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How to Hang On to Your High Potentials
Abstract
Despite high unemployment, the war for talent rages on. Only 15% of companies in North America and Asia feel they have enough qualified potential successors to fill their top jobs, and the picture is only slightly better in Europe. The best weapon companies can wield are programs that develop their "high potentials"-the people they hope to develop into their future leaders. In a large-scale study of how companies assess and manage their rising stars, the authors have identified some guiding principles for developing high potentials. To begin with, all talent programs should clearly define what "high potential" means to them. Great performance is not enough; you must also envision yourself as a senior executive, have the right motives (the desire for positive impact), and possess leadership attributes such as the ability to derive insight and engage others. Firms also need to align their candidate selection to their strategy: A low-cost company will not need the same kind of talent as an enterprise bent on global expansion. This article describes emerging best practices in executing high-potential programs, including the latest thinking on how to nominate and assess participants, design effective job rotations and stretch assignments, provide thoughtful rewards and incentives, and communicate about the program with the rest of the organization.
... Practitioners describe potential as an individual's ability to contribute to the firm in the future, either through improved performance and greater responsibilities in her original job role or through leadership in a new managerial role (Cappelli and Keller, 2014;Groysberg and Nohria, 2011;Silzer and Church, 2009;Yarnall and Lucy, 2015). Women's lower potential ratings may therefore be justified if they have lower future performance. ...
... It is a matrix in which performance is assessed on one axis and potential on the other. However, the lack of a definition for what constitutes potential, both within firms and within the academic literature (Groysberg and Nohria, 2011;Silzer and Church, 2009), gives us little reason to believe that this process should produce valid information, despite its widespread use." ...
... While the exact definition of "potential" is often debated even within organizations, most practitioners agree that potential ratings should forecast an individual's ability to contribute to the firm in the future, either through improved performance and greater responsibilities in her original job role or through leadership in a new managerial role (Cappelli and Keller, 2014;Groysberg and Nohria, 2011;Silzer and Church, 2009;Yarnall and Lucy, 2015). Thus, effective potential ratings should predict actual future performance, both in the full sample and among the subsample of workers who are promoted into management positions. ...
... To provide an organization with a sustainable pipeline of talented employees, it is vital to predict their successful development and performance. Currently, in business practice, special attention is paid to finding relevant and comprehensive tools that could effectively identify talents and future leaders with the most significant potential (Church et al., 2015;Dries and Pepermans, 2012;Fern andez-Ar aoz et al., 2011;Kotlyar, 2018;Knoll and Sternad, 2021). ...
... Under this approach, most researchers examine only leadership and managerial potential JMD 41,3 (Finkelstein et al., 2018;Marshall-Mies et al., 2000). The personal resources approach examines employee potential in terms of one's characteristics which may include personality traits, motivation, cognitive abilities and competencies that contribute to success in their future activities (Ready et al., 2010;Dries et al., 2012a;Fern andez-Ar aoz et al., 2011;Posthumus et al., 2016). The research findings demonstrate that specific personal characteristics (e.g. ...
... Over the past decade, a lot of research has been devoted to the problem of detecting potential indicators (Ready et al., 2010;Dries et al., 2012a, b;Fern andez-Ar aoz, 2011;Posthumus et al., 2016). An analysis of the literature has shown that they can be divided into five groups: abilities, personal characteristics, motivation, competencies and performance. ...
Purpose
This article investigates which definitions, indicators and instruments are used by the companies to identify and assess talented employee potential with successful performance on future pivotal positions.
Design/methodology/approach
Empirical data were collected in 2020–2021 in 45 local and multinational companies in Russia with well-established talent management functions using in-depth interviews with human resource (HR) managers and consultants.
Findings
The study found a diversity of approaches to identifying and assessing talent potential with a predominantly contextual approach but so far with little focus on company’s strategic objectives. It was also found that companies assessed cultural (values) fit, social intelligence and impact, engagement and commitment as predictors of managerial and leadership potential of talented employees for future strategic jobs, in addition to characteristics of personal resources. The search for new complex and validated tools and methods of potential assessment under budget constraints show that companies have taken the path of experimentation.
Practical implications
The results of this research can inform talent and human resource managers how to identify and assess potential of talented employees for future needs of their organizations.
Originality/value
The paper contributes to the existing research in three ways. First, it offers a classification of approaches to potential assessment and explores the underlying dimensions of high-potential talent for future needs of a company. Second, it provides an overview of the current state of potential assessment in the companies in a non-western context. Third, it points out the challenges HR professionals face in implementing potential assessment for identifying talents in a new situation of unprecedented changes and uncertain future.
... This literature, as well as the TM practitioner literature (e.g. Fern andez-Ar aoz, Groysberg, & Nohria, 2011), emphasises the importance of communication in effective TM systems, yet the issue of how companies communicate about talent status to their employees has not been problematised or received much empirical attention. ...
... Whilst popularised examples of multinational corporations (MNCs) such as General Electric and their 'Session C' processes (Bartlett & McLean, 2003) give the impression that communication about TM is typically open, candid and transparent, a growing body of evidence suggests that many firms are reluctant about communicating openly (Church, Rotolo, Ginther, & Levine, 2015;Fern andez-Ar aoz et al., 2011). For example, in terms of 'B' players, openness can lead to concerns about potential negative reactions such as envy, decreased motivation, and turnover intentions, whereas for talents the concerns are that they may become complacent, self-satisfied and develop potentially unrealistic expectations about their future (Dries & De Gieter, 2014;Silzer & Church, 2010). ...
... Whilst existing academic and practitioner literature tends to highlight the positive effects of talent identification (e.g. Gelens et al., 2014;Fern andez-Ar aoz et al., 2011), we problematise this and provide a more nuanced view of the phenomenon by considering how talent status is communicated to employees. Focusing specifically on strategic ambiguity as an approach for communicating about talent status, we shed light on how this feature of the organisational context influences the attitudes and behaviours of both talents and 'B' players (Gelens et al., 2013). ...
