Shortage of Talents

Home , Mercer (consulting firm)

Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40

DOI: 10.17951/ijsr.2017.6.123 123

Shortage Shortage of Talents – a Challenge of Talents – for Modern Organizations a Challenge for Modern Paweł Wójcik Organizations Faculty of Economics Maria Curie-Skłodowska University in Lublin, Poland [email protected]

Abstract Purpose – The objective of the paper is to highlight the issue of talent shortage in modern organizations, determine the main causes and outcomes of the phenomenon, and compare the shortage in Polish organizations with global trends. Approach – Based upon the literature, the paper applies Chodorek’s approach to talent. Main challenges and determinants of talent management in modern organizations were established. A review of studies pertaining to the significance of talent management in modern organizations was conducted. Reasons behind talent shortage and its consequences for organizations were also examined. Findings – Both global and Polish trends indicate that talent management has become one of the chief challenges modern organizations face. Competition for talents constitutes a current issue and poses one of the critical challenges for HR departments. The shortage of talented workforce results primarily from unfavorable demographics and lack of appropriate qualifications of potential employees. It was observed that both in Poland and internationally, organizations voice problems with employing talented workers on the one hand, but frequently neglect to manage talents actively on the other. Few organizations possess a comprehensive strategy concerning the issue. The most significant consequences emerging from the shortage of talented employees include customer service capacity beingUMCS limited and a decline in competitiveness and productivity. Originality/Value – The paper reviews and compares results of studies conducted by international consulting companies: Charter Institute of Personnel and Development, Deloitte, ManpowerGroup, Mercer, PricewaterhouseCoopers, Randstad, Boston Consulting Group. In addition, the shortage of talents present in Poland was compared with global trends. Paper type – Literature review.

Keywords – talent, talent management, modern organizations, human resources

1. Introduction It was acknowledged that the emergence and development of the idea of talent management occurred in the 1980s in the USA. The emergence of the concept was motivated by a significant shortage of suitable candidates to replace retiring managers (Tabor, 2013). However, talent management only gained popularity towards the end of the 1990s when difficulties of American companies associated with the employment International Journal and retention of suitable workers were labeled “the war for talent” in the 1997 report of of Synergy and Research McKinsey & Company (Michaels et al., 2011). Vol. 6, 2017 pp. 123–135 Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 124

IJSR Despite 2 decades having passed since the term was coined, “the war for talent” is 6 still a reality for modern enterprises. A 2014 study by Randstad (2015) which encompassed 50 HR directors, talent acquisition leaders and HR managers from 40 countries revealed that 73% of respondents believe that “the war for talent” constitutes a current and fundamental challenge for contemporary businesses (Randstad, 2015). The paper constitutes a review of definitions and approaches to talent. Reasons behind and the scale of companies’ interest in talented people were presented. Based upon the review of literature, an attempt was made to determine the most significant reasons for talent shortage. Professions where the shortage of qualified workforce is the highest were indicated. The situation in Poland was compared with global trends. Finally, further sections of the paper present the most important ramifications emerging from talent shortage for companies.

2. Defining talent The role of employees who distinguish themselves, whose contribution often decides upon the company’s market success, has grown in modern organizations. Defining what talent actually denotes is by no means a straightforward task. As a consequence, an abundance of definitions of the term is available. Based upon a review of definitions, Gallardo-Gallardo et al. (2013) distinguished two fundamental approaches to talent: talent as an object (characteristics of people) and talent as a subject (talent as people). The former approach defines talent as exceptional skills and attitudes of an individual. Scholars draw attention to an individual’s features which are com- plementary in character, where talent is perceived as a natural ability, mastery, commitment and fit. The latter approach determines the value the organization attaches to talented workers. According to these authors, both the object and subject approaches offer advantages and disadvantages. Therefore, they suggest both to be applied due to the fact that the former allows to identifyUMCS talent and the latter – to establish its role in the organization (Chart 1). On the basis of the review of definitions and analysis of the frequency keywords appear in these, Ingram (2011) distinguished three essential categories for defining talent: • talent as a characteristic of an individual: potential, abilities, motivation, knowledge, skills, values, intellectual capacity, experience, entrepreneurship; • activities characteristic for talent: directing, inspiring, realizing, orienting and concentration, control and investment, maintenance and shaping, embracing new challenges; • the object talent impacts on: organization, effectiveness, objectives, development and passion, work, competition, client. Based upon the analysis, Ingram (2011) argues that talent constitutes a combination of particular characteristics, undertaken activities, and specifically selected influenced objects. Therefore, the author observes that “a talent is an individual characterized by potential, skills, motivation and knowledge, who exerts a significant impact upon the organization’s functioning, and achieves extraordinary results by realizing objectives and caring for their own development”. In relation to the above-mentioned approaches to talent, Chodorek (2016) observed that various definitions are only seemingly different. Having conducted an in-depth analy-

Shortage of Talents – a Challenge for Modern Organizations

Chart 1. Framework for the conceptualization of talent within the world of work

Source: Gallardo-GallardoChart 1. Framework et al. (2013). for the conceptualization of talent within the world of work Source: Gallardo-Gallardo et al. (2013).

