The financial sector is in full digital transformation. There is not only the question of how to attract digital natives and keeping them motivated but also the reskilling of the existing population becomes an ever returning concern. Who can keep up and who is at risk? Employees need to do their part and take responsibility of their own careers.
In this blog, I want to focus on how algorithms and technology are of use in Talent Forecasting. Our own research at TalentLogiQs allows us to make talent forecasts and suggest high impact actions for the deployment of talent.
Imagine a financial department that would only stick to reviewing past performance and not be able to indicate financial risks, make sales projections, present a budget for future expenses, or predict for necessary future investments. Why should we not expect the same from those who take care of the human capital in organizations?
Risks: the integration of risks in HR is a rather new approach, but the VUCA world of today makes such an approach necessary and is an addition to current HR practices. Opportunities lie not only in the prevention of risks, but also in optimizing them. In other words, looking at the opportunities for development and adaptability (Cascio w. & Boudreau J. 2012). Analytics make it possible to get a grip on a number of risks with regards to mental and physical health, undesirable behavior, turnover, recruitment and talent.
Potential: The idea that science can quantify future performance is unpopular because it smells of determinism and questions our conviction that we are free to decide about our destiny (Chamorro-Premuzic, 2017). However, people are different and they are consistent. Therefore, we can predict human behavior. Potential can be measured and it has many faces. At TalentLogiQs we differentiate between 1) operational potential: with a focus on consciousness and planning & organizing 2) leadership potential: with a focus on vision, learning agility, and situational flexibility, 3) creative potential: with a focus on entrepreneurship and challenge.
Motivation: in the previous blogs, we have stressed the importance of taking into account the individual perspective in the career. Analytics have to be able to answer questions about career values, subjective career success, aspirations, and person-environment fit.
Actions: how can you make the insights about employees actionable? A thorough diagnosis does not cut it. That’s why, at TalentLogiQs, we make sure that based on the three previous indicators suitable actions for every talent are proposed.
Cascio w. & Boudreau J. (2012) Short Introduction to Strategic Human Resource Management’ Cambridge University Press.
Chamorro-Premuzic, T. (2017). The Talent Delusion: Why data – not intuition – is key to unlocking human potential. Little Brown UK.