Given the sensitive nature of communicating talent status in an ‘exclusive’ talent management system and the complexity involved in simultaneously sending signals of exclusivity and inclusivity, some organisations avoid open communication and instead opt for ‘strategic ambiguity’ – intentionally maintaining an element of secrecy and information asymmetry. However, we know relatively little about the effects of this communication approach as a feature of the organisational context on the reactions of employees. Drawing on signalling theory, we examine the reactions of both talents and ‘B’ players on finding out about their talent status in the context of a company that adopts strategic ambiguity in its communication about talent. The data consists of 24 in-depth, qualitative interviews with individuals with experience of TM in a Finnish subsidiary of a large, US-based multinational corporation. The findings reveal that the contextual effects of strategic ambiguity in talent communication affected the reactions of talents and ‘B’ players in distinctly different ways, but had few long-term positive effects on the attitudes and behaviours of either group. These findings present important theoretical and practical implications for the role of communication and organisational context in employee reactions to talent pool inclusion and for talent management more generally.
... As different companies produce specific internal environment, TD is needed to be focused on special organizational objectives and operational tasks (Kesler, 2002;Meyers and Woerkom, 2014) and linked to a firms' performance. Alignment with TM and HRM pushes TD to be in consistency with strategic goals, corporate culture, and organizational values (Agnew, 2014;Fernandez-Araoz et al., 2011;Miller and Desmarais, 2007;Ozuem, 2016). Therefore, we can conclude that TD activities, just in themselves, do not guarantee any result; they should contain specific factors, some of which are mentioned by Wang-Cowham in her research. ...
... By providing and supporting learning atmosphere within an organization, all managerial levels serve as a TD provider immersing all employees in training and development activities (Cohn et al., 2005;Kesler, 2002;McNally, 2014;Ready et al., 2014). Many researchers claim that TD should open and transparent for any employee (Fernandez-Araoz et al., 2011;Lockwood, 2006;Wang-Cowham, 2011) and strictly organized and controlled to be able to follow strategic and operational plans for workforce development and leadership creation (Clarke, 2012;Kesler, 2002). Besides there seemed to be existing challenges and drivers of TD in modern companies, for example, a need to set up strategies and operational tasks in long-and short-term perspectives before planning TD (Agnew, 2014;Garrow and Hirsh, 2008;Lockwood, 2006;Mandhanya and Shah 2010;Miller and Desmarais, 2007;Silzer and Church, 2009), to evaluate the development needs and talent shortage Mandhanya and Shah, 2010;Miller and Desmarais, 2007;Ready et al., 2014;Richman and Wiggenhorn, 2005;Tarique and Schuler, 2010;Wang-Cowham, 2011), and to measure an organizational facilities and capabilities for providing training programs and making managerial decisions afterwards (Ewerlin, 2013;Lockwood, 2006;Mandhanya and Shah, 2010;Miller and Desmarais, 2007). ...
... It shows us that the emphasis of TD programs in emerging markets is put on the development of skills that are most in need. This means that respondents are probably aware of their career path and moreover that their individual goal contributes to organizational ones, which is one of the important ideas of TD (Agnew, 2014;Fernandez-Araoz et al., 2011;Miller and Desmarais, 2007). ...
The study investigates talent development (TD) as a part of human resource management (HRM) using the emerging market context and its influence on a company’s performance in Russian companies. Attention is paid to the analysis of TD programs that are used to develop talent in Russia and the factors that influence the creation and implementation of TD in Russian firms. The article explores and provides a number of ideas and conclusions about TD elaboration, realization, and talent practices’ improvement in the Russian context. The data shows that the positive connection between TD efforts and a company’s performance can be found in emerging market firms. The findings contribute to the field of HRM by showing that TD significantly influences organizational results.
... Оценка эффективности системы развития также является весьма важной [Berke, Kossler, Wakefield, 2009;Clarke, 2012], но тем не менее исследователи не делают однозначного вывода о том, как правильно оценивать результаты системы развития талантливых сотрудников [Collings, Anthony, Scul li on, 2009]. Очевидно, что все такие процедуры и методы должны быть адаптированы к конкретной организации [Meyers, Woerkom, 2014], приведены в соответствие с ее основными стратегическими задачами, ценностями и культурой [Fernandez-Araoz, Groysberg, Nohria, 2011;Agnew, 2014]. Следовательно, развитие талантливых сотрудников само по себе не гарантирует никаких результатов -оно должно быть интегрировано в систему управления талантами и связано со стратегическими целями компании [Wang-Cowham, 2011;Swailes, 2013]. ...
... Чем шире спектр этих мероприятий, тем в большей степени это способствует развитию талантливых сотрудников и человеческих ресурсов в целом [Wang-Cowham, 2011;Riordan, 2013;McNally, 2014], кроме того, особую важность приобретает оценивание успеха тех или иных предпринятых действий [Kesler, 2002]. Многие авторы утверждают, что развитие талантливых сотрудников всегда должно быть прозрачным и конкретным [Wang-Cowham, 2011;Fernandez-Araoz, Groysberg, Nohria, 2011;Clarke, 2012], связанным с организационной культурой [Silzer, Church, 2009;Mandhanya, Shah, 2010;Riordan, 2013;Agnew, 2014], оценкой текущих задач развития компетенций [Richman, Wiggenhorn, 2005;Collings, Anthony, Scullion, 2009;Mandhanya, Shah, 2010;Tarique, Schuler, 2010;Wang-Cowham, 2011;Ready, Hill, Thomas, 2014], способностью компании удерживать своих сотрудников после прохождения ими программ обучения [Mandhanya, Shah, 2010;Ewerlin, 2013], вопросами баланса личной жизни и работы, созданием бренда работодателя и разнообразием рабочей силы [Mandhanya, Shah, 2010;Wang-Cowham, 2011;Ewerlin, 2013;Agnew, 2014]. В работе [Younger, Smallwood, Ulrich, 2007] приводится перечень методов развития талантливых сотрудников, которые обязательно должны быть взяты во внимание руководителями, а именно: планирование карьеры и привлечение талантливых со-трудников в операционное и стратегическое планирование; участие руководителей среднего звена в организационных процессах; проведение оценки трудовой деятельности; наставничество; создание кадрового резерва. ...
