The Role of the HR in How Corporates Can Win (and Lose) the Global Race for Talent
How the Global Race for Talent is Playing itself out in All Fields There is a global race for talent wherein the best and the brightest of fresh graduates, experienced and lateral entry professionals, and the niche executives are all being wooed by the corporates world over. Starting with the corporates thronging colleges and universities […]
The Dynamics of Small Entrepreneurs and Their Importance in Developing Countries
Entrepreneurship Means Many Things Whenever we think of the terms, entrepreneurship and entrepreneurs, there are several images that are conjured in the mind. For instance, the most common feeling is an individual or a set of individuals coming together to launch a new business with stars in their eyes and full of passion. Next, we […]
Factors Affecting Compensation from Employees Perspective
In the previous article, we looked at some of the factors that help the employers determine the level of compensation to be given to employees. In this article, we look at the factors that affect compensation from the perspective of the employee. What this means is that the employee should not be constrained by the […]
Role of Managers in Performance Management
The success of performance management practices in any organization depend upon the commitment and involvement of the different stakeholders like top management, line managers, employees and the HR specialists. Role of Top Managers in Performance Management The top managers play a lead in the entire process by setting trends for the lower rung and acting […]
Relationship Building Strategies at Workplace
Let us go through few relationship strategies within the workplace: Don’t enter office with the perception that office colleagues can never be good friends. Infact there are people who have their best friends at the workplace only. Leave all your personal problems behind. Don’t start working the moment you enter office. Work becomes monotonous this […]
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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