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Does your organisation have a talent mindset?

The McKinsey Organisation originated the concept of a talent mindset in their 1998 report, "The War for Talent". The report suggests six action steps:

  • Establish a gold standard for talent.
  • Get actively involved in people, deep within the organisation.
  • Drive a simple, probing talent review process.
  • Instill a talent mindset in all managers.
  • Invest real money in talent.
  • Ensure that leaders hold themselves and their managers accountable for the strength of the talent pools they build.

While these six activities are a good start, they are not specific or comprehensive enough. In 2004, The Human Capital Institute in the US identified 28 key talent practices and developed the HCI Talent Mindset Index as a fast, standard method for collecting, measuring and reporting their presence and impact across organisations and industries.

The Human Capital Institute developed the following 28 criteria for helping organisations implement a talent mindset. These criteria are clustered within the areas of executive commitment, alignment, talent acquisition, the talent review process, responsibilities, resources, culture and results.

HCI's Talent Mindset Executive commitment index:

  1. Executives have a deep conviction in the importance of talent.
  2. Talent is reflected in the company's mission statement and values.
  3. Talent standards are set high and there is a shared commitment to this standard.
  4. As much time is spent on talent as on budget issues.
  5. Executives spend at least 30 percent of their time on talent issues.

Alignment:

  1. Strategy drives the most effective use of human capital.
  2. Performance management, reward and recognition systems promote the best use of talent.

Talent acquisition:

  1. Executives do not hesitate to bring in new talent if current skill levels are low.
  2. The company always looks for top talent, regardless of open reqs.
  3. The company's value proposition is compelling to top talent.

Talent review process:

  1. Senior management is directly involved on a regular basis with 2 to 5 percent of employees.
  2. A replicable review process is performed at least once a year and is integrated into the business.
  3. Talent is segmented based on its impact on the business.
  4. Talent is assessed on both performance and potential.
  5. The company invests in top performers and potentials.
  6. Bench strength of at least two people for high-value positions.

Responsibility

  1. Executives are held directly responsible for building talent pools.
  2. Managers are held directly responsible for developing talent.
  3. Managers are properly trained in coaching and developmental activities.
  4. Employees clearly understand who is responsible for their development.

Resources:

  1. The organisation develops talent through virtual teams, flexible job assignments, stretch objectives and new national/global assignments.
  2. Proper resources are assigned.
  3. Individual development plans are developed and supported.

Culture:

  1. Culture promotes candid feedback and continuous learning.
  2. Culture promotes collaboration and risk.

Results:

  1. Engagement and other data are gathered on a regular basis.
  2. Data are segmented so top talent issues are clear.
  3. Executives believe that significant progress can be made in one year.

The Talent Mindset Index is comprised of two surveys--one for management and one for employees. The management survey includes 28 detailed questions on specific talent management practices in corporations, government agencies and non-profit organisations.

The employee survey is a ten question, five-minute snapshot of how talent practices are perceived by employees. The employee and management surveys can then be compared to determine areas of consensus and discord.

HCI corporate members are provided with their own branded website and a set of user-defined queries to collect proprietary data. Surveys can be driven through a business unit, division, or across the enterprise, with a simple email invitation. Results can be compared over time, with industry averages and by level of respondent.

HCI publishes a comprehensive Talent Mindset Index report annually.

For more information visit www.humancapitalinstitute.org 

Copyright 2006 Great Lakes HR Now and CBS Radio Inc.  Used by permission.  All Rights Reserved.

 

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