sis, theOn author the basis believes of the that review these of definitions definitions differ and analysis primarily of in the terminology. frequency keywords However, appeartalent initself these, constitutes Ingram (2011) a starting distinguished point for threethe concept essential or categories culmination for definingof undertaken talent: effort. Therefore, talent the as authora characteristic argues that of antalent individual: in the organization potential, abilities, encompasses motivation, employees: knowledge, • manifestingskills, values, an intellectual identified capacity, collection experience, of features entrepreneurship; conforming with the developmental  activities characteristic for talent: directing, inspiring, realizing, orienting and needsconcentration, of the organization; control and investment, maintenance and shaping, embracing new • matchingchallenges; their position (based upon internal, inborn predispositions); •  achievingthe object exceptional talent impacts outcomes on: organization, in their “roles”, effectiveness, thus improving objectives, the development operation ofand the wholepassion, organization. work, competition,UMCS client. MiśBased (2009) upon determined the analysis, the Ingram characteristic (2011) argues features that talentof talented constitutes employees a combination (Table of1). particularThe c analysisharacteristics, of information undertaken activities, in the and table specifically indicates selected that talented influenced people objects. are characterized by an internal control and pursuit of independence. Similarly, Robertson 2 and Abbey (2010) observe that talented people pursue personal development, mobility, swift action-reaction, significance and objectives, activity and selection, respect and entertainment. In conclusion, the above considerations regarding talent may be summarized by the following statements concerning talented workers (Mikuła, 2007): • they are unwilling to become involved with the employer on the basis of a long- term employment contract, • money is frequently not a significant stimulus attracting them toa particular organization. What becomes the motivator are requirements and opportunities for creating something exceptional, application of their knowledge, acquisition of new knowledge, achievement of self-fulfillment, • they pursue significant autonomy instead of being limited in their independence by work discipline of, e.g. working hours and specific objectives set by their superior, • they demand respect and conditions facilitating team-working. Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 126

IJSR Characteristics’ criteria Talented employees 6 establishment of an objective internal objective permanence of an objective permanent in long-term perspective objective’s selection own objective contributed to the organization motivation for realization of an objective internal motivation – independence from external stimuli (e.g. financial), work in itself enables passion to be realized feeling of location of control internal criteria of objectives’ evaluation internal – own excellence standards, feeling of self-fulfillment development criterion opportunities offered by the organization exploited; access to technical facilities and new knowledge perception of development (subjective career) experimenting with solutions outside the structure time perception enables new solutions to be recognized and applied via experimenting Table 1. source of power talent Characteristic features of talented employees number and type of distinguishing competences passion and high intellectual predispositions according to Miś (2009) source of competences interest and individual motivation and specific personal features

Source: Miś (2009).

Talented workers require a different treatment and approach in comparison with the remaining employees. Uniform treatment of employees, one which does not take their contribution and potential into consideration, may exert a negative impact upon company’s operations. This is due to the fact that such an approach denotes a lack of interest in behavior and development of exceptional competences of the organization which originateUMCS primarily from the best employees (Morawski, 2009). 3. Reasons behind interest in talents The origin of companies’ competitiveness shifted from their tangible, physical resources towards intangible ones emerging from possessed knowledge, relations with clients and business partners, brand, organizational culture or management methods (Morawski, 2009). It can be observed that, currently, employees have the upper hand over companies (Table 2). The new reality modern organizations operate in requires the acquisition of the best employees. The following can be enumerated as causes of “the war for talent” (Grodzicki, 2011): • small number of qualified candidates; • population ageing, change of age-groups’ ratio, human resources gap; • change of lifestyles – more attention devoted to work-life balance, flexibility and changeability of employment; • shortage of leaders, independent consultants replacing executive/managerial functions associated with responsibility; • qualifications-associated flexibility, permanent development, lack of specialization; Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 127

• mobility, global labor market; Shortage • competition on the part of SMEs offering innovative projects and independence; of Talents – • fear of being subordinated to corporate culture; a Challenge • evaluating employers in the context of Corporate Social Responsibility. CSR as a vital aspect in the context of attracting and retaining talents. for Modern Changes in companies’ surroundings resulted in a change of the approach to Organizations attracting talents (Table 3).

The old reality The new reality people need companies companies need people machines, capital, and geography are the competitive advantage talented people are the competitive advantage better talent makes a difference better talent makes a huge difference jobs are scarce talented people are scarce Table 2. employees are loyal and jobs are secure people are mobile and their commitment is short-term Old and new reality people accept the standard package they are offered people demand much more companies operate in

Source: Michaels et al. (2011).

Old rules New rules recruiters used Internet tools to find recruiters continuously expand their use of social media sites for sourcing, candidates including Twitter, Facebook, Glassdoor, Pinterest, and Quora, in addition to LinkedIn employment brand is viewed as employment brand has a complete strategy, reaching into all possible a marketing strategy candidate pools and channels recruiters run the recruiting process recruiters partner with hiring managers throughout the search process, UMCSleveraging their networks, cultural needs, and success criteria job descriptions communicate what the job descriptions focus on the needs of the candidates – a tactic that yields organization demands from the potential three times as many highly rated applicants employee an applicant tracking system is the only companies have talent acquisition technology platforms that manage required talent acquisition technology sourcing, video interviewing, interview management, candidate relationship management, and onboarding Table 3. talent acquisition processes are built on the candidate and hiring manager are front and center in talent acquisition Talent acquisition: efficiency, effectiveness, and speed of hire processes, tailoring the candidate experience around the moments that Old rules in a way that works for the enterprise matter in the talent acquisition journey with the organization vs. new rules

Source: Deloitte (2017).

When discussing talents in organizations’ operations, the share of such employees in the total number of workers employed in companies is worth considering. Researchers observe that talented people constitute a relatively small group. According to Berger and Berger (2004), distinguishing workers who achieve exceptional results, inspire others to do the same, and who are the source of competences for the organization, constitute between

