To understand the phenomena ‘The War for Talent’ and the impact on the business world, different organizations were examined. Findings suggest that human resources is a vital part of organizations which will stretch their talent management limits as much as they can to ensure they provide the best work environment possible to keep and attract the best people. Competition is very high hence the talent war, but this does not always apply to all organizations. The marketplace has been experiencing dramatic changes and it is extremely important to have a workforce which has the skills to deal with such changes in order to ensure competitive advantage.
2. The Theory
3. The War for Talent
4. Not all high performers are high potentials
5. The non-combatants in the war for talent
6. Conclusions and Recommendations
Nothing in the world is static, there are changes at all levels. From an agricultural economy where people were low-skilled and low-paid, easily replaced, to then an industrial economy with people again with limited importance to now a creative economy where people are the determining factor of commercial success (Reed,2001). Land and capital are now of limited importance. If you do not have the right people, you cannot survive the new economy. The purpose of this war is to get and retain the best talents available as they are the key to long term success.
* 2. The Theory
The productivity of all resources depends upon people (Chandramohan, 2008). To understand the term ‘War for Talent’ and what it involves it is firstly important to see the meaning of Human Resources and also theories in Human Capital as it clearly shows how important the ‘human’ factor has become over the years and why companies are facing this War for Talent.
Human resource is the set of individuals who make up the workforce of an organisation (Brumfitt et al, 2001). HR departments are responsible for providing advice and support and getting the best from employees. Their tasks include:
* Employee welfare
* Work place legislation, etc.
As described by Baron and Amstrong (2007), the concept of human capital is concerned with the added value people provide for organizations. Furthermore, they refer to the work of Chatzel (2004) where he says that ‘human capital is the differentiator for organizations and the actual basis for competitive advantage’. Human capital emphasizes that competitive advantage is achieved by strategic investments in people through employee engagement and retention, talent management and learning and development programmes.
* 3. The War for Talent
A ground breaking report in 1999 by consultants McKinsey famously coined the phrase “war for talent” (Hoare and Leigh, 2011). To ensure success in the modern economy, companies must offer something new or different. Competition just grows and there is huge pressure on organizations to adapt to all these constant changes we are facing. Human resource management is intrinsically linked to the success of every business venture (Reed, 2001). For a long time, human resources managers and researchers have said how the human resource function plays an important role in firm performance, however despite these beliefs, not all organizations follow this pattern. In many of them, their actions do not reflect HR beliefs (Barney and Wright, 1997).
The War for Talent focus on this idea – if people are vital parts of organizations, companies must fight to have the best talents they can. But is not just a matter of offering better material packages, it is about developing mind-sets and focused strategies which will provide talented people...