TALENT MANAGEMENT

GROUP ASSIGNMENT 4: “TALENT MANAGEMENT: DEFINITIONS AND PRACTICES”

ENSCHEDE, 11-12-2012

Dimitrios Kordas (M-CME/s1231901)

COURSE: MANAGING HUMAN RESOURCE FLOWS (194120090)

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AGENDA

1. Defining Talent Management (TM)2. TM in context of Sustaining Competitive Advantages3. Success Factors

4. Going one step further5. Profiles of participants6. Talent aligned to Overall Business Strategy7. Talent pipeline approach 8. Demand / Supply Gap – A Supply Chain perspective9. Global TM Challenges

9.1 Standardization Vs. Localization9.2 Talent pool characteristics

10. Building high-quality colleagues11. Retention of talented employees12. Decision-making in TM age

THEORY

PRACTICE

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DEFINING TALENT MANAGEMENT (TM)

The management of a company’s pool of talent is now too important to be left to the human resources (HR) department alone and has become the responsibility of the top executive.

Good talent management increases job satisfaction and improves retention rates. Leads to smooth transitions and secures business continuity.

TM includes (The Economist Unit, 2006): Identification of leadership potential Performance evaluations Targeted development activities Psychological testing Assessment centers: deal with capabilities gaps Training and development programs Relocations

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SUSTAINING COMPETITIVE ADVANTAGES

WHY to take seriously in this age TM? Demographic & legislative changes Globalization of standards – requirements Knowledge-worker & mobility

Failing to manage your talent pool = Failing to manage your SC (P.Cappelli)

Greater productivity, Higher customer satisfaction, Revenue Growth, Improved Reputation are all wanted!

“Our ultimate financial results are a reflection of the success or lack thereof of our development program,” admits William Hawkins, the COO of Medtronic. “At the end of the day, what differentiates us from some of our competitors is the quality and capabilities of our people.”

THE TM WHEEL / 6 PRINCIPLES OF EFFECTIVE GTM

(source: Stahl et al., 2012) 11-12-2012 5

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SUCCESS FACTORS OF TM

SUCCESS

WORKPLACE STRUCTURE

TRAINING

& DEVELOPMEN

T

MOTIVATION & COLLABORATION

INTERNAL CLIMATE

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GOING 1 STEP FURTHER

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The limited External Validity the research

Threats identified if kept 1 firm (interviewee) Limited types of population tested Gender bias Cultural bias

Possible Solution: Replication

How to replicate? Increase the number of participants: from 1 to 4 Mix the gender of people: still problematic Increase cultural (organization & country level): see next table

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RESPONDENTS’ PROFILES

Dionysios Panagiotopoulos José Ignacio Arraiz

Konstantinos Seferiadis

Nikolaos Kermanidis

Company DOSSEK HAY TECHNIKI LATOMIKI A.T.E.

Industry Construction Human Resource & Organization

Construction IT

Country Greece Spain Greece Netherlands

Position Senior Project Manager & Local recruiter

Management Partner Assistant Project Manager

Software Support Engineer

Experience (years) 17 (Over) 20 3 1

Working schedule availability

No No No No

Communication via Skype call E-mail Skype call Face-to-Face conversation

Types of participants

Cultural-bias

Cultural-bias

Gender-bias

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ENGAGING MANAGERS TO EMPLOYEE ENGAGEMENT

Perception of employees on what they really see as TM opportunities.

Find out what they really like to do most.

Develop their capabilities.

Shape their career direction in line with the company’s profitability line.

Use their feedback for improvements.

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TALENT/OVERALL BUSINESS STRATEGY

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DESCRIBE THE MEANING OF TM

Mr. Arraiz said: ‘When we talk about talent management, basically we mean the flow of professionals along their career. Professionals start participating in projects, learning and finally mastering our basic tools. Then they start to manage projects, which mean assuring the delivery for the client, in terms of quality and timeframes. At this stage they start to manage people in the frame of the project and also the economics of the project. Finally they start to manage clients, which mean understanding client needs and shaping projects.’

Mr. Panagiotopoulos stated: ‘We see talent management as the life-long process of transforming a highly skilled (civil or electrical) engineer to a broad on-site inspector, mediator, negotiator, and advisor holding always a balance between technical drawings and human relationships. Our talents have to be at least one step in front of our competitors.’

