The demand for knowledge workers is building even as their experiences, skills, and abilities are falling into increasingly short supply. Meanwhile, this shrinking talent pool grows ever more diverse — and their needs are shifting. They expect interesting work, career development and flexibility in exchange for their highly sought after capabilities.
Questioning the 'War for Talent'
"Connecting" Matters
In a wired world, connecting people to what matters most is the name of the game. That’s because innovation and value emerge primarily out of people’s connections. So if connecting is so important, which kinds of connections matter most when it comes to business performance? This Deloitte Research study, Part 2 of our Talent Management series, explores this issue and offers practical ideas to build connections that drive productivity, innovation and growth.
Below is an excerpt from the report.
Foreword
Demand for knowledge workers is building even as their experiences, skills, and abilities are falling into increasingly short supply. Meanwhile, this shrinking talent pool grows ever more diverse—and their needs are shifting. They expect interesting work, career development, and fl exibility in exchange for their highly sought after capabilities.
Deloitte Research’s report "It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work" questioned the "war for talent" approach to these emerging trends. The report’s author, Robin Athey, concluded that the most effective recruitment tactics, rich compensation packages, and "hot skills" bonuses don’t address the core drivers of talent churn. Rather than focus on acquisition and retention, organizations should focus instead on what employees care about most: developing in ways that stretch their capabilities, deploying onto projects and roles that engage their heads and hearts, and connecting to the people and things that will help them achieve their professional goals.
As we work with clients to help them build innovative talent strategies and solutions, we fi nd they are especially interested in connecting people to what matters. Technology and globalization can empower people as never before. The nature of work is changing as people connect in new and exciting ways. At the same time, however, as they race through their days, people can feel less and less connected—to each other and to a sense of purpose in their work.
This latest report brings a fresh perspective to these issues. It offers practical solutions for connecting people to each other, to a sense of purpose, and to the resources that they need to be effective.
"Connecting People to What Matters" is part of Deloitte Research’s Talent Management series. We look forward to continuing our conversations and our work with you as we co-create next generation innovations.
|
Jeffrey Summer, Global Lead, Talent Management, U.S. Human Capital Industry Leader, Financial Services Deloitte Consulting LLP |
Ainar Aijala Vice Chairman & Deputy CEO, Global Managing Director, Human Capital Practice Deloitte Consulting LLP |
"Connecting" matters. CEOs talk about the need to connect with customers and suppliers, across teams and silos, and to meet big goals. New hires are encouraged to connect with key people. Even getting a job is all about "being connected." We connect with one another to get advice and resolve sticky issues. And we’re technologically connected in more ways than we can keep up with. Never before have so many diverse people been connected across professions, across generations, across cultures, and across oceans in a huge global network.
In a wired world, connecting people to what matters most is the name of the game. That’s because innovation and value emerge primarily out of people’s connections. No ideas evolve in isolation; they emerge out of people’s interactions. When people are connected, things fall into place. Teams give their best efforts and new products launch on time. The energy is palpable as ideas spring forth and become reality. And when people aren’t connected? Strategies fall apart and investors can pull their funds. Executives may get ousted and key people leave—or worse, they stay and complain.
So if connecting is so important, which kinds of connections matter most when it comes to business performance?
This Deloitte Research study explores this issue and offers practical ideas to build connections that drive productivity, innovation, and growth. Just as the term "connect" is tossed around so casually, we find that attempts by organizations to create connections are often ad hoc. For example, many organizations rush instinctively to pull people together into teams, as if that were the answer to everyone’s connectivity woes. Or they connect them to all the data they could possibly need—and more. The bottom line is that certain kinds of connections are more likely to spur performance than others. Indeed, how people connect can mean the difference between a loyal, thriving workforce and a costly revolving door.
To make this amorphous topic more practical, this study focuses on three broad kinds of connections. The first involves connecting people with people. Everyone knows that networking matters. Research suggests that successful managers dedicate 70 percent more time to networking activities and 10 percent more time to communication than their less successful counterparts.1 It is through their networks that people learn, create, energize one another, and open channels to new opportunities.
Because value today is created largely out of interactions, people’s connections are increasingly important. They are also more complex. Organizations are becoming more dispersed, and people work with a growing cast of characters both within and beyond enterprise boundaries. Their interactions may be face-to-face, by phone, by video, or through many forms of electronic communication. But even for tech-savvy younger generations, there are limits to the numbers of relationships that people can manage effectively.2 As their contacts proliferate, high performers are intentional about cultivating the networks and relationships that spur their learning and growth. They reach out to diverse others to stretch their thinking. They foster trust by treating others with respect and delivering on their commitments. And they are highly skilled in their interactions, generating positive energy around a compelling vision. Who people know and how they work together are just as important as what they know.
The second involves connecting people to a sense of purpose. Workers today expect something greater than a paycheck. They expect fulfilling jobs and careers. Though individuals are ultimately responsible for finding meaning in their own work, organizations can go a long way in creating the conditions that inspire people to go above and beyond. The payoff for connecting people to purpose is significant because the majority of employees around the world are disengaged in their jobs. They just "show up" to work, without committing extra effort.3
Focusing on the need for purpose is especially important for younger workers, who rank meaningful work and challenging experiences at the top of their job search lists.4 But this need is also critical in a broader sense. As labor markets tighten and skill gaps grow, no organization will be able to squander its talent.5 Organizations will need to tap every bit of energy their people have to offer—not by demanding it, but by cultivating each employee’s unique potential and creating a sense of belonging.
