Young people today are increasingly
for instance, people tend to look up
focused on themselves, on their
to high-potential co-workers see
work-life balance. They are less
Different ladder, different story?
Putting the literature on talent management alongside postmodern careers literature, a twofold ‘talent management paradox’ seems to arise. First of all, talent management is simultaneously depicted as utterly outdated, and as more pivotal than ever for the competitive advantage of organizations. Second, talent management practices seem to be aimed at retaining exactly those employees who are most likely to leave. The current dissertation presents four chapters covering eight papers, each approaching the topic of talent management within the context of the postmodern career from a different vantage point. It aims to contribute to the field in a threefold manner: first, by integrating the careers literature with the talent management literature, thus creating a comprehensive framework; second, by building on empirical data collected from different talent management stakeholders (i.e. general
Different ladder, different story?
Dissecting the talent management paradox within the framework of the postmodern career
prepared to make sacrifices even
Different
so, people are still very sensitive about being promoted or not In this kind of organization, when you’re
you’re not that good at what you
l a d d e r
,
different s
t
o
r
y
and effort to take on this whole new role in the organization and I’m sure it’s gratifying when you succeed in a transition like that But you don’t really feel successful unless you get a real promotion or a rise and then there’s the fact that a lot of people are involved in project work all the
between employees some years after entry, and everyone is aware of this There’s really no use being secretive
?
do lateral moves can definitely be challenging. It takes up a lot of time
be jealous of them. It is standard procedure to start discriminating
not promoted or you don’t get a pay rise, it means they probably think
them as role models rather than
about who’s on the list and who isn’t. People will talk to each other anyway they’ll figure it out themselves. A
D i s s e c t i n g
t
h
e
decade ago, about 10 to 15 percent of our employees were considered high potentials. There were more
t a l e n t
opportunities to climb the ladder
management
them didn’t meet expectations we
paradox
But today we’re much stricter about
time, so every time you get started
back then and we figured, if some of could always take them off the list. who gets on the list in the first place it’s about 2 percent worldwide. For
on a new project, that’s already a
w i t h i n
t h e
instance, we’ll probably only pay
managers, HRM professionals, and individual employees identified as
lateral move So it doesn’t really mean anything unless it’s an upward move.
framework
for an expensive training program
high potentials); and third, by examining cross-level effects, in that different ‘talent categories’) are related to individual-level variables (i.e. career antecedents and outcomes).
Nicky Dries
www.vubpress.be
Nicky Dries
organization-level variables (i.e. the classification of employees into
It’s dangerous when the system is all about status. Then people start to think that you have to be on the list to be somebody The problem with that kind of mindset is that high potentials usually make up only a really
Dissertation submitted to obtain the degree of Doctor in Psychological Sciences Financial support: Research Foundation – Flanders (FWO TM490) Vrije Universiteit Brussel, 2009
career
Talented individuals can get stuck in the leadership pipeline when organizations in
do
developing
not them
succeed properly.
Organizations usually have a two to three-year vision, but then their
population, so that would imply
plateau Young people today are
translated into extra rewards and
ISBN 978 90 5487 670 0
postmodern
when a high potential is asking.
development
employees want to see extra effort
789054 876700
t h e
small portion of an organization’s that everyone else is frustrated. All
9
o f
recognition but when communication [about workforce segmentation] is
N i c k y
D r i e s
Advisor: Prof. Dr. Roland Pepermans
activities
reach
a
increasingly focused on themselves, on their work-life balance. They are less prepared to make sacrifices even so, people are still very sensitive about being promoted or not In this
too explicit, resentment between
kind of organization, when you’re
colleagues will probably arise. This
not promoted or you don’t get a pay
applies especially to the Belgian
rise, it means they probably think
culture. I get the impression that
you’re not that good at what you
in America for instance, people
do lateral moves can definitely be
tend to look up to high-potential
challenging. It takes up a lot of time
Different ladder, different story? Dissecting the talent management paradox within the framework of the postmodern career Nicky Dries
Print: DCL Print & Sign, Zelzate © 2009 Nicky Dries 2009 Uitgeverij VUBPRESS Brussels University Press VUBPRESS is an imprint of ASP nv (Academic and Scientific Publishers nv) Ravensteingalerij 28 B‐1000 Brussels Tel. ++32 (0)2 289 26 50 Fax ++32 (0)2 289 26 59 E‐mail:
[email protected] www.vubpress.be ISBN 978 90 5487 680 9 Legal Deposit D/2009/11.161/135 All rights reserved. No parts of this book may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the editor. Dissertation submitted in order to obtain the degree of Doctor in Psychological Sciences Advisor: Prof. Dr. Roland Pepermans Financial support: Research Foundation – Flanders (FWO TM490) Vrije Universiteit Brussel, 2009
Dissertation committee Supervisor: Prof. Dr. Roland Pepermans Vrije Universiteit Brussel Belgium Exam committee (in alphabetical order): Prof. Dr. John Arnold Loughborough University United Kingdom Prof. Dr. Geert Devos Vrije Universiteit Brussel Belgium Prof. Dr. Marie‐Anne Guerry Vrije Universiteit Brussel Belgium Prof. Dr. Luc Sels Katholieke Universiteit Leuven Belgium Prof. Dr. Raoul Van Esbroeck Vrije Universiteit Brussel Belgium Prof. Dr. Claartje Vinkenburg Vrije Universiteit Amsterdam The Netherlands
Thank you! Over the course of the last four years, many fabulous people have crossed my path, each of them contributing to my quality of life and the dissertation process I was going though (two distinct, but related constructs) in a different way. To all of these people, I would like to say: Thank you! You’re the best! I couldn’t have done it without you! For taking me on as a PhD student and supporting and guiding me all the way through the dissertation process: Thank you, Roland! For all of the social support, good times, and the great atmosphere at work (not to mention the many conversations about research and methodology): Thank you to all of my colleagues and former colleagues, Brigitte, Ellen, Frederik, Jan, Jemima, Jeroen, Joeri, Olivier, Peter, Rein, Sara, and Tim! For all of the social support outside of the workplace: Thank you to my dear friends and family! (And a special thank you to Jeroen for all the Luv.) And finally, thank you to all members of the academic community who provided me with great input, feedback and ideas; and thank you to all organizations who agreed to participate in the research!
Table of contents Introduction Chapter I. Exploring ‘real’ high potential careers
p. 1 p. 37
Paper 1. ‘Real’ high potential careers: An empirical study into the perspectives of organizations and high potentials Chapter II. High potential identification
p. 39
Paper 2. Identification of leadership potential: Is there consensus about ‘the’ criteria?
p. 73
Paper 3. Using emotional intelligence to identify high potentials: A metacompetency perspective
p. 107
Paper 4. High potential identification: Examining the developmental perspective Chapter III. Career outcomes in high potential careers
p. 139
Paper 5. The role of employability and firm‐specific capital in shaping the psychological contract: Do high potentials and long‐tenured employees get the better deal?
p. 165
Paper 6. Effects of the high potential label on performance, career success and commitment: A matter of communication? Chapter IV. Constructing ‘career’
p. 199
Paper 7. Exploring four generations’ beliefs about career: Is ‘satisfied’ the new ‘successful’?
p. 239
Paper 8. Career success: Constructing a multidimensional model Discussion
p. 267 p. 299
p. 71
p. 163
p. 237
Introduction
1
“It’s the talent, stupid!”. With this remarkable headline Buckingham and Vosburgh (2001) point out talent management as the number one concern for early 21st century human resource management professionals around the world. Despite the ever‐increasing popularity of talent management in the management practitioner literature, there has been strikingly little empirical research on the topic (Collings & Mellahi, 2009). On the one hand, we find publications adopting a strongly normative approach. Such articles typically list a set of best practices prescribed by management experts, or even, ‘gurus’ (Vinkenburg & Pepermans, 2005). On the other hand, we find literature about single‐organization cases from practice that are presented as success stories (e.g. Remdisch & Dionisius, 1998). Either way, neither one of these approaches is particularly well suited to capture the complex realities faced by organizations (Boudreau & Ramstad, 2005). There are, nonetheless, some streams of academic literature that may provide useful input for scholars interested in the topic of talent management. The careers literature, in particular, covers a large volume of interesting research on careers taking place both inside and outside of organizational career management structures (e.g. Hall, 2002; Rosenbaum, 1979). However, a paradox becomes apparent when comparing the management literature to the careers literature as concerns their views on talent management. Where the management literature identifies talent management as “a strategic imperative” (Ashton & Morton, 2005, p. 28), the careers literature, simultaneously, refers to talent management as “at best an anachronism, and at worst a false promise used to keep valuable employees in organizations” (Baruch & Peiperl, 1997, p. 356). So which statement is closer to the truth? Should talent management be buried alongside the traditional‐ organizational career, which, according to some voices in the careers literature is ‘dead’ (Hall, 1996)? Or can talent management (still) offer
2
added value to organizations and individual career actors alike, even in today’s ‘postmodern’ career context? In this dissertation, we attempt to bridge the gap between these two perspectives and integrate the talent management literature with the postmodern careers literature. Eight different papers are presented consecutively. Six of them report empirical studies directly concerned with the topic of talent management, set within in the postmodern career context. The last two papers focus on the meanings ‘career’ and ‘career success’ take on in the perceptions of individual career actors. Although only indirectly linked to talent management, these two papers are valuable contributions to this dissertation in that they explicitly deal with the postmodern turn in the careers literature: Postmodernism, also referred to as post‐positivist or constructivist thought, emphasizes plurality of perspectives, contextual impacts, social constructions of reality, and the importance of the meaning individuals give to their experiences (Hayes & Oppenheim, 1997, p. 24).
The first six papers integrate the postmodern careers literature as context, that is, as the framework within which the study results must be interpreted. The topicality of the papers varies in that some of them focus more on the organizational level of talent management (e.g. “based on which criteria are talented employees typically identified within organizations?”), whereas others focus more on the interactions of organizational‐level variables with individual outcomes (e.g. “what are the effects of receiving the ‘high potential’ label on organizational and career commitment?”). Each of the eight studies included in this dissertation links in to the overall research framework presented at the end of this Introduction in Figure I. This Introduction starts off with an overview of the historical evolutions that have taken place in the ‘world of work’ and, more specifically, how these evolutions have affected career theory and the definition of ‘career’. We then move on to include the talent management literature by discussing the apparent ‘talent management paradox’ between the careers literature and the management literature. We continue by describing some of the issues faced by talent management literature and practice in defining what ‘talent management’ means and how ‘high potentials’ should be identified and retained. We conclude by identifying a research gap from all of the above and outlining the structure of the current dissertation. At the end of this Introduction, we inserted a table (Table I) summarizing the research questions and methodologies for each of the eight papers presented in this dissertation.
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Setting the framework for the ‘postmodern’ career
Historical evolutions The historical evolution of the global economy, from being centered mostly around agriculture to the postmodern information era, has strongly shaped the framework and the boundaries within which individual careers can be enacted today. Around the onset of the 19th century, the industrial revolution marked the end of the agricultural economy, in which the dominant social institution was the family and young people simply inherited their parents’ occupations (Savickas, 2000). The dawning of the industrial economy was characterized by the appearance of large, bureaucratically structured organizations providing careers for life. Job security was all but guaranteed to employees, who reciprocated by offering their employers their loyalty and dedication. Since the typical organizational structure was hierarchical, ‘career’ implied vertical movement, and career success was defined by upward advancement on the corporate ladder (Savickas, 2000; Savickas et al., 2009; Van Esbroeck, 2008). Even today (and problematically so), the notion of hierarchical advancement within an organization remains associated with career success, although the organizational structures at the origin of this association have changed considerably (Arnold & Cohen, 2007; Miles & Snow, 1996; Sullivan, 1999). In the second half of the 20th century, society was transformed through globalization, and many organizations grew into multinational corporations. Scientific and technical evolutions brought societies worldwide into the information era. The postindustrial economy, characterized by the declining importance of manufacturing relative to information technology and knowledge management, was a fact (Van Esbroeck, 2008). As a result, organizational and societal structures changed dramatically. Economic globalization and the restructuring of organizations (e.g. through downsizing, delayering, outsourcing and offshoring) have fundamentally altered the structure and nature of jobs and careers (Maranda & Comeau, 2000). As many organizations have been ‘flattening’ their hierarchical structures, the traditional premises upon which careers relied appear to be fading. Organizations can no longer promise a career for the long term, as they could before when the economy was more stable and predictable (Savickas, 2000). Careers in today’s postmodern society are
4
no longer “logical, stable, depictable and predictable” (Van Esbroeck, Tibos & Zaman, 2005, p. 6). Careers have become a more or less unpredictable series of small steps made by individuals who are continuously negotiating work and non‐work aspects of life throughout their lifespan. As careers are no longer ‘owned’ by organizations, the responsibility for career management is now placed primarily in the hands of the individual employee, who must develop transferable skills and adaptive strengths to cope in an environment without definite securities (Savickas, 2000). Instead of being depicted as a ladder (the typical metaphor for steady upward movement), career can now be described as a ‘lattice’ (among other metaphors, see Inkson, 2004), enabling multiple career paths and possibilities for lateral job enrichment, rather than upward movement alone (Iles, 1997). Definitional evolutions In sync with the historical evolutions (re)shaping the nature and structure of careers, the definition of ‘career’ has evolved, as well. As a result of widespread organizational restructuring and economic uncertainties since the late 1980s, many of the traditional assumptions about careers no longer seem valid. As a result, it has been said that there is no longer a clear and consensual understanding of what career means, both for individuals and organizations (Adamson, Doherty & Viney, 1998). Below, we list some of the more established definitions of career found in the literature, organized from older to more recent definitions. Note that Hughes (1937) offers two definition, the first referring to the objective career, the second to the subjective career. Overall, the definition by Arthur, Hall and Lawrence (1989) appears to be the definition of career most frequently cited in the careers literature today (Arnold & Cohen, 2007). The moving perspective in which persons orient themselves with reference to the social order, and of the typical sequences and concatenation of office (Hughes, 1937, p. 409). The moving perspective in which the person sees his life as a whole and interprets the meaning of his various attributes, actions and the things that happen to him (Hughes, 1937, p. 413). A succession of related jobs, arranged in a hierarchy of prestige, through which persons move in an ordered (more‐or‐less predictable) sequence (Wilensky, 1961, p. 523).
5 The combination and sequence of roles played by a person during the course of a lifetime (Super, 1980, p. 282). The pattern of work‐related experiences that span the course of a person’s life (Greenhaus, 1987, p. 9). The evolving sequence of a person’s work experiences over time (Arthur et al., 1989, p. 8). A process of development of the employee along a path of experiences and jobs in one or more organizations (Baruch & Rosenstein, 1992, p. 478). The individual’s development in learning and work throughout life (Collin & Watts, 1996, p. 393).
