Definition · Staffing and agencies

Total Talent Management

By TapTalent Editorial TeamUpdated

Definition

Total talent management (TTM) is an approach in which an organization plans, sources and manages all of its workers together: employees, temps, contractors, freelancers, outsourced teams and increasingly automation. Instead of HR owning employees and procurement owning contingent labor separately, a TTM model decides for each piece of work which type of talent fits best.

Also called: TTM, Total workforce management, Total talent acquisition

The problem TTM solves

In most large organizations, two separate systems hire people. HR and talent acquisition run employee hiring through an applicant tracking system. Procurement runs contingent workforce spend through an MSP and a vendor management system. Each has its own budget, data, suppliers and metrics.

The result is predictable. A hiring manager opens a permanent requisition for a six-month project because that budget is available, while another opens a contractor request for work that has been running for four years. Nobody can answer simple questions such as how many people actually work here, what each worker type costs per productive hour, or whether a former contractor is a good candidate for a permanent role. Contingent workers often make up a sizable share of the workforce in large companies, so the blind spot is expensive.

What a total talent model includes

  • One demand intake. Managers describe the work, not the worker type. A shared intake decides whether it should be a hire, a contractor, a statement of work, a gig worker, an internal transfer or automation.
  • Joint workforce planning. Workforce planning covers all talent types, so the plan shows the full cost and capacity picture.
  • Shared talent pools. Former employees, alumni contractors, retirees and silver medalists sit in one searchable pool. Direct sourcing programs often grow out of this.
  • Combined data. Spend, headcount, tenure, time to fill and quality by worker type in one view.
  • Aligned governance. HR and procurement share ownership, usually with a joint steering group and shared metrics.

A worked example

A regional insurer needs to process a 40% jump in claims after a storm season. Under the old model, operations would request 60 temps through procurement and, separately, open 20 permanent adjuster roles through HR.

Under TTM, one intake looks at the work. The forecast shows the spike lasts about five months. The team fills it with 35 temps from the staffing program, 10 retired adjusters from the alumni pool on payrolled assignments, an outsourced vendor for first notice of loss calls under a statement of work, and eight internal transfers from a slow underwriting team. Only six permanent hires are made, for the roles the long-term plan shows are needed regardless. Cost per claim falls and there are no layoffs when volume drops.

Barriers to TTM

  • Ownership. HR and procurement have different goals, reporting lines and incentives. Without an executive sponsor, TTM stalls at slideware.
  • Systems. ATS, HRIS and VMS data rarely line up. Worker IDs, job titles and cost centers differ.
  • Co-employment caution. Legal teams worry, sometimes rightly, that managing contractors like employees creates joint employment risk. TTM must keep supplier and employment responsibilities clear.
  • Budget rules. Separate headcount and non-headcount budgets push managers to pick worker types based on which budget has money.

How to start

  1. Build one view of the workforce. Combine HRIS and VMS data into a single count by function and location, with cost. This alone changes conversations.
  2. Add a work-type question to every requisition. Ask managers how long the work will last and whether it is core. Route accordingly.
  3. Open the talent pool. Let recruiters see contingent alumni and let contingent programs see past applicants.
  4. Pick one function to pilot. Contact centers, IT and warehouse operations, with heavy and visible use of both employees and contingent labor, are common starting points.
  5. Agree shared metrics. Cost per productive hour, time to start and 90-day retention by worker type.

Frequently asked questions

What is total talent management?

An approach that plans, sources and manages all workers together, including employees, temps, contractors, freelancers and outsourced services, so the organization chooses the best talent type for each piece of work.

What is the difference between total talent management and total workforce management?

They are generally used as synonyms. Some vendors use total workforce management to stress scheduling and operations, and total talent management to stress sourcing and planning, but both describe one view across worker types.

Who owns total talent management?

Usually a shared model between HR or talent acquisition and procurement, with an executive sponsor. Some organizations create a dedicated workforce strategy role to sit above both.

What are the benefits of TTM?

Better cost visibility across worker types, faster filling of work using existing talent pools, fewer layoffs from mismatched permanent hiring, and better decisions on when to hire, contract or outsource.

How does direct sourcing relate to total talent management?

Direct sourcing builds an employer-branded pool of contingent talent, often including alumni and past applicants. It is one of the most common practical building blocks of a TTM program.