Strategy & Leadership

Total Talent Report 2008

January 23, 2008

Global

January 23, 2008

Global
Sarah Murray

Journalist, author, speaker

Sarah Murray is a specialist writer on business, society and the environment and a regulator contributing author for the Economist Group. 

Report Summary

As the operations of large multinational companies become ever more broadly dispersed, with increased investments in emerging markets, competition for talent is becoming global. Meanwhile, companies are navigating a complex set of demographic, social and economic shifts that vary from market to market.

For employers, this makes the task of talent management a highly complex business that requires a strategic approach to designing recruitment and retention programmes that will supply the skills and leadership needed to remain competitive. However, some companies are still struggling to manage talent across different borders and generations, often because they have not established formal talent management structures.

In this report we look at the where the greatest difficulties lie for organisations when it comes to attracting and retaining top talent and highlight the best practices of companies that are successfully managing their global workforce.

Key findings from this research include the following:

  • As companies expand globally, they need to establish talent management strategies in new markets. Despite the recent fears associated with the US credit crunch, businesses worldwide remain positive – just – about their prospects.The Economist’s October global business barometer puts business confidence at +13(on a scale of -100 to +100). Within our own survey most respondents see Asia-Pacific as providing the best opportunities for revenue growth. The findings suggest that economic development and rising skills in these emerging markets will bean advantage to companies when it comes to recruiting talented individuals. However, with demand for talent in the region far outstripping supply, firms will have to ramp up pay and offer improved working conditions if they are to exploit its potential.
  • Recruiting and retaining top talent is becoming harder. Executives cite overly high salary expectations and a shortage of candidates with appropriate skills as obstacles to hiring skilled individuals. A growing tendency of employees to change jobs is fuelling talent shortages in many companies, while lack of suitable career opportunities provides a common barrier to retaining talented individuals.
  • Many companies have yet to establishtalent management at the strategic centre of their businesses. Most respondents say that in their company talent is managed on an informal basis, with a lack of alignment between formal qualifications and the needs of the business. Moreover, most attention focused on individuals with the greatest leadership or performance potential. Individuals within areas of acute skills shortage receive less attention.
  • Career opportunities and linking pay to performance are common tools in talent management. Whereas in the past companies have focused on pay and benefits, there is an increasing recognition of the importance of training and development, as well as of the need for mentoring and coaching programmes, in overcoming recruitment and retention difficulties. Respondents cite performance-related pay and bonuses for individual performance as the most common means of rewarding employee performance. Although providing the right basic salary is still considered important, offering career development opportunities is seen as the best way to retain key employees.
  • Individual assessment remains the preferred method of tracking employee performance. Fewer respondents cite techniques such as 360-degree assessment, team appraisal and peer appraisal as tools used by their organisations.
  • Technology is becoming increasingly prevalent. Whether using company-branded recruitment portals, social networking sites to promote a company’s image, “virtual”mentoring schemes or implementing skills-tracking platforms, innovative use of technology is becoming one of the keys to recruiting and retaining talent.

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