Several communalities and differences can be identified among these definitions. First, all of these definitions refer to evolution or advancement in one way or another. This fact is hardly surprising when we consider the etymology of the term ‘career’. The word stems from the French ‘carrière’ which, historically, refers to ‘road’ or ‘race course’. Therefore, inherently, career implies following a route which has both direction and purpose (Dalton, 1989). Consequently, Adamson et al. (1998) argue that “without some logical sequence in the ordering of work experiences over time, the career journey would cease to have meaning” (p. 253). Second, while some definitions emphasize that careers take place in the work domain, others expand the career concept by relating it to the life domain as a whole. Viewing the concept of career as much broader than exclusively work‐related is typically advocated by sociologists (Adamson et al., 1998). The Chicago School of Sociology for instance, around the 1920s, studied the life histories of their local communities. The School was interested in social ecology, demography, urbanization and social deviance, and their goal was to study how people constructed their lives (e.g. Barley, 1989). When the Chicago sociologists talked about career, then, they were referring to a concept much broader in application than it is in everyday conversation (Adamson et al., 1998). One could assert, however, that by defining career so broadly it becomes almost indistinguishable from the concept of adult development (Adamson et al., 1998). In general, the meanings attributed to career differ somewhat across academic disciplines. Reviews of career theory seem to imply that the field is composed mainly out of psychological and sociological views (Arthur et al., 1989). Psychological theory focuses mostly on static dispositional differences and their implications on career outcomes, and
6
on career stage dynamics influencing occupational choice and career development. In addition, it focuses on how careers can contribute to personal growth, and how personal growth can in turn contribute to organizations and societies (Arthur et al., 1989). Sociological theory, on the other hand, is typically concerned with social class determinants of career. It studies the tension between voluntarism (i.e. choices determined by individual autonomy and free will) versus structure (i.e. choices determined by constraints, norms, and sanctions) and adaptation (i.e. changing people so that they can integrate into society) versus transformation (i.e. changing society in order to integrate people) (Maranda & Comeau, 2000). Arthur et al. (1989, p. 10) outline some more viewpoints on career, grounded in yet other disciplines (e.g. economics, political science, anthropology). We will not delve further into these other disciplines, however, as this would lead us too far. Either way, an important aspect of the careers literature is that it draws from different disciplines. Disciplinary boundaries are not seen as constraints; rather, interdisciplinary research is encouraged (e.g. Arthur, 2008). Throughout this dissertation, we will use literature stemming from psychology, sociology, economy and management. However, as our primary discipline is work and organizational psychology, it will predominantly focus on the concerns and wellbeing of the individual employee (rather than, for instance, on the tension between structure and agency). A third conceptual difference among the definitions of career cited above is that some of them refer to ‘jobs’ and ‘roles’, whereas others talk about ‘experiences’. These choices of words indicate whether career is considered from an objective or a subjective lens. One of the most noteworthy contributions of the postmodern careers literature is the recognition of the importance of the subjective career, that is, the sense individuals make of their personal career histories (Hall & Chandler, 2005). Now that the assumptions of career are becoming increasingly ambiguous, individuals’ personal sensemaking processes are moving to the forefront (Arnold & Jackson, 1997). Whereas the objective face of career is generally concerned with observable career attainments such as pay, promotions and functional level (Nicholson, 2000), the subjective career refers to an individual’s idiosyncratic perceptions of his or her own career and the resulting feelings of satisfaction or dissatisfaction (Greenhaus, Parasuraman & Wormley, 1990). Although virtually all career scholars acknowledge the distinction between the objective and the subjective career, Hall and Chandler (2005), among others, stress that careers are two‐sided and that both perspectives add value to our understanding of careers. One of the main contributions of
7
adopting a dual viewpoint of career is that it helps researchers avoid ‘reification’ – the fallacy of treating dynamic social constructs like career as if they were real, material, verifiable entities (Evetts, 1992). Traditional, generally positivistic, career theory may not (or no longer) be appropriate to grasp the complex and dynamic realities of postmodern‐day careers (Savickas, 2000). Theoretical evolutions Although career theory has notably evolved over the last four decades, several authors claim that it is still in a state of “developmental infancy” (Patton & McMahon, 2006, p. 7). Career theory has been criticized for lacking in comprehensiveness and coherence (Brown, 2002; Savickas, 2000), and for neglecting contextual issues while emphasizing individual variables (Brown, 2002). Also, career theory has been described as overly segmented, both when considering individual models and the disciplinary field as a whole (Arthur et al., 1989; Arthur, 2008). Career theories can be categorized according to several parameters (for an overview, see Patton & McMahon, 2006, p. 10). Patton and McMahon (2006), in their review of the literature, utilize ‘content’ and ‘process’ as their vantage point for categorizing career theories. Theories that focus on the content of career choice are typically focused on characteristics intrinsic to the individual or emanating from the context within which the individual functions (Patton & McMahon, 2006). Trait and factor theory (e.g. Parsons, 1909; Holland, 1973) is a prominent example of a ‘content’ theory. Career choice, according to this theory, involves matching individuals to jobs with the goal of satisfying their needs and achieving satisfactory performance levels. Over time, there has been an evolution from the rather static approach of trait and factor theory, where a person is matched to an occupation, to the more dynamic approach of person‐environment fit (e.g. Dawis & Lofquist, 1984). The latter theory implies ongoing reciprocal adjustment as environments are influenced by individuals and vice versa (Patton & McMahon, 2006). ‘Process’ theories (also known as developmental theories), on the other hand, emphasize career stages and change over time (Patton & McMahon, 2006). A particularly well‐known process theory is life‐span life‐space theory (Super, 1953). This theory stresses the importance of also attending to non‐work variables in studies of career. Work roles,
8
family roles, educational roles and community roles all interact in shaping individual careers; furthermore, the significance of each role for a certain individual depends on his or her personal makeup and the developmental stage the person is in (Herr, 1997). More recent theoretical work has attempted to take both content and process variables into account, as well as the role of cognition in the process (Patton & McMahon, 2006). Systems theory, for example, incorporates individual systems as well as higher‐order systems into one model of career (e.g. McMahon & Patton, 1995). At the individual level, variables such as gender, age, interest, abilities, and personality influence career outcomes. At the macro level, career is shaped by the family, the community, labor market trends, geographical location, and other contextual variables. The interaction between these different systems is characterized by recursiveness, ongoing change, and chance factors. An essential feature is that changes in any one part of the system impact the system as a whole (Amundson, 2005). The current careers literature identifies two main avenues for advancing career theory: first, allotting a more central role to the notion of constructivism, and second, striving for convergence and theoretical integration of the many different career theories (Patton, 2008). As for the challenge of theory integration, some career scholars have come to the conclusion that the complexities that occur within and between career actors’ traits and environments are simply too complicated to capture in theoretical models and that therefore, we should stop trying to do so, and look at careers at the individual level alone (Brown, 2002). This fits in perfectly with the notion of constructivism, which states that reality can only be understood as a subjective experience (e.g. Hayes & Oppenheim, 1997). Constructivism represents an epistemological stance that distances itself from ‘one true career reality’ and instead, emphasizes the self‐organizing and self‐managing position of the individuals having the careers. Thus, the constructivist view of career reflects perfectly the historical and definitional evolutions that have been taking place over the last decades (Savickas, 2000). Despite Brown’s (2002) statement that the divide between positivistic and constructivist approaches to career is causing “convergence among theories and the development of an integrative theory to be less likely today than ever” (p. 15), other authors (e.g. Patton & McMahon, 2006) are convinced that this gap can be bridged, and that both perspectives can contribute to a holistic understanding of career.
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The talent management paradox Now that we have demarcated the general evolutions that have shaped the context within which careers are enacted, we move one step further to include the (limited) literature on talent management into our argumentation. We will go much deeper into the various definitions ascribed to talent management later on in this Introduction, but for now, we adopt the following working definition of talent management: Talent management is the systematic attraction, identification, development, engagement/retention and deployment of those individuals who are of particular value to an organization, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation‐critical roles (UK Chartered Institute of Personnel and Development, 2009, p. 2).
Putting the literature on talent management alongside postmodern careers literature, a twofold ‘talent management paradox’ seems to arise. First of all, talent management is simultaneously depicted as utterly outdated (in the careers literature, e.g. Baruch & Peiperl, 1997), and as more pivotal than ever for the competitive advantage of organizations (in the management literature, e.g. Buckingham & Vosburgh, 2001). Second, talent management practices seem to be aimed at retaining exactly those employees who are most likely to leave (e.g. Tulgan, 2001). Postmodern careers literature, which commonly advocates the ‘death’ of the traditional‐organizational career, describes talent management as “at best an anachronism, and at worst a false promise used to keep valuable employees in organizations” (Baruch & Peiperl, 1997, p. 356). The authors argue that organizations operating within the current turbulent economic environment can no longer promise long‐term employment to employees, let alone rapid upward progression on the corporate ladder. This means that the very principle underlying talent management programs – that hard work and the display of exceptional talent will be rewarded by internal career opportunities – is threatened (Tulgan, 2001). At the same time, however, the management literature refers to the second ‘war for talent’ as the critical human resource management (HRM) challenge of the early 21st century (Michaels, Handfield‐Jones & Axelrod, 2001). The war for talent is believed to be the result of mainly demographic and psychological contract drivers. As for the demographic situation, structural shortages are starting to surface in the labor market due to reduced birthrates, a larger relative percentage of older
10
employees, and massive retirements (e.g. Guthridge, Komm & Lawson, 2008; Sels, Van Woensel & Herremans, 2008). With respect to the psychological contract between employers and employees (i.e. “individuals’ beliefs regarding the terms and conditions of the reciprocal exchange agreement between themselves and their employers”, Rousseau, 1989, p. 123), it has been said that it is now characterized by decreased employee loyalty and increased employee cynicism, brought about by the fact that job security is no longer available to many employees (e.g. Sullivan, 1999). One possible way to interpret the talent management paradox is by assuming that talent management practice is (hopelessly) running behind (Baruch & Peiperl, 1997). However, despite the fact that both talent management and ‘the career’ have been declared dead repeatedly over the last few decades, a volume of research indicates that claims about the shift from traditional‐organizational to more ‘boundaryless’ career types have to be put into perspective (e.g. Granrose & Baccili, 2006; Guest & Mackenzie Davey, 1996; Sullivan, 1999; Walton & Mallon, 2004). A second take on the talent management paradox involves assuming that traditional‐organizational careers can, in fact, still exist, but only for ‘privileged’ groups such as employees identified as high potentials. We opted for the following working definition of ‘high potentials’: Those individuals within an organization who are recognized, at that point in time, as the organization’s likely future leaders (Cope, 1998, p. 15).
However, it is quite plausible that exactly those employees who are still in a position to receive internal career benefits such as job security and upward advancement opportunities are also those who are most likely to thrive in the postmodern career landscape (e.g. because they have the highest levels of employability), and are thus most likely to leave (Dyer & Humphries, 2002; Tulgan, 2001). In what follows, we will dig deeper into the different aspects composing the talent management paradox outlined here. We start out with an overview of the arguments raised in the postmodern careers literature as to the death of the traditional‐organizational career, which we counterbalance by reviewing several lines of critique on these arguments. We then continue with an overview of the literature on talent management and high potentials, and identify from all of the above the research gap that sparked this dissertation.
11
The career is dead, long live the career “The career is dead, long live the career!”. The title of this renowned book (Hall, 1996) accurately captures the state careers research is in today. The postmodern careers literature appears to actively sponsor the idea that while the traditional‐organizational career is dead, the ‘boundaryless’ career is alive and flourishing (Guest & Mackenzie Davey, 1996). The boundaryless career, rather than representing any single form of career, encompasses “a range of possible forms that defy traditional employment assumptions” (Arthur & Rousseau, 1996, p. 6). As careers researchers are uncovering more and more ‘new’ career patterns, their vocabulary and lexicon for describing these patterns is evolving accordingly (Dickmann, Brewster & Sparrow, 1999). Apart from boundaryless careers (which seems to be the most popular concept), there have also been accounts of ‘kaleidoscope’ (e.g. Mainiero & Sullivan, 2005), ‘postindustrial’ (e.g. Gershuny, 1993) and ‘protean’ careers (e.g. Hall, 1976). The term ‘boundaryless career’ was used for the first time somewhere in the early 1990s, and was the theme of the 1993 Academy Of Management conference. Although, in empirical papers, boundaryless careers are often operationalized as careers characterized by inter‐ organizational mobility at one point or another, its original definition was meant to be much broader. Arthur and Rousseau (1996) described six different but interrelated meanings of the boundaryless career. First, boundaryless careers are careers that transcend the boundaries of different employers. Second, boundaryless careers are careers that draw validity and marketability from outside the present employing organization. Third, boundaryless careers are careers that are sustained and supported by external networks. Fourth, boundaryless careers are careers that challenge traditional assumptions about career advancement and movement up through an organizational hierarchy. Fifth, boundaryless careers are careers in which individuals reject opportunities for advancement in favor of personal or family reasons. And sixth and final, boundaryless careers are careers that are based on the actor’s interpretation, who may see their career as boundaryless regardless of contextual constraints. A common factor among these six meanings is that each of them refers to the weakening ties between employees and organizations (Arnold & Cohen, 2007). However mainstream the notion of the boundaryless career may have become in the postmodern careers literature, signs are that it may not be completely attuned to the experiences career scholars and actors are (still) having in practice. Below, we build on three lines of critique
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formulated against the proclaimed pervasiveness of boundaryless careers in the contemporary career context. The career is dead… but not very much so. First, it is not at all clear whether the boundaryless career literature’s claims about the speed and inevitability of the emergence of boundaryless careers are justified (Guest & Mackenzie Davey, 1996). Although there is little discussion over the fact that opportunities to pursue a stable, single‐employer career are, indeed, in decline (Arnold & Jackson, 1997), the current literature may overestimate the changes that have been taking place, particularly about the capacity of individual employees to enact their careers as ‘free agents’ (Tulgan, 2001). The promotion of ideals that have either never existed, or are only achievable by a small segment of the total labor force, might prove hazardous to individual career actors and organizations alike (Evetts, 1992). Several studies conducted in countries all over the world (e.g. Bouffartigue & Pochic, 2001; Granrose & Baccili, 2006; Jacoby, 1999; Lundberg & Peterson, 1994; McDonald, Brown & Bradley, 2005; Sullivan, Carden & Martin, 1998) have concluded that “although the boundaries of career have shifted, they have not melted into thin air” (Walton & Mallon, 2004, p. 77). One specific reservation about the boundaryless career is the transferability of the concept beyond the US, the cultural importance people attach to security and the extent of employee union influences in the labor market being central to the discussion (Hirsch & Shanley, 1996; Meyer, 1995; Sullivan, 1999). Several authors have criticized the postmodern careers literature for its overly simplistic ‘dichotomization’ of traditional‐organizational careers versus boundaryless careers (e.g. Arnold & Cohen, 2007). Career scholars seem to have the tendency to portray the past as stable, predictable and secure, and the present as turbulent and ever‐changing, thereby exaggerating the amount of change that has taken place and forsaking the nuance that is needed to study the complexities of the current‐day career reality (Arnold & Cohen, 2007; Cullinane & Dundon, 2006; Evetts, 1992). Careers are not actually ‘boundaryless’. Rather, some of the boundaries that used to hinder certain forms of career mobility have become more permeable (Sullivan, 1999). Riley (1995) fittingly sums up: If it is assumed that many career paths and skill accumulation patterns adapt and survive in a changing world, then this is as valuable a focus for analysis as are the much championed changing patterns. The case is basically that, if a true portrait of the labor market is the objective, the stable dynamics of labor markets are as important as the changing dynamics (p. 196).
