iny asi rts, eee 15 TALENT MANAGEMENT Plain Jane So whatif | lied and cheated — | delivered on the job Chapter Objectives ee "To develop an appreciation of the talent environment and the criticality of talent man- agement in organizations. To have an easy model in your mind with a complete understanding of its components {how they are now) and how they are likely to shape in the future. programme drives home important messages about To develop a strategic view of the levers every company and every leader should pull to attract, develop, assess and retain highly tal- ented managers. ‘To draw inspiration from the best practices in the industry to be able to design and imple- ment diverse talent initiatives.594 | Human Resource Management Opening Case Faced with the downturn in the telecom business, Reltech Pvt, Ltd was forced to downsize approximately 40,000 employees over a period of thee years. Globally, they had an employee strength of two lakhs and in India, they were approximately 75,000 employees. Four weeks ago, Neha Bansal received a call from human resource consultant trying to recruit her back at Reltech, Not an unusual thing, except for the fact that though she was an exception- ally bright performer, she was forced to quit the company for no fault of hers. She recalled those traumatic moments, when Yogesh, her manager and the HR’ manager, on an impromptu basis, called her for a.meeting and informed her that she was being retrenched, as she was one among the chosen lot to part ways with the company, as trey had received orders from thelr global coun- terparts and they were helpless in her case. : + She was among the 400 from her unit who were given the pink slip. After she was forced to resign, she was unemployed for close to three months and finally got a job, not of her choice * though, but she took it up as she thought it was bette to work than to sit idle at home. Neha was hired for the role of a senior manager—products for a small telecom firm. She was hired in 2001 by Reltech as a junior engineer and moved her way up to the level of a project man- ager at Reltech, She also had additional responsibilities for setting up of branches in the South. ‘As the economy bounved back aiid the marsets started looking up, Reltech’s CEO Ryan Schmidt has been trying to fix the ailing company and strengthen teams across the company globally. Orders had started pouring in and the timeline to meet the growing demand was too tight, considering the current manpower strength, Sinée the last two months, they had recruited at least 300 employees, but this nevertheless was not ofly proving an expensive proposition, but it also delayed results ftom achieving the targets anc the generation of revenue. Hence, the GM-HR thought of this bright idea to recrult the good pérforrtiers whom they had retrenched a year back. ‘Neha had now completed seven months in her new job and she was surprised to receive e call from the consultant who vias trying to convince her to go back to Reltech. Ifshe had accepted the offer she would join at the level of a DGM and a 25 pet cent compensation rise too. At the back of her mind Neha knew that she was not very happy with her new role, neither with her boss and nor .with the company, Nevertheless, she was traumatized by the fact that the way her ex-boss and HR had handled her enit at Reltech and she used to frequently get nightmares due to this. She was tom between the devil and the deep-sea. After much deliberation for around a week, she informed the consultant that she would take up the job at Reltech, " She soon started working at Reltech and enjoyed working there too. She continued there for close to two years and also got promoted to the level af a GM-Projects. She continued to report to the same boss whom she used to reportto, in her erevious stint. She used to like him professionally {or his work, but hated him personally for the way Fe handled her case earlier One fine day, she got @ call from a headhunter who had accessed her CV via Linkedin The headhunter spoke to her about a lucrative job opehing at the level of AVP with excellent compen- sation end a hefty joining bonus, if she Joined witvin a fortnight, She was in a dilemma now and ‘was confused too. She was algo in the midst of her prdject and was wondering whether it would be Fight to leave the project abruptly. But she did recall the way the company had traumatized her in ‘the past and thought it was a good lesson to teae1 her boss and HR too. “To hell with the project -and with them’ she thought. 5 She raced to her boss’ cabie, Abruptly knocked atthe glass door, ‘Here is my resignation letter and | plan to be relieved within a fortnight, if not earlar’, ‘But why?! enquired, ‘You have just been promoted to the level of GM-Projects about a month back. We also sent you for two weeks for an ac wi pr be thi th ret ‘This book ing in and g ous Jo of the In the the in situati let, an strike, of Tal 15.1 Overt shift t Thisq Servic when organi ated tt playaTalent Management | 595 “advance functional skill development programme to the USA ahd of course in the near future you l-get promoted to the next level too. Youur compensation wil increase too!’ So-what is the real problem, Neha?’ asked Yogesh. i, i ‘Boss, do sincerely appreciate all that ude way:you and HR handled my being one of the best perfortnars in the ‘have done forme; but whenever look at you, | think #8¢, YoU threw me out at the’ drop 6f.a hat, in spite of artment, so this is my ‘pay back’ time and you may le, 80 be it, but in my mind | had gore through hell igre with what Neha has done’ 2 : that the right way thet Reltech should have handled a talented employee Tike Neha? Justify iranswer ‘ ees. eee oo ne ee Me ur assets walk out of the door each evening. We have to make sure that they come back the next morning. Narayan Murthy ” ‘This oft repeated quote by the founder of Infosys, Narayan Murthy, is reminiscent of a book Atlas Shrugged by Ayn Rand, The book explores a dystopian society where lead- ing innovators, ranging from industrialists to artists, refuse to be exploited by society and go on a strike. These most productive citizens ofthe society, ed by the mysteri- ous John Galt, progressively disappear. Galt describes the strike as ‘stopping the motor of the world’ by withdrawing the ‘minds’ that drive society's growth and productivity In their efforts, these people ‘of the mind’ hope to demonstrate that a world in which the individual is not free to create is doomed, Does it strike a chord? Can the same situation occur in an organization? Of course it can! Any organization which does not let, and in fact not help its people be their best is doomed, Employees might not go on strike, but they definitely do have the option to leave. And therein lies the importance of Talent Management. 