... Факторы, влияющие на создание и внедрение практик развития талантливых сотрудников в российских компаниях В ходе анализа было определено содержание наиболее часто встречающихся практик развития талантливых сотрудников: развитие компетенций, имеющих большое значение для работы (процент от всех ответов -55,4% всех ответов), развитие лидерских качеств (47,7%), развитие высокопотенциальных сотрудников (41,5%), развитие основных навыков (например, навыков общения) (40,0%), развитие управленческих навыков (35,4%), планирование кадровой преемственности (27,7%), проведение международных стажировок и назначений (21,5%). Процесс развития талантов, связанный с формированием лидерских качеств и компетенций, определяется тем, что в контексте развивающихся рынков акцент делается в первую очередь на создании навыков, которые крайне необходимы для организации и ее сотрудников, но при этом не были задействованы в рамках предыдущей деятельности компании, что подтверждается предыдущими исследованиями [Fernandez-Araoz, Groysberg, Nohria, 2011;Agnew, 2014]. ...
... The strategic and tactical motives for TM will shape the nature of practice. TM practices vary and it is impossible to define a clear bundle that will work in every context (Stahl et al., 2012;Tarique & Schuler, 2010;Fernandez-Araoz, Groysberg, & Nohria, 2011). Instead, TM should create a clear employee value proposition that is consistent with an explicit brand identity and focused on the long-term career development opportunities of their talent (Stahl et al., 2012). ...
... Evidence suggests that MNEs are starting to use more flexible forms of global staffing instead of more costly traditional expatriate assignments and are engaging in job rotation and secondment activities (Farndale et al., 2010(Farndale et al., , 2014. According to Fernandez-Araoz et al. (2011) job rotations are the most powerful tool in developing managerial talent, placing them in challenging roles. They also assist the development of social ties between business units and assist knowledge sharing and trust relationships (Bozkurt & Mohr, 2011[ 4 _ T D $ D I F F ] ; Farndale et al., 2010Farndale et al., , 2014Wickramasinghe & Weliwitigoda, 2011). ...
... This suggests that MNEs will be able to absorb such costs and have experimented sufficiently to understand the extent to which career portfolio systems can assist their global operations. Career portfolio building through job rotation and secondments is considered to be high risk and costly with the potential to compromise accountability, demoralize managers and disrupt operations (Fernandez-Araoz et al., 2011;Nalbantian & Guzzo, 2009), as such they may not be suited to risk averse (Kabasakal & Dastmalchian, 2001), local Turkish firms with smaller budgets and a reduced focus on HRM-led systems. This discussion leads to the following hypothesis: ...
This paper compares the differences in talent management motivations and practices between MNEs and local firms in the emerging market of Turkey. It uses institutional theory and the resource based view of the firm to explain these differences. Examining data from 201 firms the findings show significant differences between the talent management motives of MNEs and local firms, with MNEs having more tactical motivations for their talent management systems. The study also shows significant differences in the talent management practices between MNEs and local firms, with MNEs implementing more robust systems of talent management overall. The findings indicate that the motives for TM and the practices that are pursued by organizations are society-bound. The study of TM motives and practices has to be framed within the context of the institution as this shapes the way in which actors perceive and respond to environmental and organizational stimuli and the extent to which they seek to protect the rules that shape and structure their environments.
... Powerful HRM functions (in this study, variables that test HRM strategy-business strategy alignment) are those that have board level representation, form part of the top team and are involved in the strategic decision making of the organisation and are taken seriously (Gooderham, Morley, Parry, & Stavrou, 2015;Lawler, 2009;Sheehan, De Cieri, Cooper, & Brooks, 2014). Yet TM is viewed as the remit of the senior management team (Fernandez-Araoz, Groysberg, & Nohria, 2011), and HRM as a function has struggled with its image and is often excluded from decision making, playing only a secondary role in cultural integration (Björkman & Soderberg, 2006;Lawler & Mohrman, 2003). It is hampered by the increasing fragmentation of HRM responsibilities, eroding stakeholder perceptions of its professionalism, status, credibility, and knowledge (Caldwell, 2003). ...
... ). Some authors suggest that TM is too important to be left to HRM managers and that human-capital centric organisations rarely consider their HRM function as being central to a discussion of TM(Fernandez-Araoz et al., 2011;Linden & Teece, 2014)-our findings partially corroborate this view, in that a strategically integrated HRM function is not "essential" for the HRM-TM-performance link to work. ...
... First, the term "star" is often used loosely and casually in organizations, with no consistent definition and no formal criteria or implications attached. In contrast, "high potentials" are often formally designated in the context of organizations' talent management programs (Dries & Pepermans, 2008;Gelens, Hofmans, Dries, & Pepermans, 2014), with such designations often associated with focused development efforts, stretch assignments, targeting mentoring and coaching, and in some cases fast-tracked promotions (Fernandez-Araoz, Groysberg, & Nohria, 2011;Ready, Conger, & Hill, 2010). Organizational leaders often refer to high potentials both as their strongest contributors today and as the leaders of tomorrow in their organizations. ...
... Research on managing high potentials has not found greater work-based autonomy to be a key motivator or effective retention tool for high performing employees. Instead, this research has found that high potentials care more about upward growth opportunities, promotion, and performance-based compensation (Dries and Pepermans 2008, Fernandez-Araoz et al. 2011, Willyerd 2014). Furthermore, decentralized structures, at their extremes, can alter the conventional upward career path-such as promotions in title and progressively higher pay and status-that are powerful motivators in hierarchies (Child 2019, Lee and Edmondson 2017, Puranam 2018. ...