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The career is dead… and that is not (necessarily) a good thing. A second line of critique asserts that, although the boundaryless career literature enthusiastically promotes the benefits of boundaryless careers, its discourse is potentially harmful for weaker employee groups (e.g. Dyer & Humphries, 2002; Van Buren, 2003). According to Arthur and Rousseau (1996), both employees and employers can benefit equally from the new boundaryless career ‘reality’. Employers can gain from the flexibility that these new types of career bring about, as well as from the fact that their employees must engage in continuous (self‐ managed) development in order to remain employable. Employees, from their side ‐ although they are now required to carry more personal responsibility for their careers – have been empowered to pursue personal fulfillment without having to adhere to the rules of organizations. Furthermore, Arthur and Rousseau (1996) suggest that having a boundaryless career can increase personal earning potential. Despite the possible benefits accompanying boundaryless careers, downsides can be identified as well. Potential downsides include the underemployment of workers, reductions in organizational training and development initiatives, and the lack of personal identification of employees with their organizations (Arnold & Cohen, 2007; Hirsch & Shanley, 1996; Sullivan, 1999). Especially more vulnerable employee groups, such as women, ethnic minorities, and poorly educated people have experienced disproportionate declines in job stability (Sullivan, 1999). Sennett (1998) asserts that “without clear paths, individuals are left vulnerable to a sense of aimlessness which constitutes the deepest sense of anxiety” (p. 120). This statement, however dramatic, is grounded in the notion that in general, employees prefer secure employment relationships since there are personal and financial costs associated with changing jobs (Van Buren, 2003). For organizations as well, there are downsides to the boundaryless career. Fournier (1998), for example, states that it encourages a ‘consumerist’ career mentality, reducing organizations to tools merely there to help equip employees with the resources they need to develop their personal projects. Gunz, Evans and Jalland (2000) have raised the critique that the boundaryless careers literature, rather than offering a new theoretical framework for studying careers, seems to present normative prescriptions. Furthermore, its discourse has been said to serve the needs of the current‐day ‘ruthless economy’ in that it enables organizations to get rid more easily of as many costly permanent workers (and their benefits) as needed (Richardson, 2000; Van Buren, 2003). Traditionally, there was some element of mutuality and risk‐
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sharing in the employment relationship between employees and employers. In the boundaryless career model, however, employees run the risk that their investments in firm‐specific capital will not be reciprocated by long‐term internal employment prospects (Van Buren, 2003). Labeling it the ‘new’ career conveniently implies that these changes are inevitable and have already taken place (Hallier & Butts, 1999). The career is dead… but not for everyone. As for the third line of critique, although the boundaryless career literature typically assumes that “the best employees are thinking like free agents” (Tulgan, 2001, p. 104), the opposite seems to be true. Rather than thinking like free agents, ‘the best’ are the ones to whom organizations still offer internal career opportunities (which, on average, they gladly accept), such as entering in a high potentials program (Viney, Adamson & Doherty, 1997). Indeed, several authors (Noon & Blyton, 2002; Richardson, 2000; Van Buren, 2003) have observed a growing ‘bifurcation’ of the labor market between those who are in a position to benefit from the postmodern career environment and those who are not. It has been said that the boundaryless career concept is only advantageous for those employees who were formerly also privileged in traditional career settings (i.e. highly motivated, high‐skilled white‐collar employees) (Dyer & Humphries, 2002). A two‐tiered workforce thus arises. The small top‐tier of highly sought‐after employees is in a strong bargaining position relative to their employers, which enables them to demand and receive traditional career benefits (‘winner‐take‐all’); the large second tier is composed of employees whose skills are more replaceable, rendering them ‘expendable’ (Van Buren, 2003). Research on the psychological contract has, indeed, found that organizations engage in workforce segmentation, delineating at least two types of employees (i.e. ‘core’ and ‘periphery’ employees) with differential access to career opportunities (Rousseau & McLean Parks, 1993). For the core employees, the traditional‐organizational career is still intact and the hierarchy remains in place, albeit somewhat reduced (Guest & Mackenzie Davey, 1996). These core roles are reserved for the best people (e.g. those identified as high potentials). Viney et al. (1997) report a fitting quote from a HR manager: What we are trying to hang on to indeed is the concept that the high potential does still have a career. We are still recruiting a large number of people, we are investing in their training and development, and we do want them to hang on with us (p. 179).
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As high potentials advance through the organization’s hierarchy, they focus their talents on maintaining and promoting the organizational culture, mission, and goals, assigning work, and holding people accountable for results. In sum, they ensure continuity in terms of the organization’s resources (Jerusalim & Hausdorf, 2007; Tulgan, 2003). The ‘war for talent’ Together with the proclaimed death of the traditional‐organizational career, organizational talent management has been said to be outdated and out of touch with the current‐day needs of organizations and individual career actors (e.g. Baruch & Peiperl, 1997). However, there is a huge gap between the views put forward in the careers literature with regard to talent management, and those put forward in the management literature. In fact, ever since a group of McKinsey consultants launched the expression ‘war for talent’ in 1997, the topic of talent management has become increasingly popular in the management literature around the world (Michaels et al., 2001). The war for talent seems to be grounded in two main assumptions. First, that the importance of human capital (especially in terms of leadership) for organizations’ competitive advantage is increasing. Traditional sources of competitive advantage are losing their edge as organizations today are operating within the context of a knowledge economy. Leadership, on the other hand, is a potentially renewable resource that cannot easily be copied or stolen by competitors. Furthermore, it is said that only through effective leadership a firm can identify and exploit other sources of potential competitive advantage, by doing so staying ahead of competitors in a rapidly changing economic context (McCall, 1992). The second assumption is, that attracting and retaining talented human capital is becoming harder due demographic and psychological contract evolutions (Tucker, Kao & Verma, 2005). Demographic drivers. The majority of employers worldwide (both in emerging economies such as China and India and in developed economies such as the United States and Western Europe) are reporting difficulties in findings and retaining talented employees (Tarique & Schuler, 2009). However, demographic trends differ across different parts of the world. Whereas in a US or European setting, the problem lies with the impending retirement of large groups of older employees and the fact that fewer and fewer young people are entering the
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workforce, in other parts of the world, there appears to be an oversupply of young workers (Guthridge et al., 2008). Although, in the European Union, younger workers are on average achieving higher levels of education, demand for educated workers is still not being met (Tucker et al., 2005). As for Belgium, demographic trends predict that the working‐age population will stop increasing from the year 2015 onwards. After 2020, it will start shrinking, causing a decrease in potential labor market participation (Sels et al., 2008). Although Western organizations have been ‘eyeing’ young talent from emerging economies willingly, question marks remain over the transferability of this source of talent (Guthridge et al., 2008). The term ‘war for talent’ is largely grounded in the ascertainment that demand for skilled people is slowly but surely outpacing supply (Tulgan, 2001). Furthermore, there is no reason to believe that this trend will go into reverse in the foreseeable future (Hiltrop, 1999). Psychological contract drivers. In the recent careers literature, there has been a renewed interest in the psychological contract (Hess & Jepsen, 2009). In general, it is assumed that as organizations are increasingly less able to promise stable, long‐term careers, career actors are distancing themselves from their organizations in turn (Hiltrop, 1999; Tulgan, 2001). Since ‘employment’ is no longer a given for employees, they must now pursue ‘employability’ and acquire transferable skills that make them more attractive to the labor market as a whole. As a consequence, employee loyalty towards their employing organizations is said to have decreased dramatically (Sullivan, 1999).This means that, on top of the demographic shifts that are causing a decrease in labor market participation in its entirety, psychological contract dynamics are making it harder to retain talented employees. However, instead of concluding from all of this that talent management is no longer workable (e.g. Baruch & Peiperl, 1997), the opposite conclusion is equally valid. Rather than stating that organizations with stable, established career structures have missed out on important developments, one could argue that they are in a better position to face the war for talent. After all, research has indicated that many ambitious young managers still think in traditional career terms (Guest & Mackenzie Davey, 1996). Organizations that rely primarily on external hiring to ‘buy’ the knowledge they lost by way of turnover and retirements might find that strategy to be decreasingly effective. Before the demographic shift, when the talent supply exceeded demand, external hiring may have made sense as a primary strategy. However,
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the talent pool is now shrinking, and the demand for talent is escalating. Even if leadership talent could be bought, the competitive costs will continue to increase (Calo, 2008). What is ‘talent management’, anyway? One of the more unfortunate characteristics of the talent management literature is its tendency to slide off into rather vague rhetoric (Collings & Mellahi, 2009; Lewis & Heckman, 2006). For instance, Ashton and Morton (2005) declare that “good talent management is of strategic importance”, although they cannot provide “a single consistent or concise definition” (p. 28). A recent UK survey by the Chartered Institute of Personnel and Development (2009) found that while 51% of the organizations surveyed engaged in some form of talent management, only 20% of them worked with a formal definition of the concept. Findings such as these raise the question of how talent management can be used to the strategic benefit of organizations when they cannot even succeed in establishing a definition for it. As a result, talent management runs the risk of being merely a management ‘fad’ organizations run along with because all of their competitors are doing so. Furthermore, many organizations seem unwilling to explicitly delineate what talent management does and does not mean as they believe that talent management is a ‘mindset’ rather than a bundle of HRM practices (Creelman, 2004), or because they like to use the term ‘talent’ as a euphemism for ‘people’ in light of employer branding (Lewis & Heckman, 2006). Defining ‘talent management’ and ‘high potentials’ Below, we provide an overview of seven explicit definitions of talent management we found in the recent literature (on top of our working definition adopted from the UK Chartered Institute of Personnel and Development, 2009): Talent management is defined as ‘integrated’ when several of the following eight categories of initiatives interrelate with each other to create a holistic approach to talent: recruitment, retention, professional development, leadership/high potential development, performance management, feedback/measurement, workforce planning and culture (Morton, 2004, p. 3). Talent management encompasses managing the supply, demand, and flow of talent through the human capital engine (Pascal, 2004, p. 9). Talent management is the systematic attraction, identification, development, engagement/retention and deployment of those individuals who are of
18 particular value to an organization, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation‐critical roles (UK Chartered Institute of Personnel and Development, 2009, p. 2).
In its broadest sense, the term can be seen as the identification, development, engagement, retention and deployment of talent, although it is often used more narrowly to describe the short‐ and longer‐term resourcing of senior executives and high performers (Warren, 2006, p. 26). High potential identification and development (also known as talent management) refers to the process by which an organization identifies and develops employees who are potentially able to move into leadership roles sometime in the future (Jerusalim & Hausdorf, 2007, p. 934). At its heart, talent management is simply a matter of anticipating the need for human capital and then setting out a plan to meet it (Cappelli, 2008, p. 1). We define strategic talent management as activities and processes that involve the systematic identification of key positions which differentially contribute to the organization’s sustainable competitive advantage, the development of a talent pool of high potentials and high performing incumbents to fill these roles, and the development of a differentiated human resource architecture to facilitate filling these positions with competent incumbents and to ensure their continued commitment to the organization (Collings & Mellahi, 2009, p. 2). (Global) talent management is about systematically utilizing HRM activities to attract, develop, and retain individuals with high levels of human capital (e.g. competency, personality, motivation) consistent with the strategic directions of the (multidimensional) enterprise in a dynamic, highly competitive, and global environment (Tarique & Schuler, 2009, p. 7).
A first observation is that some of these definitions are quite vague. Furthermore, most of the above definitions of talent management are quite broad, encompassing almost all domains of traditional HRM. Moreover, several of these definitions refer to ‘talent’ as the target audience for talent management without explicitly stating which employees in organizations should be considered as talented. The reason we adopted the UK Chartered Institute of Personnel and Development (2009) definition as our working definition is because, although broad, it provides specifics about both which HRM practices should be involved and which employee groups should be targeted. Lewis and Heckman (2006), in their review of the relevant literature, identified three streams of talent management definitions. The first stream defines talent management as a collection of typical HRM practices, such as recruitment, selection, development, career management and succession planning. The second stream focuses on the projection of staffing needs and the progression of employees
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through the organization’s leadership pipeline. The third stream considers talent generically, that is, without regard for organizational boundaries or specific positions. Collings and Mellahi (2009) add a fourth stream to the list, which emphasizes the identification of key positions, rather than key people, in organizational structures. This latter interpretation of talent management, however, strikes us as rather odd considering the historical shift in HRM from job‐based to competency‐based levels of analysis (e.g. Lawler, 1994). More problematically, however, is that the majority of the definitions of talent management do not define what ‘talent’ is and, consequently, on which employees talent management should be focusing. The segments of the workforce to which the term ‘talent’ might apply can range from a select group of potential future leaders to the whole of the workforce (Garrow & Hirsch, 2008). For instance, a study by Leigh (2009) uncovered that just under half of the twenty companies interviewed indicated that they understood ‘talent’ to mean everyone in the organization. The diversity versus the elitist perspective. To our knowledge, there has been no research to date about the possible advantages and disadvantages of investing selectively in talent, versus investing in talent in general (Lewis & Heckman, 2006). At one extreme, talent management can be seen as encompassing all employees in the organization (Ingham, 2006). The ‘diversity’ perspective on talent management advocates that all employees have some form of talent and that, consequently, talent management should be aimed at developing all employees to the best of their abilities (Bossuyt & Dries, 2008). No matter how appealing the diversity perspective on talent management sounds, more arguments are found in the talent management literature in favor of a more ‘elitist’ perspective. For instance, Boudreau and Ramstad (2005) argue that identifying pivotal talent pools – those groups for which small improvements in quality or quantity generate large returns on measures of strategic interest – should be a central feature of any talent management program. Similarly, Collings and Mellahi (2009) assert that focusing mainly on high potentials facilitates a more deliberate exploitation of organizational resources. Chuai, Preece and Iles (2008) describe employee segmentation as exactly that feature of talent management that distinguishes it from general HRM, which is more egalitarian by nature. In contrast, talent management perceives the needs of core and periphery employees as noticeably different (Ledford & Kochanski,
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2004). Finally, Lin (2006) views employee segmentation as a logical application of labor economics. If not for segmentation, the author reasons, all employees would be treated as equally valuable, regardless of their performance, competence, potential or other characteristics that might distinguish them from each other. Such an approach might then create unnecessarily high costs in terms of recruitment, selection, training and development, and reward management (Lin, 2006). High potentials. In the elitist perspective, the term ‘talent’ (as referring to an individual) is more or less equated with the term ‘high potential’, referring as a rule to employees with leadership potential (Jerusalim & Hausdorf, 2007). We should add, however, that in organizations whose core business is grounded in manufacturing or technology, talent management can also be strongly aimed towards expert profiles, instead of solely towards future leaders (e.g. Rothwell & Poduch, 2004). The most common focus of talent management, however, addresses the future supply of leaders through the leadership pipeline (Garrow & Hirsch, 2008). In defining what a high potential is, an important consideration is that while ‘talent’ refers to a personal attribute or characteristic, ‘high potential’ is a label given to employees by employers based on assessments of their performance and potential (i.e. demonstrations of talent) (Vinkenburg & Pepermans, 2005). For the concept ‘high potential’, as well, several different definitions are found in the literature. Earlier in this Introduction, we already cited the definition of Cope (1998), which we consider concise and to the point. Below, we list some more definitions: High potentials are employees with ultimate potential who will move up the hierarchy into increasingly important management positions and eventually reach a position close to the top. They advance and change roles faster than their peers; their careers are carefully monitored and managed; they are a small and elite group; they are on a secret list, so that they can be moved on and off according to the list‐keepers judgment; they are healthy and dedicated, and the company can count on their stamina and their willingness to make the necessary personal sacrifices to continue their fast‐paced career paths (Derr, Jones & Toomey, 1988, p. 275). High potentials are very ambitious, creative, independent and intelligent employees that possess leadership potential. Managing these employees demands a variety of strategies, and mismanaging them will cost the organization a great deal (Gritzmacher, 1989, p. 422). High potentials are people identified as being able and willing to ascend the corporate ladder (Iles, 1997, p. 347).
