Talent. Savour the word. It's a word that straightens backs in HR and
gets business excited. And gets both worried that they don't have
enough of it.
It all started with 'The War
for Talent', a term coined by Steven Hankin of McKinsey and made famous
in a book by the same name, written by Ed Michaels, Helen
Handfield-Jones and Beth Axelrod.
So, what do they really mean by
talent? Well, now we go in murky waters. The book does not explicitly
define talent. At one point, the book uses a 'definition' which was
famously used to define obscenity. "you know it when you see it."
Later, talent is defined as a combination of things which tick all the
right boxes for an organization - strategic mind, 'leadership ability'
(which itself is vague), ability to attract other talented people (which
compounds the problem by adding a new layer of vagueness) and so on...
Saved by the Billing Machines
Some things are too good to be left to pass away unnoticed.
Enthusiastic support by consultants led to a multiplicity of
definitions, some talking about the power of the top performers to
transform the organization while some taking a workforce-based approach,
defining all employees as talent pool, thereby converting HR into
Talent Management. Today, the field is deliciously open, where both
definitions coexist. Talent, depending on the context, therefore, may be
the top 5% of your employees in terms of potential and/or performance,
your leaders (hopefully, there is a huge overlap in the two categories
mentioned) or your universal set of employees. You just have to know
which witch is which.
Have we lost to jargon?
Given
this illustrious background, it would be easy to assume that talent
management is another term we shall hopefully grow out of. But TM has
had a positive impact on organizations in three ways:
1. Going beyond KRAs, KPIs and numbers:
Before
TM entered the scene, it was not easy to have a conversation with CEOs
about creating systems to identify and nurture leaders, primarily
because such discussions were drowned out in the din of sales and
performance numbers. While there were many techniques available to groom
leaders, it was TM that gave a framework on which a generally accepted
understanding of the importance of leadership was created.
2. Sheep which follow v/s goats which need to be led:
TM
helped, admittedly to a small extent, to push forth the realization
that people bring a dimension of their personalities to work and more
importantly, this dimension can have a big impact on the organization.
Before TM, the context of organization-employee relations was defined
more by welfare, fair wages and remuneration, hierarchy-led growth and
'human capital'. TM talked of the disproportionate impact that star
employees can create for the organization. Using systems which
force-fitted them in the context of seniority and equality rather than
equity was seen to be dangerous.
3. Talent is fungible and loyal to itself:
TM
helped created a vital link between the external situation and internal
requirements. It brought home the clear message that people who are
capable of changing the fortunes of an organization are in short supply
and worryingly for organizations, are not bound by industry, country or
job loyalty. Talent does what it must.
Great. So we are sorted.
Not really. There are still some issues that TM needs to confront. Here are three:
1.The metaphor that isn't:
I
argue that the framing of TM issues still leaves a lot to be desired.
Let us look at three terms: 'War' for talent. 'Drought' of talent.
Talent 'acquisition'.
In my opinion, these terms tend to frame
the concept of talent in a biased way. Talent is seen to be an asset
that needs to be captured, because it is scarce. Like oil, perhaps. This
is a linear view and can be quite incorrect. Human beings have a
capacity to learn, unlearn and adapt. To give an accounting analogy, the
current view of talent is that talent is an asset comparable to
machinery or Capital Goods, that tend to depreciate over time (or have a
clearly calculable and linear initial book value, rate of depreciation
and 'scrap value'). People tend to behave differently, especially in
situations where they are nurtured. They tend to be like Goodwill, an
asset which tends to appreciate over time and whose increase in value
cannot be determined through a linear formula, but can vary due to a
variety of forces.
2. The lag that doesn't go:
Most
TM systems tend to sit beside, or on top of, conventional HR systems of
performance appraisal, role-based compensation and near-linear career
paths. Very few HR Departments are able to take bold decisions and
re-imagine HR systems from the ground up, which put the appreciation of
abilities of the individuals as the core of their design. For example,
coaching and mentoring can be a non-negotiable part of performance
management. Career paths can be customised and supported for individual
employees. Today, there are tools available that enable HR and line
managers to manage such systems. But it takes a brave HR department, and
a wise Top Management, to appreciate and create this.
3. The end result that isn't:
Most
TM practitioners (yes, they are a thing. Yes, I am one of them) will
admit to a feeling of disappointment at the end of a TM assignment.
Quite often, the benefits of TM are not at all visible. When the mandate
is to recognize top talent, TM practitioners end up giving a list of
top talent based on various assessments. When TM systems, such as talent
'acquisition', need to be set up, TM practitioners integrate
competencies into the recruitment process (that is what talent
acquisition means) and present a competency-based hiring solution to the
top management. I argue that that isn't the end result: end-to-end
talent based systems tend to only exist on delicious-looking Powerpoint
slides and are rarely implemented. this could be due to a variety of
reasons, but in the end, the failure is seen to be that of HR and the TM
practitioner. A painfully frank talk is required, before getting into a
TM solution.Can the organization afford a TM approach, given the
attention it requires? I am not even talking of things like
sensitization of managers here. Does the organization have the basic
time and willingness to make TM a vital component of their
organizational process? What benefits does the organization see from the
TM process? What are the reasons to go for TM? : Is it driven by a
desire to keep up with the latest buzzword (even though TM is not
exactly new)? Is there an investor who needs to be impressed? These are
the wrong sort of reasons to go in for a TM initiative and it tends to show in the final outcome of the initiative. Also, and very few consultants will tell you this, there are perfectly good ways in which organizations can succeed with conventional HR systems as well.
In
sum, talent management has evolved its own set of definitions and today
is accepted as an important part of the new organization. However,
Talent Management needs a rescue act from itself, as it exists today. A
clear boundary of what it can and cannot do and what it should and
shouldn't do, is critical before embarking upon Talent Management interventions.