While flattening hierarchies and distributing decision making downward is sometimes described as a form of occupational nirvana for contemporary knowledge workers, prior research on the effects of decentralization on employee work experience has been mixed. This calls for greater examination of the sources of heterogeneity in workers’ responses to decentralization. In this study, we conduct a field experiment where groups were randomly assigned either to operate in a decentralized structure or to remain in a traditional hierarchical structure. We use this experiment to examine the causal effect of decentralization on employee work experience, as well as to explore whether and how the effects of decentralization vary depending on employee ability and work preferences. We show that decentralization had no average effect on employee work experience—measured as job satisfaction, engagement, and turnover intention—but decentralization improved the work experience of employees with high job-related ability and employees with strong a priori preferences for working in a decentralized structure. Conversely, we show decentralization negatively impacted the experience of employees with low ability and weak preferences for decentralization. This study provides novel insights into the effects of decentralization, the micro-foundations of organizational design, and the human consequences of the future of work. Prepint available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4077075
... The definition of high potential may vary; some organizations define high potentials based on competencies and past behavior (Ready et al., 2010), while others focus on potential to develop (Clayton-Ball et al., 2020;Church and Ezama, 2020). Organizations that use past performance to identify high potentials usually include the top 5 percent of employees who significantly outperform their peers (Ready et al., 2010) based on motivation, leadership skills, intelligence, agility and engagement with the organization (Fernández-Aráoz et al., 2011). Organizations that focus on individual potential identify a person with superior strengths in certain areas or dimensions such as change potential, intellectual potential, people potential, and motivational potential (Clayton-Ball et al., 2020;Church and Ezama, 2020). ...
... The definition of high potential may vary; some organizations define high potentials based on competencies and past behavior (Ready et al., 2010), while others focus on potential to develop (Clayton-Ball et al., 2020;Church and Ezama, 2020). Organizations that use past performance to identify high potentials usually include the top 5 percent of employees who significantly outperform their peers (Ready et al., 2010) based on motivation, leadership skills, intelligence, agility and engagement with the organization (Fernández-Aráoz et al., 2011). Organizations that focus on individual potential identify a person with superior strengths in certain areas or dimensions such as change potential, intellectual potential, people potential, and motivational potential (Clayton-Ball et al., 2020;Church and Ezama, 2020). ...
The development "high potentials" has become a common strategy in organization to develop their best employees who have the most potential to succeed key strategic positions. In this investigation, we introduce the concept of "high potential intrapreneurs" (HPI) who could be the catalysts to corporate innovation and intrapreneurship. Drawing on research and on practice-oriented observations based on our work in executive education with some of the Fortune 500 companies located in Mexico City, we propose an integrated model that is intended to clarify what is a "high potential intrapreneur" (HPI), and what elements need to be created to support HPI, and how both elements could be taught in executive education using a project-based learning approach.
... To address such human capital related challenges, the majority of firms heavily invests in management systems to document their high potentials, and consider potential management and leadership development as their top two human resources topics. However, despite such systems being in place, the results also indicate that 56% of executives are concerned about having high-potential successors to fill their leader positions, and 62% of CEOs question the availability of a talented workforce to operate their organization in the future (Silzer and Church 2009;Boston Consulting Group 2010;Fernández-Aráoz, Groysberg, and Nohria 2011;Corporate Executive Board 2012Fernández-Aráoz 2014; PriceWaterHouse 2014). Hence, it also does not come as a surprise that companies increasingly hire their executives from outside instead of promoting from within the organization (Murphy and Zábojník 2004). ...
... Talent management (TM) as a conscious and deliberate effort that undertaken by and for a corporation to recruit, develop and retain talent has gained popularity. More than 85% of Asian companies have reportedly geared up their TM efforts (Fernandez-Araoz, Groysberg, & Nohria, 2011). This increasing interest in TM is supported by resource-based theory that believes human resources are the key to provide organizations with sustainable competitive advantage because they are difficult to copy (Lado and Wilson, 1994) or replicate by competitors (Foss, 1998). ...
Talent management has been recognized as the number one challenge for businesses in Asia and a necessity to sustain organizational competitiveness. By examining talent management practices of six large multinationals in Asia, this paper identifies issues and countermeasures as these companies pursue talent management strategies. The findings of this study revealed tensions that organizations have experienced when implementing talent management, including tension between subsidiaries and headquarters, between high potentials and non-high potentials, and between different generations and gender groups. This paper calls for more talent management research to be conducted using an Asian lens in contrast to the western lens.
... Hence, organizations today have included follower leadership development as a performance evaluation criterion of managers, though this has not been well implemented. This may be because, line managers do not get sufficient inputs on their behavior as leaders (Fernández-Aráoz et al., 2011). Leaders are not stepping up to the responsibility of developing their followers unless there is a corporate backing, as some are reluctant that the followers will become better leaders than them. ...
Developing the global leadership bench strength by advancing the global leadership competencies of high potential employees is a critical concern for Multinational Corporations (MNCs), to achieve sustainable competitive advantage. Accordingly, the main purpose of this paper is to emphasize the role of line managers transformational leadership in developing the global leadership competencies of their respective subordinates, with the theoretical support of the transformational leadership theory. For the above purpose, data were collected from line manager-high potential dyads, using a structured questionnaire developed using well accepted, standard measures. Upon completion of preliminary analyses, the hypothesis was tested. From the regression analyses, it was found that there is a major impact of line manager's transformational leadership in the development of global leadership competencies of high potential subordinates. This finding is consistent with the transformational leadership theory and other empirical studies in the area and suggests the development of line manager's transformational leadership competencies for the purpose of developing the global leadership bench strength in MNCs.
... The rapid expansion of businesses has resulted in talent shortage which has become the number one business challenge in the region (Ray, 2011). To deal with this challenge, more than 85 per cent of Asian companies have reportedly geared up their talent management (TM) efforts (Fernandez-Araoz et al., 2011). ...
Purpose
The purpose of this study is to examine talent management process in a region that has been influenced by Eastern culture.
Design/methodology/approach
This research is a multiple case study of six MNCs in Asia. Cross-cases analysis was used to reveal differences and similarities. The data were collected through phone interviews with HR managers and written communications as well as organizations’ websites.
Findings
The studied companies were dealing with several challenges regarding talent management process, including challenges of attracting and retaining talent, tension between subsidiaries and headquarters, tension between high potentials and non-high potentials and tension between generations. These companies’ strategies for addressing these challenges were also identified and discussed.
Originality/value
This paper revealed talent management orientation, the approach toward and definition of talent and context-specific issues regarding talent management of the selected companies in a region in which this topic has not been sufficiently studied in the past.
... One most business challenge is to ensure that firms ready to prepare "high potential" personnel that firms believe with trust that will become leaders. Setting a clear definition of "high potential leader" that mean someone will be able to succeed in a significant in bigger impact through their own ability to responsible greater scale and scope (Groysberg & Nohria, 2011). Thus, high potential acumen leader (H-PAL) is proposed. ...
