As the labor shortage continues, staying ahead of the curve in workforce management proves critical for success. According to the U.S. Chamber of Commerce, as of July 2024, the latest data shows 8.1 million job openings in the U.S., but only 6.8 million unemployed workers. This leaves more and more employers vying for the same candidates.
And finding talent with the right skills is even more difficult. According to Gartner data, 64% of managers don’t think their employees are able to keep pace with future skill needs. 70% of employees say they haven’t mastered the skills required for their current jobs.
To forecast future workforce needs, many employers utilize talent mapping, which allows them to align talent acquisition, upskilling and succession planning efforts with long-term business goals.
What is Talent Mapping?
Talent mapping is a strategic human resources approach that predicts an organization’s future competency requirements and aligns recruitment and employee development initiatives to fulfill those needs. It involves a comprehensive process of identifying and assessing the current and potential skills of employees, analyzing future workforce needs and creating a plan to bridge any gaps.
Benefits of Talent Mapping
The benefits of talent mapping include the following:
Identifies skills gaps
According to a global McKinsey & Company survey, 87% of organizations note they have a current skill gap or will soon. There are many reasons for this, including an aging workforce and rapid technological demand.
Employers know what skills the jobs within their organization require and can forecast additional skills they’ll need. For example, The Future of Jobs Report from The World Economic Forum predicts AI and digitization will change nearly a quarter of all jobs in the next five years, creating a workforce need for people with strong digital skills.
Through talent mapping strategies, you identify the skills gaps within your organization, which gives you the opportunity to invest in reskilling current staff and hiring for your weak spots.
Supports employee development and retention
By understanding the current and future skills needed, organizations can create personalized development plans for their employees, helping them grow within the company. This proactive approach ensures employees feel valued and supported in their career progression, which is key to boosting job satisfaction and reducing turnover. According to Gallup findings, organizations that invest in employee development report 11% greater profitability and are twice as likely to retain their employees.
Talent mapping also enables organizations to identify high-potential employees and provide them with targeted training and leadership development opportunities. This prepares them for future leadership roles, ensuring a strong internal pipeline of talent for succession planning.
Improves resource allocation
With insight into skills gaps, managers can better formulate a plan to fill them. Understanding the areas of the workforce that need the most attention enables companies to prioritize their efforts and ensure resources are directed toward initiatives that will have the greatest impact on closing skills gaps and meeting future business needs, whether that be training and development or recruitment.
Talent Mapping Process
Talent mapping includes the following steps:
1. Conduct a skills analysis
Start by analyzing the skills, background and expertise of the existing workforce. Tools for this analysis include performance reviews, skills assessments and employee surveys. Consider hard skills, like UX design and data analysis, and soft skills, such as conflict management and communication.
From this, you’ll create a skills inventory. Don’t just include the skills necessary to each employee’s current position. Credentials or skills in other areas may make current employees good candidates for future roles.
In addition, assess how current skills align with organizational goals and where there might be gaps. Engage with team leaders to gain insights into how well employees are performing in their roles and where there might be opportunities for development or upskilling.
2. Forecast future organizational needs
Next, consider the organization’s future goals and the skills and labor your company needs to reach them. Identify long-term objectives, such as entering new markets, launching new products or expanding services. For example, if your company plans to expand its digital offerings, you may need more employees with expertise in digital marketing, software development or data analytics.
Note any succession planning needs in the near and distance future as key staff members retire. Also, consider how external influences, such as economic shifts or technology trends, might shape future job requirements. Compare your current employees’ skills and capacities with future needs to identify gaps.
3. Develop a plan to close the gap
Once you know what skill and labor gaps exist, formulate a plan to close the gaps. The plan should include a mix of hiring external candidates and promoting/developing from within. Start by addressing any gaps in critical roles that are already filled. Filling those gaps could include implementing performance plans, offering training opportunities or redistributing responsibilities to better align with employees’ strengths.