employment brand is viewed as a marketing employment brand has a complete strategy, strategy reaching into all possible candidate pools and channels recruiters run the recruiting process recruiters partner with hiring managers throughout employment brand is viewed as a marketing employment brand has a complete strategy, the search process, leveraging their networks, strategy reaching into all possible candidate pools and channelscultural needs, and success criteria jobrecruiters descriptions run the communicaterecruiting process what the recruitersjob descriptions partner with focus hiring on managers the needs throughout of the organization demands from the potential employeethe searchcandidates process, – a leveragingtactic that theiryields networks, three times as culturalmany needs, highly and rated success applicants criteria anjob applicant descriptions tracking communicate system whatis the the only required job companiesdescriptions havefocus talent on the acquisition needs of the technology talentorganization acquisition demands technology from the potential employee candidatesplatforms – a thattactic manage that yields sourcing, three times video as manyinterviewing, highly rated interviewapplicants management, candidate an applicant tracking system is the only required companiesrelationship have talentmanagement, acquisition and technology onboarding talenttalent acquisitionacquisition technology processes are built on efficiency,platforms the candidate that manage and sourcing,hiring manager video are front and Pobrane z czasopisma Internationaleffectiveness, Journal and speed of ofSynergy hire in a wayand that Research interviewing,center http://ijsr.journals.umcs.pl in talentinterview acquisition management, processes, candidate tailoring the relationship management, and onboarding Data: 29/10/2019 07:20:40 works for the enterprise candidate experience around the moments that talent acquisition processes are built on efficiency, the candidatematter in andthe talenthiring acquisitionmanager are journeyfront and with the effectiveness, and speed of hire in a way that center in talent acquisition processes, tailoring the organization 128 works for the enterprise candidate experience around the moments that Source: Deloitte (2017). matter in the talent acquisition journey with the organization Source: DeloitteWhen (2017). discussing talents in organizations’ operations, the share of such employees in IJSR the3 and total 5% numberof staff. ofOn workersthe other employedhand, Borkowska in companies (2005) believes is worth that considering. talent constitutes Researchers When discussing talents in organizations’ operations, the share of such employees in 6 observean extraordinary that talented ability people significant constitute for increasing a relatively company small value, group. and According talent management to Berger and Bergermaythe totalbe (2004),applicable number distinguishing ofto 5–10% workers of employedworkers all employees. who in companies achieve This, however, exceptional is worth is very considering. results, sector- inspire and Researchers market- others to do theobserve same, that and talented who are people the source constitute of competences a relatively small for the group. organization, According constitute to Berger between and 3 position-dependent,Berger (2004), distinguishing e.g. Google workers employs who 90–95% achieve ofexceptional the best talents results, (MeetTheBoss.tv). inspire others to do andthe same, 5%Modern of and scompaniestaff. who On are thethe appreciate source other hand, ofthe competences significance Borkowska for and (the200 impact organization,5) believesof talents constitute thatupon talenttheir between operation. constitutes 3 an extraordinaryTheand significance 5% of staff. ability of On talent significant the othermanagement hand, for increasing Borkowska in companies’ company (200 operation5) believesvalue, was and that acknowledged talent talent management constitutes in studies an may be applicableconductedextraordinary by to PricewaterhouseCoopersability 5–10% significant of all employees. for increasing (PwC) This, company in however,2011. Thevalue, isstudy and very indicatedtalent sector management- that,and when market may asked- positbe ion- dependent,“Toapplicable what extent toe.g. 5– Google 10%do you of employs allanticipate employees. 90 changes–95% This, of at the however, your best company talents is very (MeetTheBoss.tv).in sector any -of and the marketfollowing -posit areasion- overdependent, theModern next e.g. 12 Google companiesmonths?”, employs 1,201 appreciate 90 –CEOs95% of thein the 2011 significancebest and talents 1,258 (MeetTheBoss.tv). andCEOs impact in 2012 of responded talents upon that their operation.talent managementModern The significance companies strategies appreciateof constituted talent management the their significance priorities in companies’ (Chart and impact 2). operation of talents was upon acknowledged their inoperation. studies The conducted significance by PricewaterhouseCoopers of talent management in companies’ (PwC) in operation 2011. The was study acknowledged indicated that, Similar results were obtained in the study by Deloitte (2017). The study encompassed whenin studies asked conducted “To what by PricewaterhouseCoopersextent do you anticipate (PwC) changes in 2011. at your The study company indicated in any that, of the over 10,000 HR and business leaders from over 140 countries. They believe that followingwhen asked areas “To over what the extent next do 12 you months?”, anticipate 1, 201 changes CEOs at in your 2011 company and 1 , in258 any CEOs of the in 2012 respondedattractingfollowing talent areasthat talent overconstitutes themanagement next one 12 of months?”, strategiesthe fundamental 1 ,constituted201 CEOs trends intheir 2011in 2017priorities and (Chart 1,258 (Chart 3). CEOs 2). in 2012 responded that talent management strategies constituted their priorities (Chart 2).

Chart 2. According to CEOs, areas in organizations which will become a priority in the next 12 months

Source: PwC (2012). CCharthart 2. According to to CEOs, CEOs, areas areas in inorganizations organizations which which will willbecome become a priority a priority in the innext the 12 next months 12 months Source: PwC (2012). Source: PwC (2012). Studies conducted by Boston Consulting Group (BCG) analyzed HR issues in two

aspects: Similar future results importance were obtained and current in the capability. study by Deloitte As a consequence, (2017). The studythe establishment encompassed Similar results were obtained in the study by Deloitte (2017). The study encompassed ofover critical 10,000 HR HRUMCS issuesand business requiring leaders swift from actions over 140 to becountries. undertaken They wasbelieve possible. that attracting Talent over 10,000 HR and business leaders from over 140 countries. They believe that attracting managementtalent constitutes was one the of group’s the fundamental responsibility trends betweenin 2017 (Chart 2010 3and). 2015 (Table 4). talent constitutes one of the fundamental trends in 2017 (Chart 3).

5 5

Chart 3. The 2017 trends by importance

Source: Deloitte (2017). Chart 3. The 2017 trends by importance Source: Deloitte (2017).

Studies conducted by Boston Consulting Group (BCG) analyzed HR issues in two aspects: future importance and current capability. As a consequence, the establishment of critical HR issues requiring swift actions to be undertaken was possible. Talent management was the group’s responsibility between 2010 and 2015 (Table 4).