21 High potentials advance at a younger age than their peers, and they are part of an ascendancy group considered to be the company’s future leadership pool (Roussillon & Bournois, 2002, p. 58). Those individuals within an organization who are recognized, at that point in time, as the organization’s likely future leaders (Cope, 1998, p. 15). High potential employees embody passion and are characterized by a quick movement through various roles in a company, a carefully monitored career path and an elite, but usually secretive, status. As the future leaders of their organizations, high potentials slide into new positions, receive special coaching and mentoring, and are expected to deliver superior performances (Snipes, 2005, p. 54).
Looking at these definitions, it is clear that the concept of ‘high potential’ is closely linked to the traditional understanding of career and career success. Altman (1997) states, in reference to the adjective ‘high’: “an adjective indicating success in obtaining desired outcomes, with ‘high’ denoting magnitude as well as level, an inference to the echelons of the pyramidal hierarchy”. As for potential, it “denotes possibilities, promise and latent action. Potential implies a framework within which to develop and materialize” (p. 324). Issues with high potential identification One step further from defining what ‘high potentials’ are, is establishing the criteria organizations should use to decide which of their employees should be identified as high potentials. The model of high potential identification described by most large organizations is very much similar to the sponsored mobility model of career progression that has had a long history in the management literature (e.g. Rosenbaum, 1979). According to this model, the ultimate career ‘destinies’ of employees within their organizations need to be determined as early as possible. At the very beginning of their careers, those who are ‘destined’ for upper management need to be singled out from average employees, and given differential treatment in terms of organizational socialization and training (Ishida, Su & Spilerman, 2002). However, many organizations struggle with the early identification of leadership potential (Briscoe & Hall, 1999; Spreitzer, McCall & Mahoney, 1997). The simplest (but also the most naïve) solution is to equate potential with current job performance. However, organizations are strongly advised against rating potential and performance at the same time, and by the same rater (e.g. the direct supervisor), in the appraisal cycle due to the risk of ‘halo bias’ (e.g. Fields, 2002). Halo bias occurs when a rater adapts his or her ratings on one of two (or more) separate
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assessments so that the overall assessment appears consistent. Research has demonstrated that supervisors are finding it very hard to rate an employee low on potential when he or she has achieved excellent performance ratings over the course of the evaluation period (Pepermans, Vloeberghs & Perkisas, 2003; Segalla, Rouziès & Flory, 2001). Another typical pitfall in high potential identification is ‘right stuff’ thinking. The right stuff is whatever leads to a continuous high performance, also in new or challenging situations (McCall, 1998). Organizations typically attempt to capture it in competency profiles, which are often based on the profiles of their currently successful executives. Such an approach has been called the selection perspective on high potential identification; an alternative approach is the development perspective (Briscoe & Hall, 1999). The selection versus the developmental perspective. The selection perspective on high potential identification departs from the notion that we should identify high potentials based on their resemblance to successful predecessors. In other words, organizations following this perspective assume that knowing what made past leaders within the organization successful makes it easier to identify future leaders (Reilly, 2008). Traditionally, organizations looked for innate attributes (e.g. intelligence, personality traits) in their high potential identification procedures. More recently, however, and mirroring a general trend within the HRM field (e.g. Lawler, 1994), there has been a shift towards competency‐based high potential identification (Briscoe & Hall, 1999). The advantage of the competency‐based approach over the innate abilities approach is that it does not necessarily assume that “leaders are born, not made” (a typical assumption of traditional leadership theory, Cawthon, 1996, p. 44). Rather, competencies might be developed and improved through experience and training (Reilly, 2008). However, the competency approach to high potential identification has been the subject of recent critique, as well. For instance, McCall (1998) states that the selection perspective on talent management unrealistically expects that junior staff is able to visibly exhibit competencies typical of successful, experienced executives. Furthermore, by identifying high potentials based on the competency profiles of currently successful executives, “we risk choosing people who fit today' s model of executive success rather than the unknown model of tomorrow” (Spreitzer et al., 1997, p. 6), since competency frameworks need to be revised every few years un order to keep up with unfolding business and leadership challenges (Briscoe & Hall, 1999).
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An alternative approach is to adopt a developmental perspective to high potential identification. The premise of this perspective is that if people learn, grow and change over time (and consequently, acquire new competencies), then comparing with the competencies of 50‐year‐olds will not be totally informative (Spreitzer et al., 1997). The developmental perspective departs from the idea that the ability to learn from experience is the most important indicator of leadership potential (McCall, 1998; Spreitzer et al., 1997). Briscoe and Hall (1999) describe two overarching ‘metacompetencies’ that affect an individual employee’s capacity to develop new competencies when the environment requites so: ‘adaptability’ and ‘identity’. Adaptability, as a metacompetency, helps an individual to identify what he or she must learn in order to reach personal goals concerning future performance, and the motivation that is needed to engage in learning. Additionally, the identity metacompetency relates to an individual’s self‐concept and his or her ability to form accurate self‐perceptions based on feedback from (learning) experiences. Postmodern careers require that career actors develop the ability to self‐correct in response to new and unfamiliar demands from their environment, “without waiting for formal training and development from the organization” (Hall & Moss, 1998, p. 31). Issues with high potential retention “You go through a long selection process to identify people who fit positions in your organization chart, bring them in with sweetheart deals, spend lots of time, energy, and money training them. Then what happens? Sometimes they stay, and sometimes they go”. In this quote, Tulgan (2001, p. 50) adequately sums up the concerns organizations have about the return on investment their talent management procedures might (or might not) generate. Organizations are sometimes hesitant to invest in talent management at all since they are afraid that, in an era of ‘job hopping’, their high potentials will leave sooner or later anyway (Boudreau & Ramstad, 2005). Galpin and Skinner (2004), in their survey of employees identified as high potentials, found that 50 per cent of them expected to leave their current organization within two to five years, and 82 per cent within five years. Given that high potentials are identified in light of their long‐term rather than their immediate contributions, and given the degree of investments involved in talent management, this is clearly an issue of concern for organizations (Calo, 2008).
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The reasons why high potentials leave their organizations often relate back to their bargaining position in the labor market – an issue already mentioned earlier in this Introduction, in the section on labor market ‘bifurcation’ (Van Buren, 2003). Put simply, high potentials leave organizations to pursue other career opportunities because they can (Tulgan, 2001). High potentials are typically employees who are highly motivated, highly skilled and highly employable. Therefore, apart from being in the core employee segment organizations want to retain, they will also be highly sought after by other organizations. As a result, “the winner takes it all” (Van Buren, 2003, p. 134), and high potentials might find themselves in the comfortable position of receiving the majority of internal career opportunities within their organizations without having to offer loyalty in return (Tulgan, 2001). The question is whether these dynamics need necessarily discourage organizations of investing in talent management. Several authors believe they should not. Calo (2008) describes how consistently relying on external hires to fill leadership positions causes lower organizational loyalty, both at the leadership level (which is filled with external hires) of the organization and at the lower levels of the organization, where employees perceive that they are being systematically passed over for promotion opportunities. Furthermore, the symbolic value of organizational career management programs should not be underestimated. For instance, Pfeffer’s (1981) symbolic action theory suggests that the mere presence of organizational policies and management practices can influence employee attitudes. Talent management seeks to develop internal talent, which should be viewed more favorably by employees than hiring from outside the organization. Organizational practices that are discretionary (i.e. not required by law, not a result of union negotiations) and have not been institutionalized across all organizations can signal the firm’s core values and operating philosophy. Organizations that invest greater time and resources in human resource management activities are signaling to employees that they care for them and are willing to offer them ‘special treatment’ (Pfeffer, 1981). In addition, social exchange theory proposes that, subsequently, as one party (the organization) benefits to another party (the high potentials), a sense of obligation is created that requires the latter party to reciprocate in some way (Eby, Allen & Brinley, 2005). Nonetheless, organizations still report en masse that they are struggling with the ‘retention’ aspect of talent management (Vloeberghs, Pepermans & Thielemans, 2005).
Figure I. Research framework.
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Dissertation outline Identification of a research gap The (limited) literature on talent management is grounded in anecdote and conjecture rather than in actual data collected from real‐life organizations and career actors (Collings & Mellahi, 2009). Lewis and Heckman (2006) assert: Given the state of affairs in the practitioner literature, it is distressing that talent management does not appear to be a term with currency in the academic literature (p. 143).
Over the course of the last few decades, there have only been a handful of empirical studies addressing talent management issues (e.g. Pepermans et al., 2003; Spreitzer et al., 1997; Viney et al., 1997, Vloeberghs et al., 2005). Furthermore, we do not know of one empirical article to date explicitly linking talent management to the developments in the careers literature. However, from our Introduction it may be clear that there is a significant need and opportunity for more empirical research on talent management. Clarification is needed on all fronts: how should talent management be defined; which criteria should be used to identify high potentials; is it realistic to set retention targets as indicators of return on investment in talent management considering the current career environment? Although one single dissertation cannot possibly provide conclusive answers to all of the above questions, we have attempted to offer empirical data and insights on each of the themes discussed in the Introduction. By doing so, we hope to encourage more research on ‘postmodern‐day talent management’ in the future, so that much‐ needed theory can be developed to support organizations and individual career actors alike (Collings & Mellahi, 2009). This dissertation aims to contribute to the field in a threefold manner: (1) by integrating the careers literature with the talent management literature, thus creating a framework for understanding talent management within the postmodern career context; (2) by building on empirical data collected from different talent management stakeholders (i.e. general managers, HRM professionals, and individual employees identified as high potentials); and (3) by examining cross‐level effects, in that organization‐level variables (i.e. the classification of employees into different ‘talent categories’) are related to individual‐level variables (i.e. career antecedents and outcomes).
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The structure of this dissertation This dissertation is composed out of six sections, the first and the last being the Introduction and the Discussion. Between these two general sections, eight papers 1 divided over four thematic chapters, are presented consecutively. At the beginning of each paper, after the abstract, the topicality of the paper is indicated by linking it back to Figure I 2 , which provides an overview of the overall research framework. The first chapter, Exploring ‘real’ high potential careers, presents an exploratory qualitative study encompassing the entire research framework. The study looks at both organizational‐level and individual‐ level variables and presents interview data collected from both HR managers and individuals identified as high potentials. The second chapter, High potential identification, presents three different studies looking into the criteria organizations use, or should use, in assessments of leadership potential. The first study focuses solely on the organizational level, whereas the second and third study incorporate self‐rated data from individual employees identified as high potentials and compares these to data from employees not identified as high potentials. Both qualitative and quantitative data are reported. The third chapter, Career outcomes in high potential careers, presents two quantitative studies looking into individual career outcomes of being identified as a high potential (or not). This chapter studies the ‘bargaining position’ of high potentials and its consecutive effects on their commitment and satisfaction. Finally, the fourth chapter, Constructing ‘career’, presents two studies digging deep into the meanings attributed to ‘career’ and ‘career success’ within the postmodern career context. Both qualitative and quantitative methods are used. A more detailed overview of the research questions and methodologies adopted in each separate paper can be found in Table I, after the 1 Although, as a rule, we apply the APA reference style throughout this dissertation,
several of the included papers’ references are in Harvard style, as they were published in, or submitted to, journals that demand Harvard style referencing. 2 The figures and tables presented in the Introduction and in the Discussion are numbered with Roman numerals; the figures and tables presented in the separate papers are numbered with decimal numerals, counting from ‘1’ again in each paper.
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reference list below. We will refer back to Table I in the Discussion, where we will present a similar table summarizing the main findings and publication output for each paper. References Adamson, S.J., Doherty, N. & Viney, C. (1998). The meanings of career revisited: Implications for theory and practice. British Journal of Management, 9, 251‐259. Altman, Y. (1997). The high potential fast‐flying achiever: Themes from the English language literature 1976‐1995. Career Development International, 2 (7), 324‐330. Amundson, N. (2005). The potential impact of global changes in work for career theory and practice. International Journal for Educational and Vocational Guidance, 5, 91‐99. Arnold, J. & Cohen, L. (2008). The psychology of careers in industrial and organizational settings: A critical but appreciative analysis. In G.P. Hodgkinson & J.K. Ford (Eds.), International review of industrial and organizational psychology (pp. 1‐44). London, UK: Wiley. Arnold, J. & Jackson, C. (1997). The new career: Issues and challenges. British Journal of Guidance and Counselling, 25(4), 427‐433. Arthur, M. B. (2008). Examining contemporary careers: A call for interdisciplinary inquiry. Human Relations, 61 (2), 163‐186. Arthur, M.B, Hall, D.T. & Lawrence, B.S. (1989). Generating new directions in career theory: The case for a transdisciplinary approach. In M.B. Arthur, D.T. Hall & B.S. Lawrence (Eds.), Handbook of career theory (pp. 7‐25). New York, NY: Cambridge University Press. Arthur, M.B. & Rousseau, D.M. (1996). The boundaryless career: A new employment principle for new organizational era. New York, NY: Oxford University Press. Ashton, C. & Morton, L. (2005). Managing talent for competitive advantage. Strategic HR Review, 4 (5), 28‐31. Barley, S.R. (1989). Careers, identities, and institutions: the legacy of the Chicago School of Sociology. In M.B. Arthur, D.T. Hall & B.S. Lawrence (Eds.), Handbook of career theory (pp. 41‐ 59). New York, NY: Cambridge University Press. Baruch, Y. & Peiperl, M. (1997). High‐flyers: Glorious past, gloomy present, any future? Career Development International, 2 (7), 354‐358. Baruch, Y. & Rosenstein, E. (1992). Career planning and managing in high tech organizations. International Journal of Human Resource Management,3(3), 477‐496. Bossuyt, T. & Dries, N. (2008). Talent management en flexibele loopbaanpaden voor de werknemers van morgen [Talent management and flexible career tracks for tomorrow's workforce]. In H. Calmeyn, K. De Witte, & J. Weverbergh (Eds.), Licht op leren 2008: Leren en ontwikkelen in een talentgerichte maatschappij [Spotlight on learning 2008: Learning and developing in a talent oriented society] (pp. 55‐90). Leuven, Belgium: LannooCampus. Boudreau, J.W. & Ramstad, P.M. (2005). Where’s your pivotal talent? Harvard Business Review, 83 (4), 23‐24. Bouffartigue, P. & Pochic, S. (2001). Cadres nomads: Mythes et réalités [Nomad managers: Myths and realities]. Sociologie du Travail, research report. Briscoe, J.P. & Hall, D.T. (1999). Grooming and picking leaders using competency frameworks: Do they work? An alternative approach and new guidelines for practice. Organizational Dynamics, 28 (2), 37‐52. Brown, D. (2002). Career choice and development. San Francisco, CA: Jossey‐Bass. Buckingham, M. & Vosburgh, R.M. (2001). The 21st century human resources function: It's the talent, stupid! Human Resource Planning, 24 (4), 17‐23. Calo, T.J. (2008). Talent management in the era of the aging workforce: The critical role of knowledge transfer. Public Personnel Management, 37 (4), 403‐416. Cappelli, P. (2008, March). Talent management for the twenty‐first century. Harvard Business Review, 1‐8. Cawthon, D.L. (1996). Leadership: The Great Man theory revisited. Business Horizons, 10, 44‐ 48. Chuai, X., Preece, D. & Iles, P. (2008). Is talent management just ‘old wine in new bottles’ ? The case of multinational companies in Beijing. Management Research News, 31 (12), 901‐ 911. Collin, A. & Watts, A.G. (1996). The death and transfiguration of career – and of career guidance? British Journal of Guidance and Counselling, 24, 385‐398.
