Talent Optimization: 3 Steps to Build a High-Impact Workforce

What if your workforce strategy were the reason your business fell behind — or surged ahead? In an era where skills become obsolete faster than ever, companies that align talent strategy with business goals don’t just survive — they outperform competitors.

According to McKinsey, companies that integrate both people and performance at the center of their business strategy are more likely to see higher total shareholder returns than their competitors who only emphasize people or performance. Yet, many HR leaders struggle to bridge the gap between talent strategy and business objectives, limiting their ability to drive meaningful impact.

Success requires more than just filling roles — it demands alignment between talent and business priorities, proactive workforce planning, and ongoing development to meet future demands. HR leaders have a unique opportunity to sit at the table, advocate for talent-driven strategies, and leverage workplace insights to shape business growth.

This guide provides HR executives with a structured approach to optimizing talent responsibly and effectively, strengthening HR’s role as a strategic partner, and ensuring organizations have the workforce needed to thrive in an ever-changing environment.

Step 1: Create Alignment

Talent optimization starts with aligning workforce strategy to business priorities. When done well, it helps ensure you have the right people in the right roles to meet business objectives, close skills gaps, and gain a competitive edge through innovative practices, according to Alison Tripp, a talent acquisition leader at DPR Construction. “Talent optimization also helps you stay ahead of market shifts, boost employee engagement by aligning individual and organizational goals, and build long-term sustainability by investing in your people,” Tripp added.

For example, if an organization shifts its business model to focus on new products or services requiring specialized skills, but talent teams continue hiring based on past needs, the business risks missing key opportunities or scrambling to fill roles reactively. When you embed talent into business strategy, talent teams can proactively build pipelines and provide the workforce needed to drive success.

Be in the Room Where Decisions Are Made

Tripp speaks up in meetings when talent strategy is involved, but she also sits in on many meetings just to learn. Doing so gets HR out of a traditionally siloed department, sends a message that HR’s perspective matters, and supports HR’s position as a key business partner. At a time when the vast majority (89%) of CEOs believe CHROs should play a central role in driving long-term profitable growth, yet relatively few (45%) create the conditions for them to do so, HR leaders can take the lead and ensure they’re getting the perspective needed to help shape strategic decisions.

To Andy Gill, a strategic talent acquisitions lead at MetroStar, an IT consulting firm for the government sector, talent teams that want to impact decision-making need to step up and engage executives. “Recruiters must see themselves as more than recruiters. They need to see themselves as talent advisors,” Gill said.

Switch the Focus to Long-Term Objectives

Leaders often prioritize short-term goals or pursue high-revenue opportunities without considering whether their current talent can support them. “Without clear alignment, they may address immediate needs but fail to prepare for future challenges,” Tripp said. Talent teams must know what work the larger business is chasing — and when — to build those technical pipelines in advance. 

Companies risk wasting time, money, and other resources if hiring or upskilling efforts don’t align with long-term business objectives. Data from Gartner shows that 83% of HR leaders struggle to find enough talent with the skills their organization needs. However, if executive teams can align on skill needs in advance, HR gains a longer runway to develop the workforce and meet future demands more effectively.

Use Your Talent Team to Align on Culture

Retention and talent attraction hinge on culture, and a strong culture starts with authenticity. What a recruiter promises should reflect the actual employee experience. Tripp advises staying closely connected to the business to maintain alignment and collaborating with the communications and branding teams to ensure your employee value proposition (EVP) remains genuine.

Gill added that talent teams should actively recruit in alignment with the culture the organization is building. He recommends using behavior-based questions and predictive analytics to assess candidates who will thrive within that environment.

Step 2: Assess Your Workforce

To optimize your talent, you must understand the talent you have, the talent you don’t have, and the talent you’ll need down the road. By leveraging the right tools — or investing in ones that streamline the process — you can assess workforce capabilities and ensure alignment with current and future business priorities.

Evaluate Your Organizational Skill Set

To support your talent optimization efforts, start by assessing your current workforce, focusing on the skills your organization already has and how well that aligns with business goals. Gill suggests establishing a mechanism to keep track of employees’ skill sets and experiences and which employees want to do something new.

For example, when Gill’s organization takes on new contracts, it first assesses whether their organization has the internal talent (or the ability to develop it) to execute the work effectively. To get these insights, Gill recommends using performance management systems to monitor employee performance; learning platforms, meanwhile, can provide insights into workforce capabilities by tracking skill development.

Analyze Your Talent Gaps

As you evaluate your workforce, levy any gaps hindering your goals. Tripp suggests using workforce analytics to look for these gaps. As you do, you might find that a significant percentage of senior leaders are nearing retirement, requiring succession planning, or that younger employees lack key technical skills needed for new business that you can work with learning and development (L&D) teams to develop. You may also discover an imbalance, such as an excess of project managers but too few mentors, or you may notice that specific roles have high turnover, signaling more profound retention challenges.

