The raw statistics tell a sobering story. An estimated 90% of organizations are accelerating their digital transformation efforts in order to gain competitive advantage. At the same time, companies are reporting that up to 70% of those initiatives fail to live up to expectations, according to McKinsey.
The disconnect isn’t caused by technology; it’s the human element, according to researchers at Boston Consulting Group. “The technology is important, but the people dimension is usually the determining factor. Companies often do not have the mix of skills that they need, and they tend to underestimate the skills and expertise of the people required to execute a successful digital transformation,” says BCG.
Rather than replacing productive workers whose skill sets do not align with the future organization, moving and redeploying employees who are already a good cultural fit not only boosts morale, it can result in a faster and more successful transformation.
Strategic Workforce Planning
CIOs can play a crucial role in aligning talent with the technological advancements the organization needs to make. Taking a strategic approach to workforce planning, rather than reverting to an ‘out with the old, in with the new’ approach, has several benefits:
- Redeploying existing employees is less costly than hiring new ones — even factoring in additional training time
- Retained social capital and understanding of a company’s values and ways of working can speed change efforts and promotes a more cohesive culture
- Cross-fertilization of ideas from across the business drives innovation, and more mobility creates organizational agility and quicker responses to market changes
Cultural Continuity
The role of the CIO in leading change requires supporting employees through transitions and fostering a culture of continuous learning. Being seen to invest in the workforce builds loyalty and reduces voluntary turnover at exactly the time when you need people to be committed and engaged. Plus, redeploying existing employees preserves institutional knowledge and is a more sustainable approach.
One concern with redeployment is the time it can take to prepare people for new roles. But when you factor in the financial costs of recruiting and onboarding new employees — and the severance and reputational costs of laying off others — reskilling existing employees can be much more efficient.
One innovative approach to plugging any short-term skills gaps while investing in reskilling is to contract with contingent labor for a brief period while retraining employees.
Driving Skills Evolution
The dynamic nature of technology means hiring for new skills now doesn’t guarantee those hires will evolve their skill sets for the future. Fostering a culture of skill development amongst your existing workforce and promoting internal mobility is more likely to help you fill critical skills gaps as they emerge. Here are four examples of how leading organizations build a mobility culture:
- Google’s ‘bungee’ program allows one employee to cover a leave of absence of another.
- Salesforce lets employees see manager’s engagement scores, helping employees identify other teams they’d like to join.
- Udemy lets employees sit in on other team meetings to see if a role elsewhere is going to be a good fit.
- Deloitte is using AI to profile employees’ skills and match them to internal vacancies to avoid layoffs.
How Randstad RiseSmart can help
Digital transformations are complex and demanding exercises. While the shortest route to overhauling the organization’s digital skillset is frequently seen to be acquiring new talent, looking within first can often surface surprising results — that deliver more agile and sustainable capabilities.
Randstad RiseSmart, which specializes in redeployment and talent transition solutions, can help organizations at all stages of the digital transformation journey:
- Randstad RiseSmart provides advisory services on planning for change, communicating to employees, and providing support.
- It can also help organizations manage the on-the-ground practicalities of making the transition — offering assistance for redeployment and reskilling, as well as managing any contingent/contractor labor requirements.
- Finally, Randstad RiseSmart can help employees in adapting to change and navigating new career paths, either internally or externally.
In today’s fast-paced digital landscape, the success of your organization’s transformation efforts hinges on leveraging your most valuable asset: your people. By prioritizing internal mobility and redeployment, CIOs can drive innovation, maintain cultural continuity, and build a resilient, future-ready workforce.
