Why Organizations Must Admit Systemic Mistakes and Failures and Stand Up for their Employees ?
Employees are Also Important Stakeholders Contemporary organizations have to be accountable to a diverse range of stakeholders including customers, investors, regulators, and social activists as well as the wider civil society. However, what are missing in this list are the employees who are as important as the other stakeholders. Indeed, while it is fashionable for […]
Measuring Return on Investment of Employer Branding
“95% of job seekers’ very first experience with you comes through the ‘careers’ section of your website”, reveals Bernard Hodes Group Inc., a full service employer brand agency, which was acquired by Findly in June 2013. This means your careers’ website or section decides who responds to the job openings with your organization. It makes […]
Limitations of Participative Management
Participative management is undoubtedly one of the better approaches to management. But like any other style of decision making there are certain limitations. These limitations arise either externally or internally vis-a-vis the implementation. The following are certain limitations of participative management: Complexity of Technology and Organizations: Organizations and Technology are so complicated these days that […]
Entrepreneurial Challenges and Opportunities in Asia
The Asian Juggernaut Aspiring entrepreneurs around the world have several opportunities both within their countries as well as in overseas destinations. With the opening up of many Asian economies, western entrepreneurs can now invest in countries such as China and India along with Indonesia and Thailand in addition to the latest entrants Vietnam and Cambodia. […]
Role of Communication in Increasing Work Efficiency
Communication plays an essential role in increasing efficiency of employees. Employees need to interact with each other more often to break the ice and feel comfortable at the workplace. Problems arise when information does not flow in its desired form. Effective communication facilitates free flow of information among employees and reduces misunderstandings and confusions. Effective […]
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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