Why aren’t you planning for success? - How a lack of strategic IT workforce planning could hurt your organization

3,342 views

Published on

Published in: Career, Business, Technology

Why aren’t you planning for success? - How a lack of strategic IT workforce planning could hurt your organization

  1. 1. Why aren’t you planning for success? DOUGLAS PAULO HOW A LACK OF STRATEGIC IT WORKFORCE PLANNING COULD HURT YOUR ORGANIZATION
  2. 2. Information technology (IT) leaders are responsible for vital elements of an organization’s business enablement, including application development, infrastructure, cloud-based solutions, mobility and security. As an increasing number of business processes occur through digital channels, IT leaders need to ensure that they have the right people with the right skills in place to manage critical systems and technology. /02
  3. 3. However, there is a shortage of skilled IT workers. Recent research suggests that more than half of global IT security workers believe there is a workforce shortage and that their organization needs to bolster staffing levels. Further research indicates that the number of unfillable cloud-related jobs could rise to seven million by 2015. As a result, organizations need to formulate deliberate strategies to address their talent needs. To help IT leaders manage this process, Kelly Services conducted a survey of US-based IT leaders to understand how organizations were preparing to fill critical skills gaps and overcome the challenges of locating talent. We surveyed chief information officers (CIOs), chief technology officers (CTOs), and information systems (IT/IS) vice presidents (VPs) and directors. On the whole, our research uncovered a lack of readiness for potential skills gaps. Just over half of respondents had not created a strategic workforce plan in the last year to identify their future IT staffing needs. At the same time, nearly 60 per cent of IT leaders believed skills gaps would have a negative impact on their business. INTRODUCTION /03 Nearly 60 per cent of IT leaders believed skills gaps would have a negative impact on their business.
  4. 4. So, given this awareness of the current and looming problems, why aren’t more organizations putting comprehensive plans in place? After all, our survey shows those that have implemented workforce planning are better prepared for the long term, have more clarity in their requirements, and therefore feel more confident about their ability to meet current and future IT skill needs. We found that many organizations are hindered by substantial challenges, including finding the right skills, securing budgets and keeping up with the pace of technological change. By working to overcome these issues and implementing holistic workforce plans, organizations will be well placed to identify and recruit the IT talent they need to succeed, now and in the future. /04 Those that have implemented workforce planning are better prepared for the long term, have more clarity in their requirements… INTRODUCTION
  5. 5. /05 Bracingfora loomingskillsgap
  6. 6. IT leaders in the US are concerned about skills shortages in the IT sector. In 2013, 59 per cent of respondents believed the impending skills gap would have a somewhat significant or significant negative impact on their organization. These impending shortages are being driven by the need to find additional – and more qualified – staff to deal with critical and increasingly complex technologies and functions. In 2012 and 2013, IT leaders cited security and the cloud as key drivers of talent shortages. While mobility was rated as a slightly stronger driver in 2013, business intelligence decreased in importance. /06BRACING FOR A LOOMING SKILLS GAP Figure 1: Expected impact of the impending IT skills gap Figure 2: Technologies and functions that will drive the need for IT talent over the next two years
  7. 7. Expected impact of the impending IT skills gap Technologies and functions that will drive the need for IT talent over the next two years FIGURE 1: FIGURE 2: /07BRACING FOR A LOOMING SKILLS GAP Significant negative impact Somewhat negative impact No impact Somewhat positive impact Significant positive impact 0% 10% 20% 30% 40% 50% 60% 2012 2013 0 10 20 30 40 50 60 0 10 20 30 40 50 60 70 80 0% 20% 40% 60% 80% Security Cloud Business intelligence Mobile and mobility 2012 2013 2012 2013 2012 2013
  8. 8. /08 Organizations arelargelynot planningfor thefuture
  9. 9. /09ORGANISATONS ARE LARGELY NOT PLANNING FOR THE FUTURE Even though IT leaders are aware of a looming staffing crunch, many have not taken action. For instance, in 2013, we found that less than half (48 per cent) of organizations had undertaken a strategic assessment in the last 12 months to identify future IT workforce needs. In addition, we found that 17 per cent of IT leaders had no formal plans to review their future workforce needs in 2013. Organizations that had not reviewed their workforce requirements faced a range of challenges, including a lack of coherent strategic planning, lagging behind the market in adopting cutting-edge technology, and high staff turnover. These consequences can place organizations at a disadvantage as they may be less likely to retain talented staff, and may not fully harness the power of technology to boost sales and customer satisfaction. Figure 3: Has your organization conducted a strategic assessment to identify future IT workforce needs? (in the last 12 months) Figure 4: Challenges faced by organizations that have not reviewed IT workforce requirements
