Key Players in Relationship Building
Healthy relationship among employees leads to a positive ambience at the workplace. You feel like going to work every day if you have friends in the office. A single brain sometimes cannot do wonders where as many brains put together can reach to innovative ideas and solutions which eventually benefit not only the organization but […]
Role of Communication in Increasing Work Efficiency
Communication plays an essential role in increasing efficiency of employees. Employees need to interact with each other more often to break the ice and feel comfortable at the workplace. Problems arise when information does not flow in its desired form. Effective communication facilitates free flow of information among employees and reduces misunderstandings and confusions. Effective […]
Ways for Organizations to Increase Human Capital
Let us go through various ways which help an organization to increase its human capital: Constant Trainings It is rightly said that the success and failure of any organization depends on its employees. Every employee in his/her own way contributes to the development of organization. One of the major responsibilities of a human resource professional […]
Understanding Employee Engagement – Definition and its Origin
Organizations have come to realize that in today’s constantly changing business scenario, the most valuable resource that needs to be leveraged is human resource. This means not just attracting the creme-de-la-creme and retaining them but keeping them motivated and committed to achieving the organization goals. Though Employee Engagement (EE) as a business buzzword has generated […]
Knowledge Management at 3M
Introduction: Knowledge Management at 3M This article is about the Knowledge Management system in 3M Corporation. 3M is an internationally known organization that places a premium on creativity, innovation, and being “ahead of the curve” as far as its competitors are concerned. Towards this end, 3M employs a wide variety of knowledge management systems that […]
Having good talented people in your organization was important yesterday, today it is critical! Organizations world over have realized the importance of having talented people. McKinsey was the first to coin this term ‘war for talent’ in the year 1997. They named this for their research for talent management practices and beliefs. This became a phenomenon soon.
Not many organizations barring a few like IBM, PepsiCo and McKinsey knew the importance of talent management until recent years. It is not a big surprise that nearly two thirds of senior leaders quit an organization within three years of their hiring. Add to it there is also the problem of an aging population in the west and unemployable graduates in the east. This opened up the eyes of major corporations globally. A substantial amount of pressure has developed on corporations that are global or multinational in presence, hiring and nurturing the right talent globally is an area of major concern.
Global leadership is now aware to the chaos and disruption this can bring within their clients/customers and with other stakeholders. Strategies and plans for sales, production, expansion, and diversification are of no use unless you have the right people to execute them.
The talent market is more than competitive presently than it was and could be in the next decades. In an economy that is knowledge driven the demand for highly skilled workers is on the rise incessantly. Though the demand may decline at times due to the changes economic cycle but in the longer run the rising trend will remain the same more or less. In a survey conducted by McKinsey in 2001, 72 % of the managers they interviewed were of the opinion that winning the war for talent is critical and only 3 % were confident that their actions would create a strong talent pool in the next 3 years.
Apart from the talent constraint, it was also found out that people at executive ranks (in the age group of 35 - 40) will also decrease by 14 % in the next 15 years. This can be countered for a few more years by replacing these positions with older baby boomers, but it is not long before these older baby boomers retire and management ranks turn lean.
It is also of interest to mention here that individual expectations of rewards (developmental, psychological and financial) have increased! These are challenges and the most disconcerting element is that not many organizations are prepared to face them.
Organizations need to act, and act now! The following is the five point solution suggested by McKinsey
This means that a talent mindset is to be developed at levels in the organization preferably at the top. An employee value proposition is to be developed for employees just like the one that is created for its customers. Most important change the way you differentiate; make it on the basis of how much you invest in your top and low performers.
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