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.