The aim of any business is to provide top quality services to its customers, and more often this makes the business complicated. The success of business in delivering quality service depends on the talent management by organizations, and when it comes to Indian companies especially IT/ITES, many of them are still following the second generation HR practices. This is because the HR functions of the companies are not able to align talent requirement with business requirements and strategic decisions.
As organizations evolve in a world of ambiguity, the need for companies to switch from following second generation HR practices to third generation practices have become crucial. The HR professionals still focus on the “best HR practices” for talent management. In best practices, the talent management is more of a bottom-up approach starting from hiring of the employees and then developing HR practices in and around the employee experience. There is a slow change happening in the field of talent management, and many companies have started exploring the third generation talent management where they focus on competency development, succession, learning and development etc.
Generally it’s seen that when companies shift from second generation to third generation talent management they tend to miss out certain crucial things. Usually they first try to find out some best practices in other companies or by benchmarking organizations. Then they start to build their own talent management frameworks. The method seems to be right but in the due course to build another best practice, the HR personnel miss out to connect the talent management practices with strategic decisions of the business.
Many companies have accepted that they face risk to implement strategic decisions or expand geographically or aim for growth because of the crucial mismatch of talent among the line executives. On the other end, HR seeks solution by implementing best practices, which causes, the disconnection. To overcome this issue, some of the companies are already using 3G talent management where they follow a top-bottom approach in managing the talent of the firm. The firm first lay down their business capabilities and the strategic decision and then hunt talent or develop the talent within the firm required to implement those strategies. This can be made clear by illustrating an example.
Consider a firm driven by the discipline of operational efficiency. The firm will have unique business model and capabilities that drive them to attain the operational efficiency. The role of HR is to identify the workforce talent that can support those business capabilities. Thus before thinking about HR best practices, the HR is bound to direct the workforce to the company’s strategies.
In today’s complex world, companies require to explore the scope of 3G talent management to respond effectively to changing customer requirement and turbulent marketing conditions. The adoption of next generation talent management practices can help companies develop a work force to achieve its objective better now and in the future.