Talent. It makes me shudder
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It’s popular these days to refer to the development of people in a company as ‘talent management’, the recruiting of new people into an organisation as ‘talent acquisition’ and strategic planning of future hires as ‘talent pipe-lining’, while these phrases may sound trendy, they make me shudder. I think if we’re talking in these terms, we’re talking about diminishing returns.
‘Talent’. Am I getting hung up on a word?
Maybe, but if the word is going to be used that often, I’m worried about its implications. I’d prefer the word ‘Potential’. ‘Potential management’, ‘potential acquisition’, ‘potential pipe-lining’. That works for me. I was prompted to write this blog whilst reading part of Dr Carol Dweck’s book ‘Mindset’. I’d heard the analogy before, but she reminded me that the company behind one of corporate history’s famous disasters - Enron, espoused the acquisition of 'talent', and lauded 'talent' above all other virtues in the company. So much so, that people felt they weren't able to highlight any mistakes they made (in case it tarnished their ‘talented’ image). “It created a culture that worshiped talent, thereby forcing its employees to look and act extraordinarily talented.”
The thing that I worry about is that the concept of talent, to me and to many greater minds than I (Dweck, Matthew Syed, Daniel Coyle and many others), suggests a fixed, limited, natural or innate ability. It’s either there or it isn't. It isn't learned. It’s not something you work on. This could be a problem for Ireland and its growing need for specific skill sets in particular industries. We all have heard many times about the lack of skilled IT candidates to fill the jobs our FDI businesses and HPSUs are generating. But what about niche accountancy, banking and, dare I say, construction skills that are required now and will be required in greater numbers as we make our way back into the world of growth? It appears to me that we are becoming obsessed with hiring a finished product and investing less time in developing potential. Greater credit and emphasis should go to those who can spot potential and develop it, rather than those who simply hire a skill set.
The thing that I worry about is that the concept of talent, to me and to many greater minds than I (Dweck, Matthew Syed, Daniel Coyle and many others), suggests a fixed, limited, natural or innate ability. It’s either there or it isn't. It isn't learned. It’s not something you work on. This could be a problem for Ireland and its growing need for specific skill sets in particular industries. We all have heard many times about the lack of skilled IT candidates to fill the jobs our FDI businesses and HPSUs are generating. But what about niche accountancy, banking and, dare I say, construction skills that are required now and will be required in greater numbers as we make our way back into the world of growth? It appears to me that we are becoming obsessed with hiring a finished product and investing less time in developing potential. Greater credit and emphasis should go to those who can spot potential and develop it, rather than those who simply hire a skill set.
Ok, so developing potential requires investment, but the returns are potentially huge.
Look at the way a certain Sir Alex Ferguson invested in potential in the early 1990s in Manchester United FC, reaping the benefits over a 15-year period filled with trophies and awards. If he had just purchased ready-made ‘talent’, could you argue they would have had the same depth and length of success? There’s a much publicised skills shortage in the IT industry in Ireland today with companies looking to hire 'IT talent’ now. However, the incredible pace of technology change could mean that ‘talent’ may well have skills that could be redundant tomorrow. ‘Now’ doesn't last long in the world of IT.
However, hiring for potential gives you the chance to embed flexible, dynamic characteristics that can adapt to change.
Even the definition of potential sounds healthier – “having or showing the capacity to develop into something in the future” – compared to the definition of talent – “natural aptitude or skill.”
Ever heard of a talented accountant? I haven’t. I've heard of brilliant accountants who've worked bloody hard to develop their skills and their potential. Same with a fund accountant, a quantity surveyor or an IT developer. Is there such a thing as a talented developer? I doubt it…the ones you think are ‘talented’ have probably been working away for years, honing their skills over and over again, developing their potential, learning from their mistakes.
I've heard great stories of IT companies taking on totally unskilled people and putting them into development roles – giving these people ring-fenced areas of the company to work where they can develop their skills, make mistakes and gradually show a return on investment for their company. And you know what? These companies retain their people brilliantly.
An interesting point has come to light in the news recently. Facebook bought the web-messaging service WhatsApp for $16bn (or $19bn, depending on which article you read), but it’s been publicised that they turned down the founder of WhatsApp, Brian Acton, when he applied for a job four years ago. Mr. Acton obviously didn't have the talent Facebook were looking for at that stage. However, his multi-billion dollar deal shows he had the potential.
So, if Ireland is going to be looking to employ lots of people in the coming years, I think we’re going to struggle if we’re only looking for ‘talent’. There’s not enough of it around. Companies need to start thinking about hiring individuals who may not have the skills now, but have the potential to develop those skills and go further than that. We have to start acquiring potential, developing potential, managing potential and pipe-lining potential.
That’s the future.
Mike McDonaghBusiness Director
Recruiting experts in Senior Finance
posted by Philip Bourke
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