Transcript Talent Management in 2020

Talent Management in the 2020s
TDN 5th September 2014
Catherine Shepherd
Objectives for today
• Define talent management
• Remind ourselves why talent management is
important (to organisations and individuals)
• Identify future trends in work generally and talent
management particularly
• Share practical tools, techniques, methods, hints
and tips
• Discuss personal implications to us as
coaches/consultants of future trends in talent
management
What is “Talent Management”?
What is Talent Management? Inclusive
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“Succession planning and management is the process that helps ensure the
stability of tenure of personnel. It is perhaps best understood as any effort
designed to ensure the continued effective performance of an organisation,
division, department, or work group by making provision for the development,
replacement and strategic application of key people over time.
Rothwell, W. (2005). Effective Succession Planning: Ensuring leadership continuity
and building talent from within. AMACOM, New York
“Succession planning sits inside a a much wider set of resourcing and development
processes that we might call succession management. This encompasses the
management resourcing strategy, aggregate analysis of demand/supply, skills
analysis, the job filling process and management development (including
graduates and high fliers).
Hirsh, W. (2000). Succession Planning Demystified, IES Report 372.
“Talent management is the process through which employers anticipate and meet
their needs for human capital”
Cappelli 2008b as cited in Thunnissen, M et al (2013). A Review of Talent
Management: Infancy or Adolescence. International Journal of Human Resource
Management, 27 (9), 1744-1761.
What is Talent Management? Exclusive
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Talent management is the additional management processes and opportunities
that are made available to people in the organisation who are considered to be
talent.
Chartered Management Institute & Ashridge Consulting (2007). Talent
Management: Talent for business performance.
Talent management is the systematic attraction, identification, development,
engagement, retention and deployment of those individuals who are of particular
value to an organisation, either in view of their 'high potential' for the future or
because they are fulfilling business/operation-critical roles. www.cipd.co.uk/hrresources/factsheets/talent-management-overview.aspx
“Talent management is the systematic attraction, identification, development,
engagement/retention and deployment of those individuals with high potential
who are of particular value to an organization”
Davies and Davies 2010, as cited in Thunnissen, M et al (2013). A Review of Talent
Management: Infancy or Adolescence. International Journal of Human Resource
Management, 27 (9), 1744-1761.
What is Talent Management? Exclusive
•
•
“Activities and processes that involve the systematic identification of key positions
which differentially contribute to the organisation’s sustainable competitive
advantage, the development of a talent pool of high potential and high performing
incumbents to fill these roles, and the development of a differentiated human
resource architecture to facilitate filling these positions with competent
incumbents and to ensure their continued commitment to the organization”
Collings and Mellahi 2009, as cited in Thunnissen, M et al (2013). A Review of
Talent Management: Infancy or Adolescence. International Journal of Human
Resource Management, 27 (9), 1744-1761.
“Global talent management includes all organisational activities for the purpose of
attracting, selecting, developing, and retaining the best employees in the most
strategic roles (those roles necessary to achieve organisational strategic priorities)
on a global scale”
Scullion and Collings 2011, as cited in Thunnissen, M et al (2013). A Review of
Talent Management: Infancy or Adolescence. International Journal of Human
Resource Management, 27 (9), 1744-1761.
What is Talent Management?
Inclusive approach, employee as subject
Exclusive approach, employee as subject
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•
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•
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Talent is the entire workforce
Talent = human capital
Talent mgmt = Human Resource
Management
Criticised that so broad meaningless
•
Talent = small segment of workforce
Selection of segment in terms of (potential)
performance
Criticised for self-fulfilling prophecy, too
focused on individual, and high
performance is not a talent
Inclusive approach, employee as object
Exclusive approach, employee as object
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•
•
•
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Allows every employee to reach their
potential
Development of the talents of every
employee emphasised
Talent mgmt = Human Resource
Development
•
Talent = small segment of workforce
Selection of segment in terms of above
average abilities and application of those
abilities to deliver excellent performance
Talent mgmt = giving employees who are
highly capable and motivated opportunities
to develop self
Subject =talented people. Object = talent as characteristic of people (innate, mastery, commitment, fit).