Table 4. Critical HR areas according to Boston Consulting Group between 2014 and 2015 Year of Sample Number of Most Critical HR Topics report size Countries (Most urgent need of action)  improving leadership development  managing talent 2010 5561 109  enhancing employee engagement  strategic workforce planning  managing chance and cultural transformation  managing talent 35  improving leadership development 2011 2039 European countries  transforming HR into a strategic partner  strategic workforce planning  managing talent 2012 4288 102  improving leadership development  strategic workforce planning  talent management and leadership 34  engagement, behavior and culture management 2013 2304 European countries  HR analytics: strategic workforce planning and reporting  leadership 2014–4015 3507 101  talent management  behavior and culture Source: Own study on the basis of Strack et al. (2010, 2011, 2012, 2013, 2014).

Studies by Chodorek (2016) confirmed that managers in Polish companies are aware of the necessity of talent management as well. The impact of talents upon the financial situation of companies also seems interesting. Studies revealed that talent management is positively correlated with companies’ financial results (Buhler after: Kopeć, 2008). Similar studies among American companies were conducted in 2007 by Hackett Group. These indicated a 15% higher income of talent- managing companies when compared with those which did not have such systems. Other

Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 129

Year of report Sample size Number of Most Critical HR Topics Shortage Countries (Most urgent need of action) of Talents – improving leadership development a Challenge managing talent for Modern 2010 5561 109 enhancing employee engagement strategic workforce planning Organizations managing chance and cultural transformation managing talent 35 improving leadership development 2011 2039 European countries transforming HR into a strategic partner strategic workforce planning managing talent 2012 4288 102 improving leadership development strategic workforce planning talent management and leadership 34 2013 2304 engagement, behavior and culture management European countries Table 4. HR analytics: strategic workforce planning and reporting Critical HR areas leadership according to Boston 2014–4015 3507 101 talent management Consulting Group behavior and culture between 2014 and 2015 Source: Own study on the basis of Strack et al. (2010, 2011, 2012, 2013, 2014).

Studies by Chodorek (2016) confirmed that managers in Polish companies are aware of the necessity of talent management as well. The impact of talents upon the financial situation of companies also seems interesting. Studies revealed that talent management is positively correlated with companies’ financial results (Buhler after: Kopeć, 2008). Similar studies among American companies were conductedUMCS in 2007 by Hackett Group. These indicated a 15% higher income of talent-managing companies when compared with those which did not have such systems. Other factors also indicated an advantageous impact of talent management upon these companies, e.g. net profit margin – 22%, return on assets (ROA) – 49%, return on equity (ROE) – 27% (Stuart-Kotze, Dunn, 2011).

factors also indicated an advantageous impact of talent management upon these companies, e.g. net profit margin – 22%, return on assets (ROA) – 49%, return on equity (ROE) – 27% (Stuart-Kotze, Dunn, 2011).

4. Causes of talent shortage Considerable interest in talents manifested by modern companies results primarily from talent shortage. The shortage poses one of the fundamental HR problems. Unfavorable demographic changes, growing demand for talents and lack of suitable employees, require companies to improve their talent management systems. Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl It is statistically certain that the upcoming demographic boom generation’s retirement Data: 29/10/2019 07:20:40 will result in the emergence of a considerable gap in the access to talents in the majority of 130 industrialized countries (World Economic Forum, 2010). It is estimated that by 2030, an additional 45 million workers will be required in Eastern Europe in order to maintain economic growth. Taking into account the rate of population growth, the number will never IJSR be achievedthe number (World will Economic never be achievedForum, (World2011). EconomicIt is forecast Forum, that 2011). 2015 It wasis forecast critical that for OECD 6 countries.2015 This was is criticaldue to for the OECD fact thatcountries. it was This then is duethat to the the curves fact that of it employeeswas then that entering the labor curves of employees entering labor market (20–24 year olds) and those leaving the market (20–24 year olds) and those leaving the market (60 years of age and above) met. After market (60 years of age and above) met. After this occurred, workforce in the majority this occurred, workforce in the majority of developed countries began to dwindle (Chart 4). of developed countries began to dwindle (Chart 4).

Chart 4. Incoming workforce (20–24) vs. outgoing workforce (60–64) in OECD countries between 2000 and 2030

Chart 4.Source: Incoming Mercer workforce (2014). (20–24) vs. outgoing workforce (60–64) in OECD countries between 2000 and 2030 Source: Mercer (Global2014). studies conducted by ManpowerGroup indicate that 30–40% of employers worldwide voiced shortages of workers in the period between 2006 and 2016. The trend Globalhas been studies growing conducted steadily since by 2009. ManpowerGroup When compared indicate with international that 30– tendencies,40% of employers worldwidebetween voiced 2008 shortages and 2010, of Polish workers companies in the voiced period a 20%between greater 2006 shortage. and 2016.Since 2012, The trend has been growingthis Polish steadily trend has since been 2009. in line When with global compared values with(Chart international 4). On the other tendencies, hand, the between 2008 andstudy 2010, encompassing Polish companies 520 organizations voiced a conducted20% greater in 2015 shortage. by the CharteredSince 2012, Institute this Polishof trend has beenPersonnel in line with and Developmentglobal values (CIPD) (Chart proved 4). On that the 4/5 other of organizations hand, the studyexperienced encompassing that 520 organizations“the war conducted for talent”UMCS inbecame 2015 more by severe the Chartered in the previous Institute 2 years of (CIPD, Personnel 2015). and Development Similarly, according to a 2014 report by Deloitte (2014), 35% of respondents (CIPD) provedobserve that the 4/5 shortage, of organizations motivation and experience retention dof thattalents “the will war constitute for talent the greatest” became more severe inchallenge the previous for the 2 EMEAPyears (CIPD, area (i.e. 2015 regions). of Europe, Near East, Asia and the Pacific) in the next 3 years. This denotes a rising trend when compared with 2013 when such an answer was given by 26% of respondents (Deloitte, 2013).

