The role of market intelligence in HR: understanding talent market trends
Table of contents
- Companies that leverage market intelligence in HR achieve higher annual revenue growth…
- Why is market intelligence in HR essential?
- The role of market intelligence in HR: reasons to use
- Trends of market intelligence in HR
- Let’s smartly wrap things up
Companies that leverage market intelligence in HR achieve higher annual revenue growth…
In the dynamic landscape of HR and recruiting, staying ahead of the competition requires more than just traditional practices. HR professionals should deeply understand the talent market trends and dynamics to attract, acquire, and retain top talent. That’s where the power of market intelligence in HR comes into play.
According to a survey conducted by Aberdeen Group, companies that leverage market intelligence achieve 5.3% higher annual revenue growth than those that don’t actively use this approach.
So what role does market intelligence play in HR? What market intelligence trends are present today for businesses? In this article, we will explore the pivotal role of market intelligence in HR, specifically focusing on its impact on understanding talent market trends.
Why is market intelligence in HR essential?
Market intelligence in HR refers to collecting, analyzing, and interpreting data and information about the talent market. It encompasses various factors, including talent supply and demand, skill requirements, compensation trends, competitors’ benchmarking, and industry dynamics. By delving into these crucial aspects, HR professionals can uncover valuable insights that shape their decision-making and ultimately lead to successful talent acquisition and management.
Market intelligence in HR may include:
- Data and insights on talent availability
- Competitor analysis
- Compensation benchmarks
- Industry trends
- Emerging skills
- Technological advancements
- Employee engagement practices
- Diversity and inclusion initiatives and other relevant HR-related information.
By leveraging market intelligence, HR professionals can enhance their understanding of the external environment, anticipate changes, and proactively respond to the evolving needs of the organization and the workforce.
The role of market intelligence in HR: reasons to use
Market intelligence plays a valuable role in HR by providing insights and data that help HR professionals make informed decisions and develop effective strategies:
According to a 2020 survey by LinkedIn, 70% of professionals believe that market intelligence is crucial for talent acquisition strategies. Gathering data about the talent market, understanding competitors’ hiring practices, and analyzing skill trends are among the top reasons for utilizing a data-driven approach. Market intelligence in HR provides valuable insights into the talent landscape, including the availability of skilled candidates, competitor hiring strategies, and compensation benchmarks.
HanseWerk, the energy service provider in Germany, wanted to optimize its recruiting and talent development strategy. To do this, they used HRForecast solutions. Using marketing intelligence in recruiting HanseWerk received insights about the labor market of the energy industry and similar companies. The company got an understanding of both the strengths and weaknesses of its job postings. This information enabled HR managers of HanseWerk to create future job profiles that display the market view and future trends and build talent development strategies based on labor market data.
Understanding the HR practices of competitor organizations is essential for HR to stay competitive in attracting and retaining talent. According to a study by CareerBuilder, 74% of HR professionals believe that understanding the competition is essential for attracting top talent. Market intelligence in HR helps managers gather information about competitor organizations’ employee benefits, what job roles and skills the competition is looking for and translate these insights into the business and HR strategy. This knowledge allows HR to benchmark their practices, learn from competitors, identify ways for improvement, and design strategies to attract and retain top talent.
Siemens, a technology company specializing in industry, infrastructure, transportation, and healthcare, aimed to gain an overview of the current labor market situation, including competitor benchmarking, trending skills, and new roles. Using HRForecast solutions, company managers gained knowledge about their competitors’ skill landscape in six weeks and received a much better picture of the global labor market situation. Emerging roles have helped the HR team from Siemens redefine the workforce strategy and make data-driven decisions. Knowing the skills trending in the labor market and how these trends are converted into concrete skills and job profiles has helped to review and optimize employee development paths and hiring practices.
Compensation and benefits
Market intelligence in HR helps business leaders stay updated on industry compensation packages and benefits trends. This knowledge ensures that the organization remains competitive by offering appropriate salary ranges, incentives, and benefits packages. It helps HR to attract and retain talented employees by providing competitive compensation and benefits that align with industry standards.
Deutsche Telekom AG is one of the leading integrated telecommunications companies worldwide. The organization was faced with rapid changes caused by new and developing technologies. To stay competitive in their industry, they have used market intelligence solutions in HR to identify future trends and upskill their workforce. Using market intelligence in HR helped Deutsche Telekom AG profit from connected macroeconomic data by translating trends into concrete skillset requirements and detecting technology white spots and new skill potential.