Inclusive (all employees). Exclusive (select group).
Gallardo-Gallardo, Dries & Gonzalez-Cruz (2012). What is the meaning of ‘talent’ in the world of work? Human
Resource Management Review, 23, 290-300
“Several authors have stated,
however, that workforce
differentiation is the key
differentiating principle between
talent management and strategic
human resource management more
generally”.
Dries (2013). The psychology of talent management: a review and research
agenda. Human Resource Management Review, 23, 272-285.
“When an organisation takes an
object approach …more likely to see
competence management and
knowledge management as central
practices. Organisations that take an
subject approach … more likely to
rely on succession planning and
organisational career management”.
Dries (2013). The psychology of talent management: a review and research
agenda. Human Resource Management Review, 23, 272-285.
“While an inclusive approach to talent
management is believed to lead to a
more pleasant working environment
characterised by openness, trust and
overall employee wellbeing, the
exclusive approach is assumed to to
generate higher return on investment in
terms of profit and productivity, brought
about by increases in achievement
motivation of star employees ”.
Dries (2013). The psychology of talent management: a review and research
agenda. Human Resource Management Review, 23, 272-285.
“Often the practice of leaving room
for interpretative flexibility results in
discrepancies between
organisational discourse and
practice … poses a serious threat to
the reputation of HR practitioners as
legitimate business partners”.
Dries (2013). The psychology of talent management: a review and research
agenda. Human Resource Management Review, 23, 272-285.
Why is Talent Management important?
Why is Talent Management important?
Why is Talent Management important?
Companies with level 4 talent programmes:
• Generate A% more revenue per employees than their peers
• Have B% lower voluntary turnover amongst high performers than
peers
• Were C% less likely to downsize during the 2008 recession than
peers
Bersin & Associates 2010
Investing in 16 talent management practices, as opposed to not, leads
to:
• D% higher fulfillment of psychological contract
• E% less violation of psychological contract
• F% more commitment
• G% less turnover
Tilburg University in cooperation with Accenture, October 2009
Why is Talent Management important?
Companies with level 4 talent programmes:
• generate 26% more revenue per employees than their peers
• have 40% lower voluntary turnover amongst high performers than
peers
• Were 28% less likely to downsize during the 2008 recession than
peers
Bersin & Associates 2010
Investing in 16 talent management practices, as opposed to not, leads
to:
• 27% higher fulfillment of psychological contract
• 34% less violation of psychological contract
• 13% more commitment
• 19% less turnover
Tilburg University in cooperation with Accenture, October 2009
Why is Talent Management important?
Turnover
intention
Turnover
intention
Commitm
ent
Commitm
ent
Non talent
PC
violation
Talent
PC
fulfilment
-2%
Non talent
PC
violation
Talent
PC
fulfiment
0%
2%
-10%
0%
10%
Tilburg University in cooperation with Accenture, October 2009
Why is Talent Management important?
0.191
sig at
5%
level
+5.71
Talent
Management
+3.35
Psychological
contract
fulfillment
Commitment
Turnover
intention
+4.67
0.156
sig at
5%
level
Tilburg University in cooperation with Accenture, October 2009
Why is Talent Management important?
• “Talent management is not an end in itself. It’s not about developing
employees or creating succession plans, nor is it about achieving specific
turnover or any other tactical outcome. It exists to support the
organisation’s overall objective (which in business essentially amounts to
making money).”
Capelli 2008a, as cited in Thunnissen, Boeslie & Frutyier (2013). A Review of Talent Management: Infancy
or Adolescence. International Journal of Human Resource Management, 27 (9), 1744-1761.
• Organisations should strive for societal goal of sustainability (diversity,
social responsibility, human and employee rights, protecting the
environment and contribution to the economy).
