Talent Management: A Strategic Approach to Development and Retention of Key Human Resources

By ORC Worldwide

Talent Management (TM), as we use the term, refers to the processes for identifying, assessing, acquiring, developing, and deploying employees who are critical to the company’s success (see sidebar). This definition, implying as it does that we are distinguishing between “critical” employees and ordinary folks, makes a lot of people uncomfortable. Not only does it seem to contradict our notions of a high-performing organization based on flat hierarchy, diffused decision making, and an inclusive, empowering work environment, it also seems to defy our most cherished ideals of equity and fairness. Making distinctions in how we treat employees based on their roles or skills, rather than their efforts, just feels wrong.

But talent management is not about taking anything away from the mass of employees or ignoring their contributions. It is about recognizing that we have limited resources to invest in human capital, and it makes sense to apply those resources where they will have the most impact on the success of our business. We may value all our employees, but we might as well own up to the hard truth that we value some a bit more.

An effective talent management system – one that ensures the company has the means by which to implement its strategy – must accomplish several goals:

• Build bench strength and prepare successors for critical positions
• Identify and build the talent that gives the organization a competitive advantage
• Anticipate and develop capabilities that will be required in the future
• Retain and motivate key talent

Taking such a targeted talent management approach to staffing and development means, first and foremost, that decisions about which jobs need special investment, who gets critical jobs, and how those people are prepared, assessed, and managed must be tied to the company’s business strategy.

The mechanism used by many companies to coordinate talent management with business strategy is the talent review process, culminating in a carefully facilitated meeting at which senior managers identify key jobs and assess and discuss the current capabilities, future potential, and development plans of key individuals. All other talent management activities – staffing plans, development planning, retention programs, and so forth – stem from the decisions and recalibrations made in the talent review process.

Although many organizations use this same basic process, some manage their talent more effectively than others. To find out why, ORC Worldwide conducted a comprehensive study of talent management processes in large Multi-National Companies and found that companies that do Talent Management effectively demonstrate seven essential characteristics:

• Deep involvement of senior management

The average CEO spends 16 % of his or her time on TM, and the more CEO time invested, the better the company’s program. CEOs can get involved by participating actively in talent reviews, mentoring high potential employees, teaching in leadership programs, monitoring developmental moves, and speaking out publicly about talent management.TM. Most importantly, he or she can make clear that talent management is an important priority for senior leaders – and that it will get the time and attention it needs.

• Dedication of sufficient time, staff, and IT support.

The most important resource of all is time – that of the CEO, of the person who leads the TM effort, and of all levels of management involved in the process. The best way to assure that level of attention is making TM part of the business planning process.

• Breadth and depth of talent reviews

Talent hides in unexpected places in the organization – in locations far from headquarters, among young professionals lower down in the organization structure, among employees who take non-traditional career paths. The companies most successful at identifying and developing key talent make sure none of the potential sources of talent are overlooked or go untapped because of artificial barriers.

• Consistency and Structure

Companies that create a universal vocabulary for discussing talent, a consistent process across organizational and geographic units, and structured procedures, tools, and documentation report better results in forecasting talent needs, identifying talent, and dealing appropriately with performance issues.

• Meaningful Developmental Experiences

Great leaders do not just emerge, and talent that gives you a competitive edge cannot be developed overnight. Including high potential employees in critical meetings, assigning them to special projects and global task forces, and posting them to different business units, functions, and locations that challenge their way of thinking are the best ways to give them the experiences they need to grow and help them build the networks they’ll need to be successful.

• Motivation and Retention

What do most good employees want? To know that they are noticed and valued and to be given interesting work to do. Perks like mentoring, recognition, formal development planning, and stretch assignments go a lot further than monetary rewards in keeping them motivated.

• Monitoring the TM Program

The companies who do TM best keep a close eye on their programs to ensure the integrity of the process and to track results.

The most important thing a company can do to ensure a continuing supply of well-prepared, well-deployed key players is to create a talent culture: an environment in which finding and nurturing talent are considered important management functions. The seven elements reviewed here are essential for building a talent culture. They lay the groundwork for translating business strategy to people strategy, create a common understanding of process and vocabulary, and provide the tools managers need to help them implement a coherent, aggressive talent management plan.

The Middle East Region is no different to anywhere else in the world in the context of Talent Management (TM). In fact, if anything, TM is even more critical in the Region because of the sheer volume and rate of growth that is happening. In a climate of high growth that is fuelling intense labour market competition, one of the critical challenges for companies is attracting and retaining high caliber people. It might be easy for a lot of companies to simply throw money at this kind of problem and keep ratcheting up the salary and benefits on offer in order to entice people away from the competition and to join the company. Surely that cannot be the long-term solution? It must be easier to retain the people that you already have than it is to attract newcomers to join the company.

This is where effective TM programmes can play their part. Focusing on the “softer” people management issues – career development, job enrichment and instilling a sense of belonging and contribution have been shown to reap benefits the world over. As new, high quality talent pools emerge in the Middle East market, the enlightened companies and CEO’s will recognize the benefits.

During the last 3-5 years, the GCC has become less of a transit destination for expatriates and more of a long-term or even permanent home for managerial, technical and professional people that are looking for a long-term career. Even if they do not have aspirations of staying with one company forever, many of them have aspirations of development and career growth and will look for the companies that are most likely to provide these opportunities. Such companies have got a better chance of staying ahead of the competition because reputations travel fast.

About the company:

ORC Worldwide (ORC) is an international management-consulting firm, with its regional head office in Dubai, offering professional assistance in the areas of human resources, compensation, and organisation management. ORC delivers practical insight to our clients through expert, customised consulting; superior data and information; and unique opportunities to network with professional peers. ORC delivers assistance with policies, practices, and processes in compensation (expatriate, domestic, and worldwide); occupational health and safety and environmental matters; diversity and equality; labour and employee relations; and senior-level human resources and organisational issues. And, we also provide interpretation, analysis, and support in the fields of labour and employment relations.