During the recent recession a depressingly long list of companies have laid off hundreds, thousands or even tens of thousands of workers. Why? Because CEOs don't have the needed resources to allow them to quickly respond to changing market conditions in small steps rather than in painful mass layoffs (or mass rehire) campaigns where workforce quality is likely to suffer. Certainly, if CEOs had a more fluid method to relate slowing business performance to the decreased need for human capital in real-time they would have been able to gradually ramp down their staffing levels rather than decrease them so abruptly and publicly.
Supply chain management is a simple concept really, whereby companies began using technology to track the flow of raw materials and supplies, vendors, manufacturing output, shipping, customer demand and other variables to streamline the manufacturing process. The results are a decline in production costs and simultaneous increases in productivity, quality and profitability. A pretty nice win-win! It only makes sense to apply the same proven supply chain management processes to HR. Frankly, it’s a wonder it hasn’t been tackled sooner. These five steps can help an organization create their own Human Capital Supply Chain:
- Find out what the real expense of your human capital is. This includes full-time, part-time, temps, 1099 contractors, consultants and outsourcers.
- Consolidate staffing suppliers and identify potential strategic partners.
- Implement a Vendor Management System (VMS) to help you save money by giving you the big picture on spending efficiencies.
- Develop a strategic workforce plan by tightly tying business planning with staffing and recruitment. This requires having real-time data of how business performance compares to current staffing and recruitment.
- Focus on a high-impact worker type. Identify the largest, unmanaged worker type in the organization (a.k.a. 1099 contractors) and focus on improving that particular segment of the workforce.
Identifying a particular segment of the workforce can cut costs out of the recruitment process and improve quality and productivity of each employee.
By consolidating staffing suppliers and committing to strategic partners an organization can reduce it's human capital cost and improve workforce quality and increase productivity.
The thought of revamping internal HR procedures and implementing HCSC management can be a daunting thing. Therefore, the first thing to do is collect your thoughts and accept that change will be good. Great, in fact. Because the reward is money for the organization. How much money? Naturally, that depends on many variables. But consider this: from 2000-2010, vendor management systems (VMS) have resulted in 5% to 20% savings on the cost of temporary labor within the first year of implementation. This has been primarily through vendor consolidation and rate management. Those are significant percentages.
Second - get the Human Capital Supply Chain (HCSC) team on board. Gather HR, procurement, line managers and exeutives and identify all costs associated with the organization's human capital. Rally everyone together and ensure that each department understands their function and is committed to working together to help realize the end goal of productive and efficient human capital management. Collectively, the HCSC team will have to develop new business capabilities like strategic workforce planning and human capital performance measurements, among other tasks. It’s imperative to have the right team in place when delving into HCSC management.
Finally, follow the steps identified in the solutions portion of this outline.
It’s really quite a simple scenario, and it functions simply if your HCSC team is operating in concert with one another; and if you’re sourcing, measuring and paying your talent efficiently by utilizing proven staffing technology.
Supply chain logistics is a vital part in importing and exporting of goods because it refers to the transportation and monitoring of the flow of the products that needs to be delivered from warehouse to consumers. This is not easy of course for beginners and newbies, but as time pass by it will be very easy for you with the help of our technology nowadays. Supply chain is very important to a buiness.
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If we're learning from web 2.0, doesn't this need to be a human capital supply web?
Also shouldn't this chain / web incorporate resourcing and deployment within an organisation too?
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You have an interesting idea.
Maybe I can recommend you a three-stair management.
Three-stair management is a new model (or a new system) based on Maslow's hierarchy of needs.
The model is the same as ordinary stairs. The first step is called the management of regulations with special implication (discussed more fully in the part of solution). I use it to establish a high productive organization that can meet employees’ existence needs.
The second step is called the management of emotion with special implication. I use it to meet employees’ relatedness needs.
The third step is called the management of innovation with special implication. I use it to meet employees’ growth needs.
Then integrating first, second, and third create a new model of three-stair management. I use it to meet all employees’ needs (or Maslow's hierarchy of needs).
So three-stair management can be briefly summarized three points: First, I use the management of regulations to establish a company. Then I use the management of emotion to let employees love this company. And then I use the management of innovation to continue to improve this company.
Please note! A new model means at least two aspects of meaning (they are the key of this hack). On the one hand, every one of these three types of management is Indispensable. On the other hand, these three types of management must be complied fixed order, that is, bottom-up.
A new model,
A simple model,
An orderly model,
A dynamic model,
An open model,
Of course,
It is also a very useful model for various organizations!
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