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Methodology
II. High potential identification 2. Identification of leadership potential: Is there consensus about ‘the’ criteria? Which criteria are considered as most essential for assessing leadership potential 20‐year literature review by subject matter experts? Is there consensus between the different parties Focus groups involved in such assessments? Q‐sorts Multidimensional scaling Online survey 3. Using emotional intelligence to identify high potentials: A metacompetency perspective What is the utility of using emotional intelligence (as measured by the EQ‐i) for Online survey identifying high potentials? Does emotional intelligence play a role in high potential careers mostly at the stage of identification, or later on in the career, where a lack of emotional intelligence may cause ‘derailment’? And what are the relationships between being identified as a high potential or not, emotional intelligence, job performance, and career commitment?
I . Exploring ‘real’ high potential careers 1. ‘Real’ high potential careers: An empirical study into the perspectives of organizations and high potentials How do employees identified as high potentials describe their personal career Interviews experiences? And how do these contrast with the career development programs described by representatives of their employing organizations?
Table I. Overview: research questions and methodology Chapter Paper Research questions
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Methodology
Is learning agility, indeed, the best indicator of potential, as is put forward by the Online survey ‘developmental perspective’ on high potential identification? Does it predict potential above and beyond job performance? Is learning agility directly assessable by the organization or are its effects on being identified as a high potential or not mediated by actual on‐the‐job learning? And finally, can learning agility be developed by experience or career variety?
What is the impact of being identified as a high potential or not on subsequent job Online survey performance, objective and subjective career success, and career and organizational commitment? Are the differences between high potentials and non‐high potentials intensified when organizations communicate openly about who is identified as a high potential or not? Is such open communication detrimental for the career satisfaction and loyalty of non‐high potentials?
5. The role of employability and firmspecific capital in shaping the psychological contract: Do high potentials and long tenured employees get the better deal? Is individual employability directly related to employee perceptions about their Online survey psychological contracts? Does being identified as a high potential or having long organizational tenure enhance the ‘bargaining position’ of employees in shaping their psychological contracts with their employers? 6. Effects of the high potential label on performance, career success and commitment: A matter of communication?
III. Career outcomes in high potential careers
Table I. Continued Chapter Paper Research questions 4. High potential identification: Examining the developmental perspective
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Research questions
8. Career success: Constructing a multidimensional model
Methodology
What are the different ways in which people can define ‘career success’ for Individual interviews themselves? To which extent do these idiosyncratic definitions differ from Q‐sorts Multidimensional scaling operationalizations commonly found in the careers literature?
Do people from different generations experience different types of career Online survey patterns? Does the importance attached to organizational security differ between Online experiment generations? Do people from different generations evaluate career success differently?
7. Exploring four generations' beliefs about career: Is ‘satisfied’ the new ‘successful’?
IV. Constructing ‘career’
Table I. Continued Chapter Paper
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Chapter I. Exploring ‘real’ high potential careers Paper 1: Dries, N. & Pepermans, R. (2008). ‘Real’ high potential careers: An empirical study into the perspectives of organizations and high potentials. Personnel Review, 37 (1), 85‐108.
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Paper 1.
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‘Real’ high potential careers: An empirical study into the perspectives of organizations and high potentials This empirical study attempts to make a contribution to career theory in general, and to the literature on high potential careers in particular, by examining the careers of high potentials, taking place within the 21st century world of work, from the perspectives of the high potentials themselves as well as those of their organizations. A total of 34 interviews were conducted within 3 study samples: high potentials (n = 14), organizational representatives employed by the same organizations that provided the high potential participants (n = 8), and organizational representatives employed by organizations that did not allow for interviewing of their high potentials (n = 12). The study suggests that high potentials still have traditional‐organizational careers. High upward mobility, low inter‐organizational mobility and career self‐management emerged as key features of high potential careers. Implications are spelled out with respect to the ‘streaming’ of different types of employees in the workforce and the importance of expectations management. As for contribution, not only are the viewpoints of individuals largely absent in the literature on high potential careers, the majority of publications on the subject matter are also non‐empirical and take a rather normative stance. The interview study presented in this paper looks into the assumptions of ‘real’ high potential careers from the perspectives of the high potentials themselves as well as those of their organizations, providing empirical data which is interpretive and descriptive rather than normative.
Figure II. Topicality of Paper 1.
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41 Paper 1.
‘Real’ high potential careers: An empirical study into the perspectives of organizations and high potentials Some 20 years ago, Fred Luthans accused management literature of being largely “based on a priori assumptions about what managers actually do and what they should do to be successful” (Luthans et al., 1985, p. 255). Today, the same seems to be true of the literature on high potentials, i.e. those individuals within the organization who are “recognized, at that point in time, as the organization’s likely future leaders” (Cope, 1998, p. 15). Although effectively managing high potentials and their careers is, almost unanimously, considered as one of the major challenges facing the 21st century human resources function (Buckingham and Vosburgh, 2001; Tulgan, 2001), empirical publications on the topic are exceptionally rare. While the subject matter has been tackled by several authors in recent years (e.g. Baruch and Peiperl, 1997; Spreitzer et al., 1997; McCall, 1998; Segalla et al., 2001; Fields, 2002), remarkably few studies have built on data coming from the actual high potential population itself. In the majority of previous studies, high potentials’ direct supervisors were targeted as respondents or a normative stance was taken. Normative publications – i.e. publications that are prescribing and appraising, rather than describing and interpretive – typically present ‘best practices’ based on anecdotal findings (e.g. Ford, 2005; Miller, 2006). As a result, discourse on the subject of high potentials and their careers tends to be conjectural rather than based on real empirical evidence (Pepermans et al., 2003). In other studies it is not always clear whether the research sample was made up of high potentials or of other (related) types of employees. Cox and Cooper (1988) for instance, interviewed managing directors whom they labeled as ‘high flyers’. This term, however, is generally used to designate successful managers – i.e. those that have already ‘arrived’. Conversely, the term ‘high potential’ denotes possibilities, promise and latent action (Altman, 1997). It may be considered highly inexpedient to regard high flyers and high potentials as interchangeable research populations; such practices contribute to the belief that anyone who is to be labeled as a high potential must be able to display executive‐level skills, knowledge and competencies at the time of identification, thus completely ignoring the importance of learning from experience (Briscoe and Hall, 1999; Spreitzer et al., 1997). Another population that is often confused with the population of ‘real’ high potentials is that of
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employees on the ‘fast track’ (e.g. Kovach, 1986; Feild and Harris, 1991). Fast‐track development programs serve to accelerate the development of potential managers by using frequent job rotations and other special opportunities not commonly available to other employees, all within a condensed timeframe (Larsen, 1997). However, many organizations implement such development programs as initial selection filters, and decide only later which of their fast‐track program participants qualify to receive the high potential label (Fields, 2002). Finally, some researchers use samples made up of MBA students to make inferences about high potentials (e.g. Sabbe and Timmerman, 2006), grounded in the assertion that employees whose management education is sponsored by their organization are probably high potentials – an argumentation of questionable validity. It seems, then, that there is a significant need and opportunity for researchers to scrutinize high potentials and their careers. But why have such studies been exceptionally rare? A possible explanation lies in the delicate nature of the topic of high potentials and their careers, which causes severe barriers for researchers. Many organizations are unwilling to expose their high potentials to researchers – even though the majority amongst them are very much interested in research on the matter (and often, are prepared to pay consultancy firms large sums of money to dissect their high potential policies). There are still many organizations that deem it undesirable to be fully transparent about their high potential policies. A typical belief is that high potentials would become arrogant and complacent if they were to be informed of their status within the organization, which is often referred to as ‘the crown prince syndrome’ (Göbel‐Kobialka, 1998). Moreover, organizations fear that employees who are not labeled as high potentials will become unmotivated or leave the organization when information about the organization’s high potential policies is made available to them (Snipes, 2005). The 21st century world of work Before going into further detail on the focus and approach of our study, we wish to briefly outline the 21st century context affecting real high potentials and their careers. Changes, such as business re‐engineering processes, restructuring, flattening, and downsizing may have caused innovation and progress, but have also brought about disarray in the management of people in the workplace (Baruch, 1999). Employee numbers and career opportunities are reducing fast, leading to the emergence of new types of psychological contracts and the decline of
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the traditional ‘reward’ of upward mobility (Rousseau, 1995; Iles, 1997). Several authors (e.g. Baruch and Peiperl, 1997; Baruch, 1999; Doyle, 2000; Tulgan, 2001; Kuznia, 2004) claim that organizations can no longer promise long‐term employment to employees, let alone a rapid progression along the organizational ladder, and that they should, consequently, refocus their efforts on motivating employees through offering them greater skill improvement (Arthur and Rousseau, 1996). As such, the premise underlying high potential programs – that hard work and the display of exceptional talent are rewarded by a steady progression in the organizational hierarchy – is undermined (Baruch and Peiperl, 1997; Kuznia, 2004). Baruch and Peiperl (1997) even state that “there is no future for Hipos [high potentials], at least not as we have known the phenomenon…. There are quite a few Hipos, and very few places at the top” (p. 354). Although the abovementioned publications undeniably raise a number of interesting and important issues, they all share the same weakness: they are not based on empirical research, and as such, rather speculative. Hence, we may ask ourselves: is it accurate that “hipo programs are fast becoming at best an anachronism, and at worst a false promise used to keep valuable employees in organizations” (Baruch and Peiperl, 1997, p. 356)? Are the new career patterns and types that are – according to the aforecited authors – emerging rapidly in the 21st century world of work in fact irreconcilable with the premise behind high potential careers? Below, we offer a brief review of the literature on postmodern career theory and career management, which will be used as a supportive theoretical framework for the interpretation of our study’s findings. Postmodern career theory As a result of the postmodern turn in the social sciences during the late 1980s (Savickas, 1995), attention increasingly shifted from the objective to the subjective world of work. Several authors posit that the traditional (‘organizational’) career, determined by relatively stable organizational and occupational structures, is gradually being replaced by more ‘boundaryless’ career types, where uncertainty and flexibility are the order of the day (e.g. Arthur and Rousseau, 1996; Collin, 1998). The concept of the boundaryless career includes “a range of possible forms that defy traditional employment assumptions” (Arthur and Rousseau, 1996, p. 6), and thus, offers no characterization of any single career type. Rather, boundaryless career theory seeks to reflect the
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emergent pace of economic change in postmodern society, in which the emphasis lies on continuously changing career paths and possibilities (Littleton et al., 2000). Postmodern career theory generally considers career to be a social construction rather than a universal concept – thus defying traditional societal norms of objectively observable career progress or success (Collin, 1998). As mentioned earlier, postmodern career theory does not only carry implications for the definition of careers and career success, but also for the psychological contracts that exist between employees and organizations – i.e. “the perceptions of parties in the employment relationship of their mutual obligations” (Iles, 1997, p. 349). While traditional career models prescribe that people offer loyalty in return for deferred rewards (e.g. pension rights, vacation time, promotion opportunities, social acceptance), employment relationships within boundaryless careers are assumed too fluid to adopt such reward systems (Littleton et al., 2000). As a result, even stable or fast growing organizations would be increasingly unable (or unwilling) to promise as well as formally manage career opportunities (Iles, 1997). Career management literature Indeed, contemporary literature on career management places accountability primarily with the individual. Career management includes all interventions to shape careers in organizations, not only by the individuals concerned, but also formally and informally by their managers (Mayo, 1991; Arnold, 1997; Doyle, 2000). Traditionally, in high potential mobility programs, individuals are selected as early in their careers as possible and given specialized career development opportunities, allowing them to assume leadership positions as early as possible (Kuznia, 2004). However, the postmodern perspective on careers highlights more ‘protean’ career types (Hall, 1976, 2002; Briscoe and Hall, 2006). While boundaryless careers are characterized by different levels of physical and psychological movement (beyond organizational boundaries), protean careers emphasize a self‐directed approach to the career, in which individuals are guided by their own personal values (Briscoe and Hall, 2006). Again, literature on the topic takes a postmodern stance; personal choice, self‐fulfilment and psychological (intrinsic) success are prioritized over organizational career management and extrinsic norms of what career success entails (Hall, 1976).
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Recent literature has attempted to steer clear of ‘or‐or’ discourse by demonstrating that organizational career management (OCM) and career self‐management (CSM) are to be considered as complementary rather than supplementary. CSM can never fully substitute OCM; rather, both types of career management reinforce one another. Those with greater CSM skills appear to give themselves a head start in gaining access to organizational sources of career support (Sturges et al., 2002; De Vos and Buyens, 2005; Forrier et al. 2005). The current study aims to explore the careers of ‘real’ high potentials. Two observations guided our research: first, the viewpoints of individuals are largely absent in the literature on high potential careers; second, the majority of publications on the subject matter are non‐ empirical and take a rather ‘normative’ stance. The interview study that will be presented in this paper has two corresponding objectives: (1) looking into the assumptions of real high potential careers from the perspectives of the high potentials themselves as well as those of their organizations; (2) providing empirical data which is interpretive and descriptive rather than normative.
Methodology The empirical data presented in this paper is based on in‐depth interviews conducted with 14 high potentials and 20 ‘organizational representatives’, i.e. HR managers or consultants actively involved in the field of high potential management. Over 30 organizations, known to engage in high potential identification and development, were addressed. Thirteen of them agreed to one or multiple interviews, although only six of them allowed for high potential employees to be interviewed. Furthermore, two out of these six organizations explicitly requested not to refer directly to the term ‘high potential’ during the interviews with their high potential employees – which illustrates the ongoing sensitivity about the topic in organizational settings (Göbel‐ Kobialka, 1998). The study participants were all employed in Belgium and typically worked for large, multinational organizations (employing between 750 and 120000 people worldwide), situated in a variety of sectoral contexts. The interview sample was split up into three groups: high potentials (HP); organizational representatives (OR) employed by the same organizations that provided the HP participants (a); and organizational representatives employed by organizations that did not allow for interviewing of their high potentials (b).
