What is talent reservation, and does your skills strategy need this approach?
Third Industrial Revolution (1970s)
Back in the ‘70’s, the Third Industrial Revolution was in full-swing, with physics- and solid-state electronics-based industries flourishing under, at that stage, largely technocrat leadership. In order to successfully participate in the Third Industrial Revolution economy, governments and companies invested in developing the much-needed Natural Sciences- and Engineering skills pipeline from internally focussed tertiary academic institutions. This was done mainly through stake-buying mechanisms such as Industry Chairs for Educators and study bursaries to students. This gave industry a mechanism to influence and reserve Baby-boomer and Generation-X talent.
Fourth Industrial Revolution (2020s)
From the ‘90’s onwards, globalisation, economic crises and a shift to cost-curtailing finance leadership resulted in industry outsourcing their costly technology-development to universities, creating a focus on industry research-based third revenue-streams for academic institutions, at the cost of industry talent-investments. Upon fast-forwarding this by thirty years to the present ‘20’s data-driven innovation-world, one finds:
- On the one hand, skills-development and education investment decisions left to students (a situation significantly enabled by the newly enhanced general access to information that the Fourth Industrial Revolution offers), and
- On the other hand, with industry that desperately need have in-house technical expertise, but without significant assurance of a talent pipeline from tertiary academic institutions.
The Evolution of Talent Connection Mechanisms
The unfortunate outcome of the above talent connection mechanism-evolution is industry executives that struggles with insufficient in-house talent to match the innovation-pace of the Fourth Industrial Revolution. As executives, it is crucial to proactively address this issue and develop strategies that alleviate the data skills shortage. One approach that holds immense promise is talent-reservation – a proactive method of identifying and nurturing promising individuals with data skills to ensure a sustainable pipeline of talent. The key building-blocks towards transformative talent-reservation can be described as follows..
1. The Urgency for Talent-Reservation
The first step in addressing the data skills shortage is acknowledging its significance and impact on business success. Data-driven decision-making is no longer a luxury; it is a necessity for organizations to stay competitive. By recognizing the urgency of the situation, executives can build a sense of urgency within their organizations, compelling them to take action and invest in long-term workforce solutions such as talent-reservation.
2. Identifying and Nurturing Talent
Talent-reservation involves the proactive identification and nurturing of individuals who possess the potential to become skilled data professionals. This involves organisational leadership collaborating with human capital functions, educational institutions, and industry networks to identify high-potential candidates early in their career development stages. This could include partnering with schools and universities, sponsoring internships, and offering scholarships in data-related fields. By investing in talent early on, organizations can cultivate a diverse pipeline of skilled individuals who are ready to contribute to the organization's data-driven objectives.
3. Active involvement in Talent Development
Talent-reservation is not restricted to the creation of a talent pipeline, but also the cultivation of the talent delivery mechanism and process. This implies the active involvement in primary-, secondary- and tertiary education, including teacher development, curriculum support, educator retention and academic third-stream investment.
4. Creating a Culture of Learning and Development
Building an organisation culture of continuous learning and development is essential for nurturing talent. Executives should champion programs that encourage the organisational talent-pool to acquire skills in data-related domains. This can involve providing guidance and access to training resources, establishing student mentorship programs and promoting internal and external workshops and seminars. By fostering an environment that supports professional development, organisations can establish a talent culture that supports current and future human capital requirements.
5. Partnerships for talent development
To alleviate the skills shortage, organizations should seek partnerships with external entities, such as technology accelerators, universities and industry associations. Collaborating with these partners can bring fresh perspectives, insights, and talent development opportunities to the organization. Leadership can establish programs like internships, externships and secondments, allowing current- and future employees to gain practical experience and exposure to cutting-edge data practices. Such collaborations not only address the immediate skills shortage but also promote innovation and cross-pollination of ideas.
6. Retention and Career Progression
Retaining top data talent is as crucial as attracting them. Executives should focus on creating an environment that provides meaningful and challenging work opportunities for data professionals. This should include assignment to high-impact assignments and developing data- and analytics thought-leadership in high potentials through formal Analytics Leadership development and mentorship programs. Recognizing and rewarding coaching and mentoring in data-related roles can further reinforce a culture that values and supports data skills development.
Conclusion
The data skills shortage is a pressing challenge that organizations face in today's data-centric business landscape. By embracing talent-reservation as a proactive strategy to support talent retention, organisational leadership can unlock the potential to bridge this gap and fuel their organizations' data-driven success. By identifying and nurturing promising individuals, fostering a culture of learning, collaborating with external partners, and ensuring career progression opportunities, organizations can build a sustainable pipeline of skilled data professionals. Through talent-reservation, executives can position their organizations at the forefront of data innovation, ensuring long-term competitiveness and growth in an increasingly data-dependent world.