15.1 TALENT MANAGEMENT DEFINED Over the years, the nature of GDP in India and across the world has seen a significant shift towards services. What does this actually mean for the management profession? ‘This question can be easly answered if you look at how services revenue gets generated Service of any kind (be it the customer care executive who gives you the information ‘when you cal your bank, or the Guest Relations Executive at the Hotel where you have organized a conference who ensures that your event goes like clockwork) i all gener- ated through people. You may rightly argue that another couple of intangibles which play a big role in this revenue generation is a process and a technology. But needless to596 | Human Resource Management argue, no process or technology is any good without the right talent managing them. ‘And why speak of just managing—the right people can cteate the right design, the right processes and adopt the right technology to propel any organization in the desired direction. And this is where the raison deter of this chapter lies. Over the last few decades, human resources have, therefore, developed a strategic importance. While earlier it was enough to have the right person in the right job, now there are many more variables an HR Manager would like to have control on. The HR manager would like to have the right person at the right place at the right time for the optimum time and at the right price. On the one hand, while human resources have developed heightened value as a faccor of production the softer parts to this resource such as temperament, knowledge, relationship-building skills, competence make it increasingly complex to manage it in a strictly scientific manner, On a lighter note, finding a method in this entire madness is what talent man- agement is all about. On a serious rote, organizations have now realized that people could be that crucial differentiating edge for them in the increasingly competitive marketplace, Increasingly, all organizations are terming their people strategy as Talent Management to differentiate it from the hackneyed spethods of handling the essential processes of Human Resources Development. Talent is the identifiable ability that is perceived to wdd iausne- diate or future value to any prescribed activity, discipline or Telert management & the entrepreneur’ (Maurice). Talent Management can, therefore, be conscious and deliberate attempt defined as the conscious and deliberate attempt to attract, engage, tovattract, engage, develop and Tekin people withthe spttude develop and retain people with the aptitude and ability to meet, cndabiliy tomest curent and. currentand future organizational need, It could also be defined as future organizational need, ‘the process by which talent is sought, developed and directed to achieve business goals’ (CIPD 2006). 15.2 SETTING THE CONTEXT While talent management fast develops as a hot topic of discus- Search for talent is going sion for all HR managers, it continues to be perceived and under- global stood as a fuzzy combination of some esoteric elements of the HR Lateral recruiting system which if managed right would make things work Many Finding and training people models have been propounded by management gurus and large with arange of management consultancy firms. ‘The paradox lies in the fact that there is no = Changing face of the single model waich has been proven to be the right model forall herttoice organizations, This is not difficult to understand given the fact = Out-of-box thinking is that every organization is different from the other. Some of these peated differences are easily notable such as size, product and geogra- phy, but there are many other variables such as culture, ambition and leadership which are not. Rather than spending time, understanding these dif- ferent models, a better idea instead would be to develop a clear understanding of the dynamics of the business, how they have changed as far as the people dimension is concerned. This understanding when juxtaposed with the business vision would give the co havet size sh, 15.2 A brie boome retiree: the wo their o challen ducted tion ter increas anexte not diff China, whi since th most pr see Indi Jarge nu to taker and mo: high-pa even theTalent Management | 597 ight ired egic ow HR the nave utce ce it aan- ople itive tial the correct answer to what the talent strategy of an organization should be. And you ¢ or | hivetoremember there ate no standard answersand bynow yore tna ee be | size shall not ft all. 88, net | 15.2.1 The Search for Talent Is Going Global A brief look at the talent pool in different parts of the world is different. ‘The baby ‘ boomers in the developed world (USA, Europe and Japan) are now retiring. These retirees are taking with them valuable experience knowledge and leaving big gaps in the workforce. In these countries corporate recruiters are beginning to look outside their own markets to fill the skills gap. As per a survey ‘People for growth: The talent challenge in emerging markets, a report from the Economist Intelligence Unit’ con- scus- | ducted by ‘Economist, many recruiters, particularly in the pharmaceuticals, informa- vder- | lon technology (IT) and engineering sectors, judging by their survey results—will 2HR | ltcreasingly tap developing countries for talent. Labour mobility has grown to such any | extent now that it is fir to say that talent has become globalized for today and it is large | 0t difficult for an Indian company to source the appropriate