The Challenge Isn’t Workforce, It’s Talent Supply Chain Design

Across the globe the workforce is undergoing dramatic transformations, influenced by globalization, skills changes, technology, and social and demographic shifts. With this change in how the world wants to work — a change demanded by both workers and the work itself — it is crucial that companies in Mexico strategically evolve and transform their supply chain management processes.

This strategy must serve as a core framework for workforce planning in any organization, to always have active options that allow them to close the gaps in demand for skills and capabilities of the right talent and thus be able to meet the needs of the market in which they are competing and according to their operational reality.

To effectively design a talent supply chain, organizations should consider the following strategies:

1.      Build (build/develop i). This involves investing in training, development, and redeployment of existing permanent talent. It requires time, and investment in training, a structured career plan, and is primarily used when:

a)     There is a strong need for retention and deep immersion in the organizational culture.

b)     The organization seeks to develop critical capabilities that it will need to sustain for years.

c)     There is a pool of high-potential talent that requires new skills.

2.     Buy (purchase/contract externally). This involves hiring permanent employees from the external market to fill critical roles. It often involves high recruitment costs and risks of cultural adjustment and is primarily used when:

a)     Immediate skills are required for a critical project or to improve market position.

b)     The required capability or skill does not exist or is too expensive to develop internally.

c)     The goal is to bring in "fresh talent" or technical expertise that is not currently available within the organization.

3.     Borrow (outsourcing). This involves using contingent workers, project-based workers, and/or outsourcing processes. It requires a clear definition of deliverables and management of the relationship with the provider and is primarily used when:

a)     The demand for a specific skill is unstable, temporary, or for a specific project.

b)     Rapid access to specialized talent is needed without long-term employment commitments.

c)     There is a need to optimize resources in non-core areas.

d)     The organization is seeking greater agility, flexibility, and/or productivity.

e)     There is a need to compensate for gaps in knowledge, capabilities, or competences to:

                                               i.     To reduce the incidence of errors.

                                              ii.     To mitigate risks.

                                             iii.     To improve quality and service.

This last strategy remains the least understood and least utilized by most companies in Mexico. However, it is very important for all organizations in our country to recognize and accept that every day in the world’s most advanced companies thousands of people contribute to business success without being directly employed. In various organizations that compete globally, it is estimated that up to 50% of the workforce — across industries and company sizes — consists of non-direct employees who play a key role in maintaining competitiveness.

Ultimately, understanding the company's critical needs, the availability of talent to meet them, and the interaction between the various alternatives ultimately determines the best strategy and structure for the talent supply chain.

Therefore, for any organization, the strategic workforce framework (build/develop, buy, or borrow/outsource) consists of strategies that evolve and complement each other in accordance with its evolution and transformation.

A well-planned workforce strategy enables organizations to proactively plan and deploy these options to meet talent needs as they arise. Without such a plan, the build/develop, buy, and borrow/outsource options become merely reactive tactics.

Therefore, companies in Mexico that want to stay ahead in the immediate future, to distinguish themselves and compete more effectively, should consider adapting and adopting a combination of these three strategies within their talent supply chain, by aligning this approach with their operational realities and business planning, organizations can manage their operations more efficiently and ensure sustainable success, while remaining focused on their core business priorities.