Strategic HRM

Talent management
Week 13

Aims
Define

talent management
Review latest research
Consider impact of current economic climate
on talent management practices

Reflection
Your own thoughts
How

would you define talent?

Who is talent in your organisation?
Why should your organisation
nurture/manage this talent?
What talent management processes do you
have in place?

What is talent?

According to CIPD Talent Management Research insight, 2007

Organisationally specific
Highly influenced by nature of the work
Dynamic
The ability to make a distinctive difference to the business (PWC,
2007)
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-critical roles. (CIPD,
2012)
Talent = competence + commitment + contribution (Ulrich, 2007)
Talent consists of those individuals who can make a difference to
organisational performance, either through their immediate
contribution or in the longer term. (CIPD, 2009)
talent can be considered as a complex amalgam of employees
skills, knowledge, cognitive ability and potential (CIPD, 2006)

Inclusive or Exclusive??

Definition of Talent
Management

What is it really?
Lack of consistency in approaches
Lack of consistency of understanding
BUT
Doesnt stop organisations engaging in it
2014: 54% organisations engaged in TM but
down from 61% in 2011 (and only 7% believe
their activities to be effective!) (CIPD Learning
and Talent Development Report, 2014)

Some definitions:

A comprehensive and integrated set of activities to ensure

that the organisation attracts, retains, motivates and develops
the talented people it needs now and in the future. (Baron &
Armstrong, 2007)
the additional management processes and opportunities that
are made available to people in the organisation who are
considered to be talent, (CMI 2007)
the systematic attraction, identification, development,
engagement/retention and deployment of those individual 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. (CIPD, 2009)

Nine-box matrix

Problem of defining talent shifts towards the problem of defining potential.

If we find it hard to identify todays talent, wont it be even harder to identify
tomorrows?

Other views?
Competency-based

approach: identify key org comps

and then identify those who have above average
achievement against them they would be the talent.
Define and identify success and then analyse the
successful to identify talents, OR
In Human Resource Planning, the plans are not
important but its the processes we set up to do it that
bring about real success. Perhaps we should apply the
same principle to TM: what it is is less important than
the continual strive to find it and develop it and it will
change from time to time, organisation to organisation.

Different views?
A collection of typical HR practices, functions
or specialist areas: HR doing what they always
have but faster, wider, more specialised
A concept of talent pools: need to ensure flow
of people into jobs throughout the
organisation: internal focus, what have we got
Talent = good, critical, must-have, packing
entire companies with A players
(Lewis & Heckman, 2006)

TM as a framework

Align people with roles:

Selection, recruitment, placement, promotion

Learning & development
Succession planning
Career guidance

Align roles with people:

Organisation design
Role design
Non-financial rewards
Working environment
Working methods

(Cunningham, 2007)

TM as a strategy: features
Aligned

to corporate strategy
Inclusive versus exclusive notion of talent
Inclusive versus exclusive involvement of
people
Inclusive versus exclusive consideration of
HRM practices
(CIPD, 2009)

Talent management = ?
Whos included in talent management
strategies?

2014
% age

2013

2012

High potential employees

43

55

73

Senior managers

25

48

62

Graduates

13

44

51

Middle managers

21

38

48

Technical specialists

11

36

39

Junior managers

11

35

38

45

42

44

Exclusive?
All staff
Inclusive?

(CIPD, 2014, 2013, 2012)

So what is it again: Inclusive or Exclusive?

