Background

It has been projected and widely publicized that there will be a significant shortage of both available and qualified workers since Baby Boomers (born 1946-1964) are now beginning to reach retirement age. There is also a concern with a "competency deficit" in terms of reduced skill capacity for specific type of work.

During the 1990s U.S. business boom, McKinsey & Company popularized and wrote on the concept War for Talent to emphasize organizations' need to fight intensely for their share of an ever-diminishing resource pool of talent. This talent scarcity mind-set emphasized a high-performance culture, recruitment, and retention of stellar employees, an addiction to hire outsiders, a rank-and-yank performance management process, and a conviction that superior talent will yield higher financial results. It views the race for talent as a prerequisite for high financial returns.

Others view this as a talent myth.They emphasize the priority of organizational systems, contributions to the whole, customer, and shareholder needs, all in the best interest of an organization, rather than solely focusing on innate talent. After systems, alignment of organizational values and practices, and enhancement of organizational capabilities are in place, only then are strategies important.In addition, the hidden talent of ordinary people within organizations is important to highlight. Bringing out the best in everyone is an ongoing dialogue and effort to assess and then develop all the talent an organization has.

• Answer the following 2 questions...

1. Explain and discuss the major arguments for and against the philosophy of The War for Talent
2. Do you believe this "war for talent" is a Fact or Fiction. Explain and support your answer.