HR for a long time was based only around administrative, transactional activities. Fact is that HR as we know it today originated from “personnel” which did not do anything else (at their time) than contracts and pay checks. Only over time the working field of “personnel” has changed. From “personnel” the next evolution was to personnel administration in the 1970ies. This was also the first time that personnel was a separate department. Before, it was mainly a sub-function. From personnel management at the end of the 1070ies the next transition was to Human Resource Management in the mid 1980ies. Only in the 1990ies (although already recognized in research in the 1980ies) Ulrich with his Strategic HR function appeared. Until today though, there was no big evolutionary step afterwards. Strategic HR is still where we are today.
But the question is if the next evolutionary step is outstanding? – research as well as practice should get ready to answer this!
In recent years the term Talent Management appeared and grew big. In the beginning understood as elite coaching of high potentials, it changed to being a new hype applicable to each and every employee and applicant supported with high gloss company image pages and campaigns. But this is just marketing. In many firms Talent Management is not a lived reality. But if a firm wants to be successful or wants to remain successful, Talent Management should become lived reality pretty soon – the war for talents is on if not over, and the talent has won!
Important skills a rare!
In general, in most 1st world countries, especially in Europe, the available workforce gets smaller and smaller. On the other hand, the trend towards more complex products and services requires more and better skilled employees. In addition, today’s talent is way more flexible than ever before – but not for the good of companies: Flexibility for today’s talent means that talent is ready to switch jobs and even employers if they do not find fulfillment in what they are doing – but on the other hand are not flexible to trade work-life-balance today for more money tomorrow.
Talent Management has to step in here and offer a solution. Real Talent Management means more than single non-coordinated programs or high potential coaching. Real Talent Management is an integrated part of the complete employee life-cycle, therefore built into each HR process, but also integrated (and this is as important) into the day-to-day work environment of each and every employee. This means that all direct Talent Management processes (e.g. Performance Management, Learning, Succession Planning, etc.) are implemented – and of course aligned with the goals and strategy of the company as well as the needed employee profile. But in addition, the secondary Talent Management processes (mainly HR admin) need to be aligned with Talent Management as well. This means for example that an HR Serviceline is not only utilized to be efficient in answering employee requests, but treat employees as valuable talents – so have a kind of CRM system to better service each and every employee.
Last but not least, embedding Talent Management in the day-to-day work environment. Especially at the work place the management team/ leadership needs to live Talent Management by example and action – because this is where talents spend most of their time. And if they do not feel Real Talent Management at this place, all other initiatives and processes will not be successful.
In essence, Real Talent Management is a holistic approach to Talent Management which of course sees HR responsible for it, but which needs to be lived through each and everyone with HR responsibility – and this also means management at each level.
From my experience, today’s HR departments are not in a position to support Real Talent Management – hey need to adjust. In addition, there are external pressures for example through Integrated Business Services that urge HR to change and adjust, too. Answers to these new challenges and requirements as well as the external pressures are so far not to be seen in theory or practice. For me, Real Talent Management is the next evolution of how HR work needs to get organized and done. But more about that in my next post.
Chief HR Officer 