{"id":7481,"date":"2020-10-20T07:14:40","date_gmt":"2020-10-20T12:14:40","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=7481"},"modified":"2020-12-18T20:53:09","modified_gmt":"2020-12-19T01:53:09","slug":"digital-transformation-2-distinct-approaches-to-talent-management","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/digital-transformation-2-distinct-approaches-to-talent-management\/","title":{"rendered":"Digital Transformation: 2 Distinct Approaches to Talent Management"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright size-medium wp-image-7495\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmnt-1-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmnt-1-300x200.jpg 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmnt-1-768x512.jpg 768w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmnt-1-1024x683.jpg 1024w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmnt-1.jpg 1920w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Traditional <a href=\"https:\/\/flevy.com\/business-toolkit\/talent-management\">Talent Management<\/a> practices fail to meet the high-potential talent requirements imperative to compete in the digital world today.\u00a0 In fact, they disappoint the key talent available in the market.<\/p>\n<p>A 2016 Digital Business research by MIT Sloan Management Review and Deloitte on 3700+ executives reveals attracting and retaining talent as the most pressing concern for organizations large or small. \u00a0The study indicates that organizations that are still using traditional approaches to manage Talent face a number of pressing challenges, including:<\/p>\n<ul>\n<li>Building new competencies within limited resources.<\/li>\n<li>Alignment of culture, strategic initiatives, human capital, and hierarchies with organizational objectives.<\/li>\n<li>Attracting, selecting, and retaining key talent.<\/li>\n<li>Creating robust <a href=\"https:\/\/flevy.com\/browse\/stream\/performance-management\">Performance Management<\/a>, compensation, and benefits systems.<\/li>\n<li>Finding and developing talent with critical capabilities\u2014such as forward thinking, transformative vision, and change focus\u2014alongside technical skills.<\/li>\n<li>Providing opportunities that require digital skills, to attract and keep critical Talent engaged in the organization.<\/li>\n<\/ul>\n<p>One of the findings of the 2016 digital business study demonstrate that it\u2019s both the younger as well as middle management people who tend to look elsewhere in case they don\u2019t find opportunities to develop digital skills in their existing organizations.\u00a0 Such results call for senior management to identify, evaluate, and implement more immediate and appropriate digital technologies methods to attract and retain key talent.\u00a0 Leading organizations are now incorporating these Talent Transformation efforts into their <a href=\"https:\/\/flevy.com\/digital-transformation\">Digital Transformation<\/a> programs.<\/p>\n<p>Research on 3700 plus Digital-native respondents further reveals leading organizations to be using a combination of 2 distinct models to manage their Talent:<\/p>\n<ol>\n<li><strong>Talent Markets for Contractors<\/strong><\/li>\n<li><strong>Digital Tools for Employees<\/strong><\/li>\n<\/ol>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/digital-transformation-talent-management-5281\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-7494\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmt.png\" alt=\"\" width=\"1002\" height=\"752\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmt.png 1002w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmt-300x225.png 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/Talent-Mgmt-768x576.png 768w\" sizes=\"(max-width: 1002px) 100vw, 1002px\" \/><\/a><\/p>\n<p>Let&#8217;s discuss the first approach to Talent Management in detail, for now.<\/p>\n<h2><strong>Talent Markets for Contractors<\/strong><\/h2>\n<p>Acquisition of right talent necessitates fostering linkages with on-demand talent markets for the timely availability of required talent.\u00a0 Many organizations seek help from on-demand Talent Markets to attract and sustain talent in the digital business environment.\u00a0 These organizations pursue a flexible recruitment model using digital platforms to attract skilled contractors and consultants. \u00a0Digital talent markets can be expanded or contracted depending on the quantity of work and skillsets required.<\/p>\n<p>Digital talent markets can coordinate the work of full-time employees as well as cover live activities of contractors more nimbly and reliably. \u00a0Digital platforms offer superior talent markets to assess and manage large talent pool of contractors.\u00a0 A few organizations are experimenting with developing their own on-demand talent markets while some have cooperated with other organizations to share talent markets. \u00a0It\u2019s up to senior management to decide if they want to leverage existing on-demand talent markets or cultivate their own to ensure availability of required skills when needed.\u00a0 Talent markets can be nurtured using 3 best practices:<\/p>\n<ol>\n<li><strong>Manage on-demand talent markets as a community<\/strong><\/li>\n<li><strong>Strike a balance between full-time and part-time talent<\/strong><\/li>\n<li><strong>Create an environment where the best people want to work <\/strong><\/li>\n<\/ol>\n<h3><strong>Manage on-demand talent markets as a community <\/strong><\/h3>\n<p>To make the availability of required key talent certain:<\/p>\n<ul>\n<li>On-demand talent markets should be considered strategic resources and cultivated carefully with future talent requirements in mind.