Learning, applying the economics of talent

The dynamics of today’s workplace is ever-changing. In the Philippines, this is due in large part to the boom of the business process outsourcing (BPO) industry in recent years—with its unconventional work hours and office locations, as well as its massive manpower requirements that has led to stiff competition, not just among hiring companies but among prospective employees as well.

Globally, digital technology and connectivity on the Internet has also changed the way people work. Universities and academic institutions have branched out widely into many types of specialized disciplines and skills. Thus, companies have also been scrambling to adapt to new methods to go after these talent.

Valuable commodity

The corporate world is no longer what it used to be, according to learning and development expert Armi Treñas. In her line of work in instructional design—a discipline that seeks to enhance training and learning programs—she invariably works closely with human resource managers in various corporations and firms. Thus, she is also aware of other issues that plague them, which is the hiring and retention of talent.

Progressive HR practitioners are now introducing what seems to be a radical thought, but is actually a simple but effective solution on how to tackle today’s talent management issues.

“If you think about it, the term ‘talent management’ is really just that,” poses Treñas. “Being a manager means handling resources in an effective and efficient manner. The challenge is managing talent in the truest sense of the word—and this means viewing it as a valuable commodity or a limited resource.”

Think like an economist

This is the idea behind the concept of “talent economics,” described in the seminal publication of the same title by Singapore-based human resource expert Gyan Nagpal. Having worked in HR departments of multinational organizations throughout his corporate career, Nagpal gained valuable insight into what truly drives the workforce in the 21st century.

According to him, a different look at talent management these days is that through the eyes of a business owner—talent treated as a scarce resource that is valuated, negotiated, traded and acquired. In other words, the realm of talent management has taken on the dynamics of a lucrative economy, in which companies need to be able to survive using the right strategies and tools.

Renowned global advisory Deloitte puts it succinctly in its “Human Capital Trends 2013: Leading Indicators” report: “Increasingly, many HR leaders have to answer questions that have an economic issue at their core—the allocation of a scarce resource called talent.”

This is where one of the most important ideas of talent economics comes in, and that is finding the right value that attracts the different breed of employees today. Gone are the days when one found a job and stuck to it until retirement. Jobseekers cannot be blamed as well due to the uncertain atmosphere of retrenchments, corporate mergers and acquisitions, as well as the unstable economies of even the biggest countries in the world.

Thus, HR managers are faced with tough issues that require more strategic approaches.

“They are no longer simply dealing with personnel issues,” affirms Treñas. “They should now be involved, for instance, in building a brand that will resonate with the talents they are trying to attract.”

And this involves the buy-in of the top bosses in the organization as well, in order to drive the appropriate business strategy.

Creating an environment that cultivates and retains talent is essential. Sometimes, companies get the right person but end up losing them to competition, or they hire the wrong person hoping that training can fix the problem.

Treñas knows this herself, being an instructional design expert who draws up and implements training programs.

“Learning and development is only part of the picture,” she says. “Training is not effective if the problem lies, for instance, in company systems and procedures. It is all about developing people, not just for present requirements, but with an eye toward future needs of the organization.”

Talent strategy

Treñas believes that talent economics is a valuable complement to the learning and development programs that she offers her clients. Quite fortunately, she had personally met Nagpal in the course of her regional consultancies under her firm, Learning and Performance Partners Inc. (LPPI).

She learned more about Nagpal and his pioneering theory on talent management. He has come up with a solid Certified Talent Economist (CTE) program that he is bringing to Singapore, Malaysia, India, South Africa and the United Kingdom. By next year, it is also slated to be offered in the United States and the Middle East.

It was natural that the two partnered to bring the pioneering program to HR practitioners in Manila through LPPI. Treñas says the program is recommended for CEOs and senior HR leaders—those who drive the business agenda, and those who craft and implement talent strategy to support this. Other HR and strategy consultants, as well as policymakers in government agencies, may also benefit greatly from the program.

The CTE program will tackle four key topics—business and talent strategy, diagnosing talent needs, investing in talent, and leadership engagement. All these will be implemented in learning, practice or application, and review or sharing phases.

“This design significantly increases the quality of learning and application, as compared to a traditional workshop,” explains Treñas.

Participants who complete the course will also receive perpetual and license-free use of all the tools and frameworks included in Nagpal’s Talent Economics book, as well as access to other resources such as a database of talent diagnosis questions and articles on global talent economics.

Indeed, talent economics provides exciting new hope to frustrated HR practitioners and professionals all over the world.

“Human resources professionals need to be equipped with the latest knowledge and skills on how to best select, make use of, and retain talent,” says Treñas.

The Certified Talent Economist program will be held in Manila from March 4 to 6, 2015. For more information, call (+632) 224-2020, e-mail info@learnperformance.com, or visit www.learnperformance.com.