Use the following strategies to plan for future needs:
Create individual development plans: Work with employees to implement personalized development plans that align their skills with the organization’s future needs. Include specific goals, timelines and resources needed for employees to grow into new roles or enhance their current roles.
Offer training opportunities: Invest in training programs that address the gaps identified in your skills analysis. This could include in-house workshops, online courses or certifications that help employees acquire the necessary skills to meet evolving job requirements.
Write new job descriptions: Write new or updated job descriptions for anticipated openings. List the skills and qualifications required while it’s fresh in your mind, even if you don’t plan to hire for the role anytime soon. When it’s the right time, it will help that you’ve already completed this legwork.
4. Monitor and adjust
After implementing your plan, it’s essential to continuously monitor progress and adjust as needed. Regularly review how well the development plans are working, whether training programs are closing the gaps and if new hires are effectively filling the roles.
Stay flexible and prepared to adapt your strategy in response to changes in the business environment, emerging skill needs or shifts in organizational goals. Engaging in ongoing dialogue with employees and managers enables you to remain informed about progress and challenges, ensuring your talent mapping objectives remain aligned with the company’s evolving needs.
Talent Mapping Challenges
Although a vital piece of a recruitment and retention strategy, there are some obstacles to overcome when it comes to talent mapping. Those challenges include:
Resistance to change: Employees and managers may resist the talent mapping process, especially if it leads to changes in roles, responsibilities or expectations. Overcoming this resistance requires clear communication about the benefits of talent mapping and how it will support both individual and organizational growth.
Time and resource intensive: Conducting a thorough talent mapping analysis is a time-consuming and resource-intensive endeavor. To lighten the load, prioritize talent mapping activities based on the organization’s most pressing needs and break down the process into manageable phases. Leverage technology to streamline data collection and analysis.
Accurate data collection: Talent mapping relies heavily on accurate and comprehensive data about employees’ skills, experiences and career aspirations. Organizations can regularly update and verify employee data through periodic assessments, surveys and performance reviews. Implementing reliable data management systems also helps to maintain the integrity and accuracy of information.
Frequently Asked Questions
Still have questions about talent mapping? Learn from these commonly asked questions and answers.
1. What is the difference between talent mapping and succession planning?
Talent mapping is a holistic approach that aims to close gaps across the entire organization. It involves analyzing the current skills of your workforce, forecasting future requirements and developing strategies to meet those needs.
While talent mapping looks at the broader picture of workforce development, succession planning is more targeted, ensuring there is a pipeline of qualified candidates ready to step into critical roles, such as executives or department heads, when needed. Both processes are crucial for long-term organizational success but serve different purposes within the context of workforce planning.
2. How does talent mapping impact organizational culture?
Talent mapping positively impacts organizational culture by fostering a culture of continuous learning and development. It shows the organization is committed to investing in its employees and their futures, which can boost morale and create a more engaged workforce.
3. How often should talent mapping be conducted?
Talent mapping should be an ongoing process rather than a one-time activity. However, formal talent mapping reviews should be conducted at least once a year to align with annual strategic planning and performance reviews. Additionally, talent mapping should be revisited whenever there are significant changes in the organization, such as mergers, acquisitions or shifts in strategic direction, to ensure the workforce remains aligned with the company’s goals.
How Paycor Helps
At its core, talent mapping leverages talent development and talent acquisition to meet future workforce needs. Paycor’s comprehensive suite of HR solutions offers software for both of those functions and more.
Paycor Recruiting and Onboarding empowers HR leaders to find quality candidates and provide an enriching new-hire experience, while reducing manual efforts. While Talent Development helps managers coach, develop, upskill and reward employees.
A vital talent mapping tool is Career Management, which allows users to track current skills for employees, identify future opportunities and showcase the competencies they need to gain for promotion.
Learn how Paycor can streamline your talent mapping efforts. Take a guided software tour today.