The Phenomenon of Talent Shortage
Talent shortage seems to be the largest single constraint affecting growth plans of almost every industry worldwide. The problem becoming universal is in itself a unique phenomenon. CEO’s worldwide acknowledge lack of talent as one of their key constraints and worries. Resources other than human seem to be much easily available.
What then could be the real issues here and what is being done about it? It seems paradoxical that resurging economies, earlier termed underdeveloped or developing less, but with burgeoning populations too face this problem. As we explore this complex issue, lets start with checking if the problem itself is defined correctly.
By defining the problem as “Talent Shortage”, lends itself to a feeling of helplessness and inability to find a workable. and sustainable solution. Is it lack of required skills in the working population? Is it purely a skewed demand supply situation? Or is really a problem of the recruitment and HR processes being overwhelmed by the large influx of numbers and the inability of companies across sectors to fully leverage and engage employees. With multiple offers chasing good performers, the latter too find little reason to stay and learn and contribute over a longer period of time within one company.
India is seeing unprecedented growth and every industry is indeed hungry for highly skilled leadership at every level within their organisation to achieve their growth plans. The frenzied investment climate too puts immense pressure to perform on the organizational system. And in this scenario not having enough talent within the system and a general inability to find it can lead to chaos. Right now, talent is moving within industries and across industries, stretching, learning and moving on. Yet, a sense of fatigue would soon develop within organizations and this will impact their results.
Some conglomerates have indeed created strategies to leverage available talent within their group companies by opening up lateral as well as asymmetrical movements within the group. And the early results say that its an encouraging way of retaining talent.
We believe that since talent cannot be created, but only discovered, assessed, encouraged and nurtured to produce outstanding value for itself and for the system it works, the idea of realignment of talent needs to be explored in greater detail.
An honest and exhaustive evaluation indeed needs to be conducted to find out if all the employees are indeed performing at their peak. What indeed leads to such peak performance? Is it sustainable? What are the systems and processes, policies and politics in the environment which will enable individuals to work at their peak and sustain that level of performance? Or are peaks and troughs in performance a given and nothing can be done about it?
Our indepth research into peak performance in a corporate setup has shown that employees when fully engaged create break thru or disproportionate results and are highly energized.. They are able to create outstanding results without burning out, are able to realize their aspirations as well as get the desired rewards and recognition when performing at their peak They are the last people looking at changing jobs. And conversely, an employee who is not performing at this level is dissatisfied and looking for avenues to change the situation and one of the options available to him or her is changing jobs. And the current external realities and opportunities available outside work against the company in its efforts to retain talent.
Indeed one of the immediate options available to companies is realignment of talent. But this presupposes being able to assess the situation realistically. Retaining talent is more effective in the short medium and long term. Managing aspirations by moving existing people into newer roles, requires a systemic understanding of people and performance dynamics. Innovative approaches to engaging talent, showing belief in the ability of people to stretch and learn and therefore remain actively engaged, helps people unleash their potential and contribute disproportionately, i.e. create break thru results.
HR and business heads needs innovative and more holistic approach in dealing with the available talent as it is a more cost effective and more sustainable solution than finding talent from outside. A genuine desire to nurture and empower the existing talent within the organization has to be demonstrated by the top management as well as managers throughout the organisation, by actions and policies. HR needs to re-assess its role and relevance in being able to create a genuinely empowered and open environment in which diverse talents can nurture and grow and perform. It indeed requires courage and vision, but most importantly the will to bring out fundamental changes in thinking about people and performance, in questioning long held assumptions and beliefs. And it requires courage to make the changes.
Harish Nair