Boudreau & Ramistad (2005) as cited in Thunnissen, Boeslie & Frutyier (2013). A Review of Talent
Management: Infancy or Adolescence. International Journal of Human Resource Management, 27 (9),
1744-1761.
• To enhance organisational performance, organisations should focus on
individual performance by means of increasing motivation, commitment
and extra-role behaviour. Work and organisational engagement and
alignment are indirect objectives of talent management.
Thunnissen, Boeslie & Frutyier (2013). A Review of Talent Management: Infancy or Adolescence.
International Journal of Human Resource Management, 27 (9), 1744-1761.
Future of work and implications for
Talent Management
PwC Megatrends
CEOs (1)
General (2)
Demographic and social change
By 2050 the population of 15-64 year olds will have decreased by 150m in
China, increased by 317m in India, and will be larger in Nigeria than in the
US.
60%
33%
Shift in global economic power
By 2020 China will overtake US as the largest economy.
By 2030 E7 will replace G7 in terms of size and purchasing power.
59%
36%
Rapid urbanisation
By 2050 75% of the world’s population will live in urban areas.
40%
26%
Climate change and resource scarcity
Global food demand predicted to increase by 35% by 2030. Proven oil
supplies will last 50 years at current demand levels.
46%
39%
Technological breakthrough
90% of data that exists less than 2 years old, only 0.5% analysed.
In 2001 it cost $96m to sequence a genome, in 2013 $6000.
½ of jobs in US are in danger of being replaced by a computer in next 20
years.
81%
53%
(1) % of CEOs (1314 surveyed Sept-Dec 2013) that listed megatrend as transforming their business in next 5 years.
(2) % of 10,000 people surveyed in China, India, Germany, UK and US. What will transform way people work over next 5-10 years?
PwC Megatrends
CEOs
• 63% are concerned about availability of key skills (c.f. 61% 2008, and 46% 2009)
• 58% are concerned about rising labour costs in high growth markets
• 93% recognise the need to change their talent strategy, but 61% haven’t started.
• Only 34% think HR are well prepared to capitalise on these trends (c.f. 56% finance
to 28% R&D)
General population
• Most important thing in a job for 44% is job security, for 29% take control of their
career and do what they want when they want
• 65% of people want to work for an organisation with a social conscience
• 40% of people believe that traditional employment won’t be around in the future
• 46% of HR professionals expect at least 20% of their workforce to be temporary
contractors by 2022
Demographic - PwC Millennials at
Work
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
Born between 1980 and 2000 (?)
By 2020 will be ½ of global workforce, although in short supply in countries with
low birth rates
54% expect to have 2-5 employers (2008 75%), 25% expect to have 6+ (2008 10%)
72% feel they have made a compromise to get into work, with only 18% expecting
to stay with their current employer long term
First choice benefit = personal learning and development, second choice = flexible
hours, third choice = cash. But 28% feel work-life balance worse than what they
expected, and over 50% feel talk about equal opportunities is not delivered on
41% prefer to communicate electronically (rather than F2F or phone), 75% believe
technology makes them more efficient. Many feel held back by outdated working
practices
Just over 50% attracted to employer because of their CSR position (2008 88%),
56% would consider leaving if their values did not align (2008 86%). 30% of Swiss
respondents would not work in B&CM sector
 4364 graduate responders in 75 countries to online survey 2011. All younger than 31, and graduated 2008-2011.
Millennial and Work-Related Attitudes
•
Meta-analysis of 20 studies (1995-2009) giving pair-wise comparisons across Traditionals,
Baby Boomers, Generation Xers, Millennial. Nearly 20,000 subjects. Costanza et al (2012).
Generationall differences in work related attitudes: A meta-analysis. Journal of Business and
Psychology, 27 (4), 375-394.
• Positive score older generation higher, negative score older generation lower. Mean
differences 0.02 - 0.25 for job satisfaction, -0.22 – 0.46 for organizational commitment, -0.62
– 0.05 for intent to turnover.
• Moderate to small differences, older generations may be slightly more satisfied, less likely to
leave and may be more/less/no different in commitment. But …
1.
