The Talent Management Imperative:
Business Don't Fail, People Do!
by James Matti

"Talent has become the world’s most sought after commodity.” -Adrian Wooldridge

One of the most invaluable advice I ever received, particularly during my first stint as a CEO, was from my former chairman, a pillar of Philippine business, who encouraged me to begin my leadership phase by “ only getting the right people.” Now that I am on my second leg in my professional career having switched industries after 22 years in the risk management arena, that simple yet profound statement shared with me 10 years ago still resonates.

The fight for good talent is for real wherever you are in the world. This is especially emphasized in the Philippines owing to the exodus of our key professionals to the shores of Australia, Canada, Singapore and the good ole USA.

More than ever, it is imperative that every CEO must take a direct hands-on approach in the attraction and retention of his or her organization’s talent. An exemplary avatar of this practice is the legendary General Electric chairman and CEO Jack Welch. He directly oversaw the human capital programs of GE. In fact, he was once quoted in Fortune magazine stating, “Early in my career…there was way too much focus on the numbers…and a lot less on the softer values of building a team, sharing ideas, exciting others.”

In today’s highly competitive arena, one must be cognizant of the need to attract the best people by not just recruiting them but by assiduously building your employee brand. One method of doing so is for every organization to establish a clear Purpose for Existing (PFE). One may ask what is a PFE? In the scheme of things, like attracts like. Hence, the best and the brightest seek more than just a paycheck from a job…they seek fulfillment of their own PFE in both the firm they intend to join and the nature of their new job.

To attract the best candidates, the following 3 key steps may be of assistance:

1. Clarify your PFE. This should answer the vital questions as to why your corporation was formed. What unique function does it serve? In the case of firms such as leading global pharmaceutical Merck & Co., their PFE is “ Our business is preserving and improving human life. ” On the local front, distinguished conglomerate Phinma ’ s mission is “ to help build our Nation through competitive and well-managed business enterprises that enable Filipinos to attain a better quality of life. ” It is essential that your PFE is deeply imbedded in your corporate culture, codified in writing, clearly articulated and widely distributed. You may wish to support this by making statements such as “ All of our actions must be measured by our success in achieving this goal. ”

2.Tell the world what your PFE is. Put it on all your marketing materials, such as internal documents, Web sites, communications with buyers, suppliers, placement offices, partners and most of all, customers. In essence, your company name's recall should be synonymous to your chosen purpose of existence. A good example is GE's "Imagination at Work."

Your whole purpose of existence will leave an impact on the people who interact with you. And, those worthy talents who have a purpose of existence similar to yours and who can fulfill their purpose by helping your firm realize its own will be attracted to you.

3. Fulfill your PFE. To attract the best people, you must live up to your purpose. Thus, exhibiting actions incongruous with your candidates' purpose will damage your credibility and decrease the job attraction. In organizations that live the purpose they create, each action makes their attractiveness much stronger for potential job candidates. Thus, firms that espouse integrity as one of their core values must live up to this ideal or risk being mocked as a hypocritical organization.

As a PFE guru, John Strelecky of the Morningstar Consulting Group stated, "If you have to work hard to recruit someone, you are likely trying to get the wrong person. Make your life easier and make your company more successful. Don't recruit the best people--attract them!"

Now that you have your desired talent, it is likewise essential to recognize the key motivators of these top performers.

Furthermore, in our Watson Wyatt WorkAsia study in 2005, our comprehensive employee opinion survey revealed the following attraction and retention drivers in the Asian job market:

Reasons for wanting to stay:

• Good career opportunities
• Job stability and security
• Good compensation package
• Good benefits
• Good relationship with colleagues

Reasons for wanting to leave:

• -Uncompetitive compensation
• -Limited career path
• -Inadequate Benefits
• -Limited training and personal development
• -Few opportunities to utilize skills

Source: Watson Wyatt WorkAsia 2004/2005

In view of the foregoing, a CEO should develop a compelling employment deal whereby a mutually-beneficial employer-employee partnership is established not only for the short-term but for the long haul.

One can set the equilibrium by having the employer create value through people by attracting, developing, focusing on and engaging their human capital. Thus, building their work commitment, ownership and loyalty. By this, your employees should achieve a meaningful work experience through their personal fulfillment, competitive pay, job security, wealth accumulation opportunities and being in a conducive work environment.

Talent management is more than a program. It is something to aspire to be. It is by nature integrative. It brings people and processes together. It will certainly have a significant impact on your business and it should be inherent in your company ’ s mindset. This is the way to create Work Excellence!

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This article was written by James G. Matti, managing consultant of Watson Wyatt Worldwide, a leading global consulting firm on people and financial issues. For more information about Watson Wyatt‘s Talent Management Consulting services, please contact James Matti at james.matti@watsonwyatt.com or call (02) 841-5100.