These days, organisations are increasingly turning to data-driven approaches to inform their strategic decision-making processes. This should not stop when it comes to making informed decisions about an organisation’s greatest asset, its people. Fortunately, we see more and more organisations exploring SWP, where the ability to harness the power of analytics can make the difference between success and stagnation. By leveraging data analytics, businesses can gain valuable insights into labour market trends, predict future talent needs and transform their SWP efforts into a strategic advantage, anticipating knowledge transfer, upskilling as well as recruitment – especially in industries with talent scarcity.

Labour market insights: illuminating the external landscape

One of the key benefits of leveraging analytics in SWP is the ability to tap into external data sources to gain insights into the labour market. By analysing data from sources such as job boards, industry reports and demographic trends, organisations can develop a deeper understanding of talent supply and demand dynamics, which may have a direct impact on their ability to source the right talent to achieve their strategic objectives.

For example, a retail company looking to expand into new markets can use labour market data to identify regions with high concentrations of qualified retail professionals. With this knowledge, the company can tailor its recruitment efforts to target these areas strategically, ensuring access to the talent needed to support its growth objectives.

Predictive analytics: forecasting talent needs with precision

Predictive analytics play a significant role in SWP by enabling organisations to forecast future talent needs with greater accuracy. By leveraging historical data, statistical models, and the latest HR technology, businesses can anticipate changes in workforce demand and proactively address potential talent shortages or surpluses.

For instance, a technology firm can use predictive analytics to forecast the demand for software developers based on factors such as project pipelines, industry trends, and anticipated changes in technology platforms. With this insight, the company can develop targeted recruitment strategies, invest in training programs, and adjust hiring plans to ensure a steady supply of talent aligned with business objectives.

Insights beyond headcount: skills mapping and skills gaps

Predictive insights cannot, and should not, only be gained on quantifiable metrics such as headcount. In SWP, it is particularly important to perform skills analyses to unveil current and future skill needs. By capturing and analysing employee skills, businesses can predict and bridge future skill gaps, ensuring alignment with evolving demands. This proactive approach is particularly important in environments where specific skills are in high demand.

As organisations continue to navigate the complexities of the modern business landscape, the ability to harness the power of data analytics in SWP is essential for addressing workforce challenges and opportunities, such as talent shortages, succession planning and workforce diversity. By leveraging labour market insights and predictive analytics, businesses can align their workforce with their long-term strategic objectives and equip themselves with the skills required to tackle the challenges of tomorrow.

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, Senior Manager, Team Leader Workforce Analytics & Strategy at PwC Luxembourg.