MISSING PIECES OF TALENT MANAGEMENT IN VIETNAM LOCAL COMPANIES
During the Executive seminar “Talent Management Strategy for Visionary CEO: Build to Win” hosted by Talentnet on May 09, 2017, more than 50 participating CEOs from both local and MNCs in Vietnam have defined certain challenges that their companies are currently facing in solving the talent strategy puzzle.
* The data is taken from the First-ever survey about talent management strategy for CEO in Vietnam, conducted by Talentnet in Mar – Apr 2017, with participation from 63 CEOs of both large local and MNCs. Some of key findings of the survey have been announced in the mentioned seminar for CEO discussion.
53% local enterprises own no or irrelevant talent strategies
This highlight is mentioned during the executive seminar “Talent Management Strategy for Visionary CEO: Build to Win” hosted by Talentnet Corporation on May 2017, following results of the first-ever survey about talent management viewpoints of CEOs in Vietnam. Accordingly, more than 53% Vietnamese businesses out of 63 survey participating companies still don’t have a right concept of a "talent management strategy" and are struggling to decide whether they should build, buy or borrow “rising stars” in the companies. According to Tieu Yen Trinh – CEO of Talentnet, "The above mindset is rooted in the leadership capacity constraints, the standardization in the establishment of the human resources system as well as the differences in human capital purpose. While MNCs have an obvious tendency to build talent internally, local firms own a mixed talent pool from different sources (build, buy, and borrow). This is mainly due to the lack of a strategic talent assessment system which allows companies to evaluate right people for right business goals in long term."
Other gaps compared to MNCs include:
- Only 32% talents are built from internal resources compared to 56% of MNCs
- Nearly 50% of survey participating local companies don’t have a clear criteria and framework to select talent
- The lack of line manager’s involvement in executing the talent management strategy
CEO as the owner of talent strategy
In recent years, talent management has been identified as the main target for strategic change of business. However, in dealing with some pressing questions about talent management strategies, CEO needs to redefine their role as the owner of this talent game, instead of treating it just as the after-thought or leaving all to HR. It is because CEO, as the very first generation of talent for their companies, will have the highest understanding about the requirements for talent which match with business vision as well as corporate culture to know which talents will be the best fit for organization at all levels. Moreover, a reflective and insightful CEO will encourage executives, managers and HR department to have a similar outlook so that talent strategies can be implemented consistently and effectively.
Right people in the right positions at the right time: challenges for human resource or management quiz for C –suite levels?
According to the survey, nearly 69% of international companies in Vietnam have defined their strategies to build up internal succession planning activities while many local businesses are still stranded without awareness about how to train and develop people for replacing senior management positions. Therefore, when it comes to establishing a talent management strategy, both HR department and CEOs feel stuck in finding a great way for higher-performance workforce. Below is recommended roadmap for talent process that business organization can consider:
1. Define talent requirement (specify the corporate leadership positions)
2. Assess talent pool (pinpoint those who represent your next generation of leaders)
3. Develop talent (define significant replacement gaps and think of possible plans to fill these gaps)
4. Deployment (select programs/ activities to train and retain talents)
Solve the talent matrix with 9-box grid model
According to Joanna Yeoh - talent management expert from Talentnet, there are more and more companies turning into talent solutions to solve human resource problems. The simple and popular model – McKinsey’s 9-box grid is preferably used for talent review and evaluation:
For each group, managers need to have suitable plans and solutions. However, identify the right person to put in the right box is similar to playing chess, which requires both tactical flexibility and strategic fit with company’s strategy. This model allows leaders and HR to recognize the categories of employees, then optimizing their performances to achieve profound growth in the organization.
For a more in-depth findings about talent management strategy from our quick survey and the latest executive seminar, request your free copy as below: