Emerging Trends of Talent management and Challenges of HRM

Emerging Trends of Talent management in HRMenterprise technology. It is not a trivial transition.
 Enhanced functionality, dynamic global influences and
Introductionrequirements, new solution delivery models and an
            Talent management is ainfrastructure shift to services-based architectures are
professional term that gained popularity in the latechanging the way companies upgrade and adopt new
1990s. It refers to the process of developing andtechnology solutions.
fostering new workers through on boarding, developingThe success of the talent management market rests
and keeping current workers and attracting highlyon:
skilled workers at other companies to come work for• Integrated functionality and usability: Many vendors
your company. Talent management in this contexthave invested heavily in the usability and integrated
does not refer to the management of entertainers.functionality of their solutions. The ability to seamlessly
Companies that are engaged in talent managementintegrate data and streamline navigation and use
(human capital management) are strategic andenhances the user experience and encourages
deliberate in how they source, attract, select, train,increased use of the solutions. A single data model
develop, promote, and move employees through thetechnology infrastructure is ideal to maximize
organizationperformance and simplify application management.
What is talent management?• Dynamic influences in shaping the global
            The term talent managementworkforce: Companies are being forced to adjust to
means different things to different people. To some itever-changing global regulatory and compliance issues
is about the management of high-worth individuals orthat outline how companies can find, recruit and
"the talented" whilst to others it is about how talent ismanage their workforces. In addition to automating HR
managed generally - i.e. on the assumption that allprocesses, companies are now focusing internally to
people have talent which should be identified andbuild a performance-based culture centered on
liberated. This term is usually associated withmetrics-based business outcomes and driving additional
competency-based human resource managementvalue of the company by adapting and improving the
practices. Talent management decisions are oftenway they manage their global workforce.
driven by a set of organizational core competencies• Rapid acceptance of the on-demand model: The
as well as position-specific competencies. Themajority of most vendors’ revenue comes from an
competency set may include knowledge, skills,annuity-based hosted delivery mode. Indeed, many
experience, and personal traits. Talent management isrecognize 100 percent of their revenue from their
the recruitment, development, promotion and retentionon-demand solutions. The general acceptance of the
of people, planned and executed in line with ouron-demand model owes much to its proven success
organisation’s current and future business goals.within other enterprise application categories such as
Because it is aimed at building leadership strength inCRM. In addition, the diminished impact of security
depth, it creates flexibility to meet rapidly changingissues has helped build the on-demand model.
market conditions. A structured talent management• Demand for service and support excellence:
process will systematically close the gap between theService and support distinction has surpassed security
human capital an organization currently has and theissues as the key concern for those adopting talent
leadership talent it will eventually need to respond tomanagement applications. Although security issues are
tomorrow’s business challenges.still prevalent, especially if IT is involved in the
Talent Management as a Strategic Approachdecision-making process, key stakeholders in the
            We view talent management asvendor selection process have shifted their focus
a strategic approach to managing human capitaltoward ongoing service and support issues as their
throughout the career cycle: attracting, retaining,key areas of interest. Many vendors continue to
developing and transitioning your most importantdevelop support options that meet the needs of their
assets.customers and have become very sophisticated in the
Attracting Talent: Creating Assessment and Selectiontools and techniques used to measure service-level
Strategies and Processesperformance.
            Attracting qualified talent is the• Multinational capabilities: Global enterprises are
critical first step in the talent management cycle. Thedemanding multi-language capabilities and in-country
improving economy, Baby Boomer retirement anddomain expertise to support the ever-changing
other factors are creating keener competition forinternational laws. A changing global landscape and an
talent these days, making this critical step tougher thanincreasing assortment of compliance issues require
ever. So how do you get a leg up on the competition?vendors to maintain a strong international presence.
