talent management and the older worker graeme martin
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Talent Management and the Older Worker
Graeme Martin
Outline
Why the interest in talent management? How good are the underlying
theories/assumptions and evidence on which talent management rests?
What are the implications for older workers?
What practical questions remain to be answered?
The War for Talent Revisited: Something New?
(Martin & Hetrick, 2006; Economist, Oct 7th, 2006, CIPD, 2007, etc)
Brainpower and talent in knowledge-based
economies/organizations
Population changes worldwide, international labour markets and HR
supply chains
The rise of idiosyncratic careers and the cult of ‘celebrity’
Employee loyalty and trust fading: employers reaping what they have
sown (CIPD, 2006)?
Talent drives reputations and is attracted by
reputations, buttalent can also damage
reputations
The truth about markets: why some nations are rich but most remain poor?
‘The distinction between the role of shareholders and employees was clear when shareholders bought the plant and employees worked in it. But the principal assets of the modern company are knowledge, brands and reputations, which are in the head and hands of employees…’
(John Kay, 2004, p. 58)
Some Evidence
The ‘irrational’ search for the Charismatic CEO and growing
inequality/returns to talent
Intangible assets now worth 70% of value of companies (S&P index);
From 20% in 1980
By 2025, no of people of working age to fall in Europe sharply coupled with retirements –
the Tayside problem
83% of workers are likely to search for new job;
1990s employability and ‘death of careers’
rebounding on employers
Three quarters of senior-human resources managers said that “attracting and retaining” talent was their number-one priority
(Wooldridge, 2007)
So What’s the Solution?
Talent Management and its assumptions?
A focus on human capital in a knowledge economy individual performance equals organizational performance
A focus on scarce and valuable people (the power curve) – the exclusive rather than inclusive approach
A focus on buy rather than make Outsiders create innovation Easier to buy rather than make – we need to hit the deck
running and we can ‘talent spot’
A focus on potential rather than experience a ‘liquid modern’ or unknowable world – ‘in the face of
change, the experienced are helpless – an inch wide and a mile deep’
Talent Management: Some Core
assumptions?
The Human Capital (or Talent) Equation
HUMAN CAPITAL INVESTMENT AND
DEPLETION
‘IQ’ OF EXTENDED ENTERPRISE (ITS INTELLECTUAL
CAPITAL)
INNOVATION AND ENTERPRISING
PUBLIC SERVICES
Talented Individuals
The Human Capital/Talent Delusion?
HUMAN CAPITAL INVESTMENT AND
DEPLETION
‘IQ’ OF EXTENDED ENTERPRISE (ITS
INTELLECTUAL CAPITAL)
INNOVATION AND ENTERPRISING
PUBLIC SERVICES
SOCIAL CAPITAL INVESTMENT
(GOODWILL, TRUST, BONDING
& BRIDGING)
ORGANIZATIONAL CAPITAL
(DATABASES, STRUCTURES, ROUTINES AND
PROCESSES
Delusions 1 & 2
Delusion 3
A Talent-based Recipe for an Enterprising
Organizations and Public Services (based on
Dyer and Ericksen, 2007)
Workforce Scalability –
Right numbersRight types of
peopleRight places
Doing right thingsWorkforce
fluidity
Workforce alignment
Top-down plan
Bottom-up: shared mindset
Acquiring talent: pre-qualify source
Releasing employees: outplacement
Enrich talent pool: diversity, fitand (serial in)competence
Facilitate interpersonal connectivity:Increase absorptive capacity
Expand role orientations
Unleash talent pool
Align incentives
The ‘New (super) Capitalism’ and Social Deficits (Richard Sennett, 2006; Robert Reich, 2007, Mark Moore, 2007)
Liquid modern world of short term relationships with ‘careerless’ organizations
Potential (serial incompetence) celebrated and craftsmanship devalued
Four social deficits Decline of loyalty, which depends on being valued
Organizations need talented people more than talented people need organizations: the identification problem
Decline of trust in organizations and leadership Decline of organizationally-specific knowledge The tension between shareholder & consumers on the one
hand and citizens and public value on the other
Throwing babies out with the bathwater: Dealing with the ‘Universal Paradox’ in Management –
integration and innovation
Can create reputations: talented people with unique human capital create difference and value
But also destroys them – the Enron effect and legitimacy
Sometimes good for knowledge acquisition and innovation
But not so good for sharing and exploitation
Promotes aggressive competition and dynamic organizations and an /enterprising public sector
At the expense of expressive/connected organizations – the ruthless organization
Focus on internal organization At expense of organizational networks
Focus on potential and serial incompetence
At the expense of experience and craft
Some Key Questions for the Older Workforce Agenda
What do they want from work?How does this differ among different
groupsHow can we best make use of what their
skills and talents?To what extent are employers planning
now for the ageing workforce?What will this mean for performance
management in organizations?
Thank you
www.managingpeoplebook.com
www.gla.ac.uk/crmp
CIPD (2006) Talent ManagementEconomist (Oct 7th, 2006) A survey of talent, Economist NewspapersChristensen, C., et al (2006) Seeing what’s next: using the theories of innovation to predict
industry change. Boston: Harvard Business School PressGroysberg, B., Nanda, A. and Nohria, N (2004) The risky business of hiring stars. Harvard Business
Review, May, 92-100Lepak, D., et al., (2007) Value creation and value capture. Academy of Management Review, 32:
180-194Martin, G. and Hetrick, S (2006) Corporate Reputation, Branding and People Management. Oxford:
Elsevier Butterworth HeinemannMichaels, E., Handfield-Jones, H. and Axelrod, B. (2001) The War for Talent. Boston, MA: Harvard
Business School PressPfeffer, J. & Sutton, R.E. (2006) Hard Facts, Dangerous Half-Truths and Total Nonsense: Profiting
from Evidence-based Management. Harvard Business Review PressRosenzweig, P. (2007) The Halo Effect…and Eight Other Business Delusions… New York: Free
Press.Sennett, R. (2006) The Culture of the New Capitalism, New Haven, Ct: Yale University Press.Spector, B (2003) HRM at Enron: the un-indicted co-conspirator. Organizational Dynamics 32, 207-
220Subramaniam, M. & Youndt, M. A. (2005) The influence of intellectual capital on the types of
Innovative capabilities. Academy of Management Journal, 48: 450-463.
Selected References
CIPD Survey 2007
At 65, 38% propose to carry on working, half full-time; one-third undecided Different motivations for different socio-economic groups More flexible working arrangement
Opportunity to use existing skillsWorthwhile jobFlexible leaveFinancial benefits they valueParticipative and friendly culture
Few employers considered the impact of ageing workforce on their HR policies/rewards
Rewarding loyalty and service can be appropriate Well-being a key issue