The war for talent
Encyclopedia
The war for talent is a term coined by Steven Hankin of McKinsey & Company
in 1997, and a book by Ed Michaels
, Helen Handfield-Jones, and Beth Axelrod, Harvard Business Press
, 2001 ISBN 1578514592, ISBN 9781578514595. The war for talent refers to an increasingly competitive landscape for recruiting and retaining talented employees. In the book, Michaels, et al, describe not a set of superior Human Resources
processes
, but a mindset
that emphasizes the importance of talent
to the success of organizations.
, Southeast Asia
. Central Asia
Central America
, South America
, or the Middle East
, though Eastern Europe
tends to have similar demographics, namely an aging and/or shrinking labor force.
is vague or ill-defined, the underlying assumption is that for knowledge-intensive industries, the knowledge worker
(a term coined by Peter Drucker
) is the key competitive resource (see the Resource-based view of the firm
). Knowledge-based theories
of organizations consistently place knowledge workers as a primary, competitive resource.
ial instincts, functional skills, and the ability to deliver results." (p. xiii) The authors offer no outside support for this assertion.
A 2006 article in The Economist
, which mentions the book, notes that, "companies do not even know how to define “talent”, let alone how to manage it. Some use it to mean people like Aldous Huxley's
alphas in “Brave New World
”—those at the top of the bell curve. Others employ it as a synonym for the entire workforce, a definition so broad as to be meaningless."
McKinsey & Company
McKinsey & Company, Inc. is a global management consulting firm that focuses on solving issues of concern to senior management. McKinsey serves as an adviser to many businesses, governments, and institutions...
in 1997, and a book by Ed Michaels
Ed Michaels
Edward Joseph Michaels was an American football guard in the National Football League for the Chicago Bears, the Washington Redskins, and the Philadelphia Eagles. Michaels also played on the "Steagles", a merged team consisting of the Eagles and Pittsburgh Steelers in 1943...
, Helen Handfield-Jones, and Beth Axelrod, Harvard Business Press
Harvard Business Press
Harvard Business Press is the book-specific division of Harvard Business School Publishing, owned by the Harvard Business School, based in Boston, MA.The Press publishes general interest books in addition to business books...
, 2001 ISBN 1578514592, ISBN 9781578514595. The war for talent refers to an increasingly competitive landscape for recruiting and retaining talented employees. In the book, Michaels, et al, describe not a set of superior Human Resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
processes
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...
, but a mindset
Mindset
In decision theory and general systems theory, a mindset is a set of assumptions, methods or notations held by one or more people or groups of people which is so established that it creates a powerful incentive within these people or groups to continue to adopt or accept prior behaviors, choices,...
that emphasizes the importance of talent
Skill
A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills...
to the success of organizations.
Demographics
The war for talent is intensified by demographic shifts (primarily in the United States and Europe). This is characterized by increasing demand along with decreasing supply (demographically). There are simply fewer post-baby-boom workers to replace the baby-boom retirement in the US and Europe (though this is not the case in most of East AsiaEast Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...
, Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
. Central Asia
Central Asia
Central Asia is a core region of the Asian continent from the Caspian Sea in the west, China in the east, Afghanistan in the south, and Russia in the north...
Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
, South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
, or the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
, though Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
tends to have similar demographics, namely an aging and/or shrinking labor force.
Knowledge Work
While talentSkill
A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills...
is vague or ill-defined, the underlying assumption is that for knowledge-intensive industries, the knowledge worker
Knowledge worker
Knowledge workers in today's workforce are individuals who are valued for their ability to act and communicate with knowledge within a specific subject area. They will often advance the overall understanding of that subject through focused analysis, design and/or development. They use research...
(a term coined by Peter Drucker
Peter Drucker
Peter Ferdinand Drucker was an influential writer, management consultant, and self-described “social ecologist.”-Introduction:...
) is the key competitive resource (see the Resource-based view of the firm
Resource-Based View
The resource-based view is a business management tool used to determine the strategic resources available to a company. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm's...
). Knowledge-based theories
Knowledge-based theory of the firm
The knowledge-based theory of the firm considers knowledge as the most strategically significant resource of a firm. Its proponents argue that because knowledge-based resources are usually difficult to imitate and socially complex, heterogeneous knowledge bases and capabilities among firms are the...
of organizations consistently place knowledge workers as a primary, competitive resource.
Definition of Talent
Talent is never explicitly defined in the book, though the Preface notes, "A certain part of talent elude description: You simply know it when you see it." (p. xii) After several further caveats, the authors go on: "We can say, however, that managerial talent is some combination of a sharp strategic mind, leadership ability, emotional maturity, communications skills, the ability to attract and inspire other talented people, entrepreneurEntrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
ial instincts, functional skills, and the ability to deliver results." (p. xiii) The authors offer no outside support for this assertion.
A 2006 article in The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
, which mentions the book, notes that, "companies do not even know how to define “talent”, let alone how to manage it. Some use it to mean people like Aldous Huxley's
Aldous Huxley
Aldous Leonard Huxley was an English writer and one of the most prominent members of the famous Huxley family. Best known for his novels including Brave New World and a wide-ranging output of essays, Huxley also edited the magazine Oxford Poetry, and published short stories, poetry, travel...
alphas in “Brave New World
Brave New World
Brave New World is Aldous Huxley's fifth novel, written in 1931 and published in 1932. Set in London of AD 2540 , the novel anticipates developments in reproductive technology and sleep-learning that combine to change society. The future society is an embodiment of the ideals that form the basis of...
”—those at the top of the bell curve. Others employ it as a synonym for the entire workforce, a definition so broad as to be meaningless."
Relevance during Economic Downturn
The War for talent is seen by various sources as becoming irrelevant during economic downturns. However, there have been highly visible talent poaching by solvent firms of others who have economic hardship (e.g., JP Morgan was raided by a European firm in March, 2009).External links
- The War for Talent, by Ed Michaels, Helen Handfield-Jones, and Beth Axelrod, Harvard Business Press, 2001 ISBN 1578514592, 9781578514595
- The War for Talent is Back, Robert Sutton, April 23, 2007
- The War for Talent, Fast Company, December 18, 2007
- The War for Talent II: 7 Ways to Win, Fast Company, December 19, 2007
- The Axeman Cometh, The Economist, November 4, 2008
- The War for Talent Placed on Hold, Hotels Magazine, March 1, 2009
- Cease Fire in the War for Talent, Chief Learning Officer, March 2009
- The War for Talent is First Casualty of the Crisis, Financial Times, April 13, 2009 (paywall)