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High potentials (HP) Fourteen employees, identified and labelled as high potentials within their organizations, were interviewed individually and made up the high potential (HP) sample of this study. The criterion for participants’ inclusion in this group was that their organization’s definition of high potential employees is in line with the aforecited definition of Cope (1998). Sample demographics for the HP sample are shown in Table 1. Remarkably, only one participant in the HP sample was a woman. A discussion of ‘glass ceiling’ issues would take us too far here, although it could offer possible explanations for female underrepresentation in high potential programs (White et al., 1992). On the other hand, our high potential participants typically worked in male‐dominated sectors, an unintended aspect of our data collection that should not be neglected. However, the mere existence of ‘male‐dominated sectors’ is another manifestation of mobility barriers for women (e.g. Barker and Monks, 1998). Organizational representatives (OR) In addition to the interviews conducted with the HP sample, 16 HR managers and 4 HR consultants were interviewed (in 11 cases individually, in 4 cases by panel interview), making up a group of 20 organizational representatives. The participants in the OR sample were selected purposively to include a range of individuals who can be considered as experts in the talent management domain; all of them had relevant experience in the field, or were (at that time) in a position that allowed them to have an overview of their organization’s high potential policies. In order to be able to set side by side the views expressed by high potentials and organizations in a valid manner, we divided the OR sample into two subsamples: the ORa sample, which contained the organizational representatives employed by the same organizations that provided the HP participants, and the ORb sample, which was composed of organizational representatives employed by organizations that did not allow for high potentials to be interviewed. The conclusions drawn further on in this paper are never based on interview data coming from the ORb sample alone.
Participant code HP1.0 HP2.1 HP2.2 HP2.3 HP2.4 HP2.5 HP3.1 HP3.2 HP4.1 HP4.2 HP5.1 HP5.2 HP5.3 HP6.0
Organization 1 HR consulting 2 Finance 2 Finance 2 Finance 2 Finance 2 Finance 3 Electronics 3 Electronics 4 Telecom 4 Telecom 5 Distribution 5 Distribution 5 Distribution 6 Security
Table 1. HP interview sample (n = 14) Position Junior consultant Senior manager Senior manager Senior manager Senior manager Manager Manager Manager Manager Manager Manager Junior officer Manager Manager
Field of work Executive search Business consulting Business consulting Financial audit Organizational development Management development Business administration Export Field services Supply chain management Department management Corporate HR Marketing Security projects
Tenure 2.5 yrs 8 yrs 9 yrs 10 yrs 10 yrs 7 yrs 7.5 yrs 10 yrs 5.5 yrs 7 yrs 2 yrs 3 yrs 2.5 yrs 5 yrs
Age 25 32 33 36 36 31 29 33 27 31 25 27 25 36
Gender Female Male Male Male Male Male Male Male Male Male Male Male Male Male
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Participant code OR1.0 OR2.0 OR3.1 OR3.2 OR4.1 OR4.2 OR5.0 OR6.0
Organization 1 HR consulting 2 Finance 3 Electronics 3 Electronics 4 Telecom 4 Telecom 5 Distribution 6 Security
Table 2. ORa interview sample (n = 8) Position Senior consultant Director Director Director Director Director Manager Director
Field of work Executive search Corporate HR Competence management Corporate HR Management development Management development Training and development Corporate HR
Tenure 11 yrs 15 yrs 16 yrs 15 yrs 16 yrs 18 yrs 8 yrs 13 yrs
Age 34 39 36 38 40 46 35 41
Gender Male Female Female Female Male Male Male Male
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Participant code OR7.1 OR7.2 OR8.1 OR8.2 OR8.3 OR9.0 OR10.0 OR11.1 OR11.2 OR12.1 OR12.2 OR13.0
Organization 7 Materials technology 7 Materials technology 8 HR consulting 8 HR consulting 8 HR consulting 9 Finance 10 Finance 11 Materials technology 11 Materials technology 12 Energy 12 Energy 13 Finance
Table 3. ORb interview sample (n = 12) Position Manager Manager Partner Senior consultant Junior consultant Junior officer Manager Manager Manager Manager Manager Manager
Field of work Management development Training and development Executive search Executive search Executive search Training and development Corporate HR Corporate HR Organizational development Competence management Management development Corporate HR
Tenure 20 yrs 15 yrs 18 yrs 8 yrs 1.5 yrs 2.5 yrs 10 yrs 22 yrs 36 yrs 18 yrs 19 yrs 9 yrs
Age 49 38 47 33 25 26 36 52 60 49 51 34
Gender Male Male Male Female Female Male Female Male Male Female Male Female
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Rather, the comparison between the HP data and ORa data guided our analyses and interpretations; data from the ORb participants on these topics were then added when available. Furthermore, we thought it would be interesting to examine whether or not both OR samples generated similar views, given that they differ in terms of openness regarding their high potential policies. Demographics for the ORa and ORb interview samples are shown in Table 2 and Table 3 respectively. As can be seen in Table 1, 2 and 3, each interviewee (HP/OR) was assigned a participant code so that response patterns and original quotes can be traced back to the participant in question without compromizing his or her anonymity. The first digit links the interviewee to his or her employing organization (numbered 1 through 6 for organizations in which both HP and OR were interviewed, and 7 through 13 for organizations that only allowed for interviewing of OR); the second digit refers to the interviewee him or herself (in cases where there was more than one interviewee, belonging to the same interview sample, within the organization in question). Interview procedure Slightly different approaches were taken to interview each of the samples. The interviews with the HP sample were in‐depth and open‐ ended; this encouraged interviewees to speak in their own voices, and consider at length those topics that they themselves perceived as relevant (Duberley et al., 2006). The high potential participants were invited to tell us the stories of their careers, highlighting the critical moments, events and choices that had shaped them. They were instructed to focus specifically on the events leading up to their identification as high potentials and the way their careers had evolved since that time. In those interviews where the use of the term ‘high potential’ was not allowed, it was replaced by ‘being perceived by the organization as being more successful or talented than peers’ (essentially designating the same thing ‐ it appeared to be the use of the term ‘high potential’ per se that seemed to bother certain organizations). When no information was spontaneously provided on the interviewee’s current career type or on the career management practices affecting his or her career, probes were introduced at points where they fit into the course of the interview as naturally as possible (King, 2004). Since we were specifically keen to find out if and how high potentials’ views on their careers differ from those of organizations, the element of subjectivity was essential to the analysis of the HP interviews (Cohen and Mallon, 2001). In order to investigate the viewpoints of
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organizations, a different approach was taken. A more structured topic guide was used when interviewing the organizational representatives group (King, 2004). As opposed to individuals telling us the story of their careers, this part of the study aimed to obtain information about the way organizations manage high potential careers – which is mostly through systems and procedures. HR managers and consultants served as organizational representatives in this study as they are often explicitly involved in the implementation and follow‐up of such systems and procedures (although the extent to which they are considered strategic business partners within organizations does differ). Interviews with the OR sample started by asking participants what their organization’s criteria were for awarding the high potential label and what competencies employees in this group ought to possess, moving on to the policies available for managing the careers of this specific group of employees. These policies were divided into four broad domains: identification, training and development, succession planning and retention management. The data generated by this – much more structured – type of interviewing was more objective, i.e. reflected to a lesser extent the personal opinions of the interviewees than was the case in the HP sample. For instance, many of the OR participants used their organizations’ high potential policy documents as input for their answers. It is clear that the OR participants did bring their own opinions into the interviews; we believe, however, that the views they put forward during the interviews were, on the whole, representative of the views of their organizations as economic entities – seeing as the OR sample acted as policy contributors and spokespersons for their organizations – while the HP sample acted merely as representatives of themselves as individuals. All interviews were taped and transcribed to address issues of credibility and confirmability (Duberley et al., 2006). Coding of the interviews was carried out manually with colored markers; code tags were marked clearly in margins. We prefer this method over software‐ aided coding (e.g. NUD.IST) for reasons of ease and overview; furthermore, it is nowhere stated that manual coding would lead to a lesser quality of analysis (King, 2004). In using template analysis, researchers are advised to use some form of ‘independent scrutiny’ of their analysis at some stage in the data analysis as a way of checking its quality. We applied this principle at the stage of developing the initial template. We (the two authors) both independently carried out preliminary coding on a sample of 6 transcripts (3 HP interviews and 3 OR interviews), then exchanged our independent coding and set aside two hours to compare and discuss these, with the aim of agreeing on an
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initial template (Duberley et al., 2006). After the first author completed the coding process departing from the initial template (which, of course, was to some extent altered during the iterative process of coding and recoding), we both looked for patterns in the distribution of the codes – with some indication of frequency to help us direct our attention to aspects of the data which warranted further examination – thus generating a framework within which interpretation of the data could take place (King, 2004). Findings The findings obtained from this interview study offer valuable insights into the assumptions of ‘real’ high potential careers taking place in the 21st century world of work. The data, acquired from 32 interviews with high potentials and organizational representatives, have been distilled into three main themes: first, the interpretations high potentials and organizational representatives ascribed to the concept ‘high potential’; second, the high potential career types that are portrayed in the interviews; and third, the high potential career management practices described by the different interview samples. Below, each of these themes is discussed in detail. Interpretations of the concept ‘high potential’ Looking at the interpretations of the concept ‘high potential’ given by the HP sample and the OR sample, we see that rather traditional viewpoints are dominant. The sample of organizational representatives employed by the same organizations that provided the HP participants (ORa) and the sample of organizational representatives employed by organizations that did not allow for interviewing of their high potentials (ORb) both described high potentials as being part of an elite workforce segment (five ORa and five ORb) expected to advance upwardly within the organization (six ORa and six ORb). Similarly, seven out of the fourteen high potentials interviewed explicitly stated that upward mobility is a priority in their careers, and six of them remarked that they aspire to be the organization’s CEO one day, if possible (“But doesn’t everybody?”, they commented). There were some differences in perception between the ORa and the ORb sample. For instance, seven participants from the ORb sample (compared to only two from the ORa sample) named leadership and strategic contributions on the part of the high potential as crucial, while six ORa participants (compared to zero ORb participants) were more inclined to link high potential status to age‐
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related deadlines (e.g. “Employees over 35 are too old to be identified as high potentials”). Remarkably, 15 out of the 20 OR participants (five ORa and ten ORb) indicated that the number one criterion serving as input for the identification of high potential is current performance. In addition, 11 out of 14 high potentials felt that working hard and being an excellent performer are the primary prerequisites for obtaining the high potential label. One could wonder, then, what separates ‘high performers’ from ‘high potentials’ in the views of our study participants. In this regard, 13 out of 14 of our HP interviewees expressed the belief that high potentials are innately (or as a result of early life experiences) more talented than others, mostly in terms of leadership and interpersonal skills. Organizational representatives on the other hand, named proactiveness and career initiative‐taking (seven ORa and eight ORb) as distinctive HP qualities. Possibly a first conflict of interest was detected here, as it seems that high potentials highlight individual traits when differentiating between high potentials and high performers, while organizations emphasized self‐directed behavior. These differing opinions might spell trouble if they cause both parties to hold the other accountable for the high potential’s career. We will look deeper into the issue of accountability in the section on high potential career management. In comparing the interview data from the two samples composed of organizational representatives, it appears that the ORa sample emphasized interpersonal relationships (e.g. networking, coaching, customer focus…) when talking about high potential careers, while the ORb sample highlighted strategy and innovation (e.g. long‐term orientation, learning agility…). Furthermore, while high potential identification was mostly left to direct supervisors, career coaches and team members in the view of the ORa sample, the ORb sample reported that their organizations use committees (including Board and management members) to identify high potential. All in all, it seems that the high potential policies reported by the ORb sample were more formal and less transparent than those reported by the ORa sample – offering a possible explanation for the difference in ‘openness’ between the two groups of organization. However, apart from the above findings, the ORa and the ORb sample did not generate widely divergent views on high potential careers.
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High potential career types As mentioned before, traditional‐organizational and boundaryless careers do not represent single career types; rather, careers can be plotted on a continuum ranging from ‘more traditional’ to ‘more boundaryless’ (Forrier et al., 2005). Several aspects of careers were taken into account during the interview data analysis in order to be able to make judgments about the high potentials’ career types (Rousseau, 1995; Arthur and Rousseau, 1996; Iles, 1997): (1) Does the career take place in one single organizational setting?; (2) Are career opportunities (e.g. promotions) used as rewards?; (3) Is the career characterized by (rapid) upward progression?; and (4) Does the emphasis lie on long‐ term employment or on employability (i.e. skill improvement aimed at enhancing employee attractiveness to the wider labor market)? The low inter‐organizational mobility of our 14 HP interviewees was demonstrated by the fact that 10 of them had only worked for one organization during their entire career. The others, who had worked for two or more organizations, had all switched organizations in the first few years of their careers, and stabilized afterwards. None of the high potentials interviewed indicated to have any intention of leaving their current organization in the future – although social desirability bias may have played a role in this finding (Podsakoff et al., 2003). Furthermore, when asked about their future career goals, only four of them claimed to have a ‘contingency plan’, in case their (organization‐specific) career goals would prove unattainable. Prominent in the interview data were notions of psychological reward. The majority of the high potentials interviewed indicated to desire and expect regular upward career moves; but such aspirations did not appear to originate from a long‐term career perspective, nor from well‐ established career plans. Rather, upward career moves were considered as a type of (short‐term) reward. One of the interviewed high potentials remarked: Young people today are increasingly focused on themselves, on their work‐ life balance. They are less prepared to make sacrifices …. even so, people are still very sensitive about being promoted or not …. In this kind of organization, when you’re not promoted or you don’t get a pay raise, [it means] they probably think you’re not that good at what you do (HP2.1).
Remarkably, the HP sample linked career success primarily to extrinsic reward, rather than to notions of challenge or learning, as would be expected from postmodern career theory (Collin, 1998). An interviewee commented:
55 …. lateral moves can definitely be challenging. It takes up a lot of time and effort to take on this whole new role in the organization and I’m sure it’s gratifying when you succeed in a transition like that …. But you don’t really feel successful unless you get a real promotion or a raise … and then there’s the fact that a lot of people are involved in project work all the time, so every time you get started on a new project, that’s already a lateral move …. So it doesn’t really mean anything unless it’s an upward move (HP4.1).
This was not only the view of the HP interview sample; the OR sample expressed a similar view. Six out of the 20 organizational representatives (one ORa and five ORb) stated that one of the major goals of their organization’s high potential policies was to attract, motivate and retain talent, “by showing them that there are plenty of career opportunities for those who demonstrate excellence”. Furthermore, workforce segmentation (i.e. rewarding excellence through the assignment of ‘special’ labels to some but not others, accompanied by the necessary bonuses and promotions) was seen as the number one means for retaining high potentials. Nonetheless, two organizational representatives (both ORa) asserted that high potential policy makers should be very careful not to overdo the special treatment: It’s dangerous when the system is all about status. Then people start to think that you have to be on the list to be somebody …. The problem with that kind of mindset is that high potentials usually make up only a really small portion of an organization’s population, so that would imply that everyone else is frustrated (OR4.1).
It is not unlikely that most employees would like to see their efforts rewarded through promotions and pay raises. But as opportunities for upward progression become increasingly scarce (Guest and Mackenzie Davey, 1996), organizations attempt to segment their workforce, ensuring that the career opportunities at hand are offered to the employees whom they most wish to retain. Besides being necessary, workforce segmentation is also a very delicate matter: All employees want to see extra effort translated into extra rewards and recognition … but when communication [about workforce segmentation] is too explicit, resentment between colleagues will probably arise. This applies especially to the Belgian culture. I get the impression that in America for instance, people tend to look up to high potential co‐workers … see them as role models rather than be jealous of them (HP2.1).
