We are in what could be called a “buyer’s market” for talent. It is true that as companies strive to tighten their focus, they need the appropriate talent to support their business strategy. Even with high unemployment, finding top talent to fit individual specifications may be extremely difficult. Thus, the role of HR is critical during this downturn. So, what are we to make of Richard Beatty’s suggestion that “companies might be better off appointing someone from outside the HR department to manage strategic talent?”
David McCann summarizes a presentation given by Richard Beatty in Chief Financial Officer. The article challenges the abilities of HR on certain fronts. Now, this isn’t the first time HR’s abilities have been questioned in an article, but, just like before I can feel the hair on the back of my HR neck standing on end. I certainly don’t want to challenge the experience and wisdom of Richard Beatty, but here are some of my comments in response to this article. I hope they generate some discussion.
The following four quotes were taken directly from McCann’s article:
1) “Most companies today spend too little effort on attracting and retaining top strategic talent and too much on satisfying the rest of the employee base, asserted Rutgers University's Richard Beatty, who spoke at a general session during the CFO Rising conference in Orlando.”
How does your human resources department allocate time to each of these tasks? If there is an imbalance, perhaps it is due to the fact human nature often leads us to deal with the most pressing issue first. Thus, when problems with current employees present themselves, they must be dealt with first.
Technology can help us identify patterns and determine the best way to attract and retain top talent. Automated systems allow us to identify top performers, define what top talent looks like, and tailor learning and reward programs appropriately.
What methods has your organization put in place to increase the focus on recruiting and retention?
2) “Usually in such a situation, HR professionals try to figure out what the top performers are doing right, then train the others accordingly. That is faulty thinking, insisted Beatty, who asserted that selection is a more powerful predictor of performance than training.”
If selection is as Beatty suggests, then HR must be proficient at assessing potential. Top performers often possess the right characteristics, but may not have the exact skills needed. In this case, training which is based upon effective practices will help employees excel.
3) “Human resources is also behind what Beatty called the "silly" idea that a company should try to be the "employer of choice."
I am not sure that I agree that becoming an employer of choice is a silly idea. Certainly it becomes a silly idea if potential employees chase a company just as they would chase a popular style, but, if an individual clearly wants to align him or herself with a company which espouses certain values, then communicating those values will help attract the right people.
4) “Such tactics are warranted because while "the language of organizations is numbers, HR isn't very good at data analytics," Beatty said.”They don't think like business people.”
This is not always the case; a point confirmed by the content of the HR.com webcast Strategic Human Capital Planning: A Reality HR Interview with Matthew Brush, Director, Human Resources, Corning. Using analytics properly is not a straightforward task, but, it is a challenge that many HR departments are tackling head on. We also must be careful to value qualities such as integrity and leadership which may be more difficult to measure.
What are your thoughts?
References:
McCann, David. “Memo to CFOs: Don’t Trust HR.” CFO [www.cfo.com]. March 10, 2009.
