TALENT MANAGEMENT IS NO LONGER AN HR TOOL BUT A STRATEGIC INSTRUMENT
On 27 October 2008 Prof. dr. Lidewey van der Sluis held her inaugural lecture titled ‘Talent Management in strategisch perspectief’ (Talent Management in strategic perspective’).
Developments on the labor market
In recent times, the labor market has turned because of a shortage of labor, Van der Sluis says. This shortage is caused by the ageing of the population and a decrease in the number of younger people. She does not think shortages in the labor market will decrease anytime soon, even after the credit crunch has left its mark. ‘While the organizations were in charge before, nowadays the power balance has shifted towards individuals, the employees. While talent used to be regarded mainly from an HRM or a strategic HRM perspective, these developments, together with the multicultural society we live in, have created the need for a new area of expertise: talent management.’
Gifts and kite running
‘In my lecture I explained what strategic talent management is. I created a framework,’ Van der Sluis says. ‘When I use the word talent I don’t necessarily refer to top talent or those with high potential. By talent I mean all the employees that organizations need to achieve their goals. I see organizations as talent-demanders and individuals as talent-bearers. If the labor market functions properly then the right individual will meet the right organization. There will be a fit, a labor relationship. This relationship will have benefits for the organization, namely value creation and continuity. The benefit for the individual is the opportunity to develop his talents and to increase his availability.’
In Van der Sluis’ view there is a difference between being a talent and being talented. ‘Being talented refers to the ambitions, qualities and characteristics a person carries with him. Those are gifts you receive at birth, presents you can unwrap over your lifetime and during your career. That is talent development. You can unwrap these presents yourself, or, as an organization, you can help your employees to unwrap their presents. Talent management from a strategic perspective means enabling employees to develop their talents in the direction of the organization’s strategic goals, in a way that adds value to the organization.’
The ultimate purpose of talent management is to secure the continuity of the organization. Van der Sluis compares strategic talent management to kite running. ‘To have the kite flying and remaining in the air, you (as an organization) should make use of the available wind, to catch that wind. In this metaphor the wind symbolizes the organization’s (potential) employees.’
Talent compass and development compass
Van der Sluis developed a useful tool to give organizations insights into how they can successfully find the right people for the right job: the talent compass. The talent compass shows core aspects of an individual (personality and motives) and aspects that derive from the core, such as skills, changes in behavior, knowledge and experience. ‘Until recently only these ‘outer’ elements were described in CV’s, but at the moment selection and intake procedures focus more and more on who you really are and what kind of personality you are,’ Van der Sluis says. ‘The attention in the labor market, both of employers and employees, has shifted towards the core of the individual. After all, the labor market is all about connecting and binding. Nowadays we live in a network society. Organizations are not only interested in you doing your job, but also in you connecting to the whole organization and the organization’s environment.’ While the talent compass provides a ‘picture’ of a person, a frozen image, Van der Sluis also composed a development compass that shows how people develop in their work. This tool is helpful in talent development and binding people. ‘The development compass is more of a ‘movie’. It offers insights into how people can develop in a way both beneficial to themselves and to the organization.’
Three steps in talent management
How can strategic talent management be anchored within organizations? Organizations should distinguish three steps in managing talents, Van der Sluis states. The initial step is to ‘name and attract’. First, the organization needs to examine where it wants to go. ‘It all starts with strategy, structure and culture. That is the organization’s DNA,’ Van der Sluis says. ‘When the strategy and direction are clear, the organization needs to find answers to the question: Which people are needed? If you know what you are looking for, you can start searching.’
‘Once you have attracted the employee (caught the fish),’ Van der Sluis continues, ‘you start thinking about where and how you are going to apply his talents and how you will manage him.’ Managing professionals today is a tough job, as they tend to manage themselves, Van der Sluis argues. ‘So how will the organization address them? This has to do with keeping talent attached to your organization.’
‘Step 3 is about talent development and binding. How will you make sure the present is unwrapped? How can you make sure the development of the organization as a whole is synchronized with the developments of the individuals? Investing in talent brings along risks. Once you help employees become better at their work, their availability as well as their value increases,’ Van de Sluis says. ‘This creation of value opens the possibility of moving to another organization. This is called the investment paradox. Despite this paradox, organizations need to find ways to keep their talent. That doesn’t only apply to current employees but also to former employees, the organization’s alumni. I plead for an alumni policy for organizations, because you never know when you will run into them, or whether or not you will employ them in the future. Think of former employees as future clients, a possible return as an employee or as a future employer for current personnel,’ she says.
‘If these three steps are dealt with in a correct way, talent management will lead to benefits for the organization,’ Van der Sluis concludes. ‘Then a new strategy needs to be developed and the process starts all over again.’