Matching the Right Candidate to the Boss 
Matching the right person to the right job is an            The time is now to leverage talent
acknowledged need in organizations. But one of themanagement technologies. Today’s available talent
toughest challenges in selection often overlooked ismanagement solutions can not only support the
matching the right candidate to his immediate boss.changing dynamics of your workforce, but help plan
What makes that goal particularly tough is when thefor the future in building both a high caliber workforce
boss does not have a clue what kind of candidateand performance-based culture.
would work well with him. Working with various tools, 
we can design and customize assessment exercisesSeven talent management practices that matter
and materials. We also identify critical competencies            How can you create an enriching
your people will need, develop success predictors andworkplace? It isn't easy and doesn't happen overnight.
consult with you on general recruiting strategies.But with some planning, a lot of persistence and adept
Retaining Talent: Reducing Turnover and Aligningexecution of seven key practices, any organization
Talent with Organization Goalscan create an enriching workplace.
            With 75% of employees looking1. Job Stretch and Mobility
for new employment opportunities at any given time            Feel like you're stuck in a box at
and five million Baby Boomers expected to retire in thework? If you do you've got plenty of company. Many
next few years, the war for talent is back on.organizations define jobs narrowly and allow little or no
Companies that develop successful retentionmovement across organizational boundaries or even
strategies can win that war. Most companies todaywithin them. But to grow, talented people need to be
would acknowledge that their human assets are theirconstantly challenged and stretched. This means the
most important asset. But since companies can’tability to take risks, to try new things, and yes, even to
own employees the way they own factories orfail - whether by doing something differently in an
product, your success or failure hinges on the qualityexisting job or tackling an entirely new one. If
and duration of the relationships you form with yourexperience is indeed the best teacher how much are
people: retaining talent.we learning if what we do rarely changes?
Developing Talent:            SEI Investments, a leading global
Challenging Your People with Executive Coaching andprovider of outsourced investment business solutions,
Leadership Development Programs.has created an environment that provides continual
            Employees cite careerchallenge to staff and enables them to regularly move
development as one of two top job satisfiers, alongaround the organization and to frequently take on new
with compensation. Your employees want to betasks and responsibilities.
challenged and developed. If they’re not, they will2. Mentoring Not Just Managing
become less productive or perhaps even leave.            Nothing speeds up the transfer of
 knowledge and know-how or enhances individual
            Career Partners Internationaldevelopment more than a quality one-to-one dialogue
provides a full range of services for developing talent,between an experienced person and an
ranging from career development, executive coachingup-and-comer.
and leadership development to new job integration,            W.L. Gore, creator of Gore-Tex
team building and succession planning. And ourfabrics, is a mentoring-intensive organization. Managers
measurement techniques will demonstrate to topare called "Sponsors" and act as advocates for their
management how investing in your talent pays off.assigned staff. They commit to being knowledgeable
 about their activities, well being, progress,
Career Development / Career Managementaccomplishments, personal concerns and ambitions.
            These programs are designed forEach associate has at least one sponsor and some
professional and entry- to mid-level managers. CPIhave more than one.
provides assessment and feedback, planning, support,3. Freedom and Stimulation
coaching and other tools, tailored to help your peopleOften the environment in which people work can
realize their career goals, aligned with organizationalmake a huge difference to the speed and quality of
goals.people development. Two ingredients essential to
 making a workplace conducive to learning are
New Job Integration / Assimilationstimulation - through frequent exposure to a wide
            The first one hundred days on avariety people and ideas and the freedom to explore
job are critical for new leaders. We assess and coachand pursue individual ideas and passions.
leaders to gain effectiveness more quickly, avoiding            Google is a nirvana for the best
common pitfalls of their new roles. We provideand brightest technical talent in the world. The
feedback, planning and coaching, based oncompany's commitment to human capital is strong and
assessments.was a core principle expressed in its now famous IPO
Leadership Developmentfiling in 2004. Staff are given huge amounts of
            Our leadership developmentfreedom to determine when, where, how and on what
programs include a wide variety of leadership andthey work. Each is allowed to spend 20% of their time
management skills for developing talent, includingeach week working on personally initiated projects.
coaching, conflict management, decision making,4. Deep Immersion
delegating, mentoring, motivating and performance            Nothing frustrates talented people,
management. We develop a leadership model specificparticularly young up-and-comers, more than being
to your company’s needs and help organizationsasked to wait their turn before getting the opportunity
implement and manage their leadership developmentto contribute to important projects or initiatives. This is
programs. We provide assessment and feedback,not only demotivating to people but counter-productive
action planning, coaching and support to promoteto performance as opportunities to contribute depend
changes that align leadership and organizationalmore on tenure and pecking order than merit.
