Talent Management - Shifting Demographic Patterns, Changing Work Structures and Attitudes to Work - Literature review Example

Talent Management Name Course Date Introduction Failing to manage talent effectively can be a major source of human resource problems in organizations. Failure to manage talent properly often led to shortfalls or surpluses of talent. Talent management is defined as the processes and practices that anticipate human capital needs and initiate a plan to meet these needs. Many organizations have realized the importance of effectively managing talented individuals who are the pillars of their success. However, managing talent is not an easy task as today’s workforce present new challenges never faced by HR before. Today’s workforce is diverse, mobile and is not bound by cultural or geographical limits. Talent management is an effort to provide a solution to the human resources management challenges of contemporary organizations. One of the main challenges of talent management is the apparent shortage of talented workers. Many organizations complain that the lack of talented workers is slowing down their performance and potential for growth. Scholars and HR practitioners agree that organizations are engaged in a race for the most talented employees. It is a major challenge for contemporary HR practitioners to attract, retain and develop the right people to fit into their organizations This essay will review recent publications on the area of talent management and discuss themes that emerge from the literature. First, the review analyzes various definitions of the concept of talent management. Secondly, the paper will review the talent management model to analyze the practices that make up a comprehensive talent management system. Thirdly, it will analyze the drivers of the increasing focus on talent management in contemporary organizations. Among the drivers discussed in this review include competition for talent, Shifting Demographic Patterns, the quest for competitive advantage, Changing work structures and attitudes towards work. In addition, the report will analyze the talent management practices of Facebook. Finally, the essay will conclude and offer some recommendations on the way forward for contemporary talent management. What is Talent Management? According to Simonton (2011), talent management was commonly practiced among sports and arts in the 1800s. The present phase of talent management began after the tech-boom of the late 1990s. Many companies had taken up new technologies but their employees were not competent enough to operate the new systems. Talent management began in earnest and is described by Tarique and Schuler (2010) as the practice and process of “attracting, retaining, an developing talent”. Lawler (2008) defines talent management as HR processes that are put in place for attracting, developing, motivating, and retaining the most engaged and promising employees. According to the Talent Management model, the goals of talent management are retention, engagement, developing competencies and inclusion/diversity support (Lawler (2008). These goals of talent management are achieved through core talent management processes that include: Workforce planning, Recruiting, Onboarding, Strategic plan/goal alignment, Performance management, Executive coaching, Leadership development, Career pathing/Career development, Recognition programs,Compensation, and Succession management. Drivers of Talent Management There are many factors that drive organizations to practice talent management. However, some of the biggest drivers of talent management include: Competition for talented employees, Shifting demographics, changing work structures and work attitudes, and the need to leverage organizational human resources to realize competitive advantage (Lawler, 2008). Competition for Talent There is no doubt that every organization aims to attract, retain and utilize the most talented employees in the labor market. The competition for talent means that many organizations find it difficult to fill position with the right talent (Kavanagh, 2010, Meisinger, 2008). The talent competition problem is a worldwide problem that affects organizations both in the private and the public sectors. More than a third of employers in India, Japan and Brazil have difficulties finding the right talents for many jobs (Manpower Group Talent Shortage Survey, 2011).Many organizations respond to the competition for talent by developing and training their own workers or using aggressive recruitment strategies (Lawler, 2008). However, many organizations fail to cater for the retention factor and attrition is a major headache for organizations that are initially able to attract top talents. In addition, organizations that respond with training and development are exposed to the possibility of losing the workers they have invested in developing. According to Tariqueand Schuler (2010), organizations can respond to the problem of talent shortage by initiating strategic workforce planning, attracting talents from across the globe, providing opportunities for skill development and by extending the skill pool to mature and female workers. Shifting Demographic Patterns The demographic challenge is framed in terms of managing two different demographic groups in the workplace. According to Strack, Baier, and Fahlander (2008), the population of developed countries is aging rapidly, while developing countries have an huge and expanding young population. In today’s workplace, HR practitioners have to manage employees from across several generations (Strack, Baier and Fahlander, 