Extending to explore how organizational antecedents affect absorptive capacity, this research proposed a theoretical model linking microfoundations of organizational routines and capabilities with network effects through high potential acumen leader (H-PAL). Drawing on a network effects of network position perspective with design thinking to enhance absorptive capacity, I argue that organizational design become a determinant factors on firm to produce more innovation on yielding better performance if leader has significance potential to grow in both the greater scale and scope of promising management skills. Building upon the dynamic capabilities view of the firm, the paper proposed an advance model with design thinking approach convincing that the value of conceptualizing and operationalizing network effects of network position via high potential acumen leader have open up new research interest that cut across traditional “micro versus macro” boundaries.
... "We need a strong pool of internal candidates for the CEO role," remarked an executive in Newcastle Permanent Bank Building Society Ltd. "If I decide to leave or the board tells me it's time to go, we need executives capable of stepping into the CEO role on an interim basis and also, ideally, as potential candidates for the role on a permanent basis." A 2011 study revealed that only 15% of North American companies believed they had enough qualified successors (Fernández-Aráoz, Groysberg, Nohria, 2011). Tailoring efforts to the development of particular skills and needs is critical considering the leadership talent shortage that will only grow as baby boomers retire (Silvestri, 2013). ...
... At first, HR were solely seen as costs to be minimized (Armstrong, 2005;Becker & Gerhart, 1996;Kaufman, 2001;Pfeffer, 2005); however, a more recent approach, which focuses on VC and supports the idea of HR's new, strategic role, "suggests that HR (both the function and the system) contributes directly to the implementation of the operating and strategic objectives of the firms" (Becker & Gerhart, 1996, p. 780). Even though it is not yet a reality but rather a stated aim (at most) for most of the companies, more and more authors (e.g., Fernández-Aráoz, Groysberg, & Nohria, 2011;Lengnick-Hall, Lengnick-Hall, Andrade, & Drake, 2009;Longo & Mura, 2011;Schuler, Jackson, & Tarique, 2011) argue that HRM should become a strategic partner within the organization. Considering that HC is a type of IC, which latter is proved to be an important component and driver of competitiveness, the argument for HRM's strategic role seems to be particularly valid and important. ...
... At first, HR were solely seen as costs to be minimized (Armstrong, 2005;Becker & Gerhart, 1996;Kaufman, 2001;Pfeffer, 2005); however, a more recent approach, which focuses on VC and supports the idea of HR's new, strategic role, "suggests that HR (both the function and the system) contributes directly to the implementation of the operating and strategic objectives of the firms" (Becker & Gerhart, 1996, p. 780). Even though it is not yet a reality but rather a stated aim (at most) for most of the companies, more and more authors (e.g., Fernández-Aráoz, Groysberg, & Nohria, 2011;Lengnick-Hall, Lengnick-Hall, Andrade, & Drake, 2009;Longo & Mura, 2011;Schuler, Jackson, & Tarique, 2011) argue that HRM should become a strategic partner within the organization. Considering that HC is a type of IC, which latter is proved to be an important component and driver of competitiveness, the argument for HRM's strategic role seems to be particularly valid and important. ...
The enhancement of shareholder value is a focal point in contemporary financial economics because of its perceptible relationship with the company value management. From this perspective, executive managers, in particular, are deemed to be company value-adders and their performance is evaluated against this benchmark. This raises the question of how executives add shareholder value, and moreover, what makes some of them appear more capable than others to do it when firms recruit or head-hunt them.
... Thus, the purpose of this study is to identify the criteria used by HR professionals to identify high-potential employees. Learning about the best and most effective criteria to use in practice to identify high potentials will allow organizations to assign the most promising employees to learning and developmental activities (Fernández-Aráoz et al., 2011). ...
Purpose
HR professionals use different criteria in practice than they verbalize. Thus, the aim of this research was to identify the implicit criteria used for the selection of high-potential employees in recruitment and development settings in the pharmaceutical industry.
Design/methodology/approach
A semi-structured interview guide was developed and used to collect data from 15 European and U.S. recruiters in the pharmaceutical sector. The interview guide included an embedded association test to identify potential differences between implicit assumptions about high potentials and verbalized criteria among participants.
Findings
Findings include differences and similarities between the criteria to define high potentials and the implicit assumptions HR professionals use in their initial selection of employees who are selected for further assessment and development programs.
Research limitations/implications
Size of the sample is a limitation. Therefore, the conclusions drawn from this study should be treated with a degree of caution.
Practical implications
Learning how HR professionals use implicit assumptions about potential recruits should inform practitioners about selection, promotion, and training strategies. Given the increasing application of automated search algorithms to identify and select high potentials for recruitment, development and promotion purposes, future studies should account for the differences between used and verbalized criteria underlying the development of these systems.
Originality/value
This study shows how the used implicit assumptions of HR professionals about high potentials differ from verbalized statements and guidelines.
Purpose – To identify and evaluate high potential indicators in employees by the organization’s management team and HR professionals. We are identifying implicit criteria used in practice by HR professionals to improve assessment tools for potential indicators. Methodology – Both quantitative and qualitative research methods are used. Questions to identify/assess high-potential indicators are developed based on familiarity with existing practices worldwide. Top managers of Georgian companies participated in the research - 162 respondents in total. Semi-structured in-depth interviews were also used in the research, which was conducted with HR professionals of 21 Georgian companies. The purpose of the interview was to reveal the differences that may exist between HR professionals’ implicit evaluations of high potential and verbally expressed criteria during selection. Limitations/results of the study - The size of the sample is a limitation; therefore, the conclusions drawn from the study results of the shouldbe treated with caution. Practical implications - Detection and assessment of high potential indicators; Identifying high potential, recruiting, promoting, and developing training strategies by top managers and human resource management specialists in organizations.