talent they require from igo | China, Brazil or Europe and vice versa. oral While the Western World faces a shortage, India is witnessing a steady brain gain Hfact | since the last few years, A survey published in 2008 showed that graduates from India’s these ‘Most prestigious universities, the IITs (Indian institutes of technology), increasingly ag | Se India asthe best place in the world to base themselves, Until about five years ago, ition | latgenambers ofthese elite graduates abandoned their country atthe fist opportunity dif | 10 take up well-paid jobs or to continue their education in the USA and Europe, More vfthe | and more Indian techies, scientists, doctors are homeward bound even now, giving up on is | high-paying jobs abroad and joining R&D units, hospitals, government institutions or even their alma mater here.598 | Human Resource Management Another significant factor affecting the worldwide talent pool is the contribution of the emerging markets which are producing a surplus of young talent. Infact, the emerg- ing countries produce twice the numoer of university-educated professionals than the developed world. However, they are not proving to be the easy answer to the worldwide talent deficit. Recruiters who hire from these emerging markets (which also include India) point out a huge variation in the capability of these candidates, whether it is engineering or general-management skills. Poor English skills, lack of experience of working in @ team, and being proactive are also some of the other softer issues which are hitch in proving the suitability of these candidates to the profiles and roles available, 15.2.2 Lateral Recruiting In this fast changing world, where probably more than one new product and service is introduced in the market everyday, the requirement for new skills is continuously surfacing. A decade back animation jobs were few, content building was unheard of, wind power generation was a niche industry. These new generation businesses espe- cially those powered by the Internet and the retail revolution are continuously gener- ating increasing requirements for new kinds of skills with the result that demand has | ext twe far oulsteipped supply of trained professionals in these new sunrise industries. With | capable this scenario, as the background it is not possible to hire or recruit people basedon | market ; their past experience. Consequently, talent demand of these new industries is being The I met from the established industries, 'Iherefore, Insurance is raiding Banking: Internet| The stry content building talent is being sourced from the publishing world. This kind oflateral | opinong recruitment is therefore, putting unnatural pressures on a variety of industries mak- | survey ¢ ing the problem more acute than what it was earlier. are pert Second, the emergence of efficient capital market in India has enabled the rise of | be critice many small and medium-sized companies that are increasingly targeting the same | and knov people sought by the hig companies, These companies are able to whet the appetite for | the next high salaries and big-sized opportunities to attract the young and the restless from the | importar established firms and hence, make the alent shortage for bigger companies even more | managen acute (Figure 15.1), 15.2.4 15.2.3 Finding and Training People with a Range In India, of Management Skills Top Is Priority ipa In addition to this broad demand for talent, the demand for high-calibre managerial | Tradition, talent is growing. As globalization, deregulation and rapid advance in technology is | Co™muni changing the game in most industries, and the job of managers is becoming more Will thrive challenging. Companies today need managers who can respond to these challenges. | *Hectively They need leaders who can transforr: their business and inspire their people. In addi- Howev tion to the increased demand from established companies for highly capable manag- | #24 woulc ers, start-ups have added a whole nev layer of demand in this talent pool. Though a | Which has number of talented managers have always been attracted to small companies, the flood | "logy an of venture capital in the mid- to late 1990s and the burst of high tech and Internet = that 2 riety of business opportunities suddenly made small companies a hot destination. Over the want flexitTalent Management | 599 Figure 15.1 The talent gap in India Talent demand prin Talent supply from ‘Egon Senior level Zehnder International’ sere The supply at the entry level exceeds Middle level the demand but the quality of alent is : ‘ot upto the mark rvice Entry level vously dof, espe: * Ms yener- dhas | next two decades, companies will be competing intensely for the limited talent pool of With capable managers. Short-term fluctuations in economic activity will make the talent edon | market little looser or tighter from time to time, but the long-term trends are clear. being The Economist Intelligence Unit (2008) brought out a report titled “Talent wars ernet_ | The struggle for tomorrow's workforce, This report was based on a study which took ateral | opinions from 944 executives based on developed as well as developing markets, The mak- J survey called Competing on Talent was run in March 2008. Two questions which are pertinent to our discussion were; (1) which skills and knowledge do you think will be critical to your organization’ success over the next three years? and (2) which skills and knowledge do you think will be the hardest for your organization to source over tefor | the next three years? The results given in Table 15,1 show thatthe stills which ae ona mthe | important for success of organizations are also the hardest to find, And these skills are mote | spanagement skills ise of same 15.2.4 Changing Face of the Workforce In India, today the workforce is more heterogeneous than at any time in history. The \orkforce today has multiple generations, culturally diverse people working together gerial_| Ttaditionalists, Gen X and Gen Y, each has its distinet set of work value, learning and vgy is | communication styles and personal and professional motivators. Organizations that more | Will thrivein the 21st century will develop diverse programmes and technologies that nges, | *lectively motivate, reward and develop these distinct generations, addi- | However, as time flows, Gen Y will form the larger percentage of the workforce snag. | ad would prove tobe harder to manage than their predecessors. Ths ia generation, igh a | Which has been and is being shaped among other things by the Internet and tech. flood | ology and information overload, not to forget overzealous parents, Recruiters point emet | out that unlike the previous generations, they will be more demanding in terms of a r the | Vétiety of things. They want their jobs to be more meaningful, at the same time they Want flexibility, professional freedom and space to perform and grow, higher rewards600 | Human Resource Management Table 15.4 Skills most important and most difficult to source Skills Which Skills and Which Skills and Knowledge Do You Knowledge Do You Think will be Critical Think willbe the Hardest to Your Organization’s for your Organization to ‘Success Over the Next Source Over the Next Three Years? Three Years? (Select up to 3 Skills) (Select up to 3 Skills) Ability to deal with 68 (Rank 1) 47 (Rank 1) and manage change Ability to think 45 (Rank 2} 46 (Rank 2) strategically = Communication and 44 (Rank 3) % Interpersonal skills 2 Analytic and problem- 32 29 (Rank 3) solving skills = Ability to work with 3 2 virtual tears Project management a a skills Process design and 16 a management skills = Industry knowledge 6 19 Information system skills 14 8 = Other Z 3 = Don'tknow 1 2 A Source: Adapted from the Economist Intelligence Unit (2008) and a better work-life balance. Many of them have seen their parents work all ther life for the same company and then retire from these, They are not interested in killing themselves for work “The fastest growing segment in the talent pool i that of the knowledge worker, Wiki- pedia defines knowledge workers in today’s workforce as individuals who are valued for their ability to interpret information within a specific subject area. They will often advance the overall understanding of that subject through focused analysis, design and/ or development. They use research sills to define problems and to identify alternatives. “The increased skill level that these workers bring results in an equivalent expectation js that they will be rewarded (both socially and financially) in ways that recognize the increased value of their effort. For instance, expectations of remuneration are chang- ing, from an assured salary to one that often includes performance-based bonuses and incentives and stock options as part of the package. At times, their expectations of personal recognition and larger social power far exceed compensation too. ‘Job mobility’ is another signifieant change in this fast-developing diverse know edge workforce. A decade ago ‘high performers’ would change their job once or twice durin aprol stagne anoth 15.2 Talen war fo no ini sharec been t Co anun five o it ope in the Jong-t rethir differ talent Innov 45.5 Atale and ec busine ing thy tegic { they s ‘Thento lis) wirlife kalling Wiki- valued Joften nand/ tative. :tation ine the chang- sand ons of cnowl- ctwice Talent Management during theit entire career. What was taboo a decade back is a statement of worth for a professional in the corporate world, What was interpreted as ‘loyalty’ is now termed stagnation. Now the average executive today will work in six to seven companies; it another 10 years this might go up. 15.2.5 Out-of-box Thinking Is Required ‘Talent Management was introduced by McKinsey (1997) in their article called “The war for talent’ about a decade back. Since then companies have been sensitive to the strategic importance of the concept and have also tried (though a very few can be said to have been consistent) to adopt and implement it, most of the failures largely trace their roots to the fact that the entire design and process of talent management was left in the hands of the Human Resources Department. This does not mean that the HR departments failed to do their job—what was missing was the ownership of this crucial process by Line Managers and Business Managers. In the absence of this, ‘no inttiative could be taken to its logical conclusion in true spirit. In the absence of shared ownership of the process efforts that have been putin, initiatives which have been taken do not have perspective, Companies that take the long-term strategic view will typically ask themselves a number of far-reaching questions: Where is the company aiming to be in three, five or ten years from now? In which main markets and fields of business will it operate in future? What do the dynamics of growth and competition look like in those markets? And finally is the talent pipeline strong enough to deliver the long-term strategy? As dynamics continue to change, executives must constantly rethink the way companies plan to attract, motivate and retain their employees different from the way their competitors are doing to stay ahead in this race for talent, This would, therefore, mean doing things differently from any other—call it Innovetion or Out-of- Box ‘Thinking. 15.3 OBJECTIVES OF TALENT Objecics of talent MANAGEMENT management » Talent attraction A talent management system should have the capability to create Talent engagement and continuously optimize the talent resources needed to execute business strategy—attracting engaging and developing and retain- ing them, Their performance should be driven in light of the stra- tegic goals of the organization. ‘Through innovation and continuous improvement they should be able to add value to themselves as well as the organization. ‘The four explicit objectives of a talent management system are: Talent retention ® talent altraction & talent engagement ® talent development ® talent retention Talent development 601602 | Human Resource Management Table 15.2 Top drivers of attraction (ranking country-wise) India Brazil China Germany US UK Career advancement 1 1 1 . sof Learing and Development 2 i 2 * ey Challenging work 3 3 . 1 eee Competitive salary : 2 : * 1 Competitive benefits . . 3 * eee Convenient work location ia ef = 2 ei Sufficient vacation : i _ * mea Flexible schedule * 7 : 3 > Competitive Healthcare * : cd _ sant Source: Adapted from "Towers Perrin Global Workforce Study 2010, retrieved from war tower swatson.com, accessed on 10 August 2011 15.3.1 Talent Attraction: The Marketing Challenge [As per Towers Perrin Global Workforce Study (2010) the top drivers for talent in the emerging economies were very different from those in matured economies, Take a look at what the survey had to say (Table 15.2). The study has brought out that the top drivers for attraction to the talent in India are: Rank I: career advancement @ Rank II: learning and developnent opportunities @ Rank IIf: challenging work Packaging these drivers of talent attiaction in a company’s brand identity is the trick to building a successful Employer 3rand. Employer branding is defined by Simon Barrow and Tim Ambler (1996) as ‘the package of functional, economic, psychologi- cal benefits provided by employment and identified with the employing company’. Package of benefits offered by the company has come to be Employer branding is the known as the Employee Value Proposition (EVP). For any package of functional, brand to become attractive it has to have an EVP. A winning economic and psychological EVP should have rational as well as emotive benefits. Therefore, a benefits provided by employment and identified with the employing company. strong employer brand would include features to promise exciting work, great company, wealth and reward, grovth and develop- ment. Contrary ‘o yesteryears, when consultants would stress on defining and communicating ‘ powerful EVP now the same is being toted as being outmoded. With the workplace becoming more and more diverse multiple value propositions have to be developed aad communicated to have diverse talent walk in through your doors. Read about how to develop and drive an employment brand strat egy in Chapter 4 on Recruitment. ‘One obvious question which comes to mind is what about the company brand? ‘The company brand definitely matters, butt isthe employer brand that attracts the kind ofTalent Management | 603 K F fae . Ifthe drivers for attraction are different in each country then should employer § branding for same company be different indifferent markets? : 4 THOUGHT 1 . employees that all employers are on the lookout for. In July 2008, Mercer Insight indi- 2 cated, ‘We see companies with strong employer brands that are able to pay below the . median salaries and still manage to attract andl retain high quality talent? There are few _ companies that extend their company brands and merge it with the employer brand. i McDonald, their catch phrase ‘Tm lovin’ It; appeals to both the company as well as fae the employer brand, McDonald, people promise affirms: ‘Were not just a hamburger a company serving people, we're a people company serving hamburgers? Advantages of Employer Branding A success employer brand has many benefits: Ability to attract the best in a talent pool. Ability to resist a salary hike in a competitive market—potential candidates will the ee have other deciding factors. Shorter time to fill positions. tin ® Higher employee commitment = Lower employee turnover. HRM in Action RMI AA non ogi- : Employer Branding Initiatives at Infosys ae Infosys have quite afew employer branding Initiatives: ving % Infosys Leadership Institute: Making leadership and managerial leadership integral to tea business. Enhancing managerial capabilities for increased customer satisfaction, Develop- ting ing leaders to take the organization forward. lop- Global Talent Programme: Recruitment from campuses outside India and developing son skills of global workforce through tfaining assignments in India. ie Global Business Finishing School: Learning initiative to make every new entrant into vie Infosys ready for a job quickly. ae 4 Pravesh: Continuous learning programme for frst time project managers # Sparsh Intranet: Primary channel for nevis and provides employees a platform to express The themselves.604 | Human Resource Management Pinlnuelawaccit(ola Litmus: Internal survey and employee expectations are captured on a yearly basis. «= HALE Hotline: Employee engagement initiative under that Health Assessment Lifestyle Enrichment. Online questionnaire that addresses the probable causes of stress—physical psychological, financial or social. HR takes the relevant action to resolve the crisis. Consul- tants provide counselling to Infoscions round he clock, ie., 365 days of the year. At SAB, India, the unique employer brand initiatives aré; ® Everybody Thinks Sapient: Road shows, which help employees across the company to understand and live the brand. Sapient Start: A week long on boarding training session for new hires which focuses on the brand and its value proposition, 8 People Voice: It recognizes employees and builds role models within the company. Talent engagement factors 15.3.2 Talent Engagement Employee engagement can be assured by taking into consideration of chiefly five factors (Figure 15.2). These are: The Work liself ‘The work itself can create immense job satisfaction and give rea- Work itself. sons to the employee to stay engaged. The factors involved are Opportunities for personal interesting and challenging work, responsibility (feeling that the growth work is important and having control over one’ resources), auton- omy (freedom to act) scope to use and develop skills and abilities, the availability of resources required to carry out the work and opportunities for edvancement. Work environment Leadership Opportunities to contribute Opportunities for Personal Growth Most people want to move ahead, ie., grow in their jobs. Learning is a satisfying and rewarding experience and makes significant contribution towards making the employee fee! that the organization cares and is fair to its people, Satisfaction of growth needs depends on people finding the opportunity to be what they are best at and become what they can, The opportunity to grow and develop is a motivating factor that directly impacts on employee engagement when it is an intrinsic element of the work. Work