Talent Management and the Older Worker Graeme MartinPresentation Transcript
Talent Management and the Older Worker Graeme Martin
Why the interest in talent management?
How good are the underlying theories/assumptions and evidence on which talent management rests?
What are the implications for older workers?
What practical questions remain to be answered?
The War for Talent Revisited: Something New? (Martin & Hetrick, 2006; Economist, Oct 7 th , 2006, CIPD, 2007, etc) Brainpower and talent in knowledge-based economies/organizations Population changes worldwide, international labour markets and HR supply chains The rise of idiosyncratic careers and the cult of ‘celebrity’ Employee loyalty and trust fading: employers reaping what they have sown (CIPD, 2006)? Talent drives reputations and is attracted by reputations, but talent can also damage reputations
The truth about markets: why some nations are rich but most remain poor?
‘ The distinction between the role of shareholders and employees was clear when shareholders bought the plant and employees worked in it. But the principal assets of the modern company are knowledge, brands and reputations, which are in the head and hands of employees…’
(John Kay, 2004, p. 58)
Some Evidence The ‘irrational’ search for the Charismatic CEO and growing inequality/returns to talent Intangible assets now worth 70% of value of companies (S&P index); From 20% in 1980 By 2025, no of people of working age to fall in Europe sharply coupled with retirements – the Tayside problem 83% of workers are likely to search for new job; 1990s employability and ‘ death of careers’ rebounding on employers Three quarters of senior-human resources managers said that “attracting and retaining” talent was their number-one priority (Wooldridge, 2007)
So What’s the Solution? Talent Management and its assumptions?
A focus on scarce and valuable people (the power curve) – the exclusive rather than inclusive approach
A focus on buy rather than make
Outsiders create innovation
Easier to buy rather than make – we need to hit the deck running and we can ‘talent spot’
A focus on potential rather than experience
a ‘liquid modern’ or unknowable world – ‘in the face of change, the experienced are helpless – an inch wide and a mile deep’
Talent Management: Some Core assumptions?
The Human Capital (or Talent) Equation HUMAN CAPITAL INVESTMENT AND DEPLETION ‘ IQ’ OF EXTENDED ENTERPRISE (ITS INTELLECTUAL CAPITAL) INNOVATION AND ENTERPRISING PUBLIC SERVICES HR & Leadership Drivers HR & Leadership Drivers Talented Individuals
The Human Capital/Talent Delusion? HUMAN CAPITAL INVESTMENT AND DEPLETION ‘ IQ’ OF EXTENDED ENTERPRISE (ITS INTELLECTUAL CAPITAL) INNOVATION AND ENTERPRISING PUBLIC SERVICES SOCIAL CAPITAL INVESTMENT (GOODWILL, TRUST, BONDING & BRIDGING) ORGANIZATIONAL CAPITAL (DATABASES, STRUCTURES, ROUTINES AND PROCESSES Delusions 1 & 2 Delusion 3
A Talent-based Recipe for an Enterprising Organizations and Public Services (based on Dyer and Ericksen, 2007) Workforce Scalability – Right numbers Right types of people Right places Doing right things Workforce fluidity Workforce alignment Top-down plan Bottom-up: shared mindset Acquiring talent: pre-qualify source Releasing employees: outplacement Enrich talent pool: diversity, fit and (serial in)competence Facilitate interpersonal connectivity: Increase absorptive capacity Expand role orientations Unleash talent pool Align incentives
The ‘New (super) Capitalism’ and Social Deficits (Richard Sennett, 2006; Robert Reich, 2007, Mark Moore, 2007)
Liquid modern world of short term relationships with ‘careerless’ organizations
Potential (serial incompetence) celebrated and craftsmanship devalued
Four social deficits
Decline of loyalty, which depends on being valued
Organizations need talented people more than talented people need organizations: the identification problem
Decline of trust in organizations and leadership
Decline of organizationally-specific knowledge
The tension between shareholder & consumers on the one hand and citizens and public value on the other
Throwing babies out with the bathwater: Dealing with the ‘Universal Paradox’ in Management – integration and innovation At the expense of experience and craft Focus on potential and serial incompetence At expense of organizational networks Focus on internal organization At the expense of expressive/connected organizations – the ruthless organization Promotes aggressive competition and dynamic organizations and an /enterprising public sector But not so good for sharing and exploitation Sometimes good for knowledge acquisition and innovation But also destroys them – the Enron effect and legitimacy Can create reputations: talented people with unique human capital create difference and value
Some Key Questions for the Older Workforce Agenda
What do they want from work?
How does this differ among different groups
How can we best make use of what their skills and talents?
To what extent are employers planning now for the ageing workforce?
What will this mean for performance management in organizations?
Thank you [email_address] www.managingpeoplebook.com www.gla.ac.uk/crmp
Selected References CIPD (2006) Talent Management Economist (Oct 7 th , 2006) A survey of talent , Economist Newspapers Christensen, C., et al (2006) Seeing what’s next: using the theories of innovation to predict industry change. Boston: Harvard Business School Press Groysberg, B., Nanda, A. and Nohria, N (2004) The risky business of hiring stars. Harvard Business Review , May, 92-100 Lepak, D., et al., (2007) Value creation and value capture. Academy of Management Review , 32: 180-194 Martin, G. and Hetrick, S (2006) Corporate Reputation, Branding and People Management. Oxford: Elsevier Butterworth Heinemann Michaels, E., Handfield-Jones, H. and Axelrod, B. (2001) The War for Talent. Boston, MA: Harvard Business School Press Pfeffer, J. & Sutton, R.E. (2006) Hard Facts, Dangerous Half-Truths and Total Nonsense: Profiting from Evidence-based Management . Harvard Business Review Press Rosenzweig, P. (2007) The Halo Effect…and Eight Other Business Delusions … New York: Free Press. Sennett, R. (2006) The Culture of the New Capitalism , New Haven, Ct: Yale University Press. Spector, B (2003) HRM at Enron: the un-indicted co-conspirator. Organizational Dynamics 32, 207-220 Subramaniam, M. & Youndt, M. A. (2005) The influence of intellectual capital on the types of Innovative capabilities. Academy of Management Journal, 48 : 450-463 .
CIPD Survey 2007
At 65, 38% propose to carry on working, half full-time; one-third undecided
Different motivations for different socio-economic groups
More flexible working arrangement
Opportunity to use existing skills
Financial benefits they value
Participative and friendly culture
Few employers considered the impact of ageing workforce on their HR policies/rewards