The talent management revolution

According to Jay Conger’s webinar The Rise and Fall of Talent Management, not many companies are confident in their talent management strategies. A 2014 Global CEO Survey revealed that 63% of CEOs are concerned about talent availability. A 2013 global survey of 1000 board members revealed that only 20% felt that their organizations were doing a good job with talent management.

However, talent management is crucial to the success of organizations. Based on BCG research on 1200 companies, those scoring well on talent management and leadership increased revenues 2.2 times faster than those that did not. In addition, those that scored well on talent management also increased profits 1.5 times faster than companies with weaker ratings.

There were three major waves in which talent management was a focus and they resulted in varied outcomes. The first wave occurred between 1970 and 1990. The world was less predictable at this time. For this reason, workforce planning was extremely difficult. There was a growing reliance on professionally trained managers such as those with MBAs. Also, strategic thinking was being outsourced. The groundwork was also being laid for executive recruiting.

The second wave of talent management occurred at the beginning of the 1990s to the mid 2000s. At this time, talent was acquired and shed through acquisition and layoffs. The lifetime employment contract began to disappear. Performance was crucial in maintaining employment. Talent mobility was also on the rise. There was mass disillusionment with large organizations. This led to the rise of the outsider ‘white knight’ executive.

The third wave of talent management began in the mid 2000s and is still occurring now. This wave was characterized by the end of the lifetime employment contract. Employees are not considered to be their own brands. There is also a rise of the freelance/contract workforce. Further, this wave resulted in a “rate my company” generation.

From a talent management perspective, today is a unique time. There has been an irreversible shift from lifetime employment. There is a growing propensity for talent to move and a narrowing focus on high potential talent. There is also a shrinking pool of resources to spend on talent. However, there is a greater need to anticipate strategic shifts and their implications for talent.