management and, of course, risk management. Notably, when di-rectly
queried, HR professionals are more than willing to frame
talent issues as risk issues. The question is: When will HR pro-fessionals
begin to apply these terms more consistently to talent
planning and the larger corporate context?
Indeed, if HR professionals are to more effectively attract at-tention
from the board and encourage their active engagement in
the function’s most pressing talent concerns, framing those issues
more consistently as risks is an approach worth exploring.
BUSINESS-SPEAK GETS BUSINESS RESULTS
It may be time for HR professionals to stop talking so persis-tently
in the specialized language of the field, a language that too
often serves to segregate the function and its issues from the larg-er
business – at least when communicating HR issues to executive
management and the board. Moving from HR-speak to busi-ness-
speak and looking at talent from the broader risk perspective
can be an extremely valuable tool, not only for building credibil-ity
around the department as a strategic contributor but also for
more effectively communicating critical information in ways that
will resonate and evoke response and cooperation.
This rethinking of terms and drivers represents a change in di-rection
for HR departments in general, one that will also require a
significant shift in the way talent management plans are developed.
If you think about it, the very capabilities on which most HR depart-ments
pride themselves may indicate that they aren’t managing talent
risk very well. HR departments often excel in areas such as recruiting
and performance management. However, when these requirements
dominate HR activities beyond all others, it may indicate that the
function’s understanding of the larger business, its strategic priorities
and the true risks talent issues pose to that strategy may be lacking.
In other words, a better understanding of talent risk with
respect to business goals and risks when developing a talent man-agement
plan can change and improve the way HR professionals
execute more traditional HR duties. At the same time, it can con-tribute
to overall strategic drivers such as greater profitability and
increased market share. HR departments need to ask some key
questions, such as:
■■ What exactly are the larger business risks?
■■ Do we have an infrastructure in place to manage talent risk
within a broader corporate framework?
“Talent risk management” – followed by measuring talent risk
impacts on the organization – is a key component in developing
an effective overall talent strategy.
UNDERSTANDING TALENT RISK IS A KEY, OFTEN
OVERLOOKED, PART OF ANY TALENT STRATEGY
Even though the complexity of simply doing business in the global
economy has increased exponentially, many HR departments still
take a relatively compartmentalized approach to talent manage-ment.
It’s critical, however, that HR moves from point solutions
to a more holistic, strategic approach to talent management and
risk. Focusing on recruiting star talent, while important, is sim-ply
not enough. The research indicates that organizational size
and sector has little effect on organizations’ perception of talent
risk-related issues, meaning virtually any business can benefit by
more effectively factoring risk – both talent-specific and in the
broader business context – into the talent program development
process. ■
Laura Croucher is partner, Advisory Services, and People & Change
National Service Line leader with KPMG.
strategy
“TALENT IS NOW THE MOST
IMPORTANT CHALLENGE THAT
ORGANIZATIONS FACE, ACCORDING
TO 729 TOP EXECUTIVES FROM
AROUND THE WORLD.”
– CONFERENCE BOARD CEO SURVEY 2013
Sergii Korolko/Shutterstock
44 ❚ SEPTEMBER 2014 ❚ HR PROFESSIONAL