TALENT MANAGEMENT

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TALENT MANAGEMENT

  1. 1. GROUP ASSIGNMENT 4: “TALENT MANAGEMENT:DEFINITIONS AND PRACTICES” COURSE: MANAGING HUMAN RESOURCE FLOWS (194120090) ENSCHEDE, 11-12-2012 Dimitrios Kordas (M-CME/s1231901)
  2. 2. AGENDA1. Defining Talent Management (TM)2. TM in context of Sustaining Competitive Advantages THEORY3. Success Factors4. Going one step further5. Profiles of participants6. Talent aligned to Overall Business Strategy7. Talent pipeline approach8. Demand / Supply Gap – A Supply Chain perspective PRACTICE9. Global TM Challenges 9.1 Standardization Vs. Localization 9.2 Talent pool characteristics10. Building high-quality colleagues11. Retention of talented employees12. Decision-making in TM age 11-12-2012 2
  3. 3. DEFINING TALENT MANAGEMENT (TM) The management of a company‟s pool of talent is now too important tobe left to the human resources (HR) department alone and has becomethe responsibility of the top executive. Good talent management increases job satisfaction and improvesretention rates. Leads to smooth transitions and secures businesscontinuity. TM includes (The Economist Unit, 2006):  Identification of leadership potential  Performance evaluations  Targeted development activities  Psychological testing  Assessment centers: deal with capabilities gaps  Training and development programs  Relocations 11-12-2012 3
  4. 4. SUSTAINING COMPETITIVE ADVANTAGES WHY to take seriously in this age TM?  Demographic & legislative changes  Globalization of standards – requirements  Knowledge-worker & mobility Failing to manage your talent pool = Failing to manage your SC(P.Cappelli) Greater productivity, Higher customer satisfaction, Revenue Growth,Improved Reputation are all wanted! “Our ultimate financial results are a reflection of the success or lackthereof of our development program,” admits William Hawkins, the COOof Medtronic. “At the end of the day, what differentiates us from some ofour competitors is the quality and capabilities of our people.” 11-12-2012 4
  5. 5. THE TM WHEEL / 6 PRINCIPLES OF EFFECTIVE GTM (source: Stahl et al., 2012) 11-12-2012 5
  6. 6. SUCCESS FACTORS OF TM WORKPLACE STRUCTURE TRAINING INTERNAL & SUCCESS CLIMATE DEVELOP MENT MOTIVATION & COLLABORA TION 11-12-2012 6
  7. 7. GOING 1 STEP FURTHER The limited External Validity the research Threats identified if kept 1 firm (interviewee)  Limited types of population tested  Gender bias  Cultural bias Possible Solution: Replication How to replicate?  Increase the number of participants: from 1 to 4  Mix the gender of people: still problematic  Increase cultural (organization & country level): see next table 11-12-2012 7
  8. 8. RESPONDENTS’ PROFILESTypes of Dionysios Konstantinos Nikolaos Kermanidisparticipants Panagiotopoulos José Ignacio Arraiz Seferiadis Gender-bias Company DOSSEK HAY TECHNIKI LATOMIKI A.T.E. Cultural-bias Industry Construction Human Resource & Construction IT Organization Cultural-bias Country Greece Spain Greece Netherlands Position Senior Project Management Partner Assistant Project Software Support Manager & Local Manager Engineer recruiter Experience (years) 17 (Over) 20 3 1 Working schedule No No No No availability Communication via Skype call E-mail Skype call Face-to-Face conversation 11-12-2012 8
  9. 9. ENGAGING MANAGERS TO EMPLOYEE ENGAGEMENTFind out what Perception ofthey really like employees on whatto do most. they really see as TM opportunities.Develop theircapabilities. Use their feedback for improvements.Shape theircareerdirection in linewith thecompany‟sprofitabilityline. 11-12-2012 9
  10. 10. TALENT/OVERALL BUSINESS STRATEGY 11-12-2012 10
  11. 11. DESCRIBE THE MEANING OF TM Mr. Arraiz said: „When we talk about talent management, basically wemean the flow of professionals along their career. Professionals startparticipating in projects, learning and finally mastering our basic tools.Then they start to manage projects, which mean assuring the delivery forthe client, in terms of quality and timeframes. At this stage they start tomanage people in the frame of the project and also the economics of theproject. Finally they start to manage clients, which mean understandingclient needs and shaping projects.‟ Mr. Panagiotopoulos stated: „We see talent management as the life-longprocess of transforming a highly skilled (civil or electrical) engineer to abroad on-site inspector, mediator, negotiator, and advisor holding always abalance between technical drawings and human relationships. Our talentshave to be at least one step in front of our competitors.‟ 11-12-2012 11
