headcount forecasting. But businesses have to be prepared to address longer-term talent shortages and demand-supply gaps. Of concern is that two in five HR leaders acknowledge that they don’t know what skills they have today.
As companies move beyond initial rounds of cost reductions, they must clarify their priorities, continue to invest in their people, use the opportunity to advance progress on pay equity and D&I, and address gaps between workforce demand and supply to plan for the future. They will also need effective strategies for managing their costs, such as business travel and expatriate assignments that have become more expensive and perhaps less desirable, without compromising engagement or the employee experience.
Companies will look to flexible programs that respond to a wider variety of employee needs. The focus will shift to sustaining the workforce for survival and growth. Decision-making (for example, deciding when and how to launch, cancel or refine programs) will also accelerate as companies become more agile and align timelines with change.
Now is the time to plan for your immediate and longer-term workforce needs. Get guidance on supply and talent mapping, redeployment options and cost optimization strategies and tools — we offer expert support and a data-driven approach.
Mercer helps clients adapt and thrive through change every day. At times of uncertainty, we remain a trusted advisor and we are here to support you. Contact us below: