The document discusses using external talent market data and workforce analytics to inform workforce strategies. It provides examples of how organizations can use data on job demand, salary benchmarks, and talent supply across locations to make decisions around critical roles, workforce planning, and "build vs. buy" strategies. Quantitative analytics and visualizations are emphasized to translate data into actionable insights.

1. Using Talent Market Data to Create Workforce
Intelligence
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Tactics, Best Practices and examples

2. ©Human Capital Management Institute
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✓ Integrates HR, finance and operations data
✓ Applies AI with 100s of predictive machine learning algorithms
✓ Links workforce analytics to financial and business outcomes
✓ Workforce analytics software (SOLVETM) and services firm
✓ Thought leader in linking human capital to financial results
✓ Cost and value driver insights to optimize workforce spend

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Jeff Higgins
Founder & CEO, HCMI
Jeff is a leading expert with 30 years
of experience in human capital analytics and
workforce planning, key architect of ISO30414,
global standard to measure/report workforce,
an adjunct professor of people analytics at
USC.
A former CFO and HR executive, Jeff and his
HCMI team are trusted by clients around the
world to make smarter data-driven decisions
that quantify workforce ROI.
Speaker
Jeff can be contacted at jeff.higgins@hcminst.com | https://www.hcmi.co

4. Predict & Act
- Prescriptive Analytics
- Optimization Modeling
Source: Gartner Inc.
Analytics and Workforce Planning Maturity Model
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The Future is Predictive, Optimized and Prescriptive!

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What External Data do we Need, Why and Where to get it?
Industry / Market Data
Risk Factors
Technology Changes
External Statistics
Bureau of Labor Statistics
Location,
Labor Costs
HR
Workforce
Demographics
Skill Shortages
Market Shifts
Off-shoring /
Outsourcing
Globalization
Disasters / Health Crisis

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What Everyone Thinks of HR Analytics
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7. What Can External Talent Data and Tools be Used For
56% of US Citizens think that the country is already in a recession
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1. MassMutual
2. The U.S. Bureau of Economic Analysis
3. PwC
Power dynamics shift back toward employers3
Companies are focused on making sure they’re not just hiring people, but
hiring the right people.
83% of CHROs say their companies are considering or have already reduced
overall headcount.
The decrease in real GDP reflected decreases in private
inventory investment, residential fixed investment, federal
government spending, and state and local government
spending, that were partly offset by increases in exports
and consumer spending.2
Q3

8. Example: Quantifying Manager Effectiveness and $ Impact
via Talent Management Index
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9. Example: Using Tools and Data to Quantify Manager Effectiveness
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Which managers are more effective at managing talent?
Manager A Manager B
• Exceeds business goals
• Hires exp’d employees
• No training
• High turnover
• Low mobility
• Mixed performance
• Low Engagement
• Exceeds business goals
• Hires junior employees
• Trains the team personally
• Low turnover
• More transfers/promotions
• High employee performance
• High engagement

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Audience Question
Do you utilize external market data to assess talent demand and
supply on a local and regional level?
If so what kind of external data?

11. Types of External Talent Market Data
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➢ External Job/Talent Demand Data - Near real time from job
boards and Data scraping companies
➢ External Talent Supply Data – Where is the most qualified
talent by job and geographic area
➢ External Compensation Benchmark Data –
• Can be either recent or older benchmarks
• Powerful when matched with Talent Supply Data
➢ Country/State/City level Economic Data (i.e. GDP, Inflation
Rate, Unemployment, ..)
➢ HR Metric Benchmark Data
• Workforce metrics by location/job type (i.e. hiring, Turnover data)
➢ Customized External Data such as Competitor, Workforce
Productivity, Culture

12. External Demand Data Example – Top Tech Companies
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• Sample: Job postings of 41 leading tech companies
from each month for the last 3 years
• By Company, Location, and Job
Use External Competitor Demand Data To…
• Predict and Preempt Talent Competition
• Identify which roles and locations have the highest
demand (Use Job Framework)
• Better target recruiting incentives and strategies
• Find underutilized talent locations
Tech Company Workforce Demand by State
Demand by Year and Quarter

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1. Define business questions/issues
2. Data gathering, validation, cleansing
& integration
3. Data Analysis
4. Translate data into actionable insights
What People Think about HR
Analytics vs. Reality
Elements of Good Data
Storytelling
Tips For Good Data Stories
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#1 Choose Great Visuals for
Content, not the Best Looking
#2 Avoid Jargon and
Technical Terms
#3 Avoid Tunnel Vision and
Focus on The Big Picture
#4 Show Linkage to Business
Impact
What Makes A Good Story