Age and tenure are positively correlated with job satisfaction (0.18, 0.12 after
controlling for tenure).
2.
Age negatively correlated with actual turnover (-0.08 to - 0.14)
3.
Results for organizational commitment are mixed.
4.
Social dominance, conscientiousness and emotional stability tend to increase with
age, and these traits are positively associated with job satisfaction.
“Findings suggest that meaningful differences among generations probably do not exist on the
work-related variables we examined and that the differences that appear to exist are likely
attributable to factors other than generational membership.”
Millennials and Leadership
• Centre for Creative Leadership (CCL) World Leadership Survey (2014): how
much of each of the following characteristics helps make a leader
effective?
US managers beliefs about leadership
5
4
3
2
1
0
5940 US
respondents
Millennials and Leadership
5
4.5
Participative
4
Team-orientated
Humane-orientated
3.5
Charismatic
3
“Contrary to popular
belief, younger and
older employees have
very similar ideas about
what makes a leader
effective”.
2.5
2
1.5
1
21-30
Millennial
31-40
41-50
Generations
Xers
51-60
61-70
Baby Boomers
Millennials and TM practices
Tilburg University in cooperation with Accenture, October 2009
Technology – “Like Curly Fries on
Facebook. Then you’re clever”
• Daily Telegraph 12.3.13
• Kosinski, Stillwell & Graepel (2013). Private traits and attributes are
predictable from digital records of human behaviour. Proceedings of
National Academy of Sciences of USA, 110 (15), 5802-5
• Analysed data from 58466 US volunteers of Facebook “likes” (median 68)
and personality tests. From relatively basic data estimate wide range of
attributes that you assume are private:
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–
–
–
–
–
African v Caucasian American 95%
Homosexual v Heterosexual male 88%
Democrat v Republican 85%
Christian v Muslim 82%
Use of addictive substances 65%-73%
Parental separation <21 years 60%
• Predictive accuracy of age r=0.75, size and density of network 0.52 and
0.47, openness 0.43, extraversion 0.40, intelligence 0.39
Other trends - assessment
• Use of personality testing e.g. Five Factor Model
– Barrick, Mount & Judge (2011) reviewed 11 meta-analyses of personality and
job performance: conscientiousness p around 0.3, emotional stability around
p around 0.2, other traits important to some professions and some criteria
– Ones, Dilchert, Viswesveran & Judge (2007). Correlation of Big Five as set
r=0.44 for counterproductive work behaviours, r=0.45 for organizational
deviance
– Connelly & Ones (2010). With multi-rater assessment job performance
correlations r=0.55 for conscientiousness and 0.37 for emotional stability. If
30% of job performance variance due to conscientiousness trait why wouldn’t
organizations use this in talent assessment?
– Judge, Higgins, Thoresen & Barrick (1999). 60 year longitudinal study extrinsic
career success correlation with 0. conscientiousness β=44, with neuroticism
β=-0.21.
– Ng, Eby, Sorensen & Feldman (2005). Meta-analysis correlations for
neuroticism and various career success measures are -0.12 for salary, -0.11 for
promotions, -0.36 for career satisfaction. For conscientiousness 0.07, 0.06 and
0.14 respectively.
Other trends – leadership
development
Center for Creative Leadership (2011). Future Trends in Leadership Development:
• VUCA world:
– Volatile: changes happen rapidly and on a large scale
– Uncertain: future cannot be predicted with any precision
– Complex: challenges are complicated by many factors and there are few single
causes
– Ambiguous: little clarity about what events mean and what effect they may
have
 Need adaptability, self-awareness, boundary scanning, collaboration, network
thinking
• Most common development methods are training, job assignments, action
learning, executive coaching, mentoring, 360-degree feedback. Are these
sufficient?
