Brexit - the effect on Talent Management
The topic of Brexit has stolen the limelight in news headlines and everyday conversation, over the past eventful year. Brexit is affecting and will affect us all at some point or in some way. Be it: the price we pay for our food shopping, the places we can travel to or the value of our houses. These effects, as of yet, have not been drastic or damaging; as the UK economy still grew by 1.8% last year. However, the question on the mind of a lot of Business Owners and CEO’s, particularly those of corporate organisations, is what effect would Brexit and the changing economy have on Talent Management? And how will it affect you as a professional?
The Talent Management industry is growing at a rate of 16.6%, and is forecasted to be worth $11,367.0 million in 2019. This explains the sheer importance and reliance companies have on the Talent Management industry. This also means that the effects of Brexit may affect Talent Management quite seriously.
Many large banks are relocating their headquarters to locations outside of the UK; Deutsche Bank for example, are planning to relocated to Frankfurt, because of the uncertainty of the Great British Pound (GBP), and the possible inhibition of growth in the financial sector Brexit may cause. Due to this level of uncertainty in our present society, robust Talent Management processes are more important than ever before.
The UK officially leaving the European Union on the 29th of March 2019, gives organisation’s a lee-way period of two years to re-examine their Talent Management process, particularly with regards to their assessment process, if needed.
When did your organisation last re-examine its talent assessment processes?
A key part of a successful Talent Management in organisations is having a robust, tailor-made assessment process. However, a lot of organisations fail to achieve this, which can sometimes lead to irreversible damage to the organisational operations and leadership structure. Only 20% of organisations openly communicate their talent strategy, and as a result 80% do not demonstrate transparency within their assessment process, from the strategy to the tools.
Why organisations get it so wrong?
There are several reasons why organisations get their assessment process wrong. These reasons range from organisations becoming confused by the terms they use in their assessment process (there is no clear definition of Talent), to organisations having a tendency to use closed-door communication. This prevents candidates from asking questions or gaining information about the full scope of the process. These reasons disallow organisations from hiring the most suitable candidate to fill the right position for them.
What can your organisation do to improve your assessment process?
There are guidelines available for organisations to use in order ensure they have a robust assessment process. The BPS (British Psychological Society) has laid down some guidelines in order to ‘take the best practice approach’. They include:
• Using tools that are supported with scientific evidence
• Candidate capability is measured through multiple methods
• Assessors are trained and assessment outcomes are calibrated to maximise inter- rater reliability
• Data is captured, transmitted and protected following strict and secure management protocols
In addition to this, at Zircon, we also advice that organisations are clear on the purpose of the assessment centre and adopt agile solutions which incorporate a strengths-based approach, and enable better conversations about performance among an organisation’s people and leaders. Your assessment process should have a clear link with your business strategy and processes, and look at the bigger picture – not just serving the purpose of selection and recruitment, but also generating feedback conversations to help identify key areas for development and future planning.
“Taking into consideration the present VUCA society and challenges, how future proof is your talent assessment strategy?”
To read more about the advantages and best practice of Assessment Processes and how they can be effectively implemented in organisations to help make better people decisions, check out our latest whitepaper ‘Assessing Talent’ on our Zircon website!
Written by Éloïse Lachicorée, Intern at BeTalent and Zircon Management Consulting