We have explored the needs to build a talent factory, and we believe that you see its importance just as we do. Now, are you ready to learn about the key ingredients in building a talent factory?
Key ingredients for your talent factory
Due to the rapidly changing economic environment, organisations universally are hit by various human capital challenges. Many organisations, nevertheless, assume that the responsibility of talent management lies solely with its HR department, and the activities are limited to talent recruitment and rewards. Without deep-seated commitment and collaboration from senior executives, any talent management process, however robust it is, will not guarantee a record of success. The perception of HR being a basic talent factory where they simply manage and produce run-of-the-mill talent is no longer applicable. Instead, a strong talent factory today goes beyond HR, encompassing the entire organisation. Everyone, including the talent themselves, plays a role in executing the winning recipe, which of course, can only be achieved with the right ingredients.
The key ingredients for your talent factory, as listed below, should target talent development against existing and emerging skill requirements in the workforce, as well as the continuous utilisation of employees’ skill sets.
1. Implement comprehensive assessment-and-nurture approach
We believe that a holistic talent assessment encompasses three core people dimensions in talent – ability, behaviour and competency – which interact with each other within the ecosystem of organisational culture to predict talent’s performance and potential at the workplace, as well as his/her suitability in the organisational culture.
A multipronged approach, based on the same framework, covering multiple assessment tools, assessors and exercise formats (e.g. individual vs. interactive) is not only comprehensive, but will enhance objectivity. Further to this, you would need to put in place post-assessment development plans to nurture and develop your talents. More employees today feel the pressure to develop additional skills, such as problem solving, analytical or managerial skills, to perform better at work. While these employers are actively prepared to develop their skills, they are not receiving sufficient guidance and support from their employers.
The demand for highly skilled talent is increasing. By 2018, it is estimated that 63% of all jobs will require some kind of post-secondary education and training. To compete globally, you need to develop your local talent to meet global standards without compromising on local context. To illustrate this, HSBC, despite its global operations and talent management processes (e.g. assessment, recruitment, performance management, leadership development), local offices are given the authority to adapt to local cultural preferences and resource capabilities.
2. Talent analytics
Talent analytics examine internal organisational data about recruitment, training and development, employee performance, resume or exit interview, as well as other standard ratios including retention and attrition rates. Organisations hold a significantly large amount of data that can contribute in effective talent recruitment and performance enhancement. Unfortunately, a recent report by Randstad, surveying 7000 HR and business leaders across the APAC region, revealed a low percentage of talent analytics adoption in the region, except in China.
It is well-known that past outcomes are the best predictors of future performance. Hence, organisations are advised to dissect the existing data to interpret and observe any emerging patterns in their talent management. For example, analysing resume and exit interview data collected across the past 5 years may provide indicative patterns in factors influencing the success or performance in a specific role. With this, organisations can devise an improved recruitment strategy with refined criteria, achieving the most compatible talent-job fit to yield desired revenues.
3. Utilise your human capital
Majority of the workforce skills challenges are related not only to skills supply issues but also to poor skills utilisation. For example, “Japan has fantastic human capital but uses it quite poorly”, said Andreas Schleider, the O.E.C.D. deputy director of education and skills.
Skills under-utilisation signifies unnecessary wastage and neglect of vital, often expensively-acquired, skills and expertise. With skilled or even overqualified employees delivering low skill, often routine tasks, valuable skills and expertise quickly depreciate through underuse, employee motivation falls significantly, and the potential for business growth is hindered. Skills under-utilisation could also result from limited job movement due to rigid job structures or employers’ lack of awareness in employees’ skills. As highlighted in Accenture’s study, only 34% of those surveyed reported that they found it easy to utilise their skill sets with job movement opportunities within the company.
Effective skills utilisation is where employers provide meaningful opportunities and support to their employees. Naturally this will boost productivity and performance, enhance job satisfaction and stimulate a more engaging working culture.
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The matter of talent appears to be a perpetual challenge to all involved. Employers desire high performing talent to deliver the expected results; employees seek continuous career advancement and competitive rewards; the nation needs skilled talent to drive the economic and living standards to the next level. Failure to notice, understand and address pressuring talent matters will certainly lead to a downward slide of the organisation’s performance and nation’s economy. Have you realised the significance of your actions as an employer, business or people leader?