  12. 12. IMPACT ON SUSTAINABILITY One might initially believe that establishing sustainable relationships withlocal governments is mostly affected by the quality of traditional contractsand high-level contacts between executives and government officials. Thequality of the day-to-day relationships of regular employees with localcommunity members may have far more impact on the quality of those localgovernment relationships (Boudreau & Ramstad, 2005). Unseen talent contribution and HR challenges Mr. Seferiadis admitted that “Once I was landed at Benghazi and Tripoli’sairport, everything changed in my organizational conception of how to takethe best talent-related decisions to maximize corporate reputation andproductivity.” 11-12-2012 12
  13. 13. ACCELERATING LEADER’S DEVELOPMENT Design of the talent pipeline  Attract & Recruit  Develop  Monitor performance  Engage  Reward  Tracking back Do you have a specific approach? How do you evaluate it? How unique & valuable do you consider your Human Capital? 4 employment modes (Lepak & Snell, 1999): internal development,acquisition, contracting, and alliance. 11-12-2012 13
  14. 14. TALENT PIPELINE APPROACHMr. Arraiz was the only person among the four participants having a structured view on the Talent Pipeline, as he claimed:“We have defined a talent pipeline, as mentioned, where we monitor specifically four moments: Recruitment, hiring professionals without a limit in their potential From consultant to manager, where there is a significant potential assessment about managing people From manager to director, where there is a significant potential assessment about selling skills Leaving the organization, trying to get rid of professionals in the right moment. This is again related to the potential assessments, reward management and the number of external opportunities there are in the marketplace.” 11-12-2012 14
  15. 15. THE D & S GAP (I) – A SC APPROACH Correct number of talented people? Correct people in correct positions? (Mis)/Match between Talent (Product) and Organization(SC)? Is the quality of the talent the right? 3-FIT dimensions of (Stahl et al., 2007)  Internal-fit  Culture-fit (Mr. Panagiotopoulos – DOSSEK S.A.)  Strategic-fit (Mr. Kermanidis – AET B.V.) Mr. Kermanidis a junior software support engineer in the A.E.T B.V.Company, located in Arnhem, stated “We have a clear motivating powerboosting us to optimize our strategic mission. The vision is the same, in alllevels; personal targets are just metrics. An organizational target is whatfulfills our strategic thinking.” 11-12-2012 15
  16. 16. THE D & S GAP (II) – A SC APPROACH Mr. Panagiotopoulos after working 17 years as a senior project manager, and the last 3 years as a regional recruiter, for the DOSSEK construction firm, in his reply about the applied rewarding system he answered; “Psychological contracts are not just words for us. We want to work and live as a family. In this culture, money comes after. If you ask our employees about their annual bonuses they will tell you which bonus of all? Each day we try to eat, train, and laugh together as we will do in our houses after the end of work.” 11-12-2012 16
  17. 17. GLOBAL TM (I) 3 main global challenges (Tarique & Schuler, 2010)  Get easily the right skills in the right numbers  Spread out knowledge and HR practices  Screen and develop talent Mr. Seferiadis claimed that he always tries to build up a recruiting strategyfor expanding the firm‟s talent pool in the Middle East area, by assessingthe available know-how, the number of candidates and the potentialdistribution of talent throughout the firm. 11-12-2012 17
  18. 18. GLOBAL TM (II) Trade off: Localization (local talent development) – Globalization (global branding) (Stahl, 2007) Transnational orientation of company Top Management Teams legitimate and support the geographical dimensions of a firm in order to become a truly transnational company (Mellahi & Collings, 2010). 11-12-2012 18
  19. 19. LOCALIZATION VS. GLOBALIZATION (source: Stahl et al., 2007) 11-12-2012 19
  20. 20. TALENT ALIGNMENT AET B.V. HAY GROUP DOSSEK S.A. & TECHNIKI LATOMIKI S.A. (source: Stahl et al., 2007)11-12-2012 20
  21. 21. THE IMPACT OF RECESSION AND ECONOMIC RECOVERY Beginning of 2000s high investments in TM Recession: scrutiny of business expenses Increased HR-pressure for demonstrating adding value in „critical business units‟ Cost-cutting focus and decreasing development budgets (CIPD, 2010). Mr. Arraiz when speaking about the problems in TM practices, supported that “The main problems are related with the social and economic situation. In the years of economic expansion, professionals have lots of opportunities, turnover is over 20%, feeding the talent pipeline is expensive and sometimes we need to take high risks with inexperienced people.” 11-12-2012 21