1. More focus on vertical development (development stages that must be earned
by oneself)
2. Transfer of greater developmental ownership to the individual
3. Greater focus on collective rather than individual leadership (needs open flows
of information; flexible hierarchies; distributed resources; distributed decision
making; loosening of centralised controls)
4. Much greater focus on innovation in leadership development methods
Practicalities
Bersin & Associates
Bersin & Associates
PwC Talent Management Diagnostic
and Framework
18 Operational Dimensions
Defining
Developing
Structures and systems
Size of talent pool
Development path
Performance management
Entry criteria
Development focus
Talent management
processes
Decision process
Support
Use of technology
Permanency of definition
Influence on career
Systems flexibility
Recruitment as a source of
talent
Connected conversations
Ownership of talent
Transparency
Organisational values
Risk
Chartered Management Institute & Ashridge Consulting (2007)
Oh No - the 9 Box Grid
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Performance
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Potential
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How are ‘performance’ and
‘potential’ defined?
If talent = competence x commitment
x contribution how can this be
assessed? (Ulrich & Smallwood 2012)
How to assess which roles are
strategic / pivotal?
Assessment subjective: mini-me,
politics etc..
Context: A player might look like B
player and vice versa depending on
circumstances
Can past performance predict future
performance?
Self-fulfilling prophecies
Fear of failure amongst “stars”
Danger of resentment
Impact
Santander (Talent Conference July ’13)
Team star
Exceptional
functional
Exceptional
org’l
Team
professional
Strong
functional
Strong org’l
Under
achiever
Potential
functional
Potential
org’l
Valued at
what good
at
Specialists
Potential
to move xfunction
Credibility
Impact:
• Achievement
• Performance
• Comparison to external
and internal peers
Credibility:
• Capability
• Characteristics (learning
agility/curiosity,
intelligence, values, EQ,
drive and resilience)
• Commitment
Performance trend over time
Does not meet to exceeds
Coca-Cola Enterprises
(Talent Conference July ’13)
Mastery
Top talent
Star
Strong
contributor
Emerging
talent
Rising star
Potential exit
Placement
issue
Derailing
Same
brand
Potential
Multiple
jumps
DDI Leadership Potential Factors
Sustained Performance
+
Leadership Promise
• Propensity to lead
• Brings out the best in people
• Authenticity
Balance of Values & Results
• Culture fit
• Passion for results
Personal Development Orientation
• Receptivity to feedback
• Learning Agility
Mastery of Complexity
• Adaptability
• Conceptual thinking
• Navigates ambiguity
=
Growth Into Leadership Roles
Role of Corporate HR in Global Talent
Management
1.
Champion of processes: developing and monitoring practices, policies, strategies and tools.
Very important in centralised functions, less important in decentralised.
2.
Guardian of culture: ensuring a culture of mobility across the organisation. Senior
management and line manager support very important too.
3.
Manager of receptivity: encouraging the inflow and outflow of talent across business units.
Again senior management and line manager support very important.
4.
Network leadership and intelligence: developing networks inside and outside the
organisation to support the talent management processes. Important in both centralised
and decentralised functions.
Farndale, Scullion & Sparrow (2010). The role of the corporate HR function in global talent
management. Journal of World Business, 45, 161-168:
“Global talent management is not just systems and processes, but the need to encompass a
talent mind-set across the entire organisation, enshrined in the organisational culture and
practices”.
“Different elements of a global talent management process can be intentionally embedded at
different levels of the global integration – local response continuum”.
Sparrow, Farndale & Scullion (2013). An empirical study of the role of the corporate HR function
in global talent management in professional and financial services in the global financial crisis. .
International Journal of Human Resource Management, 27 (9), 1777-1798.
Conquering the Seven Myths of Global
Talent Management
1.
2.
3.
4.
5.
6.
7.
GTM is the joint responsibility of top management and corporate HR, as it is owned by
management but governed by HR through the differentiated HR architecture
When designing GTM systems, start with strategic positions: i) related to global strategy and
have direct impact on implementation effectiveness; ii) high variability in performance
depending on quality of people in position; iii) require unique firm, industry, local knowhow.
GTM systems should focus on placing and retaining A players in strategic positions
regardless of where located.