2008). Generation X, Baby boomers, and Generation Y employees work together in contemporary firms. HR function is confronted with a situation where many mature workers are headed for retirement creating a huge skill gap. According to Tarique and Schuler (2008), HR is engaged in a struggle to extract and store the tacit knowledge of baby boomer workers who are almost reaching their retirement age. In addition, HR has to develop protective policies for mature employees as they face many stereotypes and biases from younger workers (Calo, 2008). The challenge of managing younger workers in the millennial demographic also confronts many contemporary organizations. In a 2011 study, Manpower Group Talent Shortage Survey (2011) reported that young workers make a quarter of the workforce. The report added that by the year 2020, Millenials will make up more than half of the global workforce. This implies that any organization that is not able to manage young workers effectively is unlikely to succeed. Many characteristics of Millenials make them difficult talents to manage. Millenials are characterized by low levels of employee loyalty, yearning for independence, and preference to communicate electronically(Tarique and Schuler, 2008). Millenials are also more interested in career progression, a good work/life balance, and in learning and development. Millenials are also more likely to change jobs easily than other generations. In addition, for organizations that operate in the developing world, the challenge of managing millennials is even greater. Millenials in developing countries show a deficiency of competencies and skills necessary to meet the job requirements of multinationals. According to Strack, Baier, Caye, Zimmermann and Dyschs (2011), inferior education systems, civil strife and barrier to career entry prevent millenials from the developed world from developing the necessary skills and competencies. It is therefore necessary for businesses operating in developing countries to put in place talent management process to develop the talents of young workers. Changing work structures and attitudes towards work It is clear that the structure of work is undergoing radical changes in contemporary organizations. New ways of working are emerging that have seen work take the form of virtual teams, social networks, flexible work hours, remote workstations, contingent working and an increasing dependency of communication technology. According to Grattin (2010), the future worker will move from job to job and work for multiple employees at the same time. Managing workers who have more than one employer, and who are physically absent will be a major problem confronting future talent management practices. The challenge of changes to work structure is further compounded by dramatic changes in work attitudes in many countries (Erickson, 2008). Traditional employees were loyal and valued job security. Job mobility was mostly internal as employees either move laterally or horizontally in the organizations. In contrast, the level of employee loyalty in contemporary employment has gone down worryingly. Contemporary employees are no longer worried about job security and easily change jobs and careers. This external job mobility makes employers who invest in staff development vulnerable to attrition among disloyal employees (Korkki, 2011). Quest for competitive advantage The quest for competitive advantage is a major driver for the practice of talent management. Talent management is positively associated with better competitive advantage outcomes. However, for a company to realize competitive advantage via the talent management route its talent management practices have to be unique. According to Becker, Beatty and Huselid (2009), talent management practices contribute to competitive advantage if they cannot be imitated by competitors. However, this claim is not true as many organizations have used widely practiced talent management processes to achieve competitive advantage. Unfortunately, organizations that hope to achieve competitive advantage are confronted by a large amount of differing information on how they can use talent management to achieve competitive advantage. Lawler (2008) suggests that the convergence of talent management practices may contribute to the achievement of competitive advantage. This suggestion is contested by Burbach and Royle (2010) who argue that talent management practices should be localized. Talent management responses The four drivers of talent management discussed above can have a major impact on talent management policies and practices. As seen earlier, the goals of talent management are attraction, retention, competency and inclusion/diversity (Tarique and Schuler, 2010). The goal of attracting is achieved by practices and policies that appeal to talented individuals at the recruitment phase. On the other hand, the goal competence is concerned with talent management process that assist employee in advancing their skills and competencies. Thirdly, retention practices aim to reduce the staff turnover among talented individuals. Finally, inclusion/diversity goals make the organization a better working environment for employees from diverse national and cultural backgrounds. According to Tatli, Vassilopoulou and Özbilgin (2013), the failure to allow women to develop to their full potential is a partial cause of the serious shortage in talent. In the views of Tatli, Vassilopoulou and Özbilgin (2013), gender quotas can help in reducing the talent shortage as it will unleash untapped female talents. Similarly, Sullivan (2013), advices for the expansions