The third involves connecting people to resources in ways that enhance performance. That seems obvious, but it’s easier said than done. Workers must often leap through hoops to get authorization for the resources and support they need to do great work. At the same time, they drown under the weight of unnecessary data, technology, tasks, and responsibilities. They don’t get enough of what they need, and they juggle too much of what they don’t need. As this study explores, the resulting overload and stress caused by inadequate support and 24/7 work life take a significant toll on innovation and productivity.
Rather than saddle employees with unnecessary constraints, information, technology, or tasks, leading organizations such as SAS (one of the world’s largest privately held software companies) connect people to what matters. They do this by paying close attention to the quality of people’s day-to-day experiences. For example, they clear obstacles for employees to procure the materials that they need to get the job done.6 They frequently update their technology, believing that tools serve one purpose: to help workers be great.7 They allow people time to learn, reflect, and rejuvenate, not just "do." They provide workspace options that allow for concentration or collaboration, depending on the needs of the moment. They eliminate distractions, whether unnecessary meetings or personal concerns (such as finding quality daycare) for which assistance can be provided.8 And they enable key people to build the networks and relationship skills that lead to professional effectiveness and organizational growth.
This study explores the power of connections. It presents leaders with a solid framework, research-backed ideas, and leading practices to connect people for performance.
Click here to view the original Acrobat PDF of this report in full.
Footnotes
1 Fred Luthans, Richard Yodgetts, and Stuart Rosenkrantz, Real Managers, Ballinger Publishing, Cambridge, 1988; cited in Scott Siebert, Maria Kraimer, and Robert Liden, "A Social Capital Theory of Career Success," Academy of Management Journal,
2 Robin Dunbar, a British anthropologist and evolutionary biologist, has found that the "cognitive limit to the number of individuals with whom any one person can maintain stable relationships" is about 150. Dunbar theorizes that "this limit is a direct function of relative neocortex size, and that this in turn limits group size,"
3 Pollster Gallup estimates that in the United States, 71 percent of the workforce is disengaged. Curt Coffman, "The High Cost of Disengaged Employees," Gallup Management Journal, 15 April 2002. The problem is even worse in Great Britain (80 percent) and Thailand (88 percent). Peter Flade, "Great Britain’s Workforce Lacks Inspiration," Gallup Management Journal, 11 December 2003; and Vibhas Ratanjee, "Wake-Up Call for Thailand, Inc.," Gallup Management Journal, 12 May 2005.
4 Peter Sheahan, author of Generation Y: Thriving (and Surviving) with Generation Y at Work [2005], is one of several generational experts who have recognized this Gen Y tendency.
5 For more on emerging talent trends, see the first part of this series: Robin Athey, "It’s 2008: Do You Know Where Your Talent Is?", Deloitte Research, Copyright ©2004 Deloitte Development LLC.
www.deloitte.com/research6 Richard Florida and Jim Goodnight, "Managing for Creativity," Harvard Business Review, 83 (7), July-August 2005, pp. 125-131.
7 Leaders at software company SAS value technology—but only inasmuch it is useful. "If a tool is constrictive or makes people change their preferred ways of working, then it gets scrapped."
8 At SAS, distractions are seen as disruptive to the creative process. HR takes an active role in determining what employees need most. They then run the numbers to calculate the return on the investment in terms of employee time saved. If the need is apparent, they say yes. If it is not, then they say no and explain why. By offering a fair process and engaging in dialogue, they earn the trust and respect of employees. Source: Richard Florida and Jim Goodnight, "Managing for Creativity," Harvard Business Review, 83 (7), July-August 2005, pp. 125-131.
About the Author
Robin Athey Research Director, Organizational Performance, Deloitte Services LP Robin leads Deloitte’s research on the human aspects of organizational performance. Her work seeks to catalyze conversation across a broad range of topics such as talent management; organizational knowledge, learning, and change; leadership; diversity; innovation; and growth. She has authored numerous studies and articles, teaming with faculty from MIT, Harvard, and INSEAD. Her current research challenges existing talent management practices and suggests a different approach in light of emerging trends. Her work has been cited in major media around the world, such as The Economist, ABC World News, The Times, Investors’ Business Daily, and The Globe and Mail. She has presented at conferences and led executive roundtables in North America, Europe, and Asia Pacific. She sits on several executive councils, including the Learning Innovations Laboratory (LILA) at Harvard University; the Executive Development Network; the Network Roundtable at the University of Virginia; and the Working Knowledge council at Babson College. She has also served on the board of the United Nations Association. Prior to joining Deloitte Research, Ms. Athey worked as VP of global Production and Quality at a subsidiary of Nike and was a consultant with Kurt Salmon Associates. She has lived and worked in eight countries across Asia, Europe, Latin America, and the former Soviet Union. She holds a B.S. in Industrial and Systems Engineering from the University of Florida; an M.A. in International Economic Policy from Columbia University; and an advanced certificate in HR and Organizational Development from Columbia University and the University of Michigan.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
