Different Phases of Talent Management in National Oilwell Varco - Essay Example

Different Phases of Talent Management in National Oilwell Varco Many employers facing industry job shifts also are confronted by workforce changes due to retirement of key executives and employees. One firm that has “drilled” well in the oil equipment and services industry is National Oilwell Varco (NOV). Based in Houston, Texas, the firm has over 20,000 employees working in manufacturing, selling, and servicing oil and gas equipment. Several years ago the CEO at NOV, Pete Miller, recognized that all of the senior management executives were baby boomers. The CEO realized that many of these executives would be retiring about the same time, so NOV would face a significant vacuum of talent to be replaced. Two senior executives were given the assignment to prepare for the changes, resulting in a plan labeled “Next Generation.” To generate supply of potential leaders, technical professionals, and others, NOV had to broaden its recruiting process beyond the normal oil-based states, such as Texas, Louisiana, and Oklahoma. Miller also demanded that foreign candidates be considered, because of the expanding global oil market. A specific focus of NOV recruiting efforts included foreign students at U.S. universities who had high English communication skills and other relevant capabilities. Up to 40 individuals at 10 universities were interviewed, and then the primary candidates went through two more interviews by NOV middle managers. Those candidates who “passed” this phase spent two days in Houston going through additional interviews and selection means. Finally, the individuals selected were offered jobs at NOV. This process has continued during the past several years. Once the selected individuals go to work at NOV, they spend one year in job rotation, with four assignments of three month for each in different business areas. This rotation provides the individuals with a broader view of NOV and its operations. During the rotation, candidates participate in various efforts, including development programs and mentoring by various division managers. A unique part on NOV’s talent management process is that after the individuals complete their one-year job rotation, they become “draft candidates.” Modeled after the NFL draft, each business unit identifies which individuals they want on their “team.” After completing the draft, individuals get jobs in the different business units. NOV’s “Next Generation” program has been successful. The retention rate for the drafted candidates is over 90%, higher than normal in the industry. Also, its recruiting costs have declined. So there has been a payoff for both NOV and its employees. Questions: 1. Discuss how NOV’s efforts combine different phases of talent management to reach a successful result. The different phases of Talent Management by NOV is successful because it seemed to have been anticipated years before it was implemented. It could be said that the CEO was good in strategic planning and gave serious thought about the direction of its human resources for the coming years. The plan “ Next Generation “ is a success because it went through phases of sourcing, coaching and measuring with much details that ensured the success of the plan. At the sourcing part, the requirements were already laid down, communication skills as well as other soft skills were already determined so managers can zero in what they expect from the candidates. This supports Wellins et.al ( 2006 ) argument that “ a structured talent management process will systematically close the gap between the human capital and organization currently has and the leadership talent it will eventually need to respond to tomorrow’s challenges “. The Coaching part of the phase wherein the trainees are assigned on rotation to different units for one-year is a great idea since it enables the participants to also measure their capabilities and match their personal strengths to the job. At the same time, this chance also make the trainees well-oriented on all facets of organizational operations thereby giving them a holistic view of the business. As for the evaluation phase, the NOV business units do their scrutinizing of who among the trainees would fit into their team. Team work is essential in a business unit so technical skills are secondary to the trainees ability to work with a team. The whole phase is successful because the trainees are exposed to variety of business operations and see where they fit; moreover, the business unit has a hand in picking who they want to work with. It is a win-win situation that is why it is successful. 2. The common advantage of the “ draft approach “ in placing them in business units is the fact that it is financially beneficial to the organization since it has lessened recruiting costs. It is also more hands-on so less training time is needed since the candidates have been pre-qualified at the screening process. In the case of NOV, it has been successful since the organization has created a sound and comprehensive plan that enhances the talent management process. Also, the involvement of bright foreign students is a good motivation for the participants to make their mark in their professional and personal lives as well. For other organizations, talent management is not that easy since many organizations do not have a well-mapped talent management process. Perhaps some organizations even mistake talent management for succession planning which is entirely different. Another issue that concerns this draft approach is the size of the group. It is convenient for business units to accommodate smaller groups since it also takes time and effort to mentor trainees. Bigger groups may even disrupt the business operations especially when they are not well-oriented on business practices. In an online article by Emagazine, it featured an interview to a HR manager who commented that “ …another addition to the mix are the Gen X’s, Gen Y’s and Millennials, these groups have different values than the baby boomers did. “ ( “Passive Approach”, April 2010). Thus, young blood also carries with them a different set of values that unsettles the corporate culture. Nevertheless, if the organization wish to practice the “draft approach” it must take lesson from NOV by fully-orienting the trainees in the corporate culture so they can easily assimilate in the organization. In conclusion, “draft approach” has its merit and disadvantages and it is up to the organization on how it would manage its talent management. References: "Passive Approach - Recruitment & Staffing - HR Management US | GDS Publishing." HR Management | The Online Human Resources News Source HR Management | The Online Human Resources News Source | GDS Publishing. Emagazine, n.d. Web. 15 Apr. 2010. .( accessed 10 April 2010) Wellins, R., Rogers, R., Smith , A., ( 2006) .The CEO’s Guide to Talent Management. Development Dimensions International. . ( accessed 10 April 2010) Read More