of the talent recruitment pool to include women. Sullivan (2013) calls for policies that remove cultural barriers to the advancement of women in male dominated careers. Gender inequality has traditionally barred the advancement of women to their full potential. With gender quotas and gender sensitive policies more women can realize their potential and contribute towards the reduction of the talent gap apparent in many countries. According to Rowland (2011), the successful talent management is dependent on using a number of talent management best practices. These Knowledge best practices include empowering employees, facilitating knowledge sharing, building trust, encouraging reflection, and formalizing a learning culture. In the views of Rowland (2011), firms must have a talent development system that identifies and builds the best talents in the organization. According to Ringo et al (2008), talent management is an important part of an integrated company strategy aimed at achieving competitive advantage. However, talent management practices vary from industry to industry according to the talent needs of the industry. For example, the technology industry is keen on encouraging knowledge sharing and creativity. On the other hand, financial service organizations pay little attention to employee development, and instead focus on attracting and retaining the best talents. Organizations that do not practice some form of talent management are the most vulnerable to the competition for talent. They also face major problems in filling vacant positions with the right individuals. Talent Management Case Study Facebook talent management practices are the envy of many organizations in the technology industry. Facebook is a good example of a contemporary firm that has succeded in managing talent through exceptional practices. According to Sullivan (2013), an average Facebook employee accounts for $120,000 of the firm’s profits, and produces an amazing $13 million in revenue each year. Facebook has also been able to make a successful shift from a PC based web platform to thrive on the mobile platform (Sullivan2013). Facebook revenues has continued growing as result of the shift from a web-based product to an innovative product that can be accessed on smartphones. Facebook was rated as the most satisfactory employer in survey of employee satisfaction outcomes. Facebook Talent management Practices Recognizing Employees value According to Sullivan (2013),Facebookrealized they would get a good Return on Investment ROI) by using unconventional talent management practices. Before embarking in its talent management journey, Facebook started by quantifying the value of having high performing employee as compared to average workers. Realizing there is more value in having engaged employees, Facebook embarked on creating a comprehensive talent management system. Facebook Recruitment Practices Facebook pursues a unique set of recruitment strategies that set is aside from other competitors for talent globally. Facebook has been able to successfully sell the perception that working at Facebook “changes the world” and Facebookoffers the “best work of your life” (Sharma et al2015). Facebook ranks first among other technology firms in employer brand ratings and is likely to attract top talents ahead of Google and Apple. Secondly, Facebook pursues an aggressive talent acquisition strategy called Acqui-hiring. In acqui-hiring Facebook buys out smaller tech firms with talented human resource pools (Sullivan 2013). Before the acquisition of instagram, Facebook’s main acquisition had been focused on acquiring top technical talents in the technology industry. Facebook also pursues a surprising recruitment strategy that does not require candidates to posses college degrees. According to Sharma et al (2015), Facebook has developed and maintained this culture as its founder is a college dropout. Facebook argues that it would be inconsistent to ask prospective employees for college qualification while its CEO has no college degree (Sullivan 2013). Facebook insist that its recruiting focus is technical talent and creativity. By dropping the requirement for college degrees, Facebook is able to access a pool of talented college students prior to other companies, which wait until students have graduated. Facebook also runs a Hackathon College recruitment every year (Meister and Willyerd 2010). The winners of the Facebook Hackthon are offered summer internship at Facebook, and the best talents among these interns get a job from Facebook. Facebook also has the advantage of having the CEO actively involved in initiatives to attract top talents to its recruitment campaigns(Sullivan 2013). Mark Zuckeberg is an active recruiter who often visit college campuses to speak to students about the possibilities of joining the company. The use of contest-based recruitment is another factor that has seen Facebook attract better talents than its competitors. Facebook applies an internet based contest to attract talents(Sullivan 2013). The online Facebook Hacker Cup allows the company to recruit the best talents that can solve technical problems. The hackathon focuses on recruiting people with superior technical skills as contestants enter anonymously. This anonymous nature of the contest means that academic qualifications are less prioritizedthan technical talent. The Facebook “ Ninja Hunt” is yet another unconventional recruitment strategy used by the technology giant (Sullivan 2013).The Ninja hunt refers to a referral system where Facebook’s existing employees propose the names of friends who have the technical