The War for Talent, the process of attracting and retaining effective employees, results in increased competition among the companies because of strategic importance is not a new vibe anymore.
In recent years there has been a constant transformation going on from the Talent Management to the People Management. Why?
According to Bersin by Deloitte, “Within the last two years, 90 percent of companies have said their business models are under disruption by technology, and the problem isn’t the technology—it’s the people,”
People management focuses on empowering and improving performance everywhere with continuous learning and continuous feedback processes. With more engaging people, simplifying the environment and making the work easier. And hence the focus is definitely on creating highly engaged workplace and productive work environment. So this transformation is necessary to overcome all sort of challenges in this area.
Talent scarcity is still a problem, and on one side it is clear that current talent acquisition tools for searching, screening & selecting the best candidates are not satisfactory. Hiring a great talent is for companies are very time consuming & very costly. Average cost-per-hire is around 3500 EURO as per SHRM statistical data, where it takes average 52 days or 250 CVs to fill an open position based on multiple research firms.
As per Harvard Business Review, 80% of employee turnover is the result of “Bad Hiring Decision”. Many companies try to solve problems of high cost per hire, tremendous time spent on filling vacancies, measuring the quality of candidates & compete for talents. The market needs a new and efficient system to escape the standard approach of Keyword matching, CV parsing etc. which is provided by most recruitment software companies.
We need the insights in how an employee interacts and perform in a company and/or in a team and how a candidate fits your company´s culture. How can a company progress their company culture along with their employees and candidates?
All these can speeds up searching & screening process, reduce unconscious bias during resume review and boost your company performance and employee retention matching the right candidates with your company culture. Today the culture fitting is not considered so often and without it, the major challenge is always ignored.
On another side, this is no more a secret that engaged employees are more likely to perform better and improve organisational success especially when we are considering the people management transformation. And as the companies move more towards agile organisational models, there will be more increase in the employee engagement rates.
Employee engagement refers to an employee’s job satisfaction, loyalty, and inclination to spend discretionary effort toward organisational goals. Companies measure engagement through an annual employee survey or by a continuous feedback culture.
But this is not the only important one. We need to care about culture as well, for understanding what is happening within our organisation. And engagement is a critical output of a strong culture.
For organisational culture, the definition centres on the concepts of values and assumptions which contribute to the development of norms, behaviours, and other cultural activities. Because of employee engagement and organisation’ culture both involve an individual’s relationship with their workplace, it is necessary to bring them always together.
An organisation must focus on fitting individuals into the corporate culture. Culture isn’t for your employees. It starts the moment a candidate first comes across your brand. And this immediate activate the drivers for your organisation growth and success like below.
- Right hiring and promotion
- Proper alignments of skills, including the soft skills
- Taking the right talent decisions
- Fitting to the corporate branding
The culture of the organisation is shaped by every single individual. Successful talent decisions will be driven by the cultural fit. And in the long-term benefits, it also
- Reduce in recruitment cost and higher success rate of recruiting with right hiring match
- Increase in retention, employee satisfaction, performance indicators and productivity
- Build and choose better leaders and find the proper successors
According to Bersin by Deloitte, organisational culture, engagement, and employee brand proposition remain top priorities in 2017; employee experience ranks as a significant trend again in 2017. Companies need a new approach—one that builds on the foundation of culture and engagement to focus on the employee experience holistically, considering all the contributors to worker satisfaction, engagement, wellness, and alignment.
So it pretty clear that today organisations must focus on the employee engagement to have the right employee experience on the foundation of culture.
According to thought leader Frode Hvaring, today’s world is more interconnected than ever before: we connect with ease across continents, across companies, across institutions, across electronic tools for work and life, across generations, and across cultures.
We repeatedly hear – and it’s true – that today’s economies face unprecedented challenges and new opportunities. VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) is impacting your business.
There are many ways to handle the increased speed and pressure in business. But there is no doubt that current and future business leaders at least need to develop a new range of strategic leadership capabilities, to remain effective.
One of the most effective response options is to equip leaders with a working understanding of Cultural Intelligence (the capability to adapt and to operate effectively when interacting with other cultures) and its successful application. It’s, in fact, providing a huge competitive edge over others.
The world’s best tech companies have also gained competitive advantages that are extremely difficult to replace. While oil companies are fighting over a limited supply and have a commoditised end product, Google and Facebook have key businesses that are truly unique and the best at what they do.
The culture had played a very important role in all these and is no doubt the key piece to these building blocks, whether you consider talent acquisition, people engagement or business performance.