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Published August 2007

Career Planning: The Time for Pinball Has Passed

 

  Josh Bersin

Over the last two years, Bersin & Associates has conducted research into all aspects of corporate talent management. In addition to identifying and analyzing market trends, we've studied the business impact of a wide range of talent-related processes.

Among the processes with greatest business impact are those related to career planning. In fact, of 62 talent processes examined, performance and competency management and coaching — fundamental elements of any successful career-planning strategy — top the list in terms of business value.

But just as compelling as the quantifiable data that support the importance of career planning are the best practices we discovered during our extensive interview process. We found companies that have adopted a strategic approach to career planning see significant business results. Organizations that take the long view (that is, recognize the need to develop and cultivate employee talent over years) are winning the war for talent.

The Nature of the Talent Shortage

Let us first set the stage. Our research indicates global corporations report universal talent shortages: 53 percent of organizations have severe shortages in midlevel managers, 48 percent in technical professionals, 44 percent in director-level managers and 39 percent in sales and service personnel. We estimate that by 2012, the shortage of skilled workers in U.S. corporations will exceed 10 million. These statistics do not reflect a shortage of available workers — they reflect the scarcity of skilled workers.

To address this talent shortage, many companies fine-tune their recruiting processes and incorporate sophisticated analytics to help them target a shrinking pool of available talent. Some organizations, such as Raytheon and the North Shore Healthcare System, work closely with colleges and universities on programs that will help prepare graduates with the skills needed to enter the workforce.

Such tactics can help get talent through the door, but the best companies invest significant effort to construct career paths that keep employees interested, engaged and retained — and that provide qualified candidates for crucial midlevel management and director jobs.

The Pinball Approach to Career Development

The pinball approach is one of the two philosophies of career development. If companies take this approach, employees are expected to manage their own careers. Although they might have vast learning resources at their disposal, employees often receive little or no direction beyond the specifics required to do their jobs.

In such environments, most employees bounce from job to job like pinballs. One senior vice president of HR said employees sometimes bounce into the right job. But more frequently, employees drop through to the bottom of the machine and leave the company.