As mentioned earlier, 6 out of the 13 organizations that participated in our research had more or less open high potential policies; one must not forget, however, that this often means that although high potentials may be informed about the system, not all employees are. The difficulties in
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maintaining such ‘half‐open’ communication policies become evident when we see that 10 of the organizational representatives in our sample (4 ORa and 6 ORb) report using ‘cyclical’ high potential identification systems – meaning that a person can be a high potential one year but not the next. It seems that communicating openly to all employees about the organization’s workforce segmentation strategies might turn out to be the simpler solution in the long run. One HR director remarked: It is standard procedure to start discriminating between employees some years after entry, and everyone is aware of this … There’s really no use being secretive about who’s on the list and who isn’t. People will talk to each other anyway … they’ll figure it out themselves (OR2.0).
It seems that organizations are increasingly subdividing their high potential pools as well. All of the organizational representatives in our sample differentiated between different types of high potentials. Fifteen of them (seven ORa and eight ORb) distinguished all‐round managerial talent from experts and project workers; eleven (five ORa and six ORb) made a distinction between high potentials based on their functional levels; and six of them (one ORa and five ORb) had totally different policies for graduate (fast‐track) talent than for managerial talent. This indicates that high potential populations are segmented ‘vertically’ as well as ‘horizontally’. Boudreau and Ramstad (2005) have, among others, described how pivotal talent (the groups and individuals that drive the competitive advantage of organizations) can refer to lower‐ as well as higher‐level employees and to experts as well as general managers. In this respect, seven organizational representatives (three ORa and four ORb) asserted that not paying enough attention to the identification and development of key experts is a common pitfall in organizations’ high potential policies, which focus mostly on those with managerial talent. Another important finding is that almost all organizational representatives mentioned that their criteria for high potential identification are stricter now than they were in the past. ‘Elitism’ was mentioned by 10 organizational representatives (5 ORa and 5 ORb) and 10 high potentials as a key feature of contemporary high potential policies: A decade ago, about 10 to 15 percent of our employees were considered high potentials. There were more opportunities to climb the ladder back then … and we figured, if some of them didn’t meet expectations we could always take them off the list. But today we’re much stricter about who gets on the list in the first place … it’s about 2 percent worldwide. For instance, we’ll probably only pay for an expensive training program when a high potential is asking (OR3.2).
The main reason for the fact that high potentials are offered more career opportunities than employees from other workforce segments is the
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belief that internal successors usually perform better than external hires. For example: One of the goals of our high potential policy is to be able to grow talent in‐ house. We do also hire high profiles externally, but they usually show adaptation problems. Internal successors fit in with management much quicker and master their new jobs much more easily (OR7.1).
Establishing an internal pool of successors (a ‘leadership pipeline’) was the number one goal of the high potential policies of the organizations in our sample. Previous research (e.g. Groysberg et al., 2004) has, indeed, demonstrated that it is very well possible that a high potential’s performance ‘plunges’ when he or she is recruited into a new organization. Furthermore, Boudreau and Ramstad (2005) argue that high potential status is an organization‐specific concept as the type of human capital organizations need to support their strategies varies. High potentials, too, seem to be aware of the fact that their status may well prove to be organization‐specific. One of our high potential interviewees commented: [High potentials] shouldn’t focus too much on vertical growth … you have to make sure you’re not dissatisfied or frustrated all the time because things aren’t moving fast enough. An “if it’s not the way I want it, I’m gone” mindset is dangerous … you might end up disillusioned. Maybe other companies cannot offer you the kind of salary that you are used to, especially when you’re very high‐level … Plus, different organizations might have different standards for excellence (HP3.2).
High potential career management Eleven out of the fourteen high potentials in our sample admitted to continuously passing on information concerning personal career goals and aspirations to management and HR. The majority amongst them believed that they owed their successful careers mainly to their own assertiveness: My major strength is that I am very aware of my position compared to those of my co‐workers .… I used to go up to my career coach with entire reports on what I had done and what everyone else had achieved that term, I literally handed him the facts and figures …. I just don’t want to depend on other peoples’ goodwill or on the improvising skills of my coach in peer review meetings (HP2.5).
Aspects of self‐directedness emerged spontaneously during the interviews, as in this interview with an HR director (OR4.1): “[High potentials] push against the boundaries of their jobs …. Typically, they act on their own initiative”. Most high potentials reported to have gone
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beyond the boundaries of their job content at one point in their career, in doing so often initiating some form of change within their organizations. Some of them had gotten involved in the start‐up of new departments or product lines, others had improved existing procedures through extensive personal research and cross‐departmental teamwork and yet others had started training and/or mentoring younger employees on their own initiative. Several high potential participants talked about how their views on career management had evolved during their careers: At first I thought [the organization] would have fixed career tracks set up … and all I’d have to do is jump in …. [after some time] I started to realize that if I really wanted to achieve something, I’d have to take charge of my own career …. [now, after being identified as a high potential] I feel that the organization guides my career, but I’m the one who has to live up to it …. I would feel much less satisfied about what I’ve achieved in my career had my organization pulled all the strings (HP3.2).
Although there was a general consensus amongst the research participants in our sample (HP and OR) that high potential careers rely primarily on individual initiative, the role organizations play may not be neglected. As one HR manager (OR5.0) put it: “It is the duty of the organization to create a frame for growth, while it is the duty of the individual to present himself as a worthy candidate for succession”. An overview of the most prominent high potential career management (CM) practices mentioned in the interviews is given in Table 4. We have included all practices that, by our own inference, emerged from the interviews data as being widespread. We decided not to include those CM practices that we felt could be classified under the (broadly defined) practices listed in Table 4, nor practices that were mentioned exclusively by the ORb sample. The practices are displayed according to CM domain (identification, training and development, succession planning and retention management); furthermore, in order to demonstrate the complementary nature of CSM and OCM, we attempted to set ‘matching’ practices side by side. Interestingly, five high potentials adopted game‐like metaphors when describing CSM practices; they used expressions such as ‘playing along’, ‘withstanding the tests’, ‘collecting votes’, ‘playing your cards right’, ‘hooking on to the right wagon’ and ‘winning the race’.
CM practices CM domains CSM OCM Identification Performance Performance appraisals Initiative Bottom‐up nomination Visibility Talent review meetings Drive and ambition Development centers Training and development MBA Management skills training Projects and task forces Challenging assignments Early leadership experiences International assignments Job rotation Information networking One‐to‐one coaching Succession planning Internal job applications Job interviews Assessment centers Personal development plans CV database of all employees Political networking Nomination by board members Retention management Critical contributions Workforce segmentation Reward policies Perseverance Career opportunities Realistic goal setting Expectations management Open communication Notes. CSM = career self‐management, i.e. initiatives or (demonstrations of) achievements instigated by high potentials themselves; OCM = organizational career management, i.e. (HRM) practices or policies initiated by organizations.
Table 4. High potential career management (CM) practices
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An interesting paradox emerged from our data: it seems that the HP participants were, on the one hand, sacrificing a lot for their careers (primarily their private lives) and doing all they could to fall into grace with the organization’s makers (or at least get their efforts noticed) – they wanted to be part of the ‘in‐group’ – on the other hand, they seemed to resent their organizations at times. The high potentials in our sample seemed to be quite convinced that their organizations were not likely to do them any favors. Some of them even felt that they were being ‘monitored’ for failure and that some challenging assignments granted to them by their organizations were really tests in disguise. Evidently, high potential policies involve delicate matters, and keeping all those involved satisfied is not an easy task. Therefore, it came as no surprise that many OR interviewees were rather critical of their organization’s high potential career management practices. As the number one pitfall of high potential policies, interviewees mentioned ‘burning out’ high potentials, i.e. pushing them to take up functions or responsibilities without allowing for an adequate preparation period (5 ORa and 9 ORb). One high potential (HP2.3) told us he experienced his organization’s perception of his being able to take on any challenge at any time as rather stressful: “… does that mean that if you can’t do something, you’re a false positive ID or the like?”. Failing to manage expectations was the second most frequently mentioned pitfall in high potential career management (5 ORa and 7 ORb). When organizations do not offer clear perspectives to high potentials, these might get demotivated and leave: After five years, I’d had enough. I went up to my boss and told him I wanted pay for performance. They didn’t want me to quit so I got to participate in a development centre … I got a pay raise and they made some promises about future career moves … I like to compare it to a carrot that is dangled in front of you. The more you climb the ladder the more explicit their promises get … and that’s why you don’t quit, that’s what keeps you going (HP2.3).
A third important pitfall for organizations is the incidence of development plateaus (4 ORa and 9 ORb): Talented individuals can get stuck in the leadership pipeline when organizations do not succeed in developing them properly. [Organizations] usually have a two to three‐year vision, but then their development activities reach a plateau … with a lack of high‐level talent as a result … and despite all of their investments they will still have to rely on external hires for top‐level succession (OR8.1).
Finally, questions were raised about the criteria commonly used in high potential identification procedures. Several OR interviewees asserted
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that it is very difficult to predict what kind of human capital (or competencies) organizations will need in the future, and that consequently, organizations should definitely try avoiding ‘cloning’ their current management population (4 ORa and 4 ORb). The risk of bias creeping into the identification process was also mentioned (4 ORa and 3 ORb): High potentials are either directly nominated by members of the Board, or have to go through some sort of assessment process. The predictive validity of these methods is however questionable …. First of all, [those that are involved in high potential identification procedures] are not likely to admit they were wrong. Furthermore, it makes perfect sense that high potentials indeed turn out to be more successful than others … probably because of the nomination itself and the extra facilities the organization grants them as a consequence (OR8.2).
Discussion Over the last decade or so, several authors have raised interesting questions about the sustainability of the concept of ‘the high potential career’ (e.g. Baruch and Peiperl, 1997; Baruch, 1999; Doyle, 2000; Tulgan, 2001; Kuznia, 2004). It appears that organizations, facing the economic pressures of the 21st century world of work, can no longer promise long‐term employment to their employees, let alone a rapid progression along the organizational ladder (Arthur and Rousseau, 1996), leading some authors to conclude that “there is no future for Hipos, at least not as we have known the phenomenon” (Baruch and Peiperl, 1997, p. 354). However, the majority of publications on the topic of high potential careers are non‐empirical and take a rather ‘normative’ stance (i.e. prescribing and appraising, rather than describing and interpretive). Moreover, the viewpoints of individuals have been grossly neglected in the literature. The empirical study presented in this paper attempts to make a contribution to career theory in general, and to the literature on high potential careers in particular, by exploring the careers of ‘real’ high potentials from the perspectives of the high potentials themselves as well as those of their organizations. In this section we will discuss the key findings that have emerged from this study, followed by some – tentative – implications these findings might carry for theory and practice. It is our belief that some of the positions taken in postmodern career theory are far ahead of the realities of high potential careers. Several recent studies have concluded that claims about the speed and
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inevitability of the shift from traditional‐organizational to more boundaryless career types have to be put into perspective (Forrier et al., 2005) and that the traditional career is alive and well. As Guest and Mackenzie Davey (1996) remarked: “It is never quite clear whether those writing about the ‘new organization’ are describing current developments, identifying outliers as illustrations of inevitable trends or prescribing the shape of things to come which any organization that wishes to survive should heed” (p. 22). Forrier et al. (2005) found that only 6 percent of the 957 respondents in their study were in a boundaryless career (in which employees change employers and long for change and flexibility) whereas 60 percent experienced bounded careers (in which employees stay with their employer and aspire stability). The authors questioned the portability of the boundaryless career concept to other than US settings, the value people place on job security and the unionization of organizations (two cultural and institutional elements that tend to reinforce the ‘old’ psychological contract) being at the heart of the discussion. Furthermore, many authors departing from the perspective of postmodern career theory seem to assume that “more and more of the best people are thinking like free agents” (Tulgan, 2001, p. 37), and that, consequently, traditional‐organizational career types are no longer wanted by employees. However, recent empirical work has come to the conclusion that the majority of employees continue to desire more traditional career types. For instance, Walton and Mallon (2004) concluded that “although the boundaries of career have shifted, they have not melted into thin air” (p. 77). Although their study participants favoured career self‐management, continuous learning and autonomy, they still regarded these aspects of careers mostly as a means to achieving objective career outcomes such as promotions. The findings in our study clearly demonstrate that high upward mobility and low inter‐organizational mobility are still key features in both high potentials’ and organizations’ views on high potential careers. High potentials have more traditional careers, simply because organizations prefer to engage internal successors for top management positions, and are willing to invest heavily in those that demonstrate the talent and the drive to progress within the organization. The need for a stable core of talented employees who genuinely know the organization and its background is probably far from evanescent (Guest and Mackenzie Davey, 1996; Pepermans et al., 2003). Although many organizations are, in effect, facing scarcities in promotional opportunities, these are countered by stricter high potential identification criteria and further
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segmentation within the high potential population. Central to this paper’s argumentation is the notion of ‘workforce segmentation’. In that view, high potentials are those employees who are indispensable to organizations (Boudreau and Ramstad, 2005). Organizations wish to know who these people are and consider them separately from others (identification), develop them strategically (development) and prepare them for upward job moves (succession planning). As investments are higher for this group of employees, more efforts are made to prevent them from making inter‐organizational moves (retention management). It is not our intention to trivialize the merits of postmodern career theory; rather, we believe that although boundaryless and protean career types apply to a certain segment of the workforce, they do not pertain to it as a whole. Some authors (Rousseau 1995; Larsen, 1997; Kuznia 2004) suggest that high potential programs should, in the current world of work, place more emphasis on the ‘employability’ aspect of development as opposed to organization specific skills; our research data, however, raises some interesting questions about the contemporary psychological contract that is built on the premise of employability (Arthur and Rousseau, 1996). It seems high potentials are still getting ‘the old deal’ as they are promised long‐term career perspectives and upward advancement. But what about all other employees, who are less likely to receive promotions and be targeted for retention, but apparently also less likely to get proper training (in the words of interviewee OR3.2: “…we’ll probably only pay for an expensive training program when a high potential is asking”); are they getting neither the old deal, nor the new? We hypothesise that non‐core workers probably learn more through lateral moves than high potentials do – leaving aside fast‐track rotation programs for high potential graduates (Field and Harris, 1991). Through job rotation non‐ core personnel can acquire the employability needed to be attractive to other organizations (if necessary or desirable) while allowing high potential co‐workers to move up. Workforce segmentation thus offers clear benefits to organizations. However, getting this notion across to employees is a delicate matter, especially in environments where high potential labels are strongly associated with status and reward. Several other studies have suggested a ‘streaming’ of different types of employees in the 21st century world of work (e.g. Tulgan, 2001). For instance, Sullivan et al. (1998) posited that traditional organizational training and development are still useful for employees belonging to the professional core of their firms, bearing in mind that this group is shrinking due to organizational downsizing. Furthermore, Gratton et al.