Employee engagement and retention
Market intelligence provides insights into the factors that drive employee engagement and retention. A survey conducted by Glassdoor found that 76% of employees are more likely to stay with an employer that invests in their professional development. Using market intelligence in HR helps managers understand employee preferences, identify engagement drivers, and design retention strategies to foster employee loyalty.
EY, a British auditing and consulting company, in cooperation with HRForecast, developed HR instruments for recruiting and retaining highly qualified employees. EY managers wanted to determine the reasons for unwanted employee turnover, how to optimize recruiting and retention measures, close the skill gaps, and adapt strategic workforce planning to the changing conditions. As a result, all goals were achieved with the help of market intelligence in the HR team.
HR should identify industry trends and skill gaps to develop strategies for future talent needs. Market intelligence helps HR anticipate changes in the workforce and identify high-potential employees who can be groomed for leadership positions. It enables HR to proactively plan for talent development and ensure a smooth transition in critical roles. The Society for Human Resource Management (SHRM) reported that 83% of HR professionals consider workforce planning a critical priority for their organizations. The role of market intelligence in HR and workforce planning is essential. It helps forecast future talent needs, understand demographic trends, and develop strategies to ensure a skilled and balanced workforce.
The Merck Group, a German multinational science and technology company, aimed to outline future operating models to foster top business and HR leadership opportunities. To solve the challenges, HRForecast conducted a market intelligence analysis which included competitor benchmarking, future workforce insights, and future job profiles. Market intelligence analysis helped define possible future operating models for selected business areas and how specific critical job roles and skill profiles will evolve in the short-, mid-, and long-term.
Trends of market intelligence in HR
As organizations strive to attract and retain top talent in a competitive landscape, HR professionals increasingly rely on market intelligence to gain insights into talent trends, competitor strategies, and emerging technologies. Check out the latest trends of market intelligence in HR, highlighting how it’s transforming recruitment, talent management, and strategic decision-making:
- Remote work and flexible work arrangements. The COVID-19 pandemic has accelerated the adoption of remote work and flexible work arrangements. HR teams are gathering market intelligence on best practices for managing remote teams, implementing virtual collaboration tools, and maintaining employee engagement in a remote work environment.
- Employee well-being and mental health. There is an increasing focus on employee well-being and mental health in the workplace. HR is gathering market intelligence on strategies to promote work-life balance, provide mental health support, and create a positive and supportive work environment.
- Diversity, equity, and inclusion (DEI). DEI initiatives have gained significant importance in HR. Market intelligence helps HR understand best practices in promoting diversity, addressing biases, ensuring equal opportunities, and fostering an inclusive workplace culture.
- Talent analytics and data-driven HR. HR teams are leveraging market intelligence to adopt data-driven approaches in talent management. This includes using analytics to make informed decisions on talent acquisition, employee performance evaluation, workforce planning, and identifying skill gaps.
- Employer branding and employee experience. Market intelligence helps HR understand how organizations are enhancing their employer brand and improving the employee experience. HR gathers insights on employer branding strategies, employee engagement initiatives, recognition programs, and creating a positive work culture.
- Skills development and upskilling. With the rapid pace of technological advancements, HR is focusing on upskilling and reskilling initiatives. Market intelligence helps HR identify emerging skills in demand, industry-specific training programs, and partnerships with educational institutions or providers.
- Artificial intelligence and automation. HR is exploring using artificial intelligence and automation in various HR processes, such as candidate screening, employee onboarding, and performance management. Market intelligence helps HR stay updated on the latest AI applications, industry trends, and best practices.
- Agile HR and organizational agility. HR is adopting agile methodologies and practices to enhance organizational agility. Market intelligence helps HR understand agile HR frameworks, flexible organizational structures, and strategies for promoting innovation and adaptability.
- Sustainability and corporate social responsibility (CSR). HR teams are incorporating sustainability and CSR practices into their HR strategies. Market intelligence helps HR gather insights on CSR initiatives, employee volunteering programs, and environmental sustainability practices.
These market intelligence trends in HR can help HR professionals stay informed, adapt to changing dynamics, and develop effectively.
Let’s smartly wrap things up
Market intelligence is a powerful ally for HR professionals in understanding talent market trends and making informed decisions. In an era of evolving talent dynamics, market intelligence empowers HR professionals to identify best practices, save costs, and improve talent development, training, and recruitment processes by analyzing data.
HRForecast’s smartData solution offers valuable insights and inspiration for shaping talent strategies. It enables organizations to understand how specific job roles and skills will evolve, explore future operating models, and discover the universe of data.
With personalized data-driven insights, organizations can exchange gut feelings for factual information. It helps identify the best-fit locations for sourcing skills, understands local labor markets, and makes fact-based decisions for global footprint strategies.