The “war for talent” is an often-heard mantra of today’s CEOs. This rallying cry first emerged in 1997 when McKinsey conducted research. They concluded that there would be an “imminent shortage of executives.” Often, this is where the conversation stops, with the proverbial baton being passed to HR with the expectation that they would pick it up and win the war for talent.

The war for talent has not diminished over the last twenty years. We’re still in this battle for qualified team members and will continue for years. What has changed is the battlefield and the nature of the war; digital transformation, globalisation, and changing demographics have significantly impacted where and how talent is found. Modern talent pools can be found globally, with virtual team members, but often not where you need them!

As a result, HR expectations are changing. Companies need broad HR professionals who can focus on an organisation’s cultural aspects, not just the tactical aspects of employee relations, compensation, benefits, and HRIS.

Focused on the Future

Are you ready for the future, where 45% of new hires will be millennials?

Statistically, Millennials will likely stay with your company for three years before moving on.  In this fast-paced talent environment, a hiring mistake costs money, precious time, and a lost competitive advantage. Hence, an understanding of your talent portfolio is critical.

According to research by Kotter and Heskett, companies with an effective talent management strategy are more profitable. Traditional talent management focused on succession plans (which are still important), career moves, and pipelines. Usually, the conversation was about the top 20%, completely overlooking the other 80% of the workforce. Where are your HR leaders focusing their time? In the weeds of administration or the future?

The 20th Century HR conversations were missing these essential elements:

  • Do we have the right talent for the company’s strategy?
  • Are we most effectively deploying talent based on their strengths?
  • Do we understand the talent needs relative to the business strategy?
  • Can talent quickly be deployed to meet strategic needs?
  • Do we know the aspirations of the talent?
  • Are we clear on the behaviours that support the culture?

HR needs to be a role model for the 21st-century workplace. To future-proof a company, HR professionals must know their talent portfolio in-depth, see where the company is going, and be able to build strategies to attract, develop, and retain talent.

We’re all Chief People Officers in the 21st Century

Today’s organisations demand more from their human resource partners. Organisations’ HR and business leaders must apply as much rigour to the “people portfolio” as to the other levers that drive organisational performance.

20th-century HR was largely reactive. But 21st-century HR must become more intentional, scientific, and proactive.

HR professionals must catalyze to ensure talent aligns with the business strategy. Additionally, they must be experts in creating and maintaining a culture that supports top performance. The HR role expands to become a true business partner. Talent and culture metrics need to become part of business metrics. Measures must be in place beyond attrition, headcount, performance measures, compensation alignment, and diversity. One must understand the total cost of the workforce and how those costs impact revenue and gross margin.

In essence, every HR leader needs to be a Chief People Officer.

The 21st Century HR strategic conversations must include the following:

  • Is your talent aligned with your customer base and strategy?
  • Can you quickly realign talent as your business priorities shift?
  • What are your workforce’s talent strengths and gaps, not just the top twenty per cent?
  • Do you have a performance excellence process, or are you still stuck on performance management and rating?
  • Does the organisation have a culture that supports learning & development for all, or is it just for your best performers?
  • Are you planning for generational shifts?

No matter the size of your workforce, you can apply these same 21st-century shifts to future-proof your company and compete in the battle for talent.

  • About the Author
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Morag Barrett helps leaders achieve outstanding results through the power of their professional relationships. She is an in-demand keynote speaker, executive coach, leadership expert, and bestselling author of three books: Cultivate: The Power of  Winning Relationships, The Future-Proof Workplace, and You, Me, We: Why we all need a friend at work (and how to show up as one!). 

Morag excels at helping leaders and organizations see the gaps in their development and discover new ways to move past them. A pragmatic ideator, she finds unique solutions to problems (usually through the power of connection). Her greatest joy lies in giving leaders the tools, encouragement, and resources they need to become the best authentic versions of themselves they can be. 

She also…

  • Has helped more than 15,000 leaders from 20 countries on 4 continents improve the effectiveness of their leaders and teams.
  • Is the proud mother of three 6ft tall sons who can thoroughly beat her in basketball, but don’t stand a chance in Scrabble.
  • Has been featured by Entrepreneur.com, Forbes, and The American Management Association among others.
  • Spent three weeks at sea with a group of Estonian sailors.
  • Prefers gin to scotch, despite having a Scottish name (it means “great” …and she is!).
  • Is a member of the 100 Coaches organization formed by Marshall Goldsmith.
  • Has more than 50 unicorn themed items at home (none of which she has bought for herself!)
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