  22. 22. BUILDING HIGH-QUALITY COLLEAGUES A lot of employers tend to define talented people as the ones who will bepotentially transformed into valuable, high-quality colleagues. High-qualitycolleagues bring many things at the table like sources of information,helpful critics, client interfaces, and reputation (Groysberg, Lee, &Abrahams, 2010, p. 3). Mr. Panagiotopoulos says that “I expect the way our recruits behavetowards the carpenters or masons to behave during our daily interactions.This is why a core ethical target in the firm, is that we want firstly High-Quality colleagues, not just stars. If a candidate passes successfullythrough our human capital processing we will likely consider him astalented.” The same professional did not hide the faults of past, as he admitted thatthe firm did fall into two classic traps, the one of “allowing stars to gosolo” and the other of “overestimating the importance of pay”. 11-12-2012 22
  23. 23. HIGH-QUALITY EMPLOYEES The main hypothesis of (Höglund, 2012) summarizing that „skill-enhancing HRM is positively related to talent inducements, thus the use ofextensive skill-enhancing HRM practices does communicate the centralityof employee qualities reflecting talent‟ is in accordance with the overallperception of Mr. Panagiotopoulos on Talent Management practices. 11-12-2012 23
  24. 24. RETENTION OF TALENTS Human Capital metrics – Score Index (min.1 - max.5) for each respondent  Leadership  Employee motivation  Training and development  Performance improvement  Pay and reward structures 4 spider diagrams for benchmarking the perception on TM targets Individual-level comparisons Firm/Industry-level comparisons (source: Stahl et al., 2007)11-12-2012 24
  25. 25. HUMAN CAPITAL METRICS – SCORE INDEX DOSSEK T. LATOMIKI HAY GROUP AET B.V.INDUSTRY Construction Construction Consultancy ITCOUNTRY Greece Greece Spain NetherlandsLeadership 5 5 3 1Employee 4 4 2 3motivationTraining & 3 3 5 5developmentPerformance 2 3 3 4improvementPay & reward 1 2 5 3structures 11-12-2012 25
  26. 26. DOSSEK S.A. / MR. PANAGIOTOPOULOS Leadership Pay & reward Employee structures motivation Performance Training & improvement development 11-12-2012 26
  27. 27. TECHNIKI LATOMIKI S.A. / MR. SEFERIADIS Leadership Pay & reward Employee structures motivation Performance Training & improvement development 11-12-2012 27
  28. 28. / MR. ARRAIZ LeadershipPay & reward Employee structures motivation Performance Training & improvement development 11-12-2012 28
  29. 29. / MR. KERMANIDIS LeadershipPay & reward Employee structures motivation Performance Training & improvement development 11-12-2012 29
  30. 30. FACTORS AFFECTING THE RETENTION RATE (I) Sufficient and challenging learning opportunities Collaborative atmosphere and co-support Mr. Kermanidis pointed out that “I was offered three times the opportunityfor having a free dinner in any restaurant I would like to choose in 2months. And my line manager the next day, sent a direct mail tocongratulate me for my good job. After all, the next day I feel morecommitted and more open to learn.” The IT fresher admitted that “The general feeling of being always andsystematically supported in all the emerging technical and relationalproblems concerning my job-position constitutes the highest value in mypersonal perception about managing the internal talent of our organization.I am never dealing with the fear of being abandoned in case of complexissues.” 11-12-2012 30
  31. 31. FACTORS AFFECTING THE RETENTION RATE (II) The age counts more than education or seniority: The older an employee, the more likely he is to stay and the less likely he is to leave the organization (Govaerts & Kyndt, 2011). Mr. Arraiz‟s case, an HR-manager and partner for HAY Consulting Group over 20 years opinion is in line with the previous hypothesis. Mr. Seferiadis due to his awareness that modern young employees are likely to change jobs in the start of their career, said that when designing HR strategy for recruiting talents, prefers firstly to choose the best from the lower internal organizational levels and after to outsource for recruits. 11-12-2012 31
  32. 32. DECISION-MAKING IN TM (source: Boston Consulting Group, 2007)11-12-2012 32
  33. 33. CORE TALENT MANAGEMENT PROCESSES (source: Jonathan Rosin, 2009) 11-12-2012 33
  34. 34. EMPLOYER VALUE PROPOSITION & TOTAL REWARDSThe “give &get” betweencompanyand worker. The full portfolio of total rewards programs (source: Talent Management and Rewards Global Survey Report 2012-2013) 11-12-2012 34
  35. 35. IN THE END… WHAT BECAME CLEAR; ORGANZATIONS – REGARDLESS THE NATURE OF INDUSTRY – CARE SERIOYSLY IN: Progressing EVP & TR systems to achieve (re)-designed OUTCOMES Talent Management is the critical strategic path for transforming employees into talented leaders which will highly differentiate firms and will lead them to deliver the most competitive/satisfying services and products to their customers. 11-12-2012 35

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