SWOT Analysis may sound a classic strategy in business development. The truth is that it is still relevant, particularly for gaining competitive advantage. The analysis is a framework used by a company to evaluate its competitive position and to develop strategies to address the problems and to grow the company. SWOT refers to Strengths, Weaknesses, Opportunities, and Threats. As noted by Scholley Bubenik on Forbes, the same strategy can actually be applied for workforce.
SWOT Analysis for Workforce Competitive Advantage
Applying the same SWOT Analysis on the workforce is actually very helpful in keeping the business competitive. The following are things you can do:
You can begin by identifying the strengths of your workforce. Their strengths are important consideration to fill the strategic positions in the organization. They may include managerial line, executives, financial department, or marketing department. To evaluate the workforce strengths, you can begin by asking the following questions:
- Who are the most competent employees?
- What are their skills and specialties?
- Do you have competent staffs on major positions such as finance, marketing, customer service, or technology?
- If you do not have them, who are the most suitable staffs for those positions?
- And many more, depending upon your needs.
There is no need to worry about the workforce weaknesses. As long as you can maximize their strengths, the weakness can be addressed. The following are some questions to assess the employees’ weaknesses:
- Which department has low performance? Who are employees working there?
- Who are employees with lower performance? What are their problems?
- Do you have employees who work for the wrong position? Could they be better in another position?
- Is turnover high in your company?
- Why do the employees leave your company?
- What are the main effects of the turnover?
- And many more
The talent management needs to be able to make use of any opportunities available for the company. Unless they are used accordingly, the opportunities will remain opportunities. They have no added values for the organization. On the other hand, the opportunities are essential to achieve the organization’s goals. The following are some questions to identify opportunities as a part of SWOT analysis for your workforce:
- Where are top tier talents available?
- Do you have relevant contacts to obtain recommendations for employee candidates?
- What type of program can you develop to improve quality of the existing employees?
- Where can you get training program?
- And many more
Analyzing potential threats allows you to mitigate the risks related to your workforce. The most common risk when it comes to human resource is that another organization is trying to hire your top talents. Other risks include the following:
- Financial implication of higher compensation package
- Government regulation that poses some risks to your company, particularly when it affects budget and financial condition.
- Labor shortage, particularly in companies that require employees with special skills
By identifying the threats, you can find strategies to overcome them. So, SWOT analysis is still relevant in growing your company, right?