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(2004) came to the conclusion that only traditionally non‐privileged employees had become more boundaryless with greater skills development and inter‐organizational mobility, while Viney et al. (1996) uncovered an apparent paradox between the evolving overall career philosophy of short term and ‘no promises’ versus a continuing longer‐ term association with high potentials in organizations. Figure 1 illustrates – in a speculative way – how workforce segmentation might affect organizational career structures. The dotted line marks the boundaries of the traditional‐organizational career, where employees come into the organization at entry level, work their way up until they reach their maximum potential, and leave the organization at retirement. The career structure is shaped like a piramid as each consectutive functional level is more difficult to reach, and contains fewer members. Figure 1. Career types in the 21st century world of work
In the 21st century world of work, such career structures are no longer workable; rather, the working population is segmented so that the increasingly scarce amount of organizational (non‐boundaryless) career opportunities (and of developmental resources, as well) are reserved for two types of core contributors: leaders – emanating from the organization’s high potential pool – and experts. While leaders focus their talent on maintaining the organization’s culture, keeping the overall mission clear for everybody, assigning work, setting goals, and holding people accountable for results (Tulgan, 2001), key experts
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possess organization‐specific knowledge and skills that are very difficult to replace. Establishing stimulating career tracks for key experts – and a better succession planning ensuring timely transfer of expertise – emerged from our interview data as one of the crucial challenges facing organizations today (which is illustrated by the expert career ‘development plateau’ depicted in Figure 1). With regard to high potential career management, there was general consensus between our study participants that self‐direction and initiative‐taking are key characteristics of real high potential careers. Obviously, organizations would support this position; having assertive employees that work hard at demonstrating their potential and creating visibility within the organization would considerably facilitate the difficult task of segmenting the workforce (making it more predictable and transparent). High potentials, from their side, like taking their careers into their own hands; they usually have an aversion towards strictly delineated career tracks, as these might slow them down. Furthermore, it appears that they perceive achieving career progression through personal initiative as more gratifying (De Vos and Buyens, 2005). Nonetheless, they do expect to receive career guidance from their organizations. It seems that CSM is of central importance prior to obtaining the high potential label (in establishing some professional credibility and visibility within the organization) but that, once acknowledged by the ‘in‐group’, OCM practices are needed to help high potentials climb the ladder even further. This makes obvious sense as high potentials are well able to achieve performance goals and attend networking events, but cannot participate in the organization’s succession planning themselves. As for practical implications, ‘managing expectations’ emerged as the most important recommendation made by both the high potentials and the organizational representatives in our study. Although high potential policies are, by definition, based on the premise of high commitment from both parties (McCall, 1998), we see that, in practice, organizations are sometimes struggling to keep their end of the deal. When succession planning fails or unexpected change occurs in the organization’s (economical, political …) context, high potentials without a contingency plan may well end up disillusioned. In order to avoid such unpleasant surprises for high potentials and to ensure that no damage is done to the organization – and its image as an employer – a well‐organised succession planning and a transparent communication strategy about the career opportunities present in the organization are indispensable. Furthermore, high potentials themselves need to manage their own
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expectations as well. It can be observed that the high potential career track in Figure 1 contains a ‘bottleneck’, illustrating the fact that high potentials need to be realistic and practice some patience during their careers, as upward moves may not always come as quickly as desired. Despite the contributions of the current study to career theory and the literature on high potential careers, it is not without limitations. First, it is not fully clear to what extent the findings reported in this paper possess external validity (i.e. to what extent the findings would hold across different settings, procedures and participants). One could argue that the idea of high potential careers being focused on upward mobility and staying with one employer is inherently present in Cope’s (1998) definition of a high potential. Consequently, selecting participants based on that definition (as we did in this study) would, then, typically bring about traditional views on high potential careers. However, none of the over 30 organizations addressed to participate in the study indicated that the term high potential is used to designate anything other than a potential candidate for internal succession. Furthermore, as no ‘non‐ high potentials’ were interviewed, inferences made about differences between high potentials and other types of employees are exclusively based on interview data collected from high potentials and organizational representatives, and thus, partly speculative. Finally, all participants were employed in Belgium and typically worked for large (in most cases multinational) companies. Thirteen out of the fourteen HP participants were men. Issues related to gender and the participants’ national as well as organizational culture may play a role in the study’s external validity. Second, interviews contain the danger of common method variance to a larger extent than questionnaire designs, in that they are particularly prone to inducing socially desirable responses. For instance, it is plausible that the organizational representatives were inclined to make their high potential policies out to be better than they really are. Furthermore, characteristics and expectations of the interviewer might have influenced the reponse patterns of the interviewees (Podsakoff et al., 2003). As the high potentials in our sample were asked to reconstruct the story of their careers in hindsight (knowing that they are considered as high potentials today), selective recollection issues may have caused bias in the interview data as well. As was mentioned before, the literature on high potentials is characterized by a lack of empirical scrutiny and a neglect of the viewpoints of high potential individuals. This study has attempted to
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contribute to the literature by offering empirical data collected from real high potentials and their organizations. However, more research on the topic is required in order to validate our findings. More specifically, it would be interesting to do so in a large‐scale quantitative study, comparing career data of high potential samples to matching samples of non‐high potentials. Additionally, a longitudinal study following a group of high potentials throughout their careers would greatly contribute to our insight in real high potential career tracks. As such, our inferences about the ‘streaming’ of different types of employees could be tested. Furthermore, some other questions arise. How should organizations segment their workforce? Which criteria can be used for separating one group of employees from another, and do they carry predictive validity? Do these criteria refer to more or less ‘innate’ talents or to competencies that can be developed? How can these criteria be translated across cultures? Some studies have addressed questions similar to the above. However, all of them have departed from the viewpoints of organizations. It appears there is a great need and opportunity for researchers to study ‘real’ high potential careers by examining large samples of high potentials employed by different organizations at different functional levels – but this would certainly require a greater openness of organizations towards research initiatives such as ours. References Altman, Y. (1997), “The high potential fast‐flying achiever: themes from the English language literature 1976‐1995”, Career Development International, Vol. 2 No. 7, pp. 324‐30. Arnold, J. (1997), Managing careers into the 21st century, Chapman, London. Arthur, M.B., and Rousseau, D.M. (Eds) (1996), The boundaryless career: A new employment principle for a new organizational era, Oxford University Press, Oxford. Barker, P. and Monks, K. (1998), “Irish Women Accountants and Career Progression: A Research Note”, Accounting Organizations And Society, Vol. 23 No. 8, pp. 813‐23. Baruch, Y. (1999), “Integrated career systems for the 2000s”, International Journal of Manpower, Vol. 20 No. 7, pp. 432‐57. Baruch, Y. and Peiperl, M. (1997), “High‐flyers: glorious past, gloomy present, any future?”, Career Development International, Vol. 2 No. 7, pp. 354‐58. Boudreau, J.W. and Ramstad, P.M. (2005), “Where’s Your Pivotal Talent?”, Harvard Business Review, Vol. 83 No. 4, pp. 23‐4. Briscoe, J.P. and Hall, D.T. (1999), “Grooming and Picking Leaders Using Competency Frameworks: Do They Work? An Alternative Approach and New Guidelines for Practice”, Organizational Dynamics, Vol. 28 No. 2, pp. 37‐52. Briscoe, J.P. and Hall, D.T. (2006), “The interplay of boundaryless and protean careers: Combinations and implications”, Journal of Vocational Behavior, Vol. 69 No. 1, pp. 4‐18. Buckingham, M. and Vosburgh, R.M. (2001), “The 21st century Human Resources function: it's the talent, stupid!”, Human Resource Planning, Vol. 24 No. 4, pp. 17‐23. Cohen, L. and Mallon, M. (2001), “My Brilliant Career? Using Stories as a Methodological Tool in Careers Research”, International Studies of Management and Organization, Vol. 31 No. 3, pp. 48‐68. Collin, A. (1998), “New challenges in the study of career”, Personnel Review, Vol. 27 No. 5, pp. 412‐ 25. Cope, F. (1998), “Current issues in selecting high potentials”, Human Resource Planning, Vol. 21 No. 3, pp. 15‐7.
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Chapter II. High potential identification Paper 2. Dries, N. & Pepermans, R. (in review). Identification of leadership potential: Is there consensus about ‘the’ criteria? Paper 3. Dries, N. & Pepermans, R. (2007). Using emotional intelligence to identify high potentials: A metacompetency perspective. Leadership and Organization Development Journal, 28 (8), 749‐770 . Paper 4. Dries, N., Vantilborgh, T. & Pepermans, R. (in review). High potential identification: Examining the developmental perspective.
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Paper 2.
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Identification of leadership potential: Is there consensus about ‘the’ criteria? In this study, a multidimensional model of ‘the’ criteria used to identify leadership potential was developed. Building on an extensive review of the literature, the first, qualitative part of the study revealed the 77 criteria considered most essential by subject matter experts. Through multidimensional scaling, a two‐dimensional model (cognition‐conation versus extrapersonal‐intrapersonal) comprising 4 regions (information processing, learning agility, drive, and charismatic leadership) and 13 subregions (input‐seeking behavior, insightfulness, decision making, problem solving, willingness to learn, emotional stability, personal adaptability, drive for results, persistence, personal dedication, people management, inspirational management, and stakeholder management) was conceptualized. The second, quantitative part of the study found high consensus among top managers, line managers and HR managers about the relevance of the proposed model.
Figure III. Topicality of Paper 2.
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75 Paper 2.
Identification of leadership potential: Is there consensus about ‘the’ criteria? Within the 21st century business context, faced by trends such as globalization, demographic changes in the workforce, digitization and hyper‐competitiveness, intellectual capital has become the prime resource for organizational success. The shift to a knowledge economy demands a clear focus on talent and leadership (e.g. Boudreau & Ramstad, 2005; Frank & Taylor, 2004; Lawler & Mohrman, 2003). As a result, talent management has become a ‘hot topic’ in organizations today (Buckingham & Vosburgh, 2001; Feild & Harris, 1991). Despite the ever‐increasing popularity of the concept, Lewis and Heckman (2006), in their review of the literature on talent management, concluded that there is a disturbing lack of clarity regarding the definition, scope and overall goals of talent management. They found three strains of thought about talent management: talent management as a collection of human resources management practices; talent management as processes supporting the flow of employees through jobs in an organization; and talent management as focusing on talent generically, regardless of organizational or functional boundaries. Although talent management is generally considered to be quite broad in definition, literature in the field seems to focus primarily on leadership potential – more specifically on the concept of high potentials, i.e. “those individuals within an organization who are recognized, at that point in time, as the organization’s likely future leaders” (Cope, 1998, p. 15), “people identified as being able and willing and likely to ascend the corporate ladder” (Iles, 1997, p. 347), and “those the company has singled out as being possible candidates, in time, for a position on the board of directors” (Bournois & Rousillon, 1998, p. 13). Some authors even go as far as equating talent management with high potential identification and development (Jerusalim & Hausdorf, 2007). From this point of view, talent management serves the purpose of selecting high potentials as early in their careers as possible and then giving them specialized career development opportunities allowing them to assume leadership positions as early as possible (Kuznia, 2004). It has been suggested that identifying a pool of high potentials can help to ensure continuity of management resources (Hall & Seibert, 1992) and boost the retention, motivation and performance of this specific group (Jerusalim & Hausdorf, 2007).
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Although we feel that talent management is, in fact, much broader in scope than sponsored mobility programs aimed solely at employees with leadership potential, this paper does focus on exactly that aspect of it – however, we wish to recognize that our emphasis on leadership potential does not diminish the individual talents of all employees who are not on an upward mobility track. It is our strong belief that in today’s postmodern career environment, multiple paths to success are possible depending on each individual’s specific talent and on their own personal conception of what success means to them (Dries & Pepermans, 2008; Dries, Pepermans & Carlier, 2008). Nonetheless, studies into the ‘rise and fall’ of organizations are in no doubt that the quality of leadership greatly affects organizational success. Although competitive advantage does not only depend on an organization’s senior leaders, their unique impact on strategy and decision‐making cannot be ignored. Poor leadership affects morale, gives rise to complacency and to failure to respond to markets and customers (Mayo, 2000). Whereas before, there was a trend of attracting and hiring ‘stars’ to fill leadership vacancies, the current demographic situation (i.e. structural shortage in labor forces due to lower birth rates, a larger relative percentage of older employees, and massive retirements) and changes in psychological contracts constructed by employees (Iles, 1997) are causing organizations to be more focused on early identification of leadership potential in order to develop and retain the talent already present in the organization. First of all, career management practices designed to develop internal talent are viewed much more favorably by employees than hiring from outside the organization, and consequently, encourage retention (Eby, Allen & Brinley, 2005). Furthermore, research has indicated that external high‐level hires often do not live up to expectations whereas internal successors deliver much more return on investment. Of course, a contingency approach needs to be taken; external hires can be required, for instance, when an organization’s strategy is centered around innovation and renewal (e.g. Groysberg, Nanda & Nohria, 2004). The current paper has two main objectives:
(1) to develop a multidimensional model of ‘the’ criteria essential to the identification of leadership potential; (2) to assess the degree of consensus about the developed model amongst different parties involved in assessments of leadership potential.
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The phrasing of our first objective, to develop ‘the’ model of leadership potential, is of course flavored with a hint of sarcasm. Although developing (and commercializing) such a generic, universal model seems to have become the ‘holy grail’ of talent management over the last couple of decades, it is probably downright impossible (Hollenbeck, McCall & Silzer, 2006). Rather, the current paper aims to present a model of those leadership identification criteria considered by subject matter experts as essential for (virtually) any organization. While a comprehensive model of leadership potential should, ideally, also incorporate situational variables – i.e. job variables, interpersonal dynamics, team context variables, organizational culture variables and country culture variables (Hollenbeck et al., 2006) many authors and practitioners alike seem to be convinced that there are generic, person‐ centered elements all organizations look for in future leaders (Dries & Pepermans, 2008). Literature review on leadership potential identification criteria Although talent management and the early identification of leadership potential are, almost unanimously, considered as the major challenges facing the 21st century human resources function (Buckingham and Vosburgh, 2001; Tulgan, 2001), empirical publications on these topics are exceptionally rare. Although the subject matter has been tackled by several authors (e.g. Baruch and Peiperl, 1997; Lombardo & Eichinger, 2000; Spreitzer, McCall & Mahoney, 1997), remarkably few studies have built on empirical data. Normative publications, i.e. publications that are prescribing and appraising, rather than describing and interpretive, typically present ‘best practices’ based on anecdotal findings (e.g. Ford, 2005; Miller, 2006). Consequently, discourse on the subject of high potentials and talent management tends to be conjectural rather than based on real empirical evidence (Pepermans, Vloeberghs & Perkisas, 2003). In order to collect as much input as possible for the development of our model of leadership potential identification criteria, we conducted an extensive review of the relevant literature from the last 20 years. Inclusion required that publications had to explicitly describe a number of criteria that are, or should be, used in assessments of leadership potential. We searched a range of established journals for articles concerned with leadership potential over the period 1986‐2008. To date, only two empirical studies have explicitly reported the development and validation of (trademarked) models aimed specifically at high potential identification: the Prospector (Spreitzer et al., 1997)
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and the Choices (Lombardo & Eichinger, 2000). These instruments depart from the notion that, in today’s constantly changing business context, assessments of leadership potential should not be based on end‐state competencies alone, and that an element of learning agility needs to be incorporated. We also searched for additional terms related to leadership potential to be able to provide a more detailed picture of relevant research in the past. The additional terms were high potentials (e.g. Lombardo & Eichinger, 2000), high flyers (e.g. Dulewicz & Herbert, 1999), fast trackers (e.g. Kovach, 1986), future leaders (e.g