“The war for talent” is a phrase coined by McKinsey’s Steven Hankin in the 90s that describes the highly competitive talent landscape — a phrase that remains just as prevalent today.

Being competitive in the war for talent is high on the agenda for all organisations. However, it’s ironic that while there’s a crucial need to attract and retain talent, the focus is often at a process level, rather than an ongoing strategic consideration.

What does a transactional approach to talent look like? 

Each hiring process is a transaction with a beginning, middle and end. It starts with identifying a need and ends with filling that need with a new hire (hopefully!)

To facilitate this process, an organisation must gain financial approval, create a market engagement strategy, and align internal and external stakeholders as quickly as possible. In most instances, the quickest and most cost-efficient hiring process wins the race.

However, there are negative impacts of taking a transactional approach to talent. There are cost implications, a lack of data integrity and market knowledge, and an inability to mitigate talent risk.

The recruitment and executive search industry is designed to support this process, both commercially and digitally. But viewing talent as a transaction raises the question of “Who is really in control?” — is it the market (both talent and supplier) or the client?

Why is there resistance to change?

With the introduction of proactive talent engagement 20 years ago, it was hoped that talent risk could be managed with foresight. While proactive talent engagement is now well known, implementing this mindset consistently remains a challenge for three reasons.

1) The reality of prioritisation 

Since talent risk represents a "potential threat" to an organisation's ability to attract, retain and develop talent, it understandably falls to the bottom of an organisation's priority list.

2) Bridging the gap between talent management and talent acquisition

Talent acquisition and talent management play an essential role in the success of any organisation. Although they serve different purposes, talent risk is important on both sides, so communication and alignment across these two HR functions are crucial.

3) The talent market is static 

Current providers often focus on immediate, urgent and unplanned needs. Combined with rigid systems and applications that struggle to customise and communicate real-time data, the industry is stuck.

Talent is not a transaction, it’s a long-term investment

Talent should not be viewed as a transaction, but an ongoing, long-term investment that paves the way for growth and success for both individuals and organisations. While proactive talent providers have moved the conversation forward, there is still work to be done. 

Organisations know the value of an always-on approach to talent. What they need is a solution to make it a practical reality. A commercially accessible solution for companies of all sizes.

The future of talent planning

Luminate is a new era of people strategy that helps organisations proactively manage talent risk. An era where a successful hiring process is a component of an always-on partnership. 

With Luminate, organisations take control of the external market ahead of time. Our talent planning solution bridges the gap between talent management and talent acquisition, aligning internal and external resources on an international and consistent basis.

Luminate is an accessible service, both commercially and practically, that seamlessly integrates into the everyday routine of talent and HR within organisations of all sizes and goals.

Get in touch with us to find out how we can help you escape the cycle of talent reactivity.