How Human Resource Managers should Manage Ethical Issues and Ensure Compliance ?
Organizations function according to some norms and values as well as have characteristic organizational culture that is the product of the above elements. Compliance with ethical norms is an integral aspect of every employee’s work and organizations strive to ensure that policies are being followed, no norms are being violated, and above all, employees stick […]
HRD Function in Manufacturing and Services Sectors: A Comparison
The previous articles discussed the role of the HRD function from a wide variety of perspectives. We have seen how the HRD function is pivotal to the success of contemporary organizations. This article compares the HRD function with regards to its relevance and operation in the manufacturing and service sectors. Before launching into the salient […]
Performance Appraisal Process
For many employees working in the organized sector, the term appraisal process conjures images of hope and fear simultaneously. Hope for a better grade and fear about potential downgrading or a bad rating. The weeks leading up to the appraisal are filled with hectic activity when the employees get down to evaluating themselves and prepare […]
Creativity and Entrepreneurship
Individuals who are creative love to do things differently. They seldom blindly follow what others have done in the past but believe in creating their own concepts and ideas. Creativity and entrepreneurship go hand in hand. Let us first go through a case study: John was working with ABC industries as sales executive. His role […]
Gathering Recommendations and Getting Endorsed
First and foremost, we need to understand these terms like endorsements and recommendations in the wide world of LinkedIn. To know the difference between the two, it is essential to know them first. Endorsement While creating or updating your profile on LinkedIn, you have the option of listing out your skills which talks about your […]
Having good talented people in your organization was important yesterday, today it is critical! Organizations world over have realized the importance of having talented people. McKinsey was the first to coin this term ‘war for talent’ in the year 1997. They named this for their research for talent management practices and beliefs. This became a phenomenon soon.
Not many organizations barring a few like IBM, PepsiCo and McKinsey knew the importance of talent management until recent years. It is not a big surprise that nearly two thirds of senior leaders quit an organization within three years of their hiring. Add to it there is also the problem of an aging population in the west and unemployable graduates in the east. This opened up the eyes of major corporations globally. A substantial amount of pressure has developed on corporations that are global or multinational in presence, hiring and nurturing the right talent globally is an area of major concern.
Global leadership is now aware to the chaos and disruption this can bring within their clients/customers and with other stakeholders. Strategies and plans for sales, production, expansion, and diversification are of no use unless you have the right people to execute them.
The talent market is more than competitive presently than it was and could be in the next decades. In an economy that is knowledge driven the demand for highly skilled workers is on the rise incessantly. Though the demand may decline at times due to the changes economic cycle but in the longer run the rising trend will remain the same more or less. In a survey conducted by McKinsey in 2001, 72 % of the managers they interviewed were of the opinion that winning the war for talent is critical and only 3 % were confident that their actions would create a strong talent pool in the next 3 years.
Apart from the talent constraint, it was also found out that people at executive ranks (in the age group of 35 - 40) will also decrease by 14 % in the next 15 years. This can be countered for a few more years by replacing these positions with older baby boomers, but it is not long before these older baby boomers retire and management ranks turn lean.
It is also of interest to mention here that individual expectations of rewards (developmental, psychological and financial) have increased! These are challenges and the most disconcerting element is that not many organizations are prepared to face them.
Organizations need to act, and act now! The following is the five point solution suggested by McKinsey
This means that a talent mindset is to be developed at levels in the organization preferably at the top. An employee value proposition is to be developed for employees just like the one that is created for its customers. Most important change the way you differentiate; make it on the basis of how much you invest in your top and low performers.
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