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IMPACT ON SUSTAINABILITY

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One might initially believe that establishing sustainable relationships with local governments is mostly affected by the quality of traditional contracts and high-level contacts between executives and government officials. The quality of the day-to-day relationships of regular employees with local community members may have far more impact on the quality of those local government relationships (Boudreau & Ramstad, 2005).

Unseen talent contribution and HR challenges

Mr. Seferiadis admitted that “Once I was landed at Benghazi and Tripoli’s airport, everything changed in my organizational conception of how to take the best talent-related decisions to maximize corporate reputation and productivity.”

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ACCELERATING LEADER’S DEVELOPMENT

Design of the talent pipeline Attract & Recruit Develop Monitor performance Engage Reward Tracking back

Do you have a specific approach?

How do you evaluate it?

How unique & valuable do you consider your Human Capital?

4 employment modes (Lepak & Snell, 1999): internal development, acquisition, contracting, and alliance.

Mr. Arraiz was the only person among the four participants having a structured view

on the Talent Pipeline, as he claimed:

“We have defined a talent pipeline, as mentioned, where we monitor specifically four

moments:

Recruitment, hiring professionals without a limit in their potential

From consultant to manager, where there is a significant potential assessment

about managing people

From manager to director, where there is a significant potential assessment

about selling skills

Leaving the organization, trying to get rid of professionals in the right moment.

This is again related to the potential assessments, reward management and the

number of external opportunities there are in the marketplace.”

TALENT PIPELINE APPROACH

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THE D & S GAP (I) – A SC APPROACH

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Correct number of talented people? Correct people in correct positions? (Mis)/Match between Talent (Product) and Organization(SC)? Is the quality of the talent the right?

3-FIT dimensions of (Stahl et al., 2007) Internal-fit Culture-fit (Mr. Panagiotopoulos – DOSSEK S.A.) Strategic-fit (Mr. Kermanidis – AET B.V.)

Mr. Kermanidis a junior software support engineer in the A.E.T B.V. Company, located in Arnhem, stated “We have a clear motivating power boosting us to optimize our strategic mission. The vision is the same, in all levels; personal targets are just metrics. An organizational target is what fulfills our strategic thinking.”

THE D & S GAP (II) – A SC APPROACH

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Mr. Panagiotopoulos after working 17 years as a senior project manager, and the last 3 years as a regional recruiter, for the DOSSEK construction firm, in his reply about the applied rewarding system he answered; “Psychological contracts are not just words for us. We want to work and live as a family. In this culture, money comes after. If you ask our employees about their annual bonuses they will tell you which bonus of all? Each day we try to eat, train, and laugh together as we will do in our houses after the end of work.”

3 main global challenges (Tarique & Schuler, 2010)

Get easily the right skills in the right numbers

Spread out knowledge and HR practices

Screen and develop talent

Mr. Seferiadis claimed that he always tries to build up a recruiting strategy for expanding the firm’s talent pool in the Middle East area, by assessing the available know-how, the number of candidates and the potential distribution of talent throughout the firm.

GLOBAL TM (I)

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Trade off: Localization (local talent development) – Globalization (global branding) (Stahl, 2007)

Transnational orientation of company Top Management Teams legitimate and support the geographical dimensions of a firm in order to become a truly transnational company (Mellahi & Collings, 2010).

GLOBAL TM (II)

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LOCALIZATION VS. GLOBALIZATION

(source: Stahl et al., 2007) 11-12-2012 19

TALENT ALIGNMENT

(source: Stahl et al., 2007)11-12-2012 20

DOSSEK S.A. &TECHNIKI LATOMIKI S.A.

HAY GROUP

AET B.V.

THE IMPACT OF RECESSION AND ECONOMIC RECOVERY

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Beginning of 2000s high investments in TM Recession: scrutiny of business expenses Increased HR-pressure for demonstrating adding value in ‘critical business units’ Cost-cutting focus and decreasing development budgets (CIPD, 2010).

Mr. Arraiz when speaking about the problems in TM practices, supported that “The main problems are related with the social and economic situation. In the years of economic expansion, professionals have lots of opportunities, turnover is over 20%, feeding the talent pipeline is expensive and sometimes we need to take high risks with inexperienced people.”

