War for Talents and McKinsey & Campany´s “Five Elements of a Successful Talent Formula”

pic1The term „War of Talents“  has first been used by McKinsey & Company in 1997 to describe their original research on talent management practices and beliefs. Now, in 2012 this term is used to describe a phenomenon that many people had been experiencing during the last couple of years: in the future companies will have to fight for the best employees on the labour market .

As McKinsey & Company says in one of it´s reports: “In today’s knowledge-based economy, the caliber of a company’s talent increasingly determines success in the marketplace. Having great managerial talent has always been important, but now it is critical. At the same time, attracting and retaining great talent is becoming more difficult, as demand for highly skilled people outstrips supply.”

A survey among leading German businesses shows that 9 out of 10 companies are expecting a lack of high-skilled workers within the next decade. In more concrete numbers: already now about 36,000 engineers and 66,000 It-Specialists are missing on the German labour market.

Another survey  made by McKinsey & Company reveals that 72% of managers in the U.S. say that winning the war for talent is critical, yet only 9% are confident that their current

actions will lead to a stronger talent pool in the next three years.

It will be a tough challenge for each single company to offer the best working conditions, the best career chances or the best payment in order to draw the attention of talented people towards them. In the past years employees did not have the luxury to be too choosy about their job and its working conditions. This might change now as better talent is what will separate the winning companies from the rest.

McKinsey & Company developed the “Five Elements of a Successful Talent Formula” which helps companies to remain competitive in the labour market.

“Five Elements of a Successful Talent Formula”:

  • 1. Install a talent mindset at all levels of the organization beginning with senior management
  • 2. Create a winning Employee Value Proposition (EVP) that brings scarce talent through the doors,  and keeps them there
  • 3. Recruit great talent continuously
  • 4. Grow great leaders within your own organization
  • 5. Differentiate and affirm your employees – Differentiate in how you invest in top performers and low performers.

http://www.cio.de/strategien/2274688/

http://autoassembly.mckinsey.com/html/downloads/articles/War_For_Talent.pdf

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3 thoughts on “War for Talents and McKinsey & Campany´s “Five Elements of a Successful Talent Formula”

  1. Interestring, it is funny when you can hear from yeas side, there will be so big lack of free working places in few years, we have to create this number of milions of new positions and stuff like this. And now you also hear that 9/10 compenies think that they will feel the lack of people for their position in few next years. Yes I see the problem is in the specializacion and that in these days so many people chose a economic kind of education so there will be big lack of good and talented people who studied technical branges. So why people just don’t go study these technical things and don’t feel safe for their job in future.
    I heard that many compenies chose their future employes during their studies and they pay their studies and help them until they are in uducation and after this they have their first position. which is most good payd and specialy you get some experiences, which is now as important as education.

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  2. When McKInsey released a few years ago this report and it sparked a debate which continues to this day. From what I’ve heard the title “war” is about finding, attracting, keeping and appropriate reward talented employees who have a successful personal and bring the success of the organization in which they are employed. Maybe the idea sounds promising but it’s not fully fit to the current reality in the world. There are countries like Poland for example, where companies often do not have as many such financial resources to be able to afford the additional remuneration of each employee who brings success. Instead, they have to keep investing in things that allow a company to survive in the market. It’s a shame that more and more people are inexperienced or inadequately trained in high places, instead of people who really have a knack for it and they should manage it.

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