Topic 1 Introduction Flashcards
What is the war for talent?
From whom did it originate?
War for talent: at senior levels important abilities (adaptation, quick decision-making in high uncertainty and survive through change) are hard to attract and retain.
To win need to first place talent management as a priority
Create and refine employee value proposition (why work at your company) => attract and retain people you need => keep developing them
Originated from Mckinsey Quarterly, by Chambers et al. (1998)
.
What is the origins of talent management?
Idea that there is a minimal pool oftalent, and organizations need to fight for it, but most of them are not prepared to do so.
Very dramatic (war related): now ornever. Need to prepare to “fight” for talent.
What trends led to the war for talent?
Economic upturn => needs more personnel-
Demographic changes declining supply of talent in western economies (ageing population) . Executive population grows with GDP but supply (number of 35–44-year-olds) decreased -
More complex economy => needs more sophisticated talent (global insight, multicultural fluency, entrepreneurial skills)
Emergence of efficient capital makers => rise of many small and medium-sized companies (target the same people as large ones)
Small companies upsides: opportunities for impact and wealth (offer meaning, excitement,flexibility, equity ownership
Large companies upsides: magnitude of impact, depth (resources to take risks),capital (resources to support big decisions) and variety (higher range of experiences).
Can also make themselves feel smaller: By creating smaller, more autonomous units· Improvingmentoring·Differentiatingpay· Etc.
Increasing job mobility: before people used to change once or twice, but now the average executive changes 4ties => executives under constant threat of being recruited.
How do companies success in retaining, developing and attracting?
Create a winning employee value proposition: Combining strong corporate aspirations with rapid growth and wealth accumulation and attractive jobs for employees.
Butmany only manage talent consciously after being faced with issues.
What are the steps to successful attraction retaintment and developmentof employees?
Build a talent mindset: Make talent managementa burning priority. Starts at the top. Foster talent-building behaviour (candid performance reviews with set standards) + hold line managers accountable + use HR as support.
Create a winning employee value proposition (why peoplewould want to work there => tailoring what the job has to offer, brand andproducts (e.g., freedom or autonomy or career advancement) to appeal to specific people + paying what it takes to attract andretain strong performers (price)
Create a strong brand image: in terms of values and goals. Brand is what makes the company great. The face it gives to the world. Appealing culture and inspiring values. Should only transform it in extreme situations (big task)
Sourcing great talent: New talent mindset + powerfulemployee value proposition is not enough => need a robust sourcing strategy (clear + innovative + committed). Should know who you want (who are the high performers in your company?). Source through acquisition, outsourcing, insourcing (but should higher senior executives from outside regularly => refresh gene pool). Should have more than one sourcing strategy. Always look for talent (continuous recruitment)
Develop talent aggressively: Put people in jobs before they are ready (learn by doing)
Are the trends that created war for talent still here?
Yes:
Still economic growth (still needmore personnel) but it’s not as steep as before.
Supply of talent is worsening: Populationageing is increasing + Supplyof key talent is also decreasing (in perception of CEO’s)
With the rise of technology andtechnological advancement => increase need of more advanced andsophisticated talent.
Changes in employment relationship: Newchallenging job, good compensation and opportunities to learning exchange forjob performance. Allows flexibility in both parties + Makes attracting and retainingvaluable people crucial.
What are some critical remarks on the war for talent?
Focus on US companies (US centred)
Focus on key positions, mainly leadership (but other types of talent can also be important)-
Talent is scarce and highly exclusive: but that’s an idea. Some believe everyone has different talents.Others say only some have talent at all.
Focus on superior compensation(salary) and attraction.
How should you manage poor performers out of the organization? The USA states to get rid of them as soon as possible, but there are other ways.
Managing talent beyond organizational boundaries: what about gig-economy?