skills to work at Facebook. Facebook regularly gathers itemployees to ask then to refer them to a person they think can become a great engineer at Facebook. Facebook appears to be a star of talent management in terms of attracting top talents for recruitment. According to the Company’s CEO, the organization is performing pretty well in relation to its recruitment goals(Sullivan 2013). However, Facebook also has to deal with the challenge of retaining and engaging talented employees it has invested heavily in recruiting. Offering employee work choices From the first day, Facebook offers a unique onboarding experience where the employee chooses the team he/she would like to work with in the future. Facebook welcomes its workers via six week boot camp(Meister and Willyerd 2010). During the boot camp, the newcomers to Facebook work in actual teams and are given access to the computer code of the company’s online product. In contrast, other employers assume onboarding is a process of introducing employees to work through videos and introduction seminars. At the end of the six week boot camp, the employer is asked to choose the team he would like to join. In contrast, other employers give newcomers little choice regarding the team or type of work they will be engaged in (Sullivan 2013). Facebook also offers greater internal job mobility than other firms. At Facebook, an employee can move from one project team to the next on an annual basis. In some instance, Facebook allows employees to work for a different team for up to a month. Facebook employment benefits are among the best in the technology industry. Facebook offers a wide range of employee benefits that few companies can rival. First, Facebook offers its employees free cookies and ice cream. This offer makes Facebook a fun company to work for. Facebook is even kinder to its employees as it offers then free barbecue from the open-pit barbecue located in the company’s campus in California (Meister and Willyerd 2010). In recognition of its diverse workforce, Facebook offers its employees a wide array of delicacies from all over the globe. Facebook employees can order healthy food from any part of the world including Juice bars, pizza, hamburgers, shushi and vegetarian meals(Sullivan 2013). Facebook also offers its employees free alcohol on Friday nights in a talent management initiative called happy hour. Facebook believes that offering alcohol to its employees helps to reinforce the belief that Facebook trusts its employees. Facebook employees also benefit from unlimited sick days offered by their employer. A Facebook employee who falls sick is given as much time as is reasonable for recovery. Facebook uses this benefit to indicate to its employees its trusts them(Sullivan 2013). In addition, Facebook employees get 21 days of annual leave each year. Facebook offers amazing benefits for first time parents in an effort to attract and retain female engineers Facebook ability to keep talent attrition rates low is linked to the organizations focus on risk taking and speed. Facebook offers challenging work as desired by many technical employees (Sullivan 2013). It also gives autonomy to employees in developing solutions to work problem. Facebook has a high tolerance for technical mistakes. Facebook asks its employees to move fast although this emphasis on speed results in often results in mistakes. Facebook asserts that they are more afraid of losing opportunities than of making mistakes (Meister and Willyerd 2010). Facebook’s risk taking culture makes it an attractive workplace for top talents in the technology industry. According to Facebook, the failure to take risk has a greater adverse effect on the company than risk taking. The firm argues that a person guarantees failure if he fails to take risks and make bold decisions Conclusion Undoubtedly, talent management is an important process for attracting, retaining, developing and engaging talented employees. In a business environment where competition for talent is intensifying,organizations need to effectively manage talent more than ever before. In addition, shifting demographics are making talent management more important. Today’s workplace are characterized by workers from different generations who have contrasting attitudes to work. Talent management processes have to be suited to each generation of workers especially millennials and baby boomers. HR is also facing the challenge of managing talent in a work environment where attitudes to work have changed. In addition,aradical change in work structures is also underway. The review also indicates that contemporary employees have low levels of loyalty to their employer, and have no problem moving from job to job. This trend means the popular human resource practice of developing talent internally is under threat as many employees may leave even after significant investment by the employer in talent development. Unfortunately, this problem is compounded by changing work structures which mean employees can work away from the office, work for multiple employers or work for a few hours a day. The quest for competitive advantage also makes talent management an important process in contemporary management. For a firm to realize competitive advantage it has to attract the best talent, keep these talents engaged and prevent rivals from stealing their besttalents. Facebook is an example of a company that has been able to use talent management best practices to realize competitive advantage. Facebook has been able to achieve competitive advantage through superior talent management practices. One example of the effectiveness