Harvard Business Review - Talent Management for the 21st Century

Whether you are a corporate, independent or a contract recruiter.....you are always working for the greater good of "TALENT MANAGEMENT". One of the interesting reads for me recently has been this article..... by Peter Cappelli (http://www.wharton.upenn.edu/faculty/cappelli.html) in the HBR March 2008 Issue. Below is an overview of the article.............(Source:HBR Magazine, you can also visit http://www.hbr.org/ you need to be a member). So the gist of it is...

Operations Principle Applied to Talent Management

A supply chain perspective on talent management relies on four principles, two that address the risks in estimating demand and two that address the uncertainity of supply.

Principle 1 : Make and Buy to Manage Risk

A deep bench of talent is expensive, so companies should undershoot their estimates of what will be needed and plan to hire from outside to make up for any shortfall. Some positions may be easier to fill from outside than others, so firms should be thoughtful about where they put their precious resources in development: "Talent management is an investment, not an entitlement".

Principle 2: Adapt to the Uncertainity in Talent Demand

Uncertainity in demand is a given, and smart companies find ways to adapt to it. One approach is to break up development programs into shorter units: Rather than put management trainees through a three-year functional program, for instance, bring employees from all the functions together in an 18-month course that teaches general management skills, and then send them to their functions to specialize. Another option is to create an organization-wide talent pool that can be allocated among business units as the need arises.

Principle 3: Improve your return on Investment in Developing Employees

One way to improve the payoff is to get employees to share in the costs of development. That might mean asking them to take an additional stretch assignments on a voluntary basis. Another approach is to maintain relationships with former employees in the hope that they may return someday, bringing back your investment in their skills.

Principle 4: Preserve the Investment by Balancing Employee-Employer Interests

Arguably, the main reason good employees leave an organization is that they find better opportunities elsewhere. This makes talent development a perishable commodity. The key to preserving your investment in development efforts as long as possible is to balance the interests of employees and employer by having them share in advancement decisions.