On retention, one number Gill advises keeping an eye on is your six-month attrition rate. “If the number is high, you probably have some systemic things you need to work out in your organization, and the talent team needs to be a part of that,” Gill said. Otherwise, your team will be recruiting for the same position every four to five months — which is effectively the opposite of talent optimization.

Predict Future Talent Needs

“The key to sustainable alignment is to address these gaps with clear metrics, accountability, adaptability — and, in my experience, a good sense of humor paired with seriously strong communication,” Tripp said. To get there, Tripp suggests looking ahead with the data you have and staying in sync with business leaders to make sure your talent strategy keeps pace with where the company is going. It’s also important to look externally and do your due diligence to understand the changes in the market, what technologies are coming out, and even what early-career talent is learning, Tripp added.

Gill takes another approach to forecasting by looking at the “worst-case scenario,” which, to him, is the best-case scenario for business growth: “If we win every piece of new business we’re going after over the next 24 months, it gives my talent team an idea of: Do we need to scale up our team in size, or scale out our team laterally?” From there, talent advisors must voice what’s required to find the talent needed for the company over the next 24 to 48 months.

Step 3: Development

With talent data and business objectives in hand, organizations can make informed workforce decisions. For some, this means expanding headcount to fill critical skills gaps; for others, it’s about strengthening internal mobility programs or investing in upskilling to maximize existing talent. Choose yours accordingly.

Leverage Internal Mobility Programs

Companies that proactively reallocate employees into roles that align with their changing business strategies are more than twice as likely to outperform their competitors, McKinsey research found. A strong internal mobility program — whether newly established or refined — can help organizations meet future workforce demands while retaining valuable talent.

Beyond supporting employees eager to explore new roles or departments, internal mobility is critical for those whose skills may no longer align with their current position but could thrive elsewhere in your organization. Leveraging behavioral analytics can uncover these opportunities, but success depends on cross-team collaboration and a culture that prioritizes growth.

Align Learning and Development with Your Business Goals

Investing the dollars into upskilling programs with clear executive buy-in is key, Gill said. To get that buy-in, identify how your L&D efforts can directly support your business strategy. Only 40% of companies say their learning strategy aligns with business goals. With executive buy-in, HR leaders can use talent analysis insights to collaborate with L&D leads to ensure training initiatives target the right skills and teams.

One of the biggest differentiators for organizations is prioritizing learning by giving employees dedicated time to upskill. However, more than half (58%) of middle managers cite a lack of time as the top barrier to participating in training and development. Tripp said the most effective way to learn is on the job, which managers have the opportunity to facilitate on a daily basis. And while in-person training allows for valuable real-time engagement and peer collaboration, self-paced virtual learning can also help fill in skill gaps.

Buy or Build Depending on Workforce Needs

When workforce gaps arise, HR leaders must decide whether to hire externally (“buy”) or develop internal talent (“build”). This decision depends on factors such as skill urgency, availability, and business priorities.

• Buy: Best for roles requiring immediate expertise or for when skills are not easily trainable (e.g., cybersecurity specialists, senior engineers). External hiring ensures quick access to specialized talent but can be costly and competitive.
• Build: Ideal when skills can be developed internally over time, particularly in roles where culture fit, leadership potential, and long-term retention are critical (e.g., project management, leadership roles). Investing in upskilling fosters engagement and loyalty while preparing employees for future business needs.

A balanced approach is key. HR leaders should anticipate future skills needs, align L&D with business objectives, and proactively identify areas where internal mobility or external hiring will drive the most value.

Leverage Strategic Partnerships

You can also strengthen your talent pipeline by collaborating with key partners rather than relying solely on internal resources. For example, if you run an early-career program, Tripp suggests working with local colleges and universities to address skills gaps by influencing curriculum updates or contributing through guest lectures.

Strategic partnerships can provide critical support in several ways:

• Recruitment agencies help fill specialized or high-demand roles.
• Consultants offer strategic insights to optimize workforce planning.
• Diversity organizations expand access to underrepresented talent pools.
• University partnerships build a steady pipeline of future talent.
• Technology vendors enhance efficiency in workforce management.

Strategic workforce planning should blend external hiring with internal mobility and upskilling to create a high-performing, future-ready workforce. By proactively engaging with external partners, organizations can stay ahead of workforce shifts, close skills gaps, and build a more agile, future-ready talent strategy.

Ensuring Your Talent Remains Optimized

HR leaders can help their organizations set the foundation for agility and long-term success by aligning talent strategy with business goals, assessing workforce strengths and gaps, and developing employees to meet future needs.

But as Gill pointed out, the focus should not only be on how long it takes to fill open roles. HR leaders must also proactively ensure those seats stay filled. That’s why maintaining a strong employee experience is critical.

“When employees feel cared for, they’re more loyal, engaged, and motivated to perform,” Tripp said. “Making this happen isn’t always easy. It takes leadership support and a commitment to fostering a culture where people truly feel like they matter.”