Our study provides valuable insights into the relationship between artificial intelligence (AI) and Human Resource Management (HRM). We have minimised bias and ensured reliable findings by employing a systematic literature review and the PRISMA statement. Our comprehensive synthesis of the studies included in this research, along with a bibliometric analysis of articles, journals, indexes, authors' affiliations, citations, keyword co-occurrences, and co-authorship analysis, has produced robust results. The discussion of our findings focuses on critical areas of interest, such as AI and Talent, AI Bias, Ethics and Law, and their impact on Human Resource (HR) management. Our research highlights the recognition by organisations of the importance of talent management in achieving a competitive advantage as higher-level skills become increasingly necessary. Although some HR managers have adopted AI technology for talent acquisition, our study reveals that there is still room for improvement. Our study is in line with previous research that acknowledges the potential for AI to revolutionise HR management and the future of work. Our findings emphasise the need for HR managers to be proactive in embracing technology and bridging the technological, human, societal, and governmental gaps. Our study contributes to the growing body of AI and HR management knowledge, providing essential insights and recommendations for future research. The importance of our study lies in its focus on the role of HR in promoting the benefits of AI-based applications, thereby creating a larger body of knowledge from an organisational perspective.
La gestión del talento abarca la selección, contratación, incorporación, de- sarrollo, retención y renovación de recursos humanos, teniendo en cuenta el análisis y la planificación global de estos. Atraer y retener el talento adecuado en los puestos de trabajo es uno de los factores clave del éxito de las empresas en el competitivo panora- ma de la economía global (Collings y Mellahi, 2009).
El objetivo de este estudio es mostrar el proceso de gestión global de talento de una empresa a través de las diferentes fases que lo componen: detección, desarrollo, evalua- ción y confirmación. Para ello, esta investigación utiliza una metodología basada en el estudio de un caso en profundidad a partir del análisis de una empresa dedicada al desarrollo, fabricación y distribución logística de automóviles.
Los resultados de esta investigación muestran que la empresa analizada gestiona el talento de forma global y sistemática (Tarique y Schuler, 2010), generando un pool de talento, ofreciendo múltiples vías de desarrollo profesional y fomentando de igual manera la movilidad intra- e interárea a través de observaciones por múltiples evaluadores (directivos tanto de la propia área del candidato como de otras áreas). La metodología desarrollada por la empresa es innovadora en tres aspectos: 1) la auto- nominación, 2) la evaluación on the job, y 3) la evaluación por múltiples evaluadores.
This article deals with the need for the conceptualisation and operationalisation of a modern graduate leader performance construct and the development and psychometric evaluation of a (graduate) leader competency questionnaire. The need for an investigation into the graduate leader performance construct is motivated against the backdrop of the availability of a new generation of leaders given the impending retirement of the world’s most senior management talent. Generation Y is singled out as a critical resource pool whose leadership potential needs to be tapped to enhance organisational performance and improve the economic fortunes of our country. However, it is pointed out that our understanding of this generation, as well as the psychological mechanism that determines how leaders influence various aspects of an organisation, work group or team to bring about optimal performance at a collective level, is fragmented and incomplete. Accordingly, we make suggestions for expanding contemporary conceptualisations of competency models so as to merge an expanded form of a competency model with the notion of a nomological network in providing a comprehensive explanation for the psychological mechanism that regulates graduate leader performance within organisational settings. The explication of such a competency model logically needs to start with the conceptualisation of the graduate leader performance construct. The validation of such a competency model will necessitate in future, amongst others, a measure of the competencies comprising the graduate leader performance construct as well.
Purpose
This article investigates which criteria and processes are used to identify global leadership potential (GLP) in multinational corporations.
Design/methodology/approach
First, the literature at the intersection between leadership potential and global leadership is reviewed to identify a set of criteria that can be used for assessing GLP. The findings are then validated in a qualitative study against a sample of nine global corporations.
Findings
Several traits (integrity and resilience), attitudes (learning orientation, motivation to lead, change orientation, drive for results, customer orientation and a global mindset) and competencies (cognitive complexity and intercultural, interpersonal, leadership, learning, change and business competencies) are associated with GLP. The core steps in the GLP identification process are nomination, assessment and confirmation. These steps can be complemented by a preassessment phase and a subsequent talent dialogue.
Practical implications
The results of this research can inform human resource (HR) management practitioners in their endeavor to successfully identify and assess potential future global leaders.
Originality/value
Prior research has focused either on defining global leadership or on assessing leadership potential in general, without a clear focus on identifying global leaders. In this article, the two concepts of global leadership and leadership potential are combined, thus providing an integrated content and process model that indicates how global corporations select their future global leaders.
Notwithstanding the popular consensus around the relevance of potential, in both practitioner and scholarly publications, the field still lacks a unified definition and theoretical clarity allowing to build on previous work and conducting empirical and comparative studies. Using a systematic review (SR), this paper aims to present a synthesis of the extant literature. The findings of this SR indicate that there are both similar and differing viewpoints for defining potential and that, theoretically, the study of potential from the perspective of the individual is still lacking. As a result, a comprehensive definition of potential is presented. Furthermore, we recommend incorporating this perspective and formulate a conceptual model to advance in the understanding of this phenomenon.
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Günümüz hiper rekabet ortamında faaliyet gösteren birçok işletme için somut (tangible) ve soyut (intangible) tüm kaynakların etkin bir biçimde yönetilmesi ve işletme performansının arttırılması öncelikli konular haline gelmiştir. Hangi sektörde faaliyet gösterirse göstersin yüksek performanslı organizasyonlar, liderlik becerileri ve yeterliliklerini verimli bir şekilde geliştirerek, kendilerini rakiplerinden ayırabilir ve pazardaki rekabet avantajlarını artırabilirler. Stratejik yönetim ve yetenek yönetimi bağlamında, işletmeye farklılık kazandıracak en önemli kaynak durumunda olan insan kaynağının performansının arttırılması için insan kaynakları yönetimi süreçlerinin ihtiyaçlara uygun tasarımı ve yönlendirilmesi esastır. Modern insan kaynakları yönetimi sadece işletme içindeki mevcut insan kaynağının geliştirilmesi ve elde tutulması için değil, aynı zamanda işletme dışındaki yetenekli insan kaynağına ulaşılarak işletmeye çekilmesi için de oldukça elzemdir. Bu noktada günümüz işletmeleri yüksek potansiyelli çalışanları bulma ve işletmede tutma ihtiyacını daha fazla hissetmektedir.
