Tommy Zaidar Khairully

SGU-MBA Program, Batch 20

Developing and Retaining Talent

One of the most critical issues facing organizations today is turnover. The reasons for resigning employee are vary, some find another job, some go back to school and some follow their spouse who has been transferred to other city. While others are not satisfied with their current employer, get fired or laid off and many other reason which can make the turnover rate higher. The turnover is a problem for every organization, even during times when the job markets are strongly motivated to stay with their current employer. At such times, it would be shortsighted to ignore retention management. Thats because even high unemployment rates have little impact on the turnover of top-performing employees or those with in-demand skills.1 Turnover become a problem for organizations are due to some reasons such as: costly, can effect on business performance and may become difficult to manage. Beside above problem, there one issue may become more challenging is how to retain the employee, especially the best employee or talent. There are some issued identified by The Boston Consulting Group related to creating people advantage2: Talent and leadership are becoming even scarcer resources than ever before. This scarcity results from dramatic changes in the complexities of business and the expectation of employees. Increasingly, people are the most important asset at many companies, and the fortunes of these so called people businesses are closely tied to their leadership and the talent they employ. The work force, on average, is growing older and people are having fewer children. Just a few years ago, companies were restructuring and reducing their work forces, but many will soon find it difficult to fill key positions and replace the valuable knowledge held by retiring employee. Companies are become global organizations. As business expand into new market, they will face on increasingly complex HR environment, particularly as they try to recruit and retain foreign talent and integrate diverse culture. The emotional of well-being of employees is more important than ever before. While many employees once expected to stay at the company until retirement, they no longer have expectation. Indeed, employee increasingly will make job choices and sacrifices of the basis family considerations and a desire for a life outside a work.

Related to developing and retaining talent, there are three categories identified by The Boston Consulting Group. First is managing talent, this is the topic at or very near the top of the agenda in every region and every industry. It involves attracting, developing and retaining all individuals with high potential across all level in the organizations. Companies may soon find talent scarcer than funding, as
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individuals gain more employment options. To tackle this challenge, companies should consistently and deliberately communicate their HR value proposition and marketing messages and identify new market talent pools. In talent planning, they also need to take into account the future geographic footprint and future activities of the firm, and they should implement programs that will enable talent affiliation and development. Second is improving leadership development, leadership development is closely linked to talent management. Furthermore, the value added by management contributes critically to outstanding business performance in todays increasingly complex organization. Leaders convey the mission and sense of purpose of the organizations. They serve as role models, are the primary developers of people, and engage the staff in highly visible ways. Companies should invest considerable resources in defining specific leadership models, assessing their leaders and designing development program. Third is managing work-life balance, many employees are looking for more than just a paycheck these days. Employers will need to understand this quest in order to attract and retain talent. Some workers have multiple employment options and can pick a job on the basis of flexible work hours and other nonfinancial benefit. Other workers are willing to work beyond retirement age provided that they can take longer vacations than their career-track colleagues. Many younger employees simply have new and nontraditional expectations about work. Company responses to employee needs may range from providing flexible work arrangements to addressing employees growing desire to derive a sense of greater purpose from their work. Increasingly, companies will find it beneficial to offer motivational management, under which some elements of compensation will consist of nontraditional and noneconomic features. Even when companies offer such initiative today, however, employees often perceive that these options may hinder their career and their standing within the company. due to some reasons such as: costly, can effect on business performance and may become difficult to manage. Effectively managing and developing talent is not easy, it will takes extensive analysis, good understanding of many strategies and practices and the ability to put the talent management plans into action and learn from their outcome. There are 3 recommendations related to talent management: 3 1. Implement key career development measures to drive performance, following are the 4 career development measures: - Demonstrate commitment to employees by preferring to develop from within versus hiring from the outside - Ensure that investment in learning and development is meaningful - Provides employee with incentives to develop by showing them how they can progress - Empower the employees 2. Create a workforce development plan based on skills and needs. 3. Employees must play active role in their managing their careers. ****
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References

Allen, David G, Ph.D., SPHR. 2008. Retaining Talent: A Guide to Analyzing and Managing Employee Turnover.

The Boston Consulting Group. 2008. Creating People Advantage: How to Address HR Challenges Worldwide Through 2015 Executive Summary.

Scales, Melvin J. Developing talent: How Career Opportunities Drive Business Performance.

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