<\/li>\n<li>Companies should devote resources and efforts to develop their own talent pool.<\/li>\n<\/ul>\n<h3><strong>Strike a balance between full-time and part-time talent<\/strong><\/h3>\n<p>Talent markets are meant to manage freelancers.\u00a0 However, a few organizations have also begun collaborating with them and deploying their full-time employees to project work that is critical to build new competences.\u00a0 A few considerations in this regard include:<\/p>\n<ul>\n<li>Companies need to strike an equilibrium between full-time and part-time talent.<\/li>\n<li>Some people prefer full-time employment while others fancy flexibility or work from home options.<\/li>\n<li>Some workforce providers even offer services of retired people with expert skills, who have proved to be a valuable asset.<\/li>\n<li>Firms can choose on-demand workforce providers to have full-time employees to maintain a steady employee base, or pick part-time contractors to handle workload surges.<\/li>\n<\/ul>\n<h3><strong>Create an environment where the best people want to work <\/strong><\/h3>\n<p>Setting up the right environment is central to attracting and retaining the best flexible, on-demand talent.\u00a0 A majority of companies consider freelancers or independent contractors inferior to their permanent employees.\u00a0 Organizations that want to <a href=\"https:\/\/www.freshworks.com\/hrms\/talent-acquisition\/\">attract great talent<\/a> should think of contractors as valuable resources and treat them as such.\u00a0 To get top talent, organizations need to:<\/p>\n<ul>\n<li>Nurture an <a href=\"https:\/\/flevy.com\/browse\/stream\/culture\">Organizational Culture<\/a> conducive to support on-demand workers.<\/li>\n<li>Devise remuneration and reward systems that value contractors and full-time employees equally.<\/li>\n<li>Create an atmosphere that offers attractive work experiences for the employees.<\/li>\n<li>Deploy people on interesting projects and allow them to experience job rotations to improve their skills sets, problem solving abilities, cross-departmental team collaboration, and improve their engagement levels.<\/li>\n<\/ul>\n<p>Interested in learning more about the 2 distinct approaches to <a href=\"https:\/\/flevy.com\/browse\/flevypro\/digital-transformation-talent-management-5281\">Talent Management through Digital Transformation<\/a>? You\u00a0can download\u00a0<a href=\"https:\/\/flevy.com\/browse\/flevypro\/digital-transformation-talent-management-5281\">an editable PowerPoint on <strong>Digital Transformation: Talent Management<\/strong> here\u00a0<\/a>on the\u00a0<a href=\"https:\/\/flevy.com\/browse\">Flevy documents marketplace<\/a>.<\/p>\n<h2>Do You Find Value in This Framework?<\/h2>\n<p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href=\"https:\/\/flevy.com\/pro\/library\">FlevyPro Library<\/a>. <a href=\"https:\/\/flevy.com\/pro\">FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here&#8217;s what some have to say:<\/p>\n<blockquote><p>&#8220;My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant&#8217;s toolbox.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it&#8217;s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients&#8217; benefits.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Traditional Talent Management practices fail to meet the high-potential talent requirements imperative to compete in the digital world today.\u00a0 In fact, they disappoint the key talent available in the market. A 2016 Digital Business research by MIT Sloan Management Review and Deloitte on 3700+ executives reveals attracting and retaining talent as the most pressing concern&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/digital-transformation-2-distinct-approaches-to-talent-management\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">Digital Transformation: 2 Distinct Approaches to Talent Management<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":7495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[84,85],"tags":[2229,1822,917,1000,693,2232,2227,450,696,695,1137,2228,2230,2231,824],"class_list":["post-7481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-information-technology","category-organization","tag-digital-skills","tag-digital-talent","tag-digital-transformation","tag-employee-engagement","tag-employee-retention","tag-job-rotation","tag-on-demand-talent","tag-performance-management","tag-recruitment","tag-retention-strategy","tag-talent-management","tag-talent-management-strategy","tag-talent-markets","tag-talent-pool","tag-transformation"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=7481"}],"version-history":[{"count":10,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7481\/revisions"}],"predecessor-version":[{"id":7794,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7481\/revisions\/7794"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/7495"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=7481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=7481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=7481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}