Purpose: The paper presents a theoretical model of vocational competencies of professional team-sports coaches. The model is a theoretical background for a wider research project of which the main aim is to improve standards of professional competences for volleyball coaches in Poland. Therefore, the purpose of this paper is to identify vocational competences through reviewing opinions of experts.Methodology: Theoretical model of vocational competencies of professional team-sports coaches was built and verified on the ground of the literature review method and afterwards compared and verified with four expert opinions gained through individual in-depth interviews.Findings: The model consists of three components: knowledge, skills and behaviour, as well as three levels of competencies: basic, complementary and leadership. It has been stated that there is no advantage for any of three levels of competences in a group of the most successful volleyball coaches in Poland, and that a relatively strong impact of behaviour among other competencies’ components was observed. Therefore, all significant conclusions of the theoretical model and research outcomes are discussed.
The report explores the future skills and talent needs, and the management and development practices, in Singapore in to 2030, by systematically testing
possible future scenarios arising from the current approaches to human capital management using Delphi and Scenario Planning. They allow the comparison of our current assumptions about what works in talent management and development set against the context of the future.
By revealing biases and potential blindspots when we make decisions, the research hopes to stimulate individuals, organisations, the state and society to reflect on their current paradigms, the quality of strategic choices, and their preparedness for what the future might hold.
This report is for thinkers, decision-makers, the next generation of leaders, and all those who feel it is their responsibility to build a better future, not just for themselves, but for others, and ultimately for society as a whole. While the purpose of this research was
to describe the future of talent in Singapore, it also reminds us how our choices today are inextricably connected to the wider changing world. In our interconnected, inter-dependent economies and societies, most decisions will have longer-term, sometimes
unanticipated, consequences for our communities, the environment, and the generations to come. Too many see profit or short-term advantage as the prize, but we now have to be able to take the longer-term view, to build sustainable and responsible businesses, and to help build for a better future. The findings crucially provide a space to learn and
reflect on what could be, rather than restating solutions that were effective in the past. I hope its insights illuminate and provoke fresh conversations about the future of talent and the future of Singapore more broadly.
A Delphi study looking at factors affecting workforce supply and quantity in Singapore in 2030. The research examines how 'talent' is currently conceptualised and identified, drivers (both internal and external) shaping talent development and policy and organisational issues around strategic workforce planning.
Retaining talent continues to be an organizational issue, and surviving employees of a layoff are more likely to leave an organization voluntarily for alternative work. A quantitative method was used to explore emotional‐intelligence levels of individuals, voluntary turnover, and voluntary turnover intention using Schutte et al.’s questionnaire. A significant statistical relationship was found between emotional intelligence and one of four components of the unfolding model of voluntary turnover.
This chapter provides a detailed examination of the nature and composition of talent in frontline personnel in Danish banks. Based on a detailed analysis of 23 interviews and drawing on role stress theory, the authors show how the characteristics and attributes that denote talent run much deeper than stock descriptions of performance and potential. The chapter suggests that the composition of talent will differ across sectors and demonstrates that the components of talent in frontline banking employees are far from obvious and are unlikely to be described accurately even by experienced leaders. A key implication is that broad-brush descriptions of talent should be treated with caution, and the chapter adds to the limited number of detailed studies of what talent means in specific organizational contexts.
Employee development is among the most important functions of any
organization. Since employees are arguably an organization’s most important asset, organizations have an incentive to invest in, direct, and promote the development of their employees. As an organization, the U.S. Navy, too, provides for the personal and professional development of naval personnel.
This thesis reviews the Navy’s personal and professional development
program and examines possible use of 360-degree feedback in the development of naval personnel. Three-hundred sixty-degree feedback, also known as “multisource or multi-rater” feedback, is a development tool that allows a person to receive feedback from his superiors, peers, subordinates, and in some cases, from internal and external customers.
The Royal Australian Navy and the U.S. Army have implemented 360-degree feedback programs. The U.S. Navy also has included 360-degree feedback initiatives as part of several training programs, and conducted a 360-degree pilot program. Evaluations of those 360-degree feedback initiatives have concluded that 360-degree feedback is beneficial to program participants.
However, the Navy has yet to implement a Navy-wide 360-degree feedback program. This thesis concludes that implementing a 360-degree feedback program in the Navy would be a costly investment but one that will yield major benefits.
This White Paper is intended to evaluate the current situation with regard to the importance, role, and status of Talent Management within both private and public sector organisations, including an analysis of how that role is predicted to develop in the future. We are all aware of how the organisational role of Talent Manager, Talent Director has assumed greater prominence in recent times and has, for instance, superseded, in status terms, the role of Head/Director of Learning and Development or Head/Director of Employee Relations.
There have been five meetings of the Talent Management Special Interest Group (SIG) that have fed ideas and data into the development of this White Paper. These meetings have involved the talent specialists from Systems, Cabinet Office, Co-operative Financial Services/ Britannia Building Society, Hansons, IBM, Legal & General, McDonalds, Nestlé, Nuclear Decommissioning Authority, NG Bailey, Prudential, Royal Bank of Scotland, Royal Mail, Sellafield, Shell International and Vodafone. During these five days of meetings between experts and academics there has been a sharing of practice and critical review and exchange of ideas in the talent management field.
The recorded material serves as our database. In addition, a sub group of the Talent SIG has also conducted its own research into the challenge of boardroom engagement with the talent reports that they receive. The White Paper also draws upon a survey of talent specialists from 15 organisations and analysis of their systems.
