By Danielle O’Neill, Vice President, Global Solutions, KellyOCG
I've been closely monitoring the escalating costs of AI, cloud, and tech talent. According to a recent Dice Tech Salary Report, the average salary for a software engineer in the US has increased by 10% year-over-year. Additionally, Gartner predicts that AI and machine learning talent will remain in high demand, driving up salaries and competition.
To maintain a competitive edge without breaking the bank, we must adopt a data-driven approach to talent and procurement strategies.
For HR:
- Data-Driven Talent Acquisition:
- Leverage AI-Powered Recruitment Tools: Utilize AI-powered tools like Beamery or Workable to streamline the hiring process, identify top talent, and reduce time-to-hire by 30%.
- Analyze Talent Market Trends: Monitor industry trends using platforms like LinkedIn and Glassdoor to anticipate future talent needs and adjust recruitment strategies accordingly.
- Performance Analytics:
- Track Key Performance Indicators (KPIs): Monitor employee performance metrics using tools like Workday or Oracle HCM to identify top performers and potential areas for improvement.
- Implement Data-Driven Performance Reviews: Use data-driven insights to inform performance reviews and identify opportunities for growth and development.
For Procurement:
- Cost Optimization:
- Conduct Regular Spend Analysis: Analyze spending patterns using tools like Coupa or SAP Ariba to identify cost-saving opportunities and optimize procurement processes.
- Negotiate Favorable Contracts: Utilize data-driven insights to negotiate better deals with suppliers and vendors, potentially saving 15-20% on procurement costs.
- Risk Management:
- Monitor Supplier Performance: Track supplier performance metrics using Supplier Relationship Management (SRM) tools to mitigate risks and ensure timely delivery.
- Develop Contingency Plans: Develop robust contingency plans to address potential supply chain disruptions and minimize their impact on business operations.
By leveraging data and analytics, HR and Procurement can make informed decisions, optimize resource allocation, and drive sustainable growth.