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Labor Shortage
(September 20, 2001) All of a sudden, the question of an enduring labor shortage has some additional components. While employment growth statistics (the dynamic that makes the labor shortage worse) will be up in the air for years to come, the prospect of supporting a long term war ensures that demands on the labor force will remain high. Combined with pronounced skills shortages in IT and other electronics related disciplines, management of the labor shortage should begin taking center stage.

There are a variety of untried and untested options that can and should be moved into development and serious consideration.

It is a widely accepted fact that Human Capital is seriously underutilized. Placement float times between projects within a company, horrible delays in placement processes, dreadfully inexact measures of capabilities, skills and aptitudes, and other people and time wasters characterize the standard fitting of people task and company. It's a level of waste and inefficiency that we will be unable to sustain, given the new demands on the economy.

As we've been saying, it's time to move things to the next level. While the Electronic Recruiting Industry has evolved around the movement of job postings on the internet, that is only a primitive start towards our ultimate end: a set of tools that manage labor supply in a just-in-time fashion while ensuring that existing assets are utilized in the most effective ways possible.

We are missing some serious tools, however. In relative order of importance, here are the items yet to be developed:

  1. An organization simulator that looks at work requirements and tests the performance of various combinations of teams.
  2. A dynamic job describer (that accounts for the difference between the job that you sign up for and the job you get)
  3. A real fit tool that couples personality assessment, team interaction dynamics and skill levels
  4. A model of corporate culture that defines the relative importance of hiring variables and makes apples to apples comparisons of performance possible
  5. Team assessment tools that demonstrate relative contributions by individuals and overall team performance
  6. Decision support for hiring managers as they encounter reassignment possibilities
  7. Knowledge management systems that reframe hiring requirements before they turn into capital acquisition decisions
  8. Conflict management support systems that allow first level supervisors to transform interpersonal struggles into creative solutions
  9. Career management tools that engage the whole person, from credit history and financial circumstances to intellectual and artisan skill development
  10. Surge capacity analysis tools that enable a manager to understand just how far to push a team.

In other words, the decision to hire a new person is not a single occurrence steady state event. Hiring happens because work teams have reached their capacity (under the current manager), because new business makes them possible, for replacement purposes, and for fifty other reasons. In each specific case, the requirements of a job are partially contingent on the reasons for its creation. Some are clearly defined, some are pretty ambiguous. Tools that help internal managers with overall workforce utilization are the missing components of next generation systems.

- John Sumser © TwoColorHat. All Rights Reserved.

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Materials written
by John Sumser
© TwoColorHat.
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         Materials written
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