Part 1 of this blog post introduced some mixed feelings and doubts that we might still have about the noble concepts of talent management and human capital management (HCM). This skepticism lingers in spite of the many indicators of the usefulness of these concepts in mitigating some imminent global workforce challenges, which were outlined in Part 1.
Accommodating “Generation Y”
Let us not forget about the looming demographic shifts, given that the baby boomers are on their way out. One group that has been receiving a lot of attention is the so-called Generation Y: the group mostly in their 20s that has recently entered or is about to enter the workforce. These dudes and dudettes haven’t just adopted the use of the Internet – they have grown up with it, and they rely (live and breathe) on it.
A key characteristic of basically all Gen Y candidates today (which might belong to earlier generations, like the Gen X) is that they are keen consumers of Internet technology. They are accustomed to using websites such as Amazon.com, Google, Facebook, Ask, LinkedIn, Twitter, Travelocity, and eBay (to name but a few), often on a daily basis, to buy what they want, go where they want, stay in touch with their friends and family, get their work done, and do it all and more with ease.
So, when it comes to looking for a job, they transfer their job-seeking experience to the corporate brand, and they draw on their consumer web experiences to set their expectations for their online job seeking experience. There are a number of characteristics associated with a technologically savvy generation of job seekers. These characteristics include:
It is thus small wonder that recruiters are increasingly use LinkedIn and Facebook in their efforts, while talent management software providers begin to offer the integration to these social networking sites as a matter of course.
Talent Management and HCM Defined (Sort of)
The phenomena and factors outlined both here and in Part 1, coupled with every company’s need to align people directly with corporate goals, are forcing human resource (HR) departments to evolve from policy creation, cost reduction, process efficiency, and risk management (i.e., all those “paper and pencil pushing”) tasks to driving a new talent growing mindset in the organization. One important distinction is the evolution of the difference between tactical and administrative HR and strategic talent and human capital management.
In a nutshell, transactional HR activities are administrative overhead, whereas talent management is a continuous process that should deliver the optimal workforce for the company’s business. In this new model, instead of being the owners of mundane processes, forms, and compliance, the HR staff should transform into the strategic enablers of talent management processes that empower managers and employees while creating business value.
First of all, there is confusion about whether HCM and talent management are the same thing, or perhaps one area is bigger and broader than the other. I, for one, personally tend to believe that HCM is the broader concept that includes both the administrative HR & payroll functions and talent management as the strategic component. However, as it typically happens in this industry, the talent management’s scope of applications (that are needed to support HCM processes designed to manage a company’s greatest asset, i.e., people) is defined differently by industry analysts and consultants.
Still, most define talent management to include the following: recruitment, performance management, competency management, succession management, career development, and incentive and compensation management (ICM). Other talent management modules can include: workforce planning, learning management systems(LMS), as well as workforce analytics, portals, and dashboards.
Talent Management Software Examples
As an illustrative example, Taleo’s on-demand talent management applications suite currently comprises solutions for companies to assess (including workforce planning and analytics), acquire (i.e., source, select, and onboard), develop (i.e., manage performance, manage career, and plan succession), and align their workforce for improved business performance (via goals management, internal mobility, and reporting).
As another example, the Authoria Talent Management suite is also an integrated, on-demand solution that addresses the strategic talent management lifecycle, from hiring through compensation, performance, benefits communication, and succession planning. Also, by delivering role-based dashboards with analytics and workflow tools, the vendor aims to help managers improve business performance through better people performance. Authoria’s “plan-attract-review-reward-develop wheel” of applications involves the following modules:
Let me for example flesh out the succession planning and employee-development module capabilities that allow line-of-business (LoB) managers and human resource (HR) professionals to assess bench strength, and fill critical roles with high-potential, top-performing employees. This latest functionality, which Authoria showcasing at the recent HR Technology Conference & Exposition, empowers LoB managers and HR professionals with:
As the underlying technologies, Authoria’s role-based dashboards allow managers and employees to access reports and track workflow. The dashboards serve as a common starting point for a consistent and integrated approach to all aspects of talent management. Finally, Authoria Communications, the company’s original product, provides personalized benefits and policy communications to employees, with the idea of reducing costs and improving value.
Similar definitions and portfolios of talent management applications would come from Halogen Software, Kenexa, Lawson Software, SucessFactors, Oracle PeopleSoft HCM, Ramco Systems, Softscape, Workscape, Kronos, and so on. In the recently unveiled “Integrated Talent Management Practices Study” by IBM Global Services and the Human Capital Institute (HCI), the survey was based on the following six talent management dimensions:
Part 3 of this blog post will analyze how integrated talent management suite can help HR departments that are currently in distress, and finally explain my buying into the talent management concept via some major league sports examples. In the meantime, please feel free send me your comments, opinions, etc. I would certainly be interested in your personal work experiences as an employee or employers, as well as with leveraging this emerging software category per se.
I am a generation Xer. When I started working, every company I chose had a career path from cradle to grave. We also were able to raise a family on one income.
With the requirement for two incomes to support a family, the generation X group became the generation Y group. The Y youngsters did not learn about good work ethics, or the need for stability. Lifestyles (electronic toys) and the internet disconnected the employee from the employer. As an example, my Canadian Generation Y son wants to work in Moscow Russia, because of challenges. The internet allows the world to be his job basket.
Talent Management software is mainly effective where the job challenge is present, there is a perceived career path and as long as the Generation Y mind can be perpetually stimulated with internet news, forum emails, and social life websites.
Every one is becoming disconnected; Yers have no friends, only contacts. How is Talent Management changing the social evolution? Does Talent Management take into account intangibles, (skills, shyness, leadership, pursuation, motivation, ethics)?
Thanks for sharing with us your own experience with a Gen Y-er :-)
Concerning the question from you, leading Talent Management vendors will say that their software does address both tangible and intangible aspects of talent. The intangibles such as judgment, work style, integrity, personality, and leadership potential are evaluated and measured through “assessments” capabilities, which are part of the recruiting and performance management processes. They are integral to any comprehensive talent management solution.
But, even the best software can do only so much, if the HR manager is not best attuned to the “soft” issues, and able to discern how best to motivate and excite a talented Gen Y-er.
Pretty great information.I would like to say there are clearly benefits in a global approach, provided it gives local control in the assessment, recruitment and development of talent, where cultural nuances are taken into account. We regularly see instances where the global move turns into a failed transplant. However we have also seen many where the global transfer has led to improved global processes, shared best practice and influence back to Head Office etc.Those that succeed tend to have effective assessment, practical application of psychometrics as part of the interview and development process to help ensure not only a skills/potential match but also a cultural fit. The support of a trained internal mentor in BOTH countries, and effective professional coaching during the transition period, seems to be a common differential in those that manage to achieve global deployment of top talent.