60% 49% 48% 51% 50% 45% 41% 37% 40% 35% 36% 40% 41% 34% 40% 38% GLOBAL 30% 33% 31% 31% 34% 32% 30% POLAND Chart 5. 20% Number of employees 10% voicing talent shortage 4% 7 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Chart 5. Number of employees voicing talent shortage SourceSource:: ManpowerGroup ManpowerGroup (2016 )(2016)..

Similarly, according to a 2014 report by Deloitte (2014), 35% of respondents observe that the shortage, motivation and retention of talents will constitute the greatest challenge for the EMEAP area (i.e. regions of Europe, Near East, Asia and the Pacific) in the next 3 years. This denotes a rising trend when compared with 2013 when such an answer was given by 26% of respondents (Deloitte, 2013). It turns out that, on the one hand, companies voice talent shortages resulting from the lack of qualified workers, but, on the other hand, ignore problems stemming from improper talent management. The study conducted in 2011 by the BCG encompassed 2,039 managers from 35 European countries and indicated that 60% of respondents stated their companies did not possess a true talent management strategy in relation to talent attraction and succession- related challenges. Apart from the above, more than 1/3 of respondents described their companies as not having the strategy, and only 2% stated that their organizations implemented a strong and comprehensive talent management strategy (Strack et al., 2011). According to studies by ManpowerGroup, over 1 out of 5 employers realize no strategy associated with talent shortage (ManpowerGroup, 2015). A study by Randstad (2015) indicted that respondents assess their organizations’ capacity for attracting the best talents in the following manner: 12% – exceptional, 55% – good, 29% – average, and 4% – little. A study by CIPD (2015) indicated that 1/5 of organizations (mainly small businesses) have no budget to manage talents. These studies confirm that in the conditions of an expanding talent gap, the majority of companies do not apply fully active talent management. Studies conducted in Poland between 2008 and 2014 seem to confirm the trend. Polish companies indicate a low level of talent management systems’ application. They apply selective aspects of talent management. As a consequence, a systemic approach is missing. In addition, talent management is frequently missing from companies’ strategies (Chodorek, 2016). Moreover, attracting employees who possess suitable qualifications also poses a challenge as far as talent management is concerned. ManpowerGroup conducted studies regarding the issue and identified employee shortages and classified these with regard to professions globally (ManpowerGroup, 2016): 1. skilled trade workers (electricians, carpenters, welders, bricklayers, plasterers, plumbers, masons and more), 2. IT staff (developers, and programmers, database administrations and IT leaders and managers), 3. sales representatives (sales executives, sales advisors and retail sales people), 4. engineers (mechanical, electrical and civil engineers), 5. technicians (production, operations or maintenance technicians), 6. drivers (truck, lorry, heavy foods, delivery, heavy equipment and construction drivers),

Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 131

It turns out that, on the one hand, companies voice talent shortages resulting from Shortage the lack of qualified workers, but, on the other hand, ignore problems stemming from of Talents – improper talent management. a Challenge The study conducted in 2011 by the BCG encompassed 2,039 managers from 35 European countries and indicated that 60% of respondents stated their companies for Modern did not possess a true talent management strategy in relation to talent attraction and Organizations succession-related challenges. Apart from the above, more than 1/3 of respondents described their companies as not having the strategy, and only 2% stated that their organizations implemented a strong and comprehensive talent management strategy (Strack et al., 2011). According to studies by ManpowerGroup, over 1 out of 5 employers realize no strategy associated with talent shortage (ManpowerGroup, 2015). A study by Randstad (2015) indicted that respondents assess their organizations’ capacity for attracting the best talents in the following manner: 12% – exceptional, 55% – good, 29% – average, and 4% – little. A study by CIPD (2015) indicated that 1/5 of organizations (mainly small businesses) have no budget to manage talents. These studies confirm that in the conditions of an expanding talent gap, the majority of companies do not apply fully active talent management. Studies conducted in Poland between 2008 and 2014 seem to confirm the trend. Polish companies indicate a low level of talent management systems’ application. They apply selective aspects of talent management. As a consequence, a systemic approach is missing. In addition, talent management is frequently missing from companies’ strategies (Chodorek, 2016). Moreover, attracting employees who possess suitable qualifications also poses a challenge as far as talent management is concerned. ManpowerGroup conducted studies regarding the issue and identified employee shortages and classified these with regard to professions globally (ManpowerGroup, 2016): 1. skilled trade workers (electricians, carpenters, welders, bricklayers, plasterers, plumbers, masons and more), 2. IT staff (developers, and programmers, database administrations and IT leaders and managers), UMCS 3. sales representatives (sales executives, sales advisors and retail sales people), 4. engineers (mechanical, electrical and civil engineers), 5. technicians (production, operations or maintenance technicians), 6. drivers (truck, lorry, heavy foods, delivery, heavy equipment and construction drivers), 7. accounting & finance staff (bookkeepers, certified accountants and financial analysts), 8. management/executives (senior and board level managers), 9. production/machine operations (operators of special machinery), 10. office support staff (secretaries, PAs, receptionists and administrative assistants). In Poland, shortages pertain to the following (ManpowerGroup, 2016): 1. skilled trade workers, 2. drivers, 3. engineers, 4. production/machine operations, 5. laborers, 6. technicians, 7. restaurants & hotel staff,