  10. 10. Has your organization conducted a strategic assessment to identify future IT workforce needs? (in the last 12 months) Challenges faced by organizations that have not reviewed IT workforce requirements FIGURE 3: FIGURE 4: 2012 2013 2012 2013 Yes No, but plan to within next year No formal plans to do so 0% 10% 20% 30% 40% 50% 60% 2012 2013 0 10 20 30 40 50 60 Lack of unified/ long-term plan Behind on new technology implementation /training Shortage of qualified staff High turnover Opportunity cost (lost projects, missed deadlines, slower to hire) Lower productivity Higher cost Lack of resources 2012 2013 0 5 10 15 20 25 0% 5% 10% 15% 20% 25% /10ORGANISATONS ARE LARGELY NOT PLANNING FOR THE FUTURE
  11. 11. /11 In contrast, organizations that are proactively reviewing their IT workforce needs are reaping substantial business benefits. The top three benefits – long-term planning ability, clarity of direction and increased efficiency – are consistently higher than other results in both 2012 and 2013, with planning and clarity showing a marked increase from year to year. In addition, nearly half of the survey respondents are outsourcing their IT workforce planning to an external staffing provider. A challenging position: How CIOs and IT directors view workforce planning The “IT leaders” category includes a broad range of roles. In our survey, we found the experiences of CIOs and IT/IS VPs differed from those of IT/IS directors. For instance, compared to IT directors, CIOs and VPs more strongly believed that greater efficiency (27 per cent versus 11 per cent) and improved staff training (16 per cent versus none) were benefits of workforce planning. CIOs and VPs stated that budgets were a barrier to workforce planning, while IT directors were more likely to cite a lack of long-term planning as a stumbling block. In addition, 80 per cent of IT directors work with HR departments to address workforce needs. This is significantly higher than the 63 per cent of CIOs and VPs working with HR for workforce needs. ORGANISATONS ARE LARGELY NOT PLANNING FOR THE FUTURE Figure 5: Business benefits from IT workforce strategic planning Figure 6: Methods used to address IT workforce planning
  12. 12. FIGURE 6: Methods used to address IT workforce planning 2012 2013 Business benefits from IT workforce strategic planning FIGURE 5: 2012 2013 /12 Work with internal HR department Outsource to staffing or workplace solutions provider Outsource to project company (through a statement of work) 0 10 20 30 40 50 60 70 80 0% 20% 40% 60% 80% Ability to plan for the long term Clarity in direction of ITneeds Increased efficiency Cost control Ability to make better hires Flexibility and covering contingencies Improved staff training Improved retention 2012 2013 0 5 10 15 20 25 0% 5% 10% 15% 20% 25% ORGANISATONS ARE LARGELY NOT PLANNING FOR THE FUTURE
  13. 13. /13 Challengesof ITworkforce planning
  14. 14. While IT leaders may understand the benefits of workforce planning, many experience difficulties implementing and gaining results from these plans. The key challenges reported include finding the right match of skills to meet the organization’s requirements, managing budgets, and juggling the allocation of staff, technology and time. In many organizations, effective communication between business units and IT leaders presents a major challenge. For example, in 2013, 67 per cent of IT leaders stated they were only sometimes given advance notice of projects that required additional IT staff. In addition, more than one in 10 rarely received advance notice. We also anticipate that effective communication will be increasingly important as more organizations deploy remote workforces. According to our survey, in 2013, 52 per cent of IT leaders expected to increase the amount of IT work conducted offsite in coming years. /14CHALLENGES OF IT WORKFORCE PLANNING Figure 7: Key challenges for IT leaders in workforce planning Figure 8: How often are IT leaders given advance notice of future IT staff requirements?
  15. 15. Finding the right skills match Budget issues Proper resource balancing and allocation (staff, hardware, time) Keeping up with changing technologies Retention of high- performing staff Better communication between departments Accurate planning Predictability of future projects Training 2012 2013 0 5 10 15 20 25 0% 5% 10% 15% 20% 25% FIGURE 8: How often are IT leaders given advance notice of future IT staff requirements? 2012 2013 Key challenges for IT leaders in workforce planning FIGURE 7: 2012 2013 /15 Always Sometimes Rarely Never 0 10 20 30 40 50 60 70 80 0% 20% 40% 60% 80% CHALLENGES OF IT WORKFORCE PLANNING
  16. 16. As IT functions continue to shift away from corporate headquarters, we believe sophisticated communication and monitoring will be crucial in ensuring these functions are successfully completed. /16CHALLENGES OF IT WORKFORCE PLANNING Figure 9: To what extent will the amount of IT work your organization conducts offsite change in coming years?
  17. 17. /17 To what extent will the amount of IT work your organization conducts offsite change in coming years? FIGURE 9: 2012 2013 We will conduct significantly more work offsite We will conduct somewhat more work offsite We will conduct about the same work offsite We will conduct somewhat less work offsite We will conduct significantly less work offsite 0 10 20 30 40 50 0% 10% 20% 30% 40% 50% CHALLENGES OF IT WORKFORCE PLANNING
  18. 18. /18 Aroadmap forchange: lessonsfor organizations
  19. 19. Our research shows many organizations are not undertaking IT workforce planning. A failure to understand current and future workforce needs could leave organizations ill-equipped to deal with critical challenges such as security, and unable to realize the full benefits of technology such as cloud-based solutions. Based on our survey results, we suggest that organizations focus on three key areas to improve their planning processes and build the IT workforces they need for the future. 1. Undertake a strategic IT workforce plan Given that 52 per cent of respondents have not conducted a strategic IT workforce review in the last year, now is the time for organizations to kick start their planning processes. It will take some time to perform a detailed review and implement strategies, so the longer organizations delay, the greater the risk they may lose out in the race for top talent. /19A ROADMAP FOR CHANGE: LESSONS FOR ORGANIZATIONS
  20. 20. 2. Develop effective lines of communication between business units and IT leaders In many organizations, business units are simply not informing IT leaders of upcoming projects that will require additional IT staff. We suggest that CIOs and VPs implement robust communication channels to keep all elements of the business in constant contact so they can proactively address staffing needs. This could be conducted through regular meetings or using cloud-based planning tools. 3. Forecast and assess likely IT trends and their implications for staffing Planning is not a static activity. Organizations should be aware of emerging trends and technologies, and assess the likely impact on their operations. They may need to begin recruiting staff with additional skillsets to capitalize on such trends. /20A ROADMAP FOR CHANGE: LESSONS FOR ORGANIZATIONS
  21. 21. Methodology Between June 25 and July 11, 2013, we conducted a web survey among 313 Information Technology leaders based in the United States. This followed a nearly identical survey conducted in 2012. In 2013, we targeted companies with 500 or more employees and revenue ranging from US$500,000 to more than US$10 billion. Survey respondents held the following positions: • Chief Information Officer • Chief Technology Officer • Information Technology and Information Systems Vice President and Senior Vice President • Information Technology and Information Systems Director. The survey focused on a range of industries, namely: • Automotive • Business Services • Chemicals and Petrochemicals • Financial Services • Food and Beverage • Healthcare • Information Technology • Life Sciences • Utilities, Oil and Gas. /21
  22. 22. EXIT This information may not be published, broadcast, sold, or otherwise distributed without prior written permission from the authorized party. All trademarks are property of their respective owners. An Equal Opportunity Employer. © 2014 Kelly Services, Inc. ABOUT KELLY SERVICES® Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a global leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the world, Kelly provided employment to approximately 555,000 employees in 2014. Revenue in 2014 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. ABOUT THE AUTHOR DOUGLAS PAULO is director for the Americas Information Technology (IT) product group, an IT staffing solutions business unit of Kelly Services, Inc. He is responsible for solution development, product strategy, pricing, brand messaging and positioning, as well as service development for the IT product services portfolio. Prior to joining Kelly Services in April 2012, Mr. Paulo spent 18 years with HP Enterprise Services (formerly EDS) progressively advancing his management and leadership skills through experience in ITO & BPO operations, business development, project and client management both domestically as well as internationally. In his previous role, Mr. Paulo developed an offering that enabled clients to maximize return on customer value as well as the management of the overall end-to-end customer experience. Mr. Paulo received the Strategic Workforce Planning (SWP), Information Technology Infrastructure Library (ITIL) Foundations and the Zachman Framework for Enterprise Architecture (ZIFA) certificates along with completing the Cornell University—S.C. Johnson Graduate School of Management Executive Education for Product Management. He is multilingual in English, Spanish and Portuguese.

×