performance.            Trilogy, a software company
Transitioning Talent; Creating Goodwill through Careerbased in Austin Texas not only avoids this problem, but
Transition Programshas created a fast- track, merit-based process that
            Put as much thought into how youstarts with every new hire. Its induction program is on
transition employees out of the company as you dosteroids - goals are not only cultural induction, bonding
attracting talent, and the return on investment is usuallyand skill development but to create the company's
a happier workforce, separated employees who arenext generation of ideas, products and leaders. The
more contented, and a community that regards you asprogram is led and run by Trilogy's top executives,
a good citizen. The benefits of offering exitingincluding its CEO.
employees quality transition programs far outweigh the5. Teaching and Coaching
costs and risks of not providing them.              This means having people in the
The Corporate Talent Challengeorganization - both managers and specialists - whose
1. This research will help you clearly understand whyrole it is to help others to grow, learn and realize their
talent management is not just a "new name" for HR,potential. Many organizations have de-emphasized this
but a business imperative with very differentkey task as pressure to meet quarterly performance
challenges in each industry.targets have cascaded down to every level of the
The Business Drivers of Talent Managementorganization. Schools provide an inspiration and model
1. It helps readers understand specifically how to tiefrom which other organizations can learn. They have
talent management solutions to specific businessteachers whose only job is to develop their student's
problems such as the shortage of mid-level managers,skills and learning. While few organizations are
rolling out new products, mergers and acquisitions, andpositioned to employ full-time teachers, many should
8 other business challenges.encourage and help managers and staff to take on
An effective talent management system builds athis role. They can do this by explicitly acknowledging
winning organization by:v     Connection corporatethe value of teaching and coaching and including these
strategy with the quantity and quality of leadershipresponsibilities in the expectations and measures of
required to execute it.v     Driving leader’sperformance set for managers and staff.
accountability for the cultural strategies that support6. Diversity of Talents and Personalities
business goals.v     Identifying those individuals with            The value of diversity in business
the highest leadership potential across the organizationseems obvious to most observers, but few leaders
early in their careers.v     Assessing high-potentialreally know how to leverage the differences that
talent against a holistic and future facing definition ofpeople bring to the workplace. As Ricardo Semler,
leadershipv     Accelerating the development ofhead of the innovative Brazilian conglomerate Semco
high-potential talent and improving the quality ofputs it - "I prefer Coq-au-Vin to Chicken McNuggets".
executive leadershipv     Enhancing the focus onHe is not talking about food but rather cultures that
growing better leaders at all levels from first lineblend diverse talents and perspectives (like the
upwardsingredients in a slow-cooked Coq-au-Vin) versus those
Seven steps of talent managementthat impose numbing conformity on their people (like
Step 1. Starting with the end in mind-our current andthe industrial-style sameness of Chicken McNuggets).
future business needsAnd believe me, many companies have Chicken
Step 2. What kind of talent does the business need?McNugget talent - mass produced, standardized and
Step 3. What and where are the gaps?consistently mediocre. Far better to blend diverse
Step 4. Identifying high potentialsingredients into a rich and unique tasting stew - ala coq
        4.1 Evaluating current performance.au vin!
        4.2 Identifying potentials            Semco backs up its words with
        4.3 Creating an acceleration poolactions. It regularly pairs younger and older workers
Step 5. Assessing readiness for Leadership transitionstogether. Its "Lost in Space" program affords young
        5.1 Individual Readinessstaff the opportunity to move around the company on
        5.2 Organisational readiness or “Talenta regular basis during their first few years. This helps
Audit”them to both develop new perspectives are well as
Step 6. Accelerating developmentinject their own fresh ideas throughout the business.
Step 7. Focusing and Driving performance  Their "Trading Places" initiative let's people trade jobs
8 (Eight) Principles for successas a way of gaining new experience and skills.