Environment ‘The workenvironment should be such that it not only nurtures but actually enhances the performance and potential of the employee. ‘The various different components wh we Le th; th: To wh be In In na en sal en‘ors are the on- ies, and vest ing ent ces nts growth Engagement drivers 1 Leadership = Work environment Talent Management | 605 Figure 15.2 # Work itself Talent 12 Opportunities for personal engagement + Opportunies toconrbut | which contribute to work environment is the communication, employee involvement, ‘work-life balance, working conditions and building effective work relationships. Leadership Managers play a big role in engaging talent. For employees it is much more important that the line manager directiy engages with them in enabling learning and managing their performance than the wider organization-driven schemes, Opportunities to Contribute “To engage employees they need to believe that they can make a difference, Employees ‘when given the opportunity to contribute take more active interest in the organization beyond their personal interest. A well-managed suggestion scheme in an organization is an excellent example of the same. Internal Branding Internal branding is also a potent too! to engage an employee. While the employer brand is used externally to attract talent, inter- nal branding can be successfully used to engage and retain the employee. While the definition of the employer brand stays the same, it has to be reinforced internally in different ways. ‘The four areas where the processes need to be aligned with the employer brand are: Internal branding Recruitment and on boarding Performance Rewards and recognition internal communication 1. Recruitment and on boarding: ‘The way an employee gets hired and then inducted into the organization are the first important touch points for employer branding. Processes and practices in this phase have to be carefully aligned with employer branding. For example, an organization calling itself ‘agile’ cannot have the new recruit wait for a day to get an e-mail id 2. Performance management: The way performance is driven and recognized says a lot about the organization, What it says should agree with what the brand claims to be, For example, an organization which says it has high performance culture cannot not have a formal process for performance improvement in place,606 | Human Resource Management iB 7 He 3, Rewards and recognition; What an organization rewards and recognizes is in itself a statement about the organization, For example, an organization Ea which says it is driven by values should not have reward and recognition iat around achievernent only pal 4, Internal communication: Branding has to be communicated by the organi- tin zation, and within the organization not through ‘talk’ but by walking the talk. the for: wo tor HRM in Action 7 san : : i pat How organizations are aligning their processes to their eniployer brand: ae 1, Recruitment and on boarding the (@) Phillips software has an ethics workshop asa part of the onboarding (b) Google has Smorgasbord an ofte focus groups review hiring proces, interview Pia) style and interview questions. thes (©) Aviva has a Buddy programme and the buddies are given treat coupons to take the ae new hires out for a meal, dey. 2. Performance management that (a) RMSTs transparent system permits employzes calculate their own bonus. the (0) Honeywell has self-assessment of competencies for employees and help to pursue met higher studies. eng: (6) Infosys has a confidential instrument for employees to self-asess their stress levels. oF 3, Rewards and recognition i (@) Sapient has a Core Values Wall of Fame, ae (b) Wipro has a ‘Dear Boss’ award. ing (6) FedEx recognizes outstanding performers on the intranet and magazine: the Promise'—recognition for customer service and Golden Falcon award for serving s customer beyond norunal call of duty : (€) Intel has volunteer recognition award for those volunteers who work at the com- unity level 4. Internal communication . (@) NTPC shows film made by the noted film director Shyam Benegal to highlight the struggles and spirits oftheir first employees who established the foundations ofthe i organization. (b) Intel has a “Write to Know’ forum to raise questions anonymously. (©) Morning meetings in Classic Stripes include recitation of the vision and values of the company. : (@) Aditya Birla group uses its payslip to communicate ‘choti choti batein’Talent Management | 607 15.3.3 Talent Development Earlier it was advocated and followed that companies identify their top performers and put them in a star club, But it has been seen that such a thing ends up in a huge political exercise, especially ifthe organization is large with many divisions. Organiza- tions that focus their development efforts on the high achievers, often fal to recognize the contributions of staff members who offer greater intangibles. A list of best per- formers is too often composed of individuals who generate revenue, thu, ignoring the work of individuals who act as a bridge between departments. There are no metrics to measure someone value in being able to communicate with individuals across the entire organization; with passing time the popular theory which has emerged is that a talent strategy is required for the entire organization and not the privileged few. At the same time, itis not possible to send the entire organization on a similar developmental path, Therefore, what we advocate isa segmentation of the talent workforce in an onga- nization and an approach for each segment differently, How an organization segments them shall depend on its core business and its talent strategy. For example, in Johnson and Johnson, they have a reputation of being a long-term player, but they do not rest on their laurels for this. They build cateers inside the orga- nization, as they appreciate the role of developing talent and then effectively engaging them too, They use effective career management policy, for an effective talent manage- ‘ment practice. They also have a fair and transparent succession planning, training and development, 360-clegree feedback process and stable