1. Many organization plans call for major expansion in the areas of product volume, new plant development, and an increased customer base requiring the hiring of new professional and technical employees over the next five to ten years.
2. Increased global and local competition is making it difficult to recruit professional talent in the management and technical disciplines.
3. Many organizations are losing its technical talent and long service employees to local and regional competitors therefore leading to internal retention problems.
4. Local academic and technical institutions are limited in number, and are not enrolling and graduating adequate numbers to meet the demand
5. Government programs and controls may limit an organization from achieving its future strategic and financial goals
6. Many organizations have no manpower “bench strength” in place to address the anticipated company growth or retirements
7. Many organizations have no integrated strategy or specific plan in place to address neither the long-term recruitment requirements nor the retention issues confronting their company.
Talent Management Proposed Objectives
Substantially strengthen and revamp the existing corporate Human Resources function of Workforce Planning and Development to a “State-of-the -Art” one and broaden role of Talent Management.
Establish an internal senior level working “task force” to drive the new talent management initiative to ensure organization future.
Create a corporate intelligence process to assess the demographic trends, competitor growth plans, and higher education environment etc.
Identify the critical organization recruitment requirements to meet future business requirements.
Identify the major HR and retention issues impacting the business…build and implement a plan to address.
Build an integrated internal / external recruitment campaign to respond to employee career interests and attract required.
Design and implement an ongoing strategy to build the internal pipeline.
The global working age population will drop dramatically during the next 15 years and the percentage of people over age 65 will rise substantially.
Every year there will be more workers reaching retirement age than there will be new workers to replace them especially in the world’s wealthiest nations.
Longer lives and lower birth rates are combining to increase the average age of the population leading to increased healthcare and pension costs at a time when there will be fewer taxpayers to shoulder the burden.
In developing countries the poorest, least productive and least educated will become a much larger portion of the world’s population.
Future Predictions – Implications
Consumer demand in the “developed” world will decline impacting their economies.
Labor shortages will occur in the industrialized countries leading to higher levels of wages and lower profit margins.
Steady growth will happen in emerging countries…Asia will be a star performer while Africa will remain in a crisis.
The transferring of manufacturing production to Asia will continue. The “welfare state” will be under threat. Aging populations will put more pressure on government and corporate funded healthcare programs.
Economic, health and lifestyle factors will make working past 65 the norm. Corporate retention programs will focus on keeping the older employee.
By 2020 the mandatory retirement ages in most professions will be raise to at least 70. Retraining will be important.
What is Talent Management?
“It is the strategic management of the flow of talent through an organization.”
“Its purpose is to assure that the supply of talent is available to align the right people with the right jobs at the right time based on strategic business objectives.”
“Is an integrated framework that includes recruitment, retention, professional development, leadership development, performance management, workforce planning, and organizational culture?”
US Retention Research
1. Three out of four employees are job hunting.
2. Eight out of ten employees check external job sites.
3. Twenty three percent of employees look for another job on company time.
4. Fifty six percent of employees will not stay more than 2-years in a job.
“How Do Your Employees Stack-up?”
Major Causes for Attrition
The following represents some of the major reasons why Human Assets leave organizations:
Poor leadership style involving controlling management and lack of delegated decision making…..all decisions come from the top!
Management’s non-receptivity to negative feedback.
Lack of promotional opportunities, development, and mentoring.
Poor communications throughout the organization.
Non-competitive salary and benefits contrasted to competitors.
Limited job scope and non-interesting work.
Managers and supervisors who don’t motivate or inspire.
Perceived discriminatory attitudes and practices within the workplace.
Internal Management Strategies
Senior management (Executive Committee) to define all the elements of an ideal culture for the organization including a specific set of behaviors managers need to adopt to ensure the new culture. These behaviors would be built into the annual performance management process as well as be used for recruitment and training purposes.
Establish an employee council (perhaps the Workers Council) who would represent employees across the organization and work with management to address Talent Management issues.
Conduct definitive research on pay and benefits strategies among competitors within the region. Review the organization’s approach and make adjustments accordingly.
Reasons for Failure
Senior management doesn’t spend enough high-quality time on Talent Management issues impacting the business but leaves it to HR to fix the problem.
Line management is not sufficiently committed to the development, mentoring and motivation of their employees.
The organization functions work in silos and don’t engage in the collaboration or sharing of resources.
Line managers are unwilling to effectively evaluate the performance of their employees as well as differentiate their employees as top, average and underperformers.
Senior management does not align their talent management strategies with the business.
Management does not address the issues of underperforming / nonperforming employees.
Career paths and succession planning processes do not effectively match the right people to critical job roles.
Senior management doesn’t model their “Talent Management” role throughout the organization.