7. accounting & finance staff (bookkeepers, certified accountants and financial analysts), 8. management/executives (senior and board level managers), 9. production/machine operations (operators of special machinery), 10. office support staff (secretaries, PAs, receptionists and administrative Pobrane z czasopisma Internationalassistants). Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40In Poland, shortages pertain to the following (ManpowerGroup, 2016): 1. skilled trade workers, 132 2. drivers, 3. engineers, 4. production/machine operations, 8. IT staff, IJSR 5. laborers, 6 9. doctors and other non-nursing health professionals, 10.6. salestechnicians managers., 7. Whenrestaurants comparing & hotel employee staff, shortages in Poland and globally, the fact that the majority8. IT ofstaff professions, are present in both rankings can be observed. In addition, Poland is9. short doctors on laborers, and other restaurant non-nursing and hotel health staff, professionals doctors and other, non-nursing health professionals.10. sales managers Unlike Poland,. international trends indicate shortages of accounting and Whenfinance comparing staff, management/executives, employee shortages officein Poland support and staff. globally, the fact that the majority of professions are present in both rankings can be observed. In addition, Poland is short on laborers, restaurant and hotel staff, doctors and other non-nursing health professionals. Unlike Poland, 5. international Consequences trends indicateof talent shortages shortage of accounting and finance staff, management/executivesThe lack of suitable, office talent supportmanagement staff in. modern companies is associated with difficulties in attracting, developing and retaining talents. The shortage exerts an impact upon the 5. Consequencesorganizations’ of talentoperations. shortage The study conducted in 2014 and 2015 by ManpowerGroup The lack ofinterviewed suitable talentrespondents management on the impact in modern of the companiesshortage on theiris associated organization. with It difficultiesturned in attracting,out developing that talent shortages and retaining influence talents. mainly Thecustomer shortage service exertscapacity, an competitiveness impact upon the and productivity (Chart 6). organizations’The operations. companies’ Thecapacity study for satisfyingconducted their in clients’ 2014 needs and 2015is critical by with ManpowerGroup regard interviewedto theirrespondents operation on due the to impactits direct of translation the shortage into financialon their organization.results. Between It turned2014 and out that talent shortages2015, ManpowerGroupinfluence mainly evaluated customer the service impact capacity,of talent shortage competitiveness upon the capacityand productivity to (Chart 6). respond to clients’ needs. The study proved that according to 80% of respondents in

Reduced Ability To Serve Clients 41% 42%

Reduced Competitiveness/Productivity 40% 42%

Increased Employee Turnover 27% 30%

Lower Employee Engagement/Morale 24% UMCS26% Reduced Innovation and Creativity 24% Chart 6. 25% Impact of talent Higher Compensation Cost 22% shortage upon 25% Don't Know 6% organizations 10%

2014 2015 Source: ManpowerGroup (2015). Chart 6. Impact of talent shortage upon organizations Source: ManpowerGroHighup Impact(2015). Medium Impact Low Impact No Impact Don't Know

2014 20% 34% 26% 18% 2%

Chart 7. Impact on ability to serve clients 2015 20% 34% 24% 21% 1%

Source: ManpowerGroupChart (2015). 7. Impact on ability9 to serve clients Source : ManpowerGroup (2015).

The companies’ capacity for satisfying their clients’ needs is critical with regard to their operation due to its direct translation into financial results. Between 2014 and 2015, ManpowerGroup evaluated the impact of talent shortage upon the capacity to respond to clients’ needs. The study proved that according to 80% of respondents in 2014 and 78% in 2015, talent shortage exerted a negative impact upon the satisfaction of clients’ needs (Chart 7).

Our production and/or service delivery quality standards feel 21

We couldn't achieve growth forecasts in country where we are based 24

We couldn't achieve growth forecasts in overseas markets 24

We cancelled or delayed a key strategic initiative 24

We were unable to pursue a market opportunity 29

We weren't able to innovate effectively 31

Our talent-related expenses rose more than expected 43 % Chart 8. Impact of talent shortage upon growth and profitability of organizations in the past 12 months Source: PwC (2012).

Studies by PwC encompassing 1,258 respondents from 50 countries also indicated a negative impact of the shortage upon the companies’ operation (2012). Respondents were queried on the way employee shortage impacted the companies’ development and profitability in the past 12 months. It turned out that the growth of expenditures associated with talents and cost of lost opportunities constituted the most significant outcomes (Chart 8).

6. Conclusions Talent management constitutes a challenge for modern organizations both globally and in Poland. The above-mentioned studies revealed that “the war for talent” remains a current issue worldwide and that talent management depends upon priorities of organizations. Unfavorable demographic changes and the shortage of qualified workers belong to the fundamental causes of talent shortage. Globally, since 2008, employers have voiced an increasing talent shortage. Managers are aware of the significance of talented workforce for companies’ operations. However, on the other hand, few companies have introduced a comprehensive talent management system as an element of their strategy. The majority of companies apply only selected initiatives in talent management. The shortage of talented workers limits the organizations’ capacity in terms of customer service and decreases competitiveness and productivity. Talent management in the context of the shortage in Poland is relatively in line with international trends. Since 2012, Polish companies have been voicing increasing difficulties in

High Impact Medium Impact Low Impact No Impact Don't Know Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 2014 20% 34% 26% 18% 2% 133 2015 20% 34% 24% 21% 1%

Chart 7. Impact on ability to serve clients Source2014: ManpowerGroupand 78% in 2015,(2015). talent shortage exerted a negative impact upon the satisfaction Shortage of clients’ needs (Chart 7). The companies’ capacity for satisfying their clients’ needs is critical with regard to of Talents – Studies by PwC encompassing 1,258 respondents from 50 countries also indicated a Challenge theira negative operation impact due of to the its shortage direct translation upon the intocompanies’ financial operation results. (2012). Between Respondents 2014 and 2015, ManpowerGroup evaluated the impact of talent shortage upon the capacity to respond to were queried on the way employee shortage impacted the companies’ development for Modern clients’ needs. The study proved that according to 80% of respondents in 2014 and 78% in and profitability in the past 12 months. It turned out that the growth of expenditures Organizations 2015, talent shortage exerted a negative impact upon the satisfaction of clients’ needs (Chart 7)associated. with talents and cost of lost opportunities constituted the most significant outcomes (Chart 8).

