Total Talent Management (TTM) has long been a topic of conversation within the HR and talent acquisition world. For decades, it has been discussed as an ideal – a lofty goal that no organization could quite reach. But recently, due to advances in technology and a shift in the way organizations approach workforce planning, TTM has started to become a reality. Today, we have the tools to integrate all types of talent – from full-time employees to contractors, freelancers, gig workers, and even automation – into a cohesive workforce strategy that aligns with business goals. The evolution of Total Talent Management marks a significant shift, and organizations that embrace this integrated strategy will see tremendous benefits in terms of talent mobility, retention, agility, and skills-based hiring.
What Is Total Talent Management?
Total Talent Management is a comprehensive approach to managing the entire workforce ecosystem, encompassing not just full-time employees, but also part-time staff, contractors, freelancers, consultants, and even automation technologies. It’s about viewing talent as a unified portfolio, rather than distinct and separate categories. The core concept of TTM is simple: organizations should not look at talent based on employment type, but rather based on the capabilities required to meet business goals.
Traditionally, companies have managed talent in silos. HR typically handles full-time employees, while procurement oversees contractors, freelancers, and other contingent workers. Workforce planning often resides in separate departments, while learning and development operates independently. This disjointed approach leads to inefficiencies and missed opportunities. Total Talent Management seeks to break down these silos by creating a more unified view of the workforce, enabling organizations to access the most effective and agile talent mix for any given need.
Under the TTM model, talent includes a variety of sources:
- Full-time employees
- Part-time staff
- Contractors and contingent workers
- Freelancers and gig talent
- Consultants
- Internal mobility and project-based assignments
- Automation and artificial intelligence (AI), when appropriate
Breaking Down Silos: A New Approach to Talent Strategy
The real breakthrough of Total Talent Management lies in its ability to break down traditional silos. Historically, HR and procurement have been isolated from one another, managing different aspects of the workforce with little coordination. HR was responsible for full-time employees, while procurement managed contractors and external suppliers. This separation led to fragmented strategies and inefficiencies, as each function worked within its own parameters without considering the broader needs of the business.
TTM changes this dynamic by promoting a more integrated approach to workforce management. It encourages organizations to ask one simple yet powerful question: What is the best mix of talent to deliver the work that needs to be done?
By considering all types of talent – full-time employees, contingent workers, freelancers, and automation – organizations can develop a comprehensive, unified workforce strategy. With shared visibility across both internal and external talent pools, businesses can make data-driven decisions to maximize productivity, reduce costs, and improve outcomes. Shared analytics also enable organizations to take a more proactive approach to workforce planning, identifying skill gaps and addressing them before they become bottlenecks.
For example, organizations no longer need to ask, “Should we hire full-time employees or bring in contractors?” Instead, the focus shifts to, “What capabilities do we need to achieve this outcome, and how can we access them most effectively?” This allows businesses to tap into a broader talent pool, ensuring they have the right people with the right skills at the right time, whether they are full-time employees or external talent.
The Rise of a Unified Workforce Ecosystem
The transition to Total Talent Management has been accelerated by the advent of new technologies that enable a real-time, integrated view of the entire workforce ecosystem. In the past, talent management data lived in different systems, with budgets spread across various departments. This lack of visibility made it difficult for organizations to see the full picture of their workforce needs, often leading to inefficient or fragmented talent strategies.
However, technology has finally provided the tools to solve this problem. Today, companies can leverage integrated workforce management platforms that provide a “single source of truth” – a real-time view of all talent types, including full-time employees, contractors, consultants, gig workers, and even AI-driven solutions. This centralized visibility allows HR, procurement, and other key stakeholders to make informed decisions about workforce strategy, ensuring that talent is managed in a more coordinated and efficient manner.
But the question remains: Who should hold the keys to the total labor spend? Should HR take the lead, or should procurement manage the process? Or should a new function be created to oversee this integrated approach?
Who Should Own Total Labor Spend?
The question of who should be responsible for Total Talent Management is a complex one. The answer may not be straightforward, but it’s clear that no single function should “own” total labor spend in isolation. Rather, the responsibility for integration and coordination should be shared across multiple functions, with one central body ensuring alignment between them.
There are three possible options for ownership:
- HR Holds the Keys
HR is often seen as the natural owner of workforce strategy because it understands organizational design, talent development, and employee experience. HR is responsible for workforce planning, skills and capability mapping, and talent retention. However, HR typically does not have control over external labor spend, particularly when it comes to contractors, consultants, and other contingent workers. This can make it challenging for HR to take full ownership of Total Talent Management. - Procurement Holds the Keys
Procurement brings valuable strengths to the table, particularly in areas like spend visibility, vendor governance, cost optimization, and risk management. However, if procurement leads the effort alone, the focus may shift too much toward cost containment, supplier consolidation, and rate cards. While these factors are important, they can detract from the broader goals of workforce agility, innovation, and long-term talent strategy. - An Office of Workforce Architecture
An emerging option is the creation of a brand new function named something like “Office of Workforce Architecture” – a cross-functional team tasked with orchestrating Total Talent Management. This office would not “own” labor spend but would be responsible for ensuring that all functions – HR, procurement, finance – are aligned and working together to achieve a cohesive workforce strategy. Under this model, HR would own workforce capability strategy, procurement would manage commercial governance and external supply strategy, and finance would provide capital discipline and visibility. The central orchestrating body would align all these efforts to ensure the organization has the right mix of talent at all times.
Conclusion
Total Talent Management is no longer just a buzzword; it is becoming a reality, thanks to advances in technology and a shift toward more integrated workforce strategies. By breaking down silos between HR, procurement, and finance, organizations can create a unified workforce ecosystem that enhances flexibility, reduces costs, and maximizes talent potential. As companies continue to embrace Total Talent Management, the key to success lies in collaboration, technology, and a focus on capability over employment type. Those who get it right will be well-positioned to thrive in the future of work.
