Human Resources Management SCS
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1 Human Resources Management SCS University of Toronto
2 What Does Talent Management Mean? There is a lack of consistency regarding g a true definition. Talent on it s own can mean the combined employee skills of knowledge, cognitive ability and potential. Also important are values and work preferences. Then a company must determine who these talented people are and what their typical background might be. Can a profile of a talented individual or high flyer be identified? If so, how do you motivate and assess them? How do you support their development without compromising the rest of the team? Are two talent management systems needed? One for the high flyers and one for everyone else. Page 2
3 Talent Management Talent management, refers to those special strategies an organization deploy to recruit, retain and develop their pool of people with high potential, scarce knowledge and skill or who can successfully lead transformation and change in the organization. The contribution from these individuals has added direct value to the business strategy or competitive positioning. Benchmark studies show that these strategies are highly innovative and are not in any way bureaucratic. An ongoing process of systematically identifying, acquiring, and developing talent in order to ensure that capability for all key positions continues to be available and developed. Marching effective performance, talent management increases morale and overall productivity. it Page 3
4 Framework for Talent Management An important departure point for effective talent management is to ensure that appropriate people management practices, systems and interventions are in place in all stages of the employment life cycle (from recruitment to exit). The framework for talent management required the emphasis in: Creating the right organizational context for talented people; Ensuring correct leadership and management practices to develop and nurture the talent pool; and Creating a boarder environment that is conducive to attracting and retaining i talented t people. Page 4
5 What Are The Challenges of Talent Management? Changes in the make-up of the workforce has an effect on the how the company recruits, develops and retains key talent. These can include: An increasingly global labour market; An increasingly virtual workplace; Diverse workforce in age, race and culture; Individuals who choose their own lifestyle and develop their own career path; Recognizing the trend of employees striving for a work-life balance; and Focus on the contribution while made at work. Page 5
6 Old versus New Mindset on People and Talent The Old Way The New Way Talent Mindset HR is responsible for people management All managers starting with the CEO are all accountable for strengthening their talent pool Employee Value Proposition We provide good pay and benefits We shape our company, even our strategy, to appeal to talented people Recruiting Recruiting is like purchasing Recruiting is like marketing Page 6
7 Old versus New Mindset on People and Talent The Old Way The New Way Growing Leaders We think development happens in training programs We fuel development through stretch jobs, coaching, and mentoring Differentiation We treat everyone the same, and like to think that everyone is equal capable We affirm all our people but invest differentially in our A, B, and C players Page 7
8 Research from the Corporate Leadership Council The Corporate Leadership Council has done the following research: Talented people value individualized mentoring, coaching and career advancement opportunities. These individuals d regard the quality of leadership and management practices as the single most important factor in considering career opportunities. Factors such as base salary, external equity, health h benefits albeit high h in importance are regarded less important than quality of management. Talented people also have high demands in terms of work-life balance. They generally want their work life to be integrated with their personal life and not the other way round. They also want access to facilities and lifestyle options that suit their preferences, for example modern shopping malls, extreme sport, clubbing etc. Page 8
9 Talent Retention Six Key Factors in creating a compelling work environment: Inspiration and values; Quality of work; Enabling environment; Tangible rewards; Work/Life balance; and Future growth/ opportunity. Page 9
10 Why Does Talent Management Fail? Page 10
11 Why Does Talent Management Fail? Managers don t realize that they are responsible for identifying talented individuals. Managers believe that HR is responsible for building the talent pool. Managers feel that they need to focus on managing the business. Talent management is a learnable skill. Every manager should learn how to manage talent t effectively just as they would manage strategic planning or new product development. Page 11
12 Talent Management and The Strategic Plan The company will determine if an elitist talent management program is followed or if an inclusive program is used. An elitist program will only focus on the high talent individuals and in the areas of emotional intelligence, technical and leadership skills and the ability to perform beyond their cultural comfort zones. An inclusive program will let competition occur and employees from different areas strive towards one job. An inclusive program will also allow for any worker to succeed. The goal is to link the development, performance and rewards needs of the employee to the company s strategic plan. Page 12
13 Talent Management and The Strategic Plan Managers and leaders need to develop a talent mindset. A talent mindset is a belief that having better talent at all levels allows your company to outperform the competitor and run more productively. Managers need to see this as a critical i part of their job as a leader. Establish a set of talent strengthening objectives each year. Make sure that this is a corporate strategy and all managers are following guidelines in developing the most out of each employee. Page 13
14 Talent Management and The Strategic Plan Does the company have an overall HR plan? The areas to review: Corporate identity; Recruitment and selection; Performance management and coaching; Employee development and training; Compensation, rewards and benefits; and Success planning and leadership development. Page 14
15 Levels of Maturity of Organizational Talent Management No strategies, policies or formally developed practices. Where talent is managed, it is informal and incidental. Isolated/tactical/local pockets of talent management activities. No overall strategy or plans. Integrated and coordinated talent management activities for a particular segment of the organization. Strategy designed d to deliver corporate and HR management strategies. Strategy where individuals and pooled talent is understood and taken into consideration in the strategic process. Page 15
16 Three Core Areas in Talent Management Assessment To identify and harness potential. Coaching To develop capability and the learning power to release it. Engagement To create the environment, inspiration and energy to liberate and maximize talent. Page 16
17 How Employees are Assessed in New Approach to Talent Management Page 17
18 Assessment Categories and Levels Page 18
19 When The Wolves Come Hunting How does an organization plan for talent being raided? In a labour shortage, talented employees will be recruited away from their companies. How do you deal with ih i? it? New blood is good for the company but the company also needs key talent to stay. A company may develop a blocking strategy Blocking strategy is a plan to limit the ability of external companies or third party recruiters from contacting and recruiting i away your best talent. Page 19
20 When The Wolves Come Hunting How is this done? A comprehensive blocking strategy covers nearly every channel a recruiter might use Inbound telephone calls; Direct targeting at conferences and events; Networking through local association meetings and electronic communities; Direct and indirect and mail; Website advertising; and Employee referral. Identify who they are targeting or might target. Minimize the impact of successful raiding attempts. Develop preventative strategies from it happening again. Page 20
21 Talent Management Is Essential!! Page 21
22 References 1. Handfield-Jones, Helen, & Michaels, Ed, & Axelrod, Beth, (2001). Talent Management: A critical part of every leader s job. Ivey Business Journal, Improving the Practice of Management, November/December 2001 p Talent Management: Understand d the Dimensions. i accessed November 23, Wheeler, Kevin, Why Developing and Rotating your Employees makes sense, November 9, accessed November 23, Haygroup, Talent Management: Retaining Your Key Talent, June accessed November 23, Maintenance World, Talent Management: What s it mean? June 12, accessed November 23, Sullivan, Dr. John, A Blocking Strategy for Increasing Employee Retention, Part 1: Preventing other firms from raiding and poaching your employees, November 20, DF8B45B092F6A87DE0.asp accessed November 23, Snell, Alice, New Thinking, November 21, t /t l t t accessed November 23, 2006 p Sullivan, Dr. John, Recruiting and Talent Management Trends for 2005, January 3, C0A43F486202F2FAAB9A3DE.asp accessed November 23, Gomez-Mejia, Luis R., Balkin, David B., & Cardy, Robert L., & Dimick, David E., & Templer, Andrew J., Managing Human Resources: Third Canadian Edition, Pearson Prentice Hall, 2001 Page 22
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