Why aren’t 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 organization’s 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.

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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 aren’t 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.

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Those that have implemented workforce planning are better prepared for the long term, have more clarity in their requirements…

IntroductIon

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Bracing for a looming skills gap

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

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

Significant negative impact

Somewhat negative impact

No impact Somewhat positive impact

Significant positive impact

0%

10%

20%

30%

40%

50%

60%

20122013

0

10

20

30

40

50

60

01020304050607080

0%

20%

40%

60%

80%

Security Cloud Business intelligence

Mobile and mobility

20122013

20122013

20122013

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Organizations are largely not planning for the future

/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.

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:

20122013

20122013

Yes No, butplan to within

next year

No formalplans todo so

0%

10%

20%

30%

40%

50%

60%

20122013

0

10

20

30

40

50

60

Lack of unified/

long-term plan

Behind on new

technology implementation

/training

Shortage of qualified staff

High turnover

Opportunity cost (lost projects, missed

deadlines, slower to hire)

Lower productivity

Higher cost

Lack of resources

20122013

0

5

10

15

20

25

0%

5%

10%

15%

20%

25%

/10organIsatons are largely not plannIng for the future

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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 6:

Methods used to address IT workforce planning

20122013

Business benefits from IT workforce strategic planning

Figure 5:

20122013

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Work with internal HR department

Outsource to staffing or workplace solutions provider

Outsource to project

company (through a statement of work)

01020304050607080

0%

20%

40%

60%

80%

Ability to plan for the long term

Clarity in direction of

ITneeds

Increased efficiency

Cost control

Ability to make

better hires

Flexibility and covering contingencies

Improvedstaff

training

Improved retention

20122013

0

5

10

15

20

25

0%

5%

10%

15%

20%

25%

organIsatons are largely not plannIng for the future

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Challenges of IT workforce 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

organization’s 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

Finding the right

skills match

Budget issues

Proper resource balancing

andallocation

(staff, hardware,

time)

Keeping up with

changing technologies

Retention of high-

performing staff

Better communication

between departments

Accurate planning

Predictability of future projects

Training

20122013

0

5

10

15

20

25

0%

5%

10%

15%

20%

25%

Figure 8:

How often are IT leaders given advance notice of future IT staff requirements?

20122013

Key challenges for IT leaders in workforce planning

Figure 7:

20122013

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Always Sometimes Rarely Never

01020304050607080

0%

20%

40%

60%

80%

challenges of It workforce plannIng

As IT functions continue to shift away from corporate headquarters, we believe

sophisticated communication and monitoring will be crucial in ensuring these functions

are successfully completed.

/16challenges of It workforce plannIng

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To what extent will the amount of IT work your organization conducts offsite change in coming years?

Figure 9:

20122013

We will conduct

significantly more work

offsite

We will conduct

somewhat more work

offsite

We will conduct

about the same work

offsite

We will conduct

somewhatless work

offsite

We will conduct

significantly less work

offsite

0

10

20

30

40

50

0%

10%

20%

30%

40%

50%

challenges of It workforce plannIng

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A roadmap for change: lessons for organizations

Our research shows many organizations are not undertaking IT workforce planning. A failure to understand current and future workforce needs could leave organizations ill-equipped to deal with critical challenges such as security, and unable to realize the full benefits of technology such as cloud-based solutions.

Based on our survey results, we suggest that organizations focus on three key areas to

improve their planning processes and build the IT workforces they need for the future.

1. Undertake a strategic IT workforce plan

Given that 52 per cent of respondents have not conducted a strategic IT workforce

review in the last year, now is the time for organizations to kick start their planning

processes. It will take some time to perform a detailed review and implement

strategies, so the longer organizations delay, the greater the risk they may lose out in

the race for top talent.

/19a roadmap for change: lessons for organIzatIons

2. Develop effective lines of communication

between business units and IT leaders

In many organizations, business units are simply not informing IT leaders of upcoming

projects that will require additional IT staff. We suggest that CIOs and VPs implement

robust communication channels to keep all elements of the business in constant contact

so they can proactively address staffing needs. This could be conducted through

regular meetings or using cloud-based planning tools.

3. Forecast and assess likely IT trends and their implications for staffing

Planning is not a static activity. Organizations should be aware of emerging trends and

technologies, and assess the likely impact on their operations. They may need to begin

recruiting staff with additional skillsets to capitalize on such trends.

/20a roadmap for change: lessons for organIzatIons

Methodology

Between June 25 and July 11,

2013, we conducted a web

survey among 313 Information

Technology leaders based in

the United States. This followed

a nearly identical survey

conducted in 2012.

In 2013, we targeted companies

with 500 or more employees

and revenue ranging from

US$500,000 to more than

US$10 billion.

Survey respondents held

the following positions:

• ChiefInformationOfficer

• ChiefTechnologyOfficer

• InformationTechnology

and Information Systems

Vice President and Senior

Vice President

• InformationTechnology

and Information

Systems Director.

The survey focused on a range

of industries, namely:

• Automotive

• BusinessServices

• Chemicalsand

Petrochemicals

• FinancialServices

• FoodandBeverage

• Healthcare

• InformationTechnology

• LifeSciences

• Utilities,Oil and Gas.

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eXit

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aBout kelly services®

kelly services, Inc. (nasdaQ: kelya, kelyb) is a leader in providing workforce solutions. kelly® offers a

comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary,

temporary-to-hire, and direct-hire basis. serving clients around the globe, kelly provided employment to

approximately 540,000 employees in 2013. revenue in 2013 was $5.4 billion. Visit kellyservices.com and connect

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aBout the author

melIsa bockrath is Vice president, It centers of excellence, kelly services, a leader in

providing workforce solutions. she holds a bachelor of arts in marketing communication

from michigan state university in east lansing, michigan.