In part 1, we explored what talent management looked like prior to 2010. In this post, we will look at the trends, objectives and themes of Talent Management 3.0 post-2010.
Talent Management 3.0: The trends
What trends does Talent Management 3.0 give form to? To answer this question, we decided to first examine trends that will have the greatest impact on Talent Management. Let us begin with the changing demographics.
- The Baby Boomers, born after 1945, will inevitably step into retirement
- The Einstein Generation, born after 1988 (or Gen Y), will start to trickle into the workforce but in smaller proportion, thus widening the gap
What does it mean in numbers? Let's look at an example in Europe, where I am based. Take the Netherlands from 2011 till 2015. A massive 900,000 people will be expected to leave the workforce, while within the same period, only 300,000 people are expected to join in. By comparison, a decline of 8-9% within any 5-year period is considered substantial.
Furthermore, the new Einstein Generation has other expectations about work:
- Work must be fun, challenging, meaningful and diverse
- Work itself must be fulfilling, not just an end in itself (e.g. getting a pay rise or promotion)
- Work life is intertwined with personal life
- Loyalty is given to the family, friends and colleagues (horizontal level), rather than to employers or superiors (vertical level)
- Intrigued by work opportunities abroad or overseas job assignments
Talent Management 3.0: The objectives
The premise for Talent Management 2.0 was: Employees would stay longer with their employers because of the career growth and developmental opportunities offered to them. However, the waves of incoming talent today are definitively keener, more individualistic and critical of themselves and of the environment. If they cannot develop themselves within their organisations, they will look for other opportunities outside and beyond, thus resulting in increasing decline in employer loyalty.
Talent Management 3.0 is not only about attracting, placing, developing and retaining your talent. The critical question is: How flexible must your talent be? In other words:
- What talents are necessary for the continuity and success of your organisation?
- What and how will your talent learn in order to excel in what they do?
- What talents can be replaced by external resources, freelancers or temporary staff?
- How do we balance the costs and benefits of a flexible strategic workforce?
Talent Management 3.0: The themes
With your talent being more keen and critical, it becomes imperative that knowledge-intensive organisations put their Talent Management programmes under greater scrutiny. According to us, the themes that are likely to surface in the coming 3 years are:
- Employer Branding: What will make us an attractive employer to work for?
- Strategic Workforce Planning: How flexible can and/or must we be?
- The role and capabilities of managers to retain the talent
- Productivity in relation to work-life balance: How can we achieve more with less people without them burning out?
- Shifting from Competency-based profiles ("qualifications and skills") to Talent-based profiles ("available potential")
- Assessing talent based on the value of their contribution and strategic objectives, rather than on completion of tasks
- Not only vertical career paths, but also horizontal career paths
- Shifting from individual learning to learning as a team (e.g. mentoring, peer coaching, feedback)
- When to invest in developing and growing young talent, instead of hiring experienced but more expensive talent?
- Shift in rewards-systems, from financial to non-financial incentives
In this DISCOVER hub, we will discuss more about dealing with the themes of Talent Management 3.0. The above is merely our first serve and volley into this hot topic. How do YOU think Talent Management 3.0 will look like?