career growth, and they ensure that the employee can see continuous ‘care inside the organization. ‘Though they are not the best pay masters, they build careers inside the organization. ‘They have a commit ‘ment towards the employee to ensure their overall development and they continuously engage themselves in delivering their commitmient. Hence, they do not have a high turnover either. Another example i that of GE, Globally, it spends more than st billion on training and development of the employees to keep them gainfully engaged. They have entry level leadership programmes and experienced leadership programmes. They also identify talent through a systematic rating process. All employers are rated on a rat- ing system of 8, The three broad programmes are: Crotonville leadership programme, the functional skill programme and tise business knowledge courses. Some inputs the organization could follow for talent development are: The philosophy of talent management should lay emphasis on engaging and developing talent that has a strong potential, rather than those that have a good appraisal reviews, = Nurturing, encouraging and moulding the growth of talent will help in facilitat- ing the employee personal growth—this needs to be a two-way process, Anenvironment conducive to continuous learning and regular reviews which is ‘measured actoss global benchmarks, ¥ Rather than just preaching the work-life balance philosophy, itshould be practiced, Internal job postings, career and succession planning, mentoring and coaching, job shadowing, secondments all ofthese act as an aid tothe employee in honing their skills.608 | Human Resource Management Tower Watson reports differences in talent issues between developed and 5 emerging economies. For example, in developed countries talent finds 3 competitive salary the most important aspect of ajob where asin the developing D countries talent looks for career advancement. What implication will it have for A THOUGHT | global organizations’ talent management practices? & The psychological contract between organization and employee now last only for couple of years, Therefore, organizations must be prepared for the regular churn of employees, Job security once valued is now replaced with developing employees, hierarchy with challenge and reward with lifestyle It is imperative that an organization finds out how engaged its workforce i, especially its high performers. Diagnose the factors that are leading to a reduction in engage- ment and look for leaderships behaviours, organizational factors or manager's which may be causing this. This can be done with the help of an employee engagement sur- vey. To learn more about how to design and implement the data obtained from the survey refer to Chapter 10. Then aligr: your improvement efforts with the require- ments of your talent strategy. 15.3.4 Retention: Keeping Up the Momentum Itis highly unlikely that an employee will leave if they have coffee with their mentor once in every two months and that about suns up retention. It is a Catch 22 situa- tion, whether an organization should focus on potential employees/key employees or focus on all employees in the organization, Ifthe organization does not focus on key employees, there are strong chances that there would be an increased risk of leaving. Some inputs the organization could follow for talent retention of employees are: & Competitive compensation strategies and good incentives. % Motivators such as autonomy at work, prudence to utilize their skill sets and recognition, sense of pride and achievement are also important for the employee. = Career opportunities for growth for ‘high potential employees’ and ‘Star performers’ and the rest of the employees. Aspiration management for ‘high potential employees’ and ‘star performers. Flexi work initiatives such as telecommuting, flexi timings and fun at work Global job rotations, Job enrichment. Mentoring and coaching, Leadership development. Step up programmes which make an employee ready to take on future roles and responsibilities. Organizations have to create an embience where talent can bloom. 1 Provide a clear sight of the employee’ future growth prospects from their present career path. Amt direc and agers (5) o belie: thee when follos evoly resol more 15. Fig prop: lows. on it a bus ness: and « itself woul optin of the mane comeTalent Management | 609 1 4 Organizations must place employees in the correct outfit which suits them and 7 their career the most. 9 % They have to put in place systems that will help unleash the potential of their x workforce. Z 4 The conducive environment must create an emotional bonding between the organization and the employees, aly © They must take effective steps to find out the issues creating a negative image in lar the minds of the employees, "8 They have to build a reward and recognition mechanism that provides value for employees. ily Be Amtek Auto Group have the following retention strategies: (1) strengthening their ich direct reportees, (2) establishing a talent standard to create benchmark for evaluation ur and promotion, (3) to drive a simple and probing review of talent, (4) holding man- the agers or critical process leaders accountable for strengthening their talent pools and re (5) continuous coaching and nurturing enviroment for their talent. They strongly believe that if they invest and nurture talent fo become catalyst in the change process, the employees in turn would be grateful to the company and will not dessert them ‘when they need them the most. Organizations must undergo an evaluation process to see where they stand on the tor following parameters in order to battle the most threatening attrition war. They must uae evolve a strategic thought process based on the above factors and take measures to ior resolve problems and create a healthy environment for employees to grow and become key more involved and associated with the company. & : Talent management fremeviork 15.4. TALENT MANAGEMENT © Business environment ad FRAMEWORK = Business strategy ns 1 Talent strategy tae Figure 15.3 depicts the talent management framework that we Talent culture . propose. In a nutshell, how