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

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  • Why arent you planning for success? Melisa Bockrath How a lack of strategic IT workforce planning could hurt your organization
  • Information technology (IT) leaders are responsible for vital elements of an organizations 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
  • 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.
  • So, given this awareness of the current and looming problems, why arent 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
  • /05 Bracingfora loomingskillsgap
  • 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
  • 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 Signicant negative impact Somewhat negative impact No impact Somewhat positive impact Signicant 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
  • /08 Organizations arelargelynot planningfor thefuture
  • /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
  • 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 unied/ long-term plan Behind on new technology implementation /training Shortage of qualied 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 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
  • 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 stafng 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 efciency 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 Challengesof ITworkforce planning
  • 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 organizations 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

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