Integrated Talent Management (ITM) Framework
Winning the War for Talent 2.0
“In today’s tight labour market in fast-growing Asia-Pacific region, companies are facing intense competition for talent – and are giving increased attention to ways to retain talent rather than rely on costly replacement and retraining. Retention of talent with critical skill sets is vital for the achievement of business growth and to build organisational competencies, which represent a competitive advantage. The loss of needed talent is costly because of the resultant bidding up of market salaries for experienced hires to replace them, the costs of recruiting and assimilating new talent, the lost investment in talent development, and the hidden costs of lost productivity lost sales opportunities and strained customer relationships.
Can companies win the “war for talent”? Will we be able to define and implement a retention strategy that will give us the stable, committed, capable workforce required to achieve a competitive business advantage?”
Prof Sattar Bawany
Winning the War for Talent 2.0: In Asia Pacific Region
In 1997, a groundbreaking McKinsey study exposed the “war for talent” as a strategic business challenge and a critical driver of corporate performance. Then, when the dot-com bubble burst and the economy cooled, many assumed the war for talent was over. It’s not.
Subsequently in 2001, the authors of the original study revealed that, because of enduring economic and social forces, the war for talent will persist for the next two decades. McKinsey & Company consultants Ed Michaels, Helen Handfield-Jones, and Beth Axelrod argued that winning the war for leadership talent is all about much more than frenzied recruiting tactics. It’s about the timeless principles of attracting, developing, and retaining highly talented managers – applied in bold new ways. And it’s about recognizing the strategic importance of human capital because of the enormous value that better talent creates.
Can companies win the “war for talent”? Will we be able to define and implement a retention strategy that will give us the stable, committed, capable workforce required to achieve a competitive business advantage? Consulting firm and research organisation reports, published books and articles, and internal company retention studies suggest that everyone is following the same overall plan. How will this approach give a company an edge?
Few, if any, organisations today have an adequate supply of talent. Gaps exist at the top of the organisation, in the first- to midlevel leadership ranks, and at the front lines.
Talent is an increasingly scarce resource, so it must be managed to the fullest effect. During the current economic downturn we may experience a short ceasefire in the war for talent, but we’re all seeing new pressures put on the talent running our organisations.
Demystifying Talent Management System
So, what do we mean by talent management? In the broadest possible terms, it is the strategic and tactical management of the flow of talent through an organisation. Its purpose is to assure that the supply of talent is available to align the right people with the right jobs at the right time based on strategic business objectives. The term “talent management” is often used to denote e-recruitment and automated applicant tracking systems. This emphasis on staffing and recruiting is more appropriately called the talent acquisition phase of the Integrated Talent Management (ITM) Framework (see Figure 1), an important but preliminary step in the overall process.