Our production and/or service delivery quality standards feel 21

We couldn't achieve growth forecasts in country where we are based 24

We couldn't achieve growth forecasts in overseas markets 24 Chart 8. We cancelled or delayed a key strategic initiative% 24 Impact of talent shortage upon growth We were unable to pursue a market opportunity 29 and profitability of We weren't able to innovate effectively 31 organizations in the past 12 months Our talent-related expenses rose more than expected 43 % Source:Chart PwC 8. Impact(2012). of talent shortage upon growth and profitability of organizations in the past 12 months Source: PwC (2012).

6. ConclusionsStudies by PwC encompassing 1,258 respondents from 50 countries also indicated a negativeTalent management impact of theconstitutes shortage a challenge upon the for companies’ modern organizations operation (2012). both globally Respondents and in were queriedPoland. on The the above-mentioned way employee shortage studies revealedimpacted that the “thecompanies’ war for developmenttalent” remains and a currentprofitability inissue the pworldwideast 12 months. and Itthat turned talent out management that the growth depends of expenditures upon priorities associated of organizations. with talents and costUnfavorable of lost opportunities demographic constituted changes theand most the shortage significant of outcomesqualified (Chartworkers 8) .belong to the fundamental causes of talent shortage. Globally, since 2008, employers have voiced an 6.increasing Conclusions talent shortage. Managers are aware of the significance of talented workforce Talent management constitutes UMCS a challenge for modern organizations both globally and in for companies’ operations. However, on the other hand, few companies have introduced Poland.a comprehensive The above talent-mentioned management studies system revealed as an that element “the ofwar their for strategy. talent” Theremains majority a current issueof companies worldwide apply and only that selected talent management initiatives in depends talent management. upon priorities The of shortage organizations. of Unfavorabletalented workers demographic limits the changes organizations’ and the capacity shortage in of terms qualified of customer workers service belong and to the fundamentaldecreases competitiveness causes of talent and shortage.productivity. Globally, since 2008, employers have voiced an increasingTalent talent management shortage. in Managers the context are ofaware the ofshortage the significance in Poland ofis talentedrelatively workforce in line for companies’ operations. However, on the other hand, few companies have introduced a with international trends. Since 2012, Polish companies have been voicing increasing comprehensive talent management system as an element of their strategy. The majority of difficulties in finding talented workers. Polish managers are also aware of the necessity companies apply only selected initiatives in talent management. The shortage of talented workersof talent limitsmanagement. the organizations’ However, their capacity organizations, in terms much of like customer international service ones, and apply decreases competitivenessonly selected aspectsand productivity of talent. management. When comparing employee shortages voicedTalent by Polish management companies in withthe context international of the trendsshortage regarding in Poland particular is relatively professions, in line with internationalit was revealed trends. that, Since in both 2012, cases, Polish the companies shortages haveare primarily been voicing related increasing to skilled difficulties trade in workers, IT staff, sales representatives, engineers, technicians, drivers, production/ machine operations. 10 Changeability of labor market and companies’ surrounding environment, originat- ing primarily from demographic changes, globalization, and remote work, result not only in “the war for talent” becoming more severe, but also in the emergence of dynamic Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 134

IJSR changes in talent management itself. Therefore, it seems that the issue of talent man- 6 agement, especially as far as attracting, developing and retaining talented workers are concerned, requires further studies.

References Berger, L.A., Berger, D.R. (2004). The Talent Management Handbook. Creating Organizational Excellence by Identifying, Developing, and Promoting Your Best People, McGraw-Hill, DOI: 10.1036/007143612X Borkowska, S. (Ed.) (2005). Zarządzanie talentami, IPiSS, Warszawa. Chodorek, M. (2016). Uwarunkowania zarządzania talentami w przedsiębiorstwie w kontekście pozytywnego zarządzania, Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika, Toruń. CIPD (2015). Resourcing and Talent Planning 2015, Charter Institute of Personnel and Develop- ment. Retrieved December 6, 2017 from: https://www.cipd.co.uk/Images/resourcing-talent- planning_2015_tcm18-11303.pdf Deloitte (2013). Top Five Global Employer Rewards Priorities Survey. The global race to attract and retain top talent is foremost on employers’ minds as reward challenges continue in a difficult economy, Deloitte. Retrieved December 4, 2017 from: https://www2.deloitte.com/ content/dam/Deloitte/ie/Documents/People/2013_Top_5_Global_Employer_Rewards_ Priorities.pdf.pdf Deloitte (2014). Global Top Five Total Rewards Priorities Survey. Employers around the world continue to prioritize Talent – finding it, motivating it, and retaining it, Deloitte. Retrieved December 4, 2017 from: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/ dttl-2014-top-five-global-employer-rewards-priority-survey-report-20140423.pdf Deloitte (2017). Rewarding the rules for the digital age. 2017 Deloitte Global Human Capital Trends, Deloitte Development LLC, Retrieved December 4, 2017 from: https://www2. deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-europe/ce- global-human-capital-trends.pdf Gallardo-Gallardo, E., Dries, N., González-Cruz, T. (2013). What is the meaning of ‘talent’ in the world of work? Human Resource Management Review, no. 23, pp. 290–300, DOI: 10.1016/j. hrmr.2013.05.002UMCS Grodzicki, J. (2011). Talent w przedsiębiorstwie opartym na wiedzy, Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk. Ingram, T. (2011). Miejsce i znaczenie talentów we współczesnej organizacji. In: T. Ingram (ed.), Zarządzanie talentami. Teoria dla praktyki zarządzania zasobami ludzkimi, Polskie Wydawnictwo Ekonomiczne, Warszawa, pp. 13–50. Kopeć, J. (2008). Dylematy zarządzania talentami instrumentarium. In: S. Witkowski, T. Listwan (eds.), Kompetencje a sukces zarządzania organizacją, Difin, Warszawa, pp. 286–294. ManpowerGroup (2015). 2015 Talent Shortage Survey, ManpowerGroup. Retrieved December 5, 2017 from: http://www.manpowergroup.com/wps/wcm/connect/db23c560-08b6-485f-9bf6- f5f38a43c76a/2015_Talent_Shortage_Survey_US-lo_res.pdf?MOD=AJPERES ManpowerGroup (2016). 2016/2017 Talent Shortage Survey, ManpowerGroup. Retrieved December 5, 2017 from: http://www.manpowergroup.com/talent-shortage-explorer/ MeetTheBoss.tv, Interview: Liane Hornsey, Google VP Operations talks about human resource best practice, MeetTheBoss. Retrieved December 10, 2017 from: https://meettheboss.tv/ video/full-version-liane-hornsey Mercer (2014). The Human Capital Agenda in EMEA Creating Value in Challenging Times, Mercer LLC. Retrieved December 20, 2017 from: https://www.mercer.com/content/dam/ mercer/attachments/global/Talent/human-capital-agenda/Anthology%202013/the-humancapital-agenda-in-emea-europe-2014-mercer.pdf Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40 135