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What Makes A Good Story – Actionable
Having “told” a good story is not enough! In our
world, every insight and prescription needs to be
actionable.
Example: You found out that hiring internally
leads to more money save and a higher chance
of a new hire is a high performer.
Actionable: for every position hired internally,
the business can save $10,000 per position and
have 3 in 5 new hires turning out to be a high
performer
©Human Capital Management Institute

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Example: Cybersecurity Job Demand Analysis
By Company – DC Area (Maryland, and Virginia)
Demand:
CybersecurityAnalyst–428
CybersecurityEngineer–336
CybersecurityManager/Administrator-76
InMay2021,ofallcompetitors,NorthropGrummanhasthehighestnumberofjobdemandpostingsforCybersecurity
Analysts
Top10Companiesbydemandinalllocations(DCarea–excluding)–Talentcompetitors=IndustryRelated,Other
Industries
• GeneralDynamics
• BoozAllenHamilton
• CACI
• Raytheon
• NorthropGrumman
• Peraton
• MitreCorp
• BAESytems
• ManTech
• Deloitte
TotalJobDemandPostings(Annualized–fortheD.C.Area):
CybersecurityAnalyst–15,532
CybersecurityEngineer–10,420
CybersecurityManager/Administrator–2,372

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Example: Cybersecurity Supply Analysis by
State/City
DC Area, Ohio, Texas, Florida, California, Illinois
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BLS Detailed Group – Cybersecurity Analyst Equivalent
• Information Security Analysts
Cyber Security Example Job Description:
Plan, implement, upgrade, or monitor security measures for the
protection of computer networks and information. Assess system
vulnerabilities for security risks and propose and implement risk
mitigation strategies. May ensure appropriate security controls are in
place that will safeguard digital files and vital electronic infrastructure.
May respond to computer security breaches and viruses.
Example Job Titles
Information Security Analysts, Information Security Engineers,
Information Security Officers, Information Security Specialist,
Information Systems Security Analyst, Information Systems Security
Officer (ISSO), Information Technology Security Analyst (IT Security
Analyst), Information Technology Specialist, Network Security Analyst,
Security Analyst, Systems Analyst
DC Area = (DC, Virginia and Maryland), Texas, Florida, California, Illinois
*Salary includes all levels and years of experience for the group
Size of bubble is based on total supply available
Labor concentration = Concentration of this type of job relative to other jobs in the area, compared to the national average – see appendix for full equation

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Cybersecurity Job Supply Demand Analysis by State
• As of May 2021, Supply vs demand (employed talent over annualized posting demand) varies from plentiful (Texas, DC) to average (CA, OH)
• Virginia and Maryland have the lowest talent supply in relation to Demand, but is balanced when combined with the DC area talent pool
• In the combined DC area, for every posting (annualized), there are 2.2 currently employed in similar fields
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𝑆𝑢𝑝𝑝𝑙𝑦
𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝐷𝑒𝑚𝑎𝑛𝑑
Ratio Calculation
9,980 (𝑆𝑢𝑝𝑝𝑙𝑦)
10,348(𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝐷𝑒𝑚𝑎𝑛𝑑)
=.96
Example Calculation: - California
Rounded to 1.0 in chart provided to the left:
– a 1.0 ratio would indicate a highly
competitive market for talent.
For each job posting (annualized), there
is one cybersecurity professional
meaning demand is very strong relative
to supply.
High supply ratios, like 3.9 for Texas,
indicates more plentiful talent (3.9 workers
for 1 annualized open job i.e. demand).
See exact Supply and Demand below:

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Example: Look at Demand by key Competitors

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Example: Find the Best Cities to Hire for any Given Job
Where is the best location to expand or relocate?

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Example: Find the Best Cities to Hire Software Programmers
What to Consider
1. Talent supply
2. Talent demand
3. Average Salary
Goals
Rank cities by their
abundance of talent
supply vs. cost
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VS
Tip #1 Choose the Best Chart for Contents, not the Best Looking
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Find the Best Talent at the Best Cost (i.e. what we can afford)
This is where to find
Programmers for 20% less cost
Find Locations with Strong Talent Supply for Critical and High Demand Roles
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What critical job roles / groups are:
• A large, high cost or high impact group of jobs, typically
“Core” to the organization
What critical job roles / groups are not:
• A single person or unique individual job
Both Are Critical Groups:
• Sales
• Pilots
• Sr. Management
• Doctors
• Flight Attendants
• Engineers
• Customer Service
• Nurses
Strategic Critical Operational Critical
• Pilots
• Doctors
• Sr. Management
• Nurses
• Customer Service
• Flight Attendants
Strategic Critical Core Non-Core
Operational Critical Support Feeder Roles
Managers
Engineers
Sales
Traditional Example
Strategic Operational Critical
Getting Value from External Data – Job Classification and Critical Roles