this model seeks to explain is as fol- Differentiated capability lows. Every business operates in its unique environment. Based = HRsystems and processes on its vision for itself in the environment that it exists, it carves ~ Managing demand for talent 4 business strategy to reach there. A Key ingredient of this busi- — Performance management ness strategy is its talent strategy. A talent strategy will also outline Leadership development and conceptualize how the organization is going to differentiate itself in terms of its people capability in the market, This decision ‘would in tur affect all HR processes accordingly. For these HR processes to have an optimal impact a conducive organizational culture is required. Ifall these components a of the organizational people system are in syne, it could be safely assumed that talent ‘management should be successful in an enterprise, Now let us look at each of these components one by one, reir 1, Business environment 2. Business strategy610 | Human Resource Management Figure 15.3 Talent management framework Business environment Talent culture Talent strategy ‘Talent culture Differentiated capability HR systems and processes {a) Managing demand (b) Performance management (C) Leadership development auwee 15.4.1 Business Environment Business environment consists of all those factors that have a bearing on the business. One would typically start with the classical PESTLE (political, economic, social, tech- nological, legal and environment) framework to study the macro factors which affect businesses to build a view on the business environment, This would have to be typ- cally followed with a closer look at the industry specifics. An old fashioned, but none- theless effective way would be to do a SWOT analysis. This helps you find answers to all pertinent questions based on which the organization’ business strategy will have tobe prepared. ‘Trends in the external business environment will have multiple HR implications. What is going on in the economy and what is the demand of your products and ser vices will help you identify which business units will grow, at what pace and which are the ones which may need to be scaled down or probably exited from, ‘What are the criteria on the basis of which the customer is buying?—is it price (value for money), quality, responsiveness, on-time delivery, relationship or conve- nience? Often the way to win in the market is by giving the customer what they want better than what your competitors cre. Knowing your customer preferences will ive you the idea as to what Kind of cultural capability your organization needs to have “These will have implication on how you hire, where you hire from and what kind of beh org 15 Bas org: peti whi cost ors tage ton the 15 Oness. fect pi ne- ave rer are ve- ant ive lof, Talent Management behaviours would your performance management system scek to engender within the organization. 15.4.2 Business Strategy Based on an analysis of the business environment and a keen understanding of the organization’ value proposition one would be able to identify various sources of com- petitive advantage that the organization has, These could be one or more of along list which includes—innovation, on-time delivery, convenience, first in market, quality, cost, relationships, mergers acquisitions and alliances, synergy, branding, distribution or service. A strategy would need you to assess how much of these competitive advan- tage are being realized by the organization and which are those that it has the potential to realize inthe future. These would then form the elements ofthe strategy with which the organization would approach the market, 15.4.3. Talent Strategy Once you have scoped your business and your assessment of the market situation and come up with your business strategy you will then want to define and articulate the talent strategy in more detail, This would be akin to identifying the cultural capability of your organization. This would mean identifying those HR practices that will have ‘greatest influence on creating sustaining superior performance and desired culture towards attainment of the business strategy. The talent strategy should be able to give a direction to all the employee processes to attain the business objective. But let us first Most organizations’ talent 611 understand what talent strategy means, When you juxtapose your _ Strategy contains the following organizational vision, organizational value proposition and the tal- three directives: ent environment, you would be able to identify areas of competitive "Cultivate the superkeeper advantage that your organization has in the given talent landscape. _* Retain key positions backups ‘What it means is that an analysis of the talent landscape will give you ® Appropriately allocate a clear idea of what it takes to attract and retain the talent that you training, rewards, education, assignment and need to attain your business objectives, The prescription of what it takes might be a long list of items which may include career develop- ‘ment, financial incentives, rotation to other businesses and regions, flexible working conditions, fast track planning, learning and development opportunities, reputation asa good employer: Needless to say that for an organization itis not possible to do all ofit (in fact some of these may together actually work at cross purposes or might be financially not feasible). Talent strategy is all bout picking up those 20 per cent attributes ‘which might lead to an 80 per cent achievement of objectives For example, a BPO might want to retain its agents, and it might find out that alts competitors are paying their people much more than them, However, the constraint it may have that with its current financial condition might not permit it to change its compensation benchmarks drastically. The choice can then be to pay the best and retain nearly all its people or pay at the 95th percentile and implement best practices in the market to retain them as best as possible or stick to paying what itis and think of starting to hire absolute freshers and train them to be the best and keep a steady supply development