New Moves in Talent Management

As the global economy continues to work through the slow-moving recovery from the 2008 crisis and subsequent recession, new talent management approaches to support growth have come into greater import in every region. Long seen as a backseat to more direct and shorter-term approaches for profitability, many firms are now emphasising an investment into the development of staff and management as an avenue to retain top talent and improve organisational performance. As a result, we are seeing an increase in demand for in-house talent management capability and consulting firms are gearing up for higher sustained levels of business. This type of investment, however, is not being made unilaterally, as general economic uncertainty remains, given slowing growth in China and continued budget tightening.

Some of the firms making this type of investment are taking an integrated approach. One multinational company based in Europe, is reorganizing its talent management, talent acquisition and organization design functions under one reporting line. The Head of HR for Southeast Asia explained why: “We found that there was a disconnect between our approach to talent recruitment, development and organizational effectiveness. By bringing it all together under one line, we aim to reduce costs as well as create a more unified approach to improving [our organization]’s performance capability.”

The recognition that talent management has the capability to impact business performance is not necessarily a new one, however. Prior to the financial crisis in 2008, many firms made investments in areas such as L&D with the hope of creating a stronger learning culture in the organisation, only to get burned as business demand dried up, necessitating drastic cost cuts. “We were seeing strong growth just before the financial crisis took form,” said the APAC Head of HR for a US-based logistics company. “We spent a lot of money on reshaping our talent development approach, only to cancel those plans in their entirety by early 2009. Now we are looking into whether the environment is right to remake the investment because we recognize the need for it.” This reflects the sentiment of many organisations that remain shy to invest internally when the external economic environment has proven to be so unsettled.

Yet many firms continue to push forward with talent management as they see the importance of staff development, especially in the face of shifting projections and uncertain markets. Whether one-on-one executive coaching or hi-potential development programs, many are recognising how workers need the tools and skills, such as improved individual and group awareness, to effectively adapt to new demands and generate the innovations necessary to move organisations forward. The Center for Creative Leadership’s “Leadership at the Peak” program is a well-known program for senior executives. More recently, however, companies have focused on developing their mid to senior level executives who are seeking to improve levels of energy and creative capability. Singapore-based Body-Brain Performance Coaching’s co-owner, Marcel Daane, focuses on providing these levels with improved awareness of how physical fitness and nutrition help improve energy but also has a direct impact on the capacity of the brain to think rationally and creatively. “Awareness building is just the start”, he added. “Our programs are drawn from cutting edge findings from the fields of neuroscience and physiology and are designed to improve emotional regulation, focus and attention, as well as innovation and initiative, by re-wiring the brain to embed better health and energy habits.”

These types of learning platforms are far removed from the traditional skills training of yesteryear, but it appears that many firms are embracing them. As examples, Kraft, Johnson & Johnson, Daimler Benz, and even government entities such as the Monetary Authority of Singapore and the Info-comm Development Authority of Singapore, have held recent programs along these lines. To embed these new learning’s, organisations are even adapting their internal structures to further these more holistic approaches; forming communities within the organisation to act as support and reinforcement structures.

While uncertainty continues to keep some organisations hesitant to grow their internal development resources, others are continuing to search for the difference-maker in the new economy. The intent of these investments is largely built around the idea that individuals and organisations must be more nimble, more flexible, and more innovative to compete in the shifting and demanding global market that we live in. “The lesson we’ve learned over the past five years,” said one talent management executive “is that we have to continue to grow as individuals in order to grow as an organisation.”