Michaels, E., Handfield-Jones, H., Axelrod, B. (2011). The War for Talent, Harvard Business Shortage School Press Boston, McKinsey & Company, Inc., Massachusetts. of Talents – Mikuła, B. (2007). Zarządzanie talentami. In: B. Mikuła, A. Pietruszka-Ortyl, A. Potocki (eds.), Podstawy zarządzania przedsiębiorstwami w gospodarce opartej na wiedzy, Difin, a Challenge Warszawa, pp. 181–185. for Modern Miś, A. (2009). Retencja i rozwój pracowników o wysokim potencjale. In: M. Gableta, A. Organizations Pietroń-Pyszczek (eds.), Człowiek i praca w zmieniającej się organizacji, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, Wrocław, no. 43, pp. 273–281. Morawski, M. (2009). Zarządzanie profesjonalistami, PWE, Warszawa. PwC (2012). Delivering results Growth and Value in a volatile World. 15th Annual Global CEO Survey 2012, PricewaterhouseCoopers. Retrieved December 5, 2017 from: https://www. pwc.com/gx/en/ceo-survey/pdf/15th-global-pwc-ceo-survey.pdf Randstad (2015). The Randstad Sourceright 2015. Talent Trends Report, Randstad. Retrieved December 5, 2017 from: http://www.bollettinoadapt.it/wp-content/uploads/2015/11/randstad_ novembre_2015.pdf Robertson, A., Abbey, G. (2010). Zarządzanie talentami. Wykorzystuj możliwości najzdolniejszych pracowników, Oficyna Wolters Kluwer Business, Warszawa. Strack, R., Caye, J.M., Bhalla, V., Tollman, P., von der Linled, C., Haen, P., Quiros, H. (2012). Creating People Advantage 2012. Mastering HR Challenges in a Two-Speed World, The Boston Consulting Group, Inc. and World Federation of People Management Associations, Boston. Retrieved December 6, 2017 from: http://www.wfpma.com/sites/wfpma.com/files/ PDFs/BCG_Creating_People_Advantage_Oct_2012.pdf Strack, R., Caye, J.M., Teichmann, C., Haen, P., Frick, G., Bird, S. (2011). Creating People Advantage 2011. Time to Act: HR Certainties in Uncertain Times, The Boston Consulting Group, Inc. and the European Association for People Management, Boston. Retrieved December 6, 2017 from: https://slidex.tips/download/creating-people-advantage-2011 Strack, R., Caye, J.M., Lassen, S., Bhalla, V., Puckett, J., Espinosa, E.G., Francoeur, F., Haen, P. (2010). Creating People Advantage 2010. How Companies Can Adopt Their HR Practices for Volatile Times, The Boston Consulting Group, Inc. and World Federation of People Management Associations, Boston. Retrieved December 6, 2017 from: http://www.apg.pt/downloads/file101_pt.pdf Strack, R., Caye, J.M., von der Linden, C., Haen, P., Abramo, F. (2013). Creating people advantage 2013. Lifting HR UMCSPractices to The Next Level. The Boston Consulting Group, Inc., Boston, Retrieved December 6, 2017 from: https://www.bcgperspectives.com/content/ articles/human_resources_organization_design_creating_people_advantage_2013/ Strack, R., Caye, J.M., Gaissmaier, T., Orglmeister, C., Tamboto, E., von der Linden, C., Ullrich, S., Haen, P., Quirós, H., Jaureguli, J. (2014). Creating People advantage 2014–2015. How to set up great HR functions: Connect, Prioritize, Impact. The Boston Consulting Group, Inc., Boston. Retrieved December 6, 2017 from: https://www.peryon.org.tr/wp-content/uploads/ arastirma_raporlari/BCG_Creating_People_Advantage_201_2015.pdf Stuart-Kotze, R. and Dunn, Ch. (2011). Gdzie są twoi najlepsi ludzie. Znajdź ich, oceń ich talent i osiągnij sukces, Wolters Kluwer Polska, Warszawa. Tabor, J.A. (2013). Zarządzanie talentami w przedsiębiorstwie. Koncepcje, strategie, praktyka, Poltext, Warszawa. World Economic Forum (2010). Stimulating Economies Through Fostering Talent Mobility. World Economic Forum in collaboration with Boston Consulting Group. Retrieved December 6, 2017 from: https://www.bcg.com/documents/file41189.pdf World Economic Forum (2011). Global Talent Risk – Seven Responses. World Economic Forum in collaboration with Boston Consulting Group. Retrieved December 6, 2017 from: https:// www.mintzukunftschaffen.de/uploads/media/StudieBCG_WEF_01.pdf Pobrane z czasopisma International Journal of Synergy and Research http://ijsr.journals.umcs.pl Data: 29/10/2019 07:20:40

UMCS