of the company’s talent management practices is the role it played in enabling Facebook complete a 180- degree shift in strategic direction. The company was able to change its product from being primarily accessed via PC to a successful product accessed through Smartphone browsers. Talent management at Facebook is based on the realization that employee are important corporate assets. Indeed, most of the firm’s talent management practices reveal that Facebook values its employees, and treats them as partners in realizing its corporate goals. First, Facebook has focused on building a strong employer brand which helps in attracting top talents. Facebook also benefits from the involvement of the CEO in recruitment activities. The CEO gives talks in colleges regularly to encourage top talents to join the technology giant. Once an employee joins Facebook, the firm shifts its focus towards retaining and engaging the employee. Facebook starts its retention effort on the first day a new employee reports to work. A unique onboarding experience, and the best employee benefits mean many employees never leave Facebook once they are employed by the tech giant. Facebook’s success at talent management can be owed to the company’s attractive employee benefits, unconventional recruitment strategies,display of trust, empowerment of employees, and the formalization of a learning culture. Undoubtedly,Facebook provides valuable lessons to other organizations on how they can win the war for talent,and realize competitive advantage. References Becker, B., Beatty, D., & Huselid, M. 2009. Differentiated Workforce: Transforming Talent into Strategic Impact: Harvard Business School Press Books. Burbach, R., & Royle, T. 2010. Talent on demand? Personnel Review, 39, 4, 414-431. Calo, T. J. E. I.-C. P. 2008. Talent Management in the Era of the Aging Workforce: The Critical Role of Knowledge Transfer. Public Personnel Management, 37, 4, 403-416. Cappelli, P. 2008. TalentManagement for the Twenty-First Century. Harvard Business Review, 86, 74-81. Erickson, T. J. 2008. Redesigning Your Organization for the Future of Work, Editorial, People & Strategy, pp. 6-8 Gratton, L. 2010. The Future of Work. Business Strategy Review, 21 3), 16-23. Gratton, L. 2011. Workplace 2025—What will it look like? Organizational Dynamics, 40, 4, 246-254. Hewlett, S. A., & Ripa, R. 2010. The Battle for Female Talent in Emerging Markets. Harvard Business Review, 88, Kavanagh, M. 2010. Rising demand reveals shortage of talent, Financial Times, p. 3. Retrieved from http://search.proquest.com/docview/518815823?accountid=13044 Korkki, P. 2011. The Shifting Definition Of Worker Loyalty. New York Times, 8. Lawler, E. E., III. 2008. Talent: Making people your competitive advantage. San Francisco, CA US: Jossey-Bass. Manpower Group Talent Shortage Survey 2011. Retrieved from http://us.manpower.com/us/en/multimedia/2011-Talent-Shortage-Survey.pdf Meisinger, S. 2008. Talent Shortage Challenge Must Be Met. HRMagazine, 53 5), 8-8. Meister, J. C., & Willyerd, K. 2010. The 2020 workplace: How innovative companies attract, develop, and keep tomorrow's employees today. Harper Collins. Ringo, T., Schweyer, A. DeMarco, M. Jones, R. and Lesser, E 2008. in integrated Talent Management Part 3 – Turning talent management into a competitive advantage: An industry view, August. Rowland, M 2011. How to cement a diversity policy - The key role of talent development in Human Resource Management International Digest, vol. 19, no. 5, pp. 36-38, Schuler, R. S., Jackson, S. E., & Tarique, I. 2011. Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business, 46 4), 506. Sharma, P.B., Banerjee, P, Dudeja, J.P. Singh, P, . Brajpuriya, R.K. 2015.Making Innovations Happen. Allied Publishers. Simonton, D. K. 2011. Exceptional talent and genius. In T. Chamorro-Premuzic, S. von Stumm & A. Furnham Eds.), The Wiley-Blackwell handbook of individual differences. pp. 635-655): Wiley-Blackwell. Sridharan, R. 2007. "There Is A Shortage Of Talent Everywhere". Business Today, 102-102. Stahl, G., Björkman, I., Farndale, E., Morris, S., Paauwe, J., & Stiles, P. 2012. Six Principles of Effective Global Talent Management. MIT Sloan Management Review, 53 2), 25-32. Strack, R., Baier, J., & Fahlander, A. 2008. Managing Demographic Risk. Harvard Business Review, 86, 119-128 Strack, R., Baier, J., Caye, J.-M., Zimmermann, P., & Dyrchs, S. 2011. Global Talent Risk: Seven Responses. Retrieved from http://www.bcg.com/expertise_impact/publications/PublicationDetails.aspx?id=tcm:12-69646 Sullivan, J. 2013. A Case Study Of Facebook’s Simply Amazing Talent Management Practices, Part 1 Of 2. Ere Media, September 9. http://www.eremedia.com/ere/a-case-study-of-facebooks-simply-amazing-talent-management-practices-part-1-of-2/ Tarique, I., & Schuler, R. 2008. Emerging issues and challenges in global staffing: a North American perspective. International Journal of Human Resource Management, 19. 8, 1397-1415. Tarique, I., & Schuler, R. S. 2010. Global talent management: Literature review, integrative framework, and suggestions for further research. Journal of World Business, 45, 2, 122-133. Tatli, A., Vassilopoulou, J. and Özbilgin, M., 2013. An unrequited affinity between talent shortages and untapped female potential: The relevance of gender quotas for talent management in high growth potential economies of the Asia Pacific region. International Business Review, 22 3), pp.539-553. Watson, S. 2008. Where are we now? A review of management development issues in the hospitality and tourism sector. International Journal of Contemporary Hospitality Management, 20 7), 758-780. Read More