Managing talent in the 21 st century

Today What is talent management? The prize for getting it right Three keys to 21 st century talent management

What is talent management?

The prize for getting it right

Three keys to 21 st century talent management

Defining talent Everyone is talent and therefore talent management is about looking after all human capital Top slicing – identify high potential individuals and accelerate their progression through the business Top slicing and business critical roles

Everyone is talent and therefore talent management is about looking after all human capital

Top slicing – identify high potential individuals and accelerate their progression through the business

Top slicing and business critical roles

The prize A 10-point increase in an average Fortune 500 company's talent quotient score will add between US$70 million and US$160 million to the firm's bottom line over the next two to three years. Hewitt Associates.

The differences Old way Short half life Most of the effort in the initial selection Minimal measures with organisational objectives Subject to social loafing New way It’s tough to get in and stay in It’s worth the effort – it fits with my needs and helps me succeed It makes a step change to organisational capability and retention

Old way

Short half life

Most of the effort in the initial selection

Minimal measures with organisational objectives

Subject to social loafing

New way

It’s tough to get in and stay in

It’s worth the effort – it fits with my needs and helps me succeed

It makes a step change to organisational capability and retention

It’s tough to get in and stay in Makes it more attractive for those who want to succeed The threat of losing the privilege makes people invest more effort It reduces social loafing It makes it easier for those not involved Very visible message to everyone that performance is what matters here

Makes it more attractive for those who want to succeed

The threat of losing the privilege makes people invest more effort

It reduces social loafing

It makes it easier for those not involved

Very visible message to everyone that performance is what matters here

Who should join?

How to identify this? Source: Deloitte (2008)

What about those not included? Performance management for the ‘vital many’ Labelling 67% of CIPD respondents agreed using the term ‘talent’ is demotivating. Think about alternatives: high flyers; Aspire? Transparent on how to get in and out Understood that some will drop off – not right for everyone

Performance management for the ‘vital many’

Labelling

67% of CIPD respondents agreed using the term ‘talent’ is demotivating.

Think about alternatives: high flyers; Aspire?

Transparent on how to get in and out

Understood that some will drop off – not right for everyone

It’s worth it for me Appeal to self-interest increases Participation Willingness to change Transfer of learning What talent wants This helps me get ahead faster I feel proud to have made it onto the programme

Appeal to self-interest increases

Participation

Willingness to change

Transfer of learning

What talent wants

This helps me get ahead faster

I feel proud to have made it onto the programme

Increasing the value of the programme Recognition I’m special (exclusivity/ongoing assessment) Recognised outside my company Opportunities to grow fast Stretch Choice – in control of what I am doing Regular flow of interesting work Job promotion/new career opportunities Investment in me Access to senior people Coaching, development, etc – the skills to become great Very different kind of experience, eg, social projects Reward – different structure for top talent?

Recognition

I’m special (exclusivity/ongoing assessment)

Recognised outside my company

Opportunities to grow fast

Stretch

Choice – in control of what I am doing

Regular flow of interesting work

Job promotion/new career opportunities

Investment in me

Access to senior people

Coaching, development, etc – the skills to become great

Very different kind of experience, eg, social projects

Reward – different structure for top talent?

What is it that’s difficult? Matt Pease and Simon Mitchell, Leaders in Transition: Stepping Up, Not Off. DDI.

It makes a step change to organisational performance Measurable shifts in Retention Speed of promotion

Measurable shifts in

Retention

Speed of promotion

KPIs for talent programmes Source: Deloitte (2008) Other

What makes a difference? Openness, teamwork, autonomy, career development, training Hiltrop, J-M. (1999) The Quest for the Best: Human Resource Practices to Attract and Retain Talent . European Management Journal 17(4), 422-430.

Openness, teamwork, autonomy, career development, training

Organisational obstacles Source: McKinsey (2006)

What’s effective vs. what’s popular? Source: CIPD (2006)