A study by Deloitte, the business advisory firm, finds that corporate talent management strategies will need to shift considerably to address a more competitive market for global talent. The talent pool is expected to shrink by 13% over the next 40 years.

Deloitte conducted extensive interviews with 58 of the world’s leading organisations that collectively employ more than 2 million people in order to ascertain how they are preparing for the talent crisis.

Changing demographics - in the form of an ageing and shrinking workforce coupled with changing employee expectations - is compelling organisations (in the developed world) to engage in more sophisticated talent management strategies that move beyond simple recruitment and retention.

Mark O’Donnell, Director in Deloitte’s human capital consulting practice said: “In spite of current economic uncertainty and recent job cuts, 2008 still looks like a year when there will be more jobs than there are people. Demand for the right people is outstripping supply. Talent management strategies will need to be deployed more broadly and extend way beyond individuals in leadership positions. Irish and Irish-based companies in particular will need to heed the findings of this report. Companies now more then ever will need to be proactive in managing talent and providing development opportunities for talent. Retaining this talent will now be critical as supply diminishes over the coming years.”

Key findings of Have you got talent?:

• 76% of organisations’ talent strategies focus on high potential individuals, predominantly those in senior leadership positions.  A wider approach that identifies critical business segments and talent, rather than a narrow focus on the development of future leadership is required.

• For 75% of organisations the management and implementation of a talent management programme is owned and led by HR rather than the wider business. Deloitte’s research indicates that business driven talent processes are more successful, especially when visibly supported by leadership.

• Only 25% recognise access and exposure to leadership as a key retention tool for talent.

• 60% state that they focus on connecting their people with the local community and important social issues through corporate social responsibility programmes.

• 80% of organisations rely on traditional approaches to reward their people based on annual performance. Reward could become a significant opportunity for companies to differentiate themselves from their competitors with regards to talent.

• The influx of ‘generation Y’ workers will require customised talent strategies to meet their demands. Organisations will need to implement new technologies and networks to enable increased collaboration and innovation.

• New models of talent will be required for business units that increasingly rely on outsourcing such as HR, Finance and IT.

Mark O’Donnell said: “Our study found that there is mixed levels of uptake of the more advanced talent management strategies that will become a necessity if you want to continue to attract, engage and retain the best people.

Our research highlights the extent to which talent management is now moving centre stage in organisational strategy and how businesses need to move away from more traditional HR centric approaches as the talent crisis grows.”

As demand for talent outstrips supply, organisations will have to be more dexterous and creative with how they manage talent. Business leaders will look beyond the traditional view of succession planning and identify people, at all levels, that are critical to achieving goals. Talent management will build on current approaches to flexible working, tailored career development plans, internal mobility schemes and deployment of key skills sets to emerging markets. Generation Y is keeping HR directors on their toes – however in order to perform well in the current economic climate, retaining the right people will be critical.”
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Notes

About Have you got talent?

Deloitte, the business advisory firm, conducted extensive interviews with the head of HR or the nominated lead for talent management of 58 international market leaders, FTSE 100 organisations and key governmental bodies over a period of 6 weeks in February and March 2008.

These organisations were drawn from a range of industries, including 15 Financial Service organisations, 18 Consumer Businesses, 12 Public Sector organisations and the reminder from the Technology, Media and Communication industries.

The research was based on one-to-one interviews where the respondent was asked a range of quantitative and qualitative questions to better understand the current practices undertaken and the emerging opportunities and challenges that their organisation was facing.

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