1. Accurate diagnosis is the first step in effective7. Horizontal Growth Paths
development            Flattening of hierarchies in recent
2. Ensure development is tied to where our business isyears has severely curtailed growth paths in many
going now and in the future.organizations. But growth shouldn't just be up the
3. Development talent needs to represent a balanceladder or depend purely on acquiring managerial skills.
between fixing weaknesses and leveraging strengths.Another productive growth path is horizontal and
4. Prioritize potentialprogressive organizations have created lateral paths
5. Effective development requires a blend of activitiesthat allow people to broaden their skills and knowledge
including mentoring, classroom learning, coaching, jobwithin their disciplines and jobs.
assignments, action learning etc..            Companies like IBM, Texas
6. Don’t underestimate the role of managementInstruments and Intel have instituted technical mastery
supportprograms to allow individual contributors and specialists
7. Creating learning tension will maximize your returnto develop their knowledge and learning and to be paid
8. Developing others becomes a measurableand recognized for it. This means talent can advance
management performance objective.based on their learning pace rather than have to
Ten traps of talent managementchange jobs or be promoted to get ahead.
1. Paying lip service to a talent management strategy 
2. No clear definition of ‘Leadership’Four steps to making talent management a core
3. Confusing talent management with successioncompetence
planning            There are four steps that
4. Shrouding the process and Ground rules in mysterycompanies can take to quickly assess their talent
5. Waiting for the cream to risemanagement process and begin improving their talent
6. Using subjective data to make crucial decisionsmanagement competency:
about talent 
7. Ignoring quirks of personality in promotion decisionStep 1 – Identify Key Roles. Analyze the key steps
8. Lazy thinking about development solutionin each part of the talent life cycle (identification and
9. Ignoring the team mosaicattraction, hiring and inculcation, motivation and
10. Assuming your managers at all levels aredevelopment, appraisal and reward, building and
‘Talent Leader’     sustaining relationships) and map the key players and
      their roles and responsibilities to each stage. Are there
Defining Talent Managementgaps in responsibilities – key activities that no one is
1. This framework, the High Impact Talent Managementdirectly accountable for? Are there overlapping
Framework®, is described in detail.responsibilities – multiple people responsible for the
The Future of Talent Managementsame activity? Are the right people in the right roles?
            The research looks into the futureAre line managers provided with consistent and
of integrated talent management and howeffective processes, guidelines and tools for managing
organizations will likely evolve and mature theirtalent?
solutions into the future. 
Integrated talent management wheelStep 2 – Take an Inventory of Your Talent
            Talent is now a global game. ItManagement Skills. Identify the critical skills needed to
requires a much broader horizon than just a specificplay the key roles in the talent life cycle effectively. To
company, city, region or country. And it requires awhat extent does your company employ people who
much broader vision even within a company. Thepossess them? What might you do to improve or
Talent Wheel (Figure 1) highlights the key talentdevelop them? What are you doing in-house that might
functions that need to be coordinated and integratedbe better outsourced? What have you outsourced
within organizations.that you should be doing in-house?
            Workforce planning looks at the 
supply and demand for talent over a two-year orStep 3 – Measure the Right Things. Assess the
longer period of time for key jobs within the enterprise.measures you use to evaluate the performance of
Key issues are retirements, planned and unplannedyour talent management process at each life cycle
attrition, varying staffing options, competencies forstage such as offer-to-hire ratios, average tenures of
superior performers and bench strength for key talent.new hires, performance ranking, skill fit to job
            Talent acquisition is the ability of arequirements, etc. What data are you capturing and
company to attract and hire key talent. This is one ofreporting? Does it feed directly into a enterprise talent
the two most pressing needs according toscorecard? How do these measures align with your
Accenture’s 2005 survey of global executives.overall talent management strategy?
Key issues are compelling employment brand and 
value propositions, referral recruiting, and keeping a goldStep 4 – Set Up a Process-Wide Feedback Loop.
standard for new talent entering the organization.Everyone managing talent needs to understand the big
            Talent engagement representspicture and to connect their role and responsibilities to
the extent to which the workforce identifies with thethe overall objectives of the process. How is data
company, is committed to it and provides discretionarycaptured in each stage of the life cycle reported and
effort so that it can be successful. Engagement is acommunicated? How are knowledge and experiences
key leading indicator for high performance workplaces,shared across the process? Where are the
improved employee productivity and subsequentinformation gaps and missed communications? How
turnover. Keep engagement surveys relatively shortmuch feedback is formally captured and
and ensure that data are acted upon by employeescommunicated versus informally discussed among
and managers.staff? What key actions might you take to improve
            Talent development used to beyour feedback mechanisms?
synonymous with training, but no longer. ResearchTargeted Talent Management
shows that 70 percent of what we need to know to            Most large organizations talk
do our job, we learn on the job. Informal learning isabout Talent Management as part of their wider
more powerful than formal learning through suchstrategy.  It is a crucial way of securing, developing
activities as stretch assignments, cross-functionaland motivating people with the right skills and
teams, international assignments and flexible job design.approaches to meet business objectives.
            Talent deployment can be 
summarized as the right people are doing the right job            But how many of our strategic
at the right time. Top talent is assigned to the mostgoals are fully met by our talented people? All too
vital projects or roles. Alignment is a key aspect ofoften, we find that we don't have the right people in
talent deployment, and it is most often achievedplace to fill a gap when it appears, or we simply can't
through performance management systems andkeep hold of the individuals we want.  Even worse,
competency databases matching project needs totalented people may simply not be operating at the
employee capabilities.levels we require.
            The ability to lead talent is also 
key. Great managers are like chess players who            So what can we do to seize
understand that different pieces (employees) havethese missed opportunities? I believe that the biggest
unique strengths (Buckingham, 2004), and thesesingle challenge is achieving genuine "connectedness"
managers work hard to put employees in positionsbetween Talent Strategy and Business Strategy.  A
where they can shine. Great managers alsowide range of people processes often take place
understand that their value to the organization iswithout a clear relationship with the ultimate aims and
through the contributions of others, and it is theirculture of the business.
responsibility to develop, guide and enhance the 
performance of the people that report to them.            Think about recruitment,
            Talent retention is the number oneperformance management and development - to
issue on the minds of global executives according towhat extent are these processes based on a clear
the Accenture study (2005). Many CEOs doubt theiranalysis of the talents and skills that people will need to
company’s ability to retain top talent. Too little andoperate at the next level? To what extent do you build
too much turnover can damage a business. It ispeople's capability and motivation to meet the needs
interesting to observe that when managers ofof the business in a few years' time?  It is vitally
departing employees are asked why a person left,important to build a clear definition of what each
money is the overwhelming answer. When theorganization really means by talent throughout the
employees themselves are asked, money doesn’torganization. The acid test is simple - do people with
even make the top five.these qualities deliver the kinds of business success
            These talent functions must workwe are aiming for?
together and be part of a seamless system. Being 
excellent in one or two areas is a start, but the whole            In a project that I am involved with
system must be working effectively. It does little good,at the moment, I am working with a major organization
for example, for a company to attract and hire greatthat has a very clear sense of its future strategic
talent but then have few challenging developmentdirection.  It is investing now in its people by providing
opportunities. Similarly, for CEOs to focus compulsivelyfeedback and coaching - targeting not only each
on retention misses the point that retention probablyperson's natural areas of strength, but also pinpointing
wouldn’t be a problem if talent engagement,the specific qualities that the organization will need in
development and deployment functions were smoothlythe future.  Crucially, this is not a one-hit wonder - the
operating.outcomes are linked to how people are managed,
            These talent functions are toodeveloped and motivated.  The direct effect on
important to be left to separate departments, silos orbusiness outcomes will be tracked and analysed.  It is
champions. The essence of a company’s ability tothis joined-up quality that makes a significant difference
compete rests with the optimization and integration of- linking business strategy to people's daily experience
these functions – it is the network, not the nodesof the organization.
that provide the value. 
The tipping point            It is vitally important that individual
            Talent management is ready toaspirations and organizational goals are delivered
be tipped. First, there is the growing amount oftogether.  Too often, these are seen as unequal
empirical evidence that shows a clear relationshippartners.  However, organizations that genuinely
between excellent talent practices and improvedfocus on understanding each person's own natural
shareholder returns. Among the providers of thistalents tend to achieve corporate success.  We need
research are McKinsey, Gallup, Collins, Bassi, Watsonto create different routes for people to progress and
& Wyatt, Becker and Huselid, and the Fortunedevelop; otherwise we will only appeal to a narrow
Best Places to Work surveys.range of people.  This approach requires an open
            Second, there are the bestmind, tackling questions like "How can we use this
practices from companies that truly believe that talentperson's talents and energies?", "How can we
is the essence of their success. Among theseorganize our work differently?" or "Are we aiming for
companies are GE, Dell, P&G, HSBC, FedEx,the wrong things?" But if such issues are genuinely
Starbucks, Microsoft and Capital One, to name just aaddressed, great things can be achieved.
few. 
            Third there is the growing            "Alignment" is another key
realization that talent issues are board level issues.element of a successful Talent Strategy.  When
More investment analysts and company directors areselecting or developing people, most organizations
demanding to know about engagement levels,focus on the skills, knowledge, experience and
segmented turnover data, and the types ofbehaviours required for the role.  However, some
developmental opportunities for top talent. CEOs areorganizations are beginning to look at the behaviours
starting to spend 30 percent or more of their time onrequired to operate effectively in a particular team or
talent issues, and are being held accountable for theculture.  Working with Professors Michael West and
strength of their talent pools. For instance, allNeil Anderson, ASE have an approach that looks at all
companies registered in Denmark will be required toof the factors that drive team performance (not simply
include in their annual reports information aboutthe "types" of people in the team), and this leads to
customers, processes and human capital. A minimumimpressive results.  We need to understand the
of five measures for each is required andrelationship between people's motivations and the sorts
comparisons with the previous two years must beof organizational cultures in which they will thrive.
shown. Information for investors about intellectual 
capital both current and future should occupy at least            Talent Management should be
one-third of the report.about delivering business success through
            The confluence of both internalunderstanding what we actually mean by talent, and
and external factors is causing a new science ofhow it will achieve the specific goals of the
talent management to emerge and tip. This is veryorganization.  It is about ensuring that we value the
different from traditional human resources concerns.natural talents and aspirations of our people.  It is
While HR is more concerned with consistency,about ensuring that we understand what blockages
compliance and treating everyone in the same fashion,can spoil all our hard work.  it is about operating
talent management recognizes that different peoplepeople processes that join together not only with each
make different contributions to the enterprise, and thatother, but with the business's goals.  And finally, it is
top talent is the key to competitive differentiation. Thealso about understanding how to manage people for
seamless and integrated functioning of the talentalignment as well as ability.  If we adopt these
management wheel is what will drive companies into aapproaches, not only will business success follow, but
leadership position in the new, post-knowledgewe should also have fulfilled and effective people.
economy.Conclusion
Increased focus on retaining talent: High performing            The management should be
employees are always in demand.innovative and proactive to win the war of talent. With
            Good recruiting organizationsthe next-generation predictive modeling systems, talent
focus equally on internal candidates and externalmanagement and workforce planning can be
candidates. Companies have placed additional focustransformed from reactive administrative functions to
on building value and quality within the recruitmentproactive systems capable of accurately forecasting
function. HR leaders are gaining more influence overtalent demand right to the individual job. Attracting and
organizational direction and value.nurturing talent has become the single most dominant
Continued convergence of organizational expertise forforce. Today attracting brains is more difficult than
strategic HR processes: Recruitment, compensation,foreign direct investment. However, talent is what will
performance and learning have been disparate HRmake India enduringly competitive. Strategies are to be
(and even non-HR) functions with distinct and unrelatedframed for overcoming talent shortages. Obstacles to
business outcomes.talent are to be identified and overcome. This can
Renewed focus on acquiring and managing talent:make talent flourish if the enabling social and physical
CEOs and HR executives are recommitting to talentinfrastructure is in place. In the words of Anil Ambani
management. Leading companies are deploying“Talent is footless and youth will seek a better
resources and capital to talent and careerquality of life where ever and whenever”. A rightly
development programs, including succession planningmanaged talent turns out to be a gold mine. It’s
and management.inexhaustible and priceless. It will keep supplying wealth
 and value to the organization. In turn, management
How global companies are changing?needs to realize its worth, extract it, polish it and utilize
            Corporations around the worldit. Don’t hoard. Talent-spend it lavishly, like a
are in the process of deploying the next generation ofmillionaire flashing his luxuries, because Talent is wealth.