BUILDING HIGH-QUALITY COLLEAGUES

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A lot of employers tend to define talented people as the ones who will be potentially transformed into valuable, high-quality colleagues. High-quality colleagues bring many things at the table like sources of information, helpful critics, client interfaces, and reputation (Groysberg, Lee, & Abrahams, 2010, p. 3).

Mr. Panagiotopoulos says that “I expect the way our recruits behave towards the carpenters or masons to behave during our daily interactions. This is why a core ethical target in the firm, is that we want firstly High-Quality colleagues, not just stars. If a candidate passes successfully through our human capital processing we will likely consider him as talented.”

The same professional did not hide the faults of past, as he admitted that the firm did fall into two classic traps, the one of “allowing stars to go solo” and the other of “overestimating the importance of pay”.

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HIGH-QUALITY EMPLOYEES

The main hypothesis of (Höglund, 2012) summarizing that ‘skill-enhancing HRM is positively related to talent inducements, thus the use of extensive skill-enhancing HRM practices does communicate the centrality of employee qualities reflecting talent’ is in accordance with the overall perception of Mr. Panagiotopoulos on Talent Management practices.

RETENTION OF TALENTS

(source: Stahl et al., 2007)11-12-2012 24

Human Capital metrics – Score Index (min.1 - max.5) for each respondent Leadership Employee motivation Training and development Performance improvement Pay and reward structures

4 spider diagrams for benchmarking the perception on TM targets

Individual-level comparisons Firm/Industry-level comparisons

DOSSEK T. LATOMIKI HAY GROUP AET B.V.

INDUSTRY Construction Construction Consultancy IT

COUNTRY Greece Greece Spain Netherlands

Leadership 5 5 3 1

Employee motivation

4 4 2 3

Training & development

3 3 5 5

Performance improvement

2 3 3 4

Pay & reward structures

1 2 5 3

HUMAN CAPITAL METRICS – SCORE INDEX

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DOSSEK S.A. / MR. PANAGIOTOPOULOS

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Leadership

Employee motivation

Training & developmentPerformance improvement


Leadership

Employee motivation



TECHNIKI LATOMIKI S.A. / MR. SEFERIADIS

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Leadership

Employee motivation



/ MR. ARRAIZ

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Leadership

Employee motivation



/ MR. KERMANIDIS

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FACTORS AFFECTING THE RETENTION RATE (I)

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Sufficient and challenging learning opportunities Collaborative atmosphere and co-support

Mr. Kermanidis pointed out that “I was offered three times the opportunity for having a free dinner in any restaurant I would like to choose in 2 months. And my line manager the next day, sent a direct mail to congratulate me for my good job. After all, the next day I feel more committed and more open to learn.”

The IT fresher admitted that “The general feeling of being always and systematically supported in all the emerging technical and relational problems concerning my job-position constitutes the highest value in my personal perception about managing the internal talent of our organization. I am never dealing with the fear of being abandoned in case of complex issues.”

The age counts more than education or seniority: The older an employee, the more likely he is to stay and the less likely he is to leave the organization (Govaerts & Kyndt, 2011).

Mr. Arraiz’s case, an HR-manager and partner for HAY Consulting Group over 20 years opinion is in line with the previous hypothesis.

Mr. Seferiadis due to his awareness that modern young employees are likely to change jobs in the start of their career, said that when designing HR strategy for recruiting talents, prefers firstly to choose the best from the lower internal organizational levels and after to outsource for recruits.

FACTORS AFFECTING THE RETENTION RATE (II)

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(source: Boston Consulting Group, 2007)11-12-2012 32

DECISION-MAKING IN TM

CORE TALENT MANAGEMENT PROCESSES

(source: Jonathan Rosin, 2009) 11-12-2012 33

EMPLOYER VALUE PROPOSITION & TOTAL REWARDS

(source: Talent Management and Rewards Global Survey Report 2012-2013) 11-12-2012 34

The “give & get” between company and worker.

The full portfolio of total rewards programs

WHAT BECAME CLEAR; ORGANZATIONS – REGARDLESS THE NATURE OF INDUSTRY – CARE SERIOYSLY IN:

Progressing EVP & TR systems to achieve (re)-designed OUTCOMES

Talent Management is the critical strategic path for transforming employees into talented leaders which will highly differentiate firms and will lead them to deliver the most competitive/satisfying services and products to their customers.

IN THE END…

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TALENT MANAGEMENT

Business

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