24. Example Application: Workforce Image Map
Visualizing the organization
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Workforce Image Map
The Workforce Image Map (WIM) tool can be utilized to compare the
incidence and impact of workforce interventions, analyze workforce
categories, model and test alternate scenarios, and ultimately enable fact-
based, fair decisions within and across multiple, interdependent variables.
Top Use Cases:
1. Top In Demand Jobs
2. Top Labor Supply by Cost
3. Demand and Supply by Location
4. Best Locations for Best Cost
5. Change Rates and Labor Arbitrage
Technology Company Demand 2020

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Buildvs BuyCyberAnalystTalentAnalysis
Theoverallcybersecurityjobtalentfacesunprecedentedtalent shortagesthat willworsenovertime,
acceleratingthe talent warespeciallyinhighdemandlocationsforthe mostqualifiedandexperienced
talent.
QuestionsaBuildvsBuyAnalysisHelpsto Answer:
• Should buy,buildorcontractto fillcybertalent gaps?
• Cost-Benefitofexpandingcyberanalysttrainingviaacademy?
• Cost-BenefitofaddedTAstaffvs.increasedhires?
• Howto winthe cybertalentwarwithoutjustpayingmore?
HypotheticalActionsfromInsights:
Whileitisimpossibletoevaluate buildvs.buystrategy optionswithout datathebelowhypothetical
scenarioisbaseduponHCMIexperiencewithmultiplepeersandcompetitors.
Adopta“TrainingGround,BuildTalent”WorkforceStrategy:
• maybeableto fill10%to 33%moreofits’CyberAnalysthiringdemandviaarobustinternaltalent
development,trainingandpartnernetwork
• Organizationsthat leverageabuildfirst,buysecondstrategy typicallyenjoy10%to 15% lowertotallabor
costs
• Typicalorganizationsindefense,govt.contractingservicesoftenpromoteslowly,increasingvoluntary
turnoverrateandloweremployeeengagement
• canfillmanyoutsidehirejobsfasterat lowerexperiencelevelsaswellasimproveretentionsourcing
morejuniorstaffandtraining
Application Sample: Cyber Analyst Talent
Options - Build v Buy v Contract

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Career path design
and quantification
model
BuildvsBuyCyberAnalystTalentAnalysis
• Theoverallcybersecurityjobtalentfacesunprecedentedtalentshortagesthatwillworsenovertime,
acceleratingthetalentwarespeciallyinhighdemandlocationsforthemostqualifiedandexperiencedtalent
• 2020 overallcybersecurityjobdemandvs.supplytalentgapis870,000 jobsworseningto -2.6 millionjobsby2023
• TheCybersecurityandCyberAnalystjobfamilyfaceanunprecedentedtalentshortageof -164,000increasingto
2020 CyberAnalystdemandvs.supplytalentgapis164,000jobs,worseningto -502,000 jobsby2023
QuestionsaBuildvsBuyAnalysisHelpstoAnswer:
• Should buy,buildorcontractto fillcybertalentgaps?
• Cost-Benefitofexpandingcyberanalysttrainingviaacademy?
• Cost-BenefitofaddedTAstaffvs.increasedhires?
• Howto winthecybertalentwarwithoutjustpayingmore?
HypotheticalActionsfromInsights:
Whileitisimpossibletoevaluate buildvs.buystrategyoptionswithout datathebelowhypotheticalscenarioisbased
uponHCMIexperiencewithmultiplepeersandcompetitors.
Adopta“TrainingGroundBuildTalent”strategy
• maybeableto fill10%to 33%moreofits’CyberAnalysthiringdemandviaarobustinternaltalentdevelopment,
trainingandpartnernetwork
• Organizationsthatleverageabuildfirst,buysecondstrategytypicallyenjoy10%to15% lowertotal laborcosts
• Typicalorganizationsindefense,govt.contractingservicesoftenpromoteslowly,increasingvoluntaryturnover
rateandloweremployeeengagement
• canfillmanyoutsidehirejobsfasteratlowerexperiencelevelsaswellasimproveretentionsourcingmorejunior
staffandtraining
Application Sample: Cyber Analyst Talent
Options - Build v Buy v Contract

27. Human Capital Management Institute
Jeff Higgins, CEO
Jeff.higgins@hcminst.com
www.hcmi.co
Thank you!
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©Human Capital Management Institute