When relocating top talent, strive to offer access to physical and social contexts that are as
similar as possible to home context.
Develop a nuanced understanding of e’ee t/o: quality and roles of departing e’ees and the
destination organisation (co-operator or competitor).
Return on Talent measure should include quantitative and qualitative date, employee
perceptions and objective indicators of talent performance
Recognise the limitations of systems and processes aimed at standardised ratings of
performance and potential. Use a number of different inputs (appraisals, 360, development
centres, senior leader panels).
Conquering the Seven Myths of Global
Talent Management
Practical implications for investment in GTM:
1. Align GTM with global strategy
2. Establish core and differentiated HR architectures for GTM. Differentiated focuses on pivotal
positions, core focuses on rest of the organisation
3. Differentiate amongst pivotal positions – which need A players?
4. Review the role of corporate HR
i) developing, implementing and measuring the effects of GTM
ii) balancing global and local talent needs
iii) making GTM a basis for employer branding through differentiation
Minbaeva and Collings (2013). Seven myths of global talent management. International Journal of
Human Resource Management, 27 (9), 1762-1776.
Talent Analytics
Six kinds of increasingly sophisticated talent analytics:
1. Human Capital facts – what are the key indicators of my organisation’s overall health? e.g.
JetBlue crew net promoter score predicts employee engagement and financial performance.
2. Analytical HR – which business units, departments or individuals need attention? E.g.
Lockheed Martin real time performance review data to identify areas that need improving.
3. Human Capital investment analysis – what actions have the greatest impact on business
performance? E.g. Sysco started with measuring employee satisfaction, retention,
productivity, added in 7 other measures including supervisor effectiveness, diversity and
quality of life.
4. Workforce forecasts – how do I know when to staff up or cut back? E.g. Dow Chemicals
models future workforce for 5 age groups and 10 job levels under various trends and “what if
scenarios”
5. Talent value model – why do employees chose to stay or leave? E.g. Google measures what
both high performing and low performing employees value and designs interventions to
support both
6. Talent supply chain – how should my workforce change to adapt to changes in the business
environment? E.g. predictions of call centre volumes and so hourly levels of staffing.
Davenport, Harris & Shapiro (2010). Competing on talent analytics. Harvard Business Review.
Implications
So what?
For us as consultants and coaches
References
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Center for Creative Leadership (2014). What makes a leader effective? US
boomers, Xers, and millennial weigh in.
Chartered Management Institute & Ashridge Consulting (2007). Talent
Management: Talent for business performance.
Clutterbuck, D. (2012). The Talent Wave: Why Succession Planning Fails and What
to Do About It. Kogan Page Ltd, London.
Dries (2013). The psychology of talent management: a review and research
agenda. Human Resource Management Review, 23, 272-285.
Journal article covering definitions, contributions from different fields, and
tensions between different perspectives.
Minbaeva and Collings (2013). Seven myths of global talent management.
International Journal of Human Resource Management, 27 (9), 1762-1776.
Journal article covering myths and how to conquer them.
PwC 17th Annual Global CEO Survey: The Talent Challenge: Adapting to Growth
http://www.pwc.com/gx/en/hr-managementservices/publications/assets/ceosurvey-talent-challenge.pdf
References
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PwC The Future of Work: A Journey to 2022
http://www.pwc.co.uk/human-resource-services/publications/the-future-of-worka-journey-to-2022.jhtml
PwC Millennials At Work: Reshaping the Workplace
http://www.pwc.com/gx/en/managing-tomorrows-people/future-ofwork/assets/reshaping-the-workplace.pdf
Tilburg University in cooperation with Accenture, October
2009http://www.accenture.com/nlen/Documents/PDF/Accenture_TMreport_A4_Brochure.pdf
Thunnissen, Boeslie & Frutyier (2013). A Review of Talent Management: Infancy or
Adolescence. International Journal of Human Resource Management, 27 (9), 17441761.
Journal article summarising 62 talent management articles from 2001-2012. Good
for definitions, outcomes and activities (at a very high level).