Advantages of exclusive
approach
Provides identifiable strategic resource for
succession planning if aimed at future leaders of
the organisation
Targets finite resources financial and nonfinancial
More opportunity to offer individualised
development programmes to the talent pool
Easier to track and evaluate benefits
(CIPD, 2007)

Disadvantages of exclusive
approach
Potential for reduced engagement and increased
turnover among staff not included in talent pool
Less scope to increase diversity
Reduced development opportunities for
employees not on talent programme
If focus is on one group or grade, other talent may
be overlooked
(CIPD, 2007)

TM as a loop
Attract:
Values, brand,
CSR

Evaluate:
Quantitative,
qualitative,
consistently

(CIPD,
2009)

Develop:
In/formal,
coaching,
career plans
Manage:
Retain,
engage,
performance
management

TM as a pipeline

Talent
pipelin
e

Rewarding
Attracting/recruiti
ng
Developin
Deploying
Engaging/retaining
g
Performance
Exitin
Trackin
managing
g
g

(Tansley et al, 2006)

TM as interrelated elements

(Armstrong, 2009)

TM as architecture

Difficulty to
replace:
labour
market
factor
(training
time, skills
shortages)

Difficult to
replace
Low value
added
HR specialist?

Difficult to
replace
High value
added
Specialist sales
staff?

Easy to replace
Low value
added
Administrator?

Easy to replace
High value
added
Receptionist?

Value added: customer facing factor

(direct and indirect)

(Zuboff,
1988)

Possible Implications?
Difficult to replace
Low value added:
Consult them, tap their
knowledge

Difficult to replace
High value added:
Find it, nurture it

Easy to replace
Low value added:
Automate, outsource

Easy to replace
High value added:
Redesign, outsource

But what if all your A players are in the bottom left

quadrant?

Key Challenges
Increasingly global labour market
Increasingly cultural workplace
Vastly diverse workforce
Workforce has independent views about
lifestyle/career opportunities

(CIPD 2007)

Further challenges to consider

Consider the following challenges: what options
exist in HR practices to address these:
How to reward talent?
How to appraise talent?
How to deploy talent?
How to track talent?
How to attract talent?
How to develop talent?

Further challenges
How to reward or appraise talent: on performance
or on potential?
How to deploy talent: special roles (e.g. job
rotation) or proper role?
How to track talent: human capital metrics e.g.
promotion rates; but self-fulfilling prophesy?
How to attract talent: brand, prospects,
opportunities, pay, USP?
How to develop talent: fast-track schemes?
specialist skills? leadership focus?

Strategic considerations
How is the organisation defining talent and talent
management?
Where do professional and specialist staff fit into
the talent management process?
What key features of the external environment
will impact?
What are the challenges and how to overcome
them?
How to measure aspects of talent?

Strategic considerations, cont

Benchmarking
Horizontal/vertical

integration
How to assess potential
Measurement of success
Evaluation of benefits
(CIPD 2007)
the management of a companys pool of talent is
now too important to be left to the HR department
alone and has become the responsibility of the
top executive (Economist, 2006)

Yet more strategic

considerations...
How

do we treat special cases such as:

Women
Generation Y
Older workers
High flyers...?

Same

or different?
How do we balance internal and external
talent?
(The Economist, 2012)

A strategic TM process?
Talent management
component

Relevant questions for consideration

Strategy for sustainable

competitive advantage

What market opportunities exist?

Which organisational resources yield advantage?

Strategy implications for Where will improvements in talent quality drive strategic gains?
talent
Where will improvements in talent flexibility drive strategic gains?
Talent pool strategy

How do we position various talent pools:

What combination of performers (A vs B vs C) do we need?
What pay policy should we adopt (above, at, below market)?
Which pools should be linked to career ladders?
Should we informate certain jobs?

Talent management
system

How do we implement talent pool strategies across the

organisation?
Competency architectures?
Organisation-wide data systems?

Talent practices

Which practices meet our talent goals?

Selection? Recruitment? Performance management? Pay?

(Lewis & Heckman,

2006)

The war on talent?

CIPD Hot Topics series
Survey November 2008
705 organisations (full range)
26% organisations surveyed have changed
approach to talent management due to current
climate
24% organisations surveyed have had reduction
in talent management budget
Greatest impact on private sector organisations

Positive practices adopted

Growing internal talent
Focus on essential development
Retention of good performers
Managers supported to communicate, engage,
develop and retain
Constant review of cost-effectiveness and
impact of Talent Management activities
Recruitment of talent discarded by competitors
Greater scrutiny around pay and reward

10 Critical Components of a
Talent Management Programme
Explicitly test candidates in ability, engagement & aspiration
2. Emphasise future competencies
3. Manage quality and quantity
4. Place talent in intense assignments
5. Identify the riskiest, most challenging positions
6. Create individual development plans
7. Re-evaluate top talent annually
8. Offer significantly differentiated compensation
9. Hold regular open dialogues
10. Replace broadcast communications
(Martin & Schmidt, 2010)
1.

Examples
Energis used TM as a means of getting itself out of serious
difficulties. Used talent to differentiate itself in the market
went from a rescue package to a dominant partner with
Cable & Wireless
Kleinwort Benson identified need for customer-facing staff to
be entrepreneurial and managers to drive the change; huge
expansion in UK with new branches in Leeds, Manchester,
Birmingham, Newbury & Cambridge
O2 recognised need to differentiate from other mobile
suppliers; set up Sales Academy. Developed talent pipeline:
core skills (core values, core behaviours, core sales
process) top performers (additional competencies, trusted
advisor status)

Critical view?
Talent management does not often appear in peer-reviewed
literature: 95hits in Emerald (12 Jan 2015)
Search for talent management in Google: 34 million hits!! And
talent: 563 million hits!!! (12 Jan 2015)
CIPD Report (2006):There are as many definitions of talent, it
seems to me, as there are pebbles on Brighton beach!
Is Talent management another name for Barneys resource-based
view (RBV) of strategic HRM? (valuable, rare, hard to imitate)
Who takes responsibility for TM, is it HR, the line manager or the
CEO? The Economists survey of 20 corporate leaders across 10
countries identified that the management of a companys pool of
talent is now too important to be left to the HR department alone
and has become the responsibility of the top executive (2006).

Which is what: HRM or TM?

All

those activities affecting the behaviour of individuals in their efforts to

formulate and implement the strategic needs of business. (Schuler,
1992)
A strategic and coherent approach to the management of an
organisations most valued assets: the people working there.
(Armstrong, 2003)
A philosophy of people management based on the belief that human
resources are uniquely important in sustained business success. (Price,
2007)
A comprehensive and integrated set of activities to ensure that the
organisation attracts, retains, motivates and develops the people it needs
now and in the future. (Baron & Armstrong, 2007)
All the management decisions and actions that directly affect or
influence people as members of the organisation rather than as jobholders (Henderson, 2008)

Employer Brand
how

an organisation markets what it has to

offer to potential and existing employees.
a set of attributes and qualities often
intangible that makes an organisation
distinctive, promises a particular kind of
employment experience, and appeals to
those people who will thrive and perform best
in its culture.
(CIPD, 2009)

HR influences?
Brand

power: reputation, PR, social life, CSR

HR search for credibility: part of HR growing
up and joining other functions
Employee engagement: seeking commitment
through recruiting appropriate workforce
Labour market: skill shortages, extended
period of prosperity (to 2007!), war for talent
(Jenner & Taylor, 2007)

A process towards a brand?

Discovery:

survey, audit, define the good,

whats special about us?
Analysis, creation: define brand attributes,
value proposition
Implement & communicate: apply to R&S and
talent management programmes and materials
Measure and maintain: internal response,
external perception, improvements to R&S
(CIPD, 2009)

Branding examples: Prison

Service
Humour

Human
insight
Thoughtfulne
ss

Competenc
e
Courag
e

Realism

Realism

Cautiously optimistic, Sceptical not cynical,

Nobodys fool

Courage

Moral as much as physical, Sense of

justice, Dont go with the flow

Reflective questions
What

will attract you to apply for a graduate

position?
To what extent does recruiters reputation
influence you?
How will you discover their talent
management policies?