We need to clarify what we understand by the term “Talent” as it is clear that the term can be interpreted in a number of ways. Our paper examines the latest thinking from key writers, and develops our own thinking, in order to answer the following key questions:
1. Howcanwereconcilethedifferentphilosophiesandpracticesthataboundinthefieldof talent management?
2. WhatdoTalentManagementseeasthebiggestchallengestheyface?
3. Howcanwemovebeyondthe9-Boxmodel:whatisreallymeantbypotentialand performance in a talent context?
4. Whatistheimpactandexperienceofforcedrankthinking?
5. Howcanwegetthetopteamstohavetherighttalentconversation?
6. Howcanwemovethetalentagendatowardsamorestrategicformofworkforceplanning and data handling?
7. Howdoweprovidebettergovernanceandalignthemanagementofbusinessrisk and talent?
“Even in these financially challenging times, business performance always comes down to a firm’s competitive advantages” (Teixeira & Werther, 2013, p. 333), while most of the sources dealing with intellectual capital (IC) point to the fact that IC can make significant contributions to and serve as a basis for competitive advantage, especially in the so-called knowledge era or knowledge economy (e.g., Armstrong, 2005; C.-J. Chen & Huang, 2009; Costa, 2012; Farsani, Bidmeshgipour, Habibi, & Rashidi, 2012; Gowthorpe, 2009; Guthrie, Ricceri, & Dumay, 2012; Joia, 2000; Obeidat, 2012; Ramezan, 2011; Russ, 2009; Spender, 2005; Sveiby, 1997; K. Wang, Chiang, & Tung, 2012; Wiig, 1997a) of the twenty-first century.
In the previous chapter we showed that organizations and their HR functions have learned how to engineer and hone sophisticated talent management processes. However, many are also looking at their talent Centers of Expertise and both broadening their remit and linking them much more flexibly to related areas of expertise such as Learning and Development, Resourcing and Engagement, and to broad change programmes. This is allowing us the option to think more strategically about the role, remit and value of talent management.
In Chapters 2, 3, 4 and 5 we laid out a series of strategic performance drivers that organizations continue to grapple with. One of the ways that organizations are responding to these challenges is to become much more analytical — they are bringing skills around big data and HR analytics to the fore, a discipline that itself draws upon some of the ideas about human capital (or workforce) analytics or accounting (HCA) and later also on strategic workforce planning (SWP). What ties all of these developments together is the question of talent — and our changing understanding about what makes people talented in today’s business environment. We have clearly entered an environment of unprecedented business risk — nations are pitched against capital markets, markets could disappear overnight along with the ability to finance business models, and consumer behavior may take years to revert to normality, or indeed may start to create a new normality. As organizations continue to navigate their way through turbulent waters, even as business confidence is returning, the demands placed upon those deemed to be leading talent are extreme.
In the wake of mass layoffs, cost reductions and other drastic actions that put people second in the struggle to overcome financial challenges, firms are discovering just how costly it is to maintain the commitment and productivity of their employees. A different approach is required to build sustainable organizations where the wellbeing of multiple stakeholders is at the center of companies’ goals. Such an approach takes time, but it can be done, provided that leaders adopt a longer-term, humanistic perspective. Firms with the vision to understand this and take advantage will succeed in the market (Fernandez-Araoz, 2011). While factors such as the economic environment cannot be changed, one thing that can be influenced is who the leaders will be. In fact, while many corporations report a shortage of global leaders, studies of leadership and leadership development have paid limited attention to time factors and humanistic aspects: contributing to social sustainability encompasses both.
El objetivo del estudio es investigar los componentes de potencial y las herramientas de identificación utilizadas por las empresas de capital argentino y las filiales de Multinacionales- MNCs; components of potential; identification tools
(MNCs) en el país
The strategic importance of certain areas (such as human resources management, knowledge management, organisational learning) are given increasing attention nowadays. Their importance should be recognized and taken into account, furthermore sufficient measurement and evaluation in reference to these areas are also essential for an organisation, which wants to survive in today's (global) competition. However there is a difficulty in case of these areas: these are in connection with intangible, immaterial resources of the organisation, which makes the measurement and evaluation complex. Evaluation of the certain areas in connection with intangible, immaterial resources is in the centre and the paper concentrates on exact measuring and evaluating methods, which help define the added value of human resources management, knowledge management, organisational learning. Authors examine national and international literatures in the field of performance evaluation, statistics and economics (evolutionary economics), in connection with the measures and by a comparative analysis they examine the main peculiarities of these. The examination is based on previous researches (by one of the authors), and (new) measuring solutions from the mentioned fields will be analysed as well. Main results of the paper are conclusions in connection with the suitable measurement and evaluation techniques of intangibles in organisational level.
La identificación de potencial: análisis comparativo entre las empresas locales y multinacionales radicadas en Argentina Resumen La identificación del potencial constituye la piedra angular de la estrategia de gestión del talento. Esta implica numerosas decisiones: definir qué es talento, como está compuesto así como los métodos utilizados para identificarlo. Sin embargo, su práctica no está expandida y consolidada en gran parte de las organizaciones. La problemática en el caso argentino permanece poco explorada. El objetivo del estudio es investigar los componentes de potencial y las herramientas de identificación utilizadas por las empresas de capital argentino y las filiales de Multinacionales (MNCs) en el país. Para ello, se utilizó un cuestionario estandarizado construido a partir de los aportes de Pepermans et al. 61 nacionales y 42 MNCs. Los componentes más utilizados por ambos tipos de empresas son las habilidades de liderazgo (77,7%), las habilidades cognitivas (64,1%) y las variables de personalidad (55,3%). Las habilidades de liderazgo son el componente con mayor presencia en ambos tipos de empresas, identificándose diferencias significativas en las variables de personalidad y en el desempeño histórico. El proceso de identificación descansa, mayoritariamente en la opinión del jefe directo en ambos grupos. No obstante, el grado de validación por parte del jefe del jefe es mayor en las MNCs. Las MNCs utilizan una mayor cantidad y variedad de herramientas de identificación. En las empresas nacionales, se observa una fuerte impronta del jefe directo (82%) en el proceso de identificación, mientras que en las MNCs el uso de test de capacidades cognitivas y de inventarios de personalidad es mayor. Se observaron diferencias significativas en el uso de inventarios de personalidad y test de capacidades cognitivas (mayor en las MNCs).
The stiff competition resulting from globalization has led to the changes in business conditions. The companies that want to adapt these changes and obtain sustainable competitive advantages have felt the necessity to enter a restructuring process. As a result of this restructuring, employee profiles that companies need have changed. In order to increase the success of companies, the issue of finding and retaining talented employee has become critical. In this context, talent management has become an extremely important issue for companies. In this study, the concept of talent management will be discussed within the wide range of business literature. Then, in the research section, in order to design distinctive labelled talent scale, face to face interviews have been conducted with 62 companies.
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