Ever heard of Capacity Modeling?
It’s all about figuring out how much work your organization can handle to meet the changing demands for its products or services. When it comes to recruiting, it’s about determining how much hiring your team can manage to meet the company’s talent needs.
Imagine this: Your talent acquisition team is working hard every day, making progress bit by bit, but just barely keeping up. Then, one day, the CEO walks into your office and says, “We need to hire 300 more employees in the next 12 months because of a new investment. Can we do it?” A smart talent acquisition leader would say, “Let’s see if we can.” Unfortunately, many would quickly agree without knowing if it’s possible. That’s where things can go wrong.
If you don’t know your team’s capacity, promising to hire that many people is risky. If it already feels like you’re at your limit, adding 300 more hires might seem impossible. Capacity Modeling helps you give a well-informed answer.
You could show your CEO something like this: “We’re currently at 87% capacity. The best practice is to be at 85% so we have some flexibility for unexpected needs. If we need to hire 300 more people, we’ll exceed our capacity, so we’ll need more time and resources.”
This approach lets you have a straightforward, data-based conversation with your CEO. It shows your value and prevents you from making promises you can’t keep. While it might seem complicated, Capacity Modeling is doable and very useful. It helps you understand how much hiring your team can handle, plan better, allocate resources wisely, and set realistic hiring goals. Have you used it or tried it? Let me know in the comments!
This is an incredibly important concept to understand and communicate. We use a line chart as part of our one page exec dashboard, Three lines tracked weekly on a rolling 12 month scale. Line A is Demand Plan, Line B is fills, and Line C is actual regs opened. We also measure req loads by lane for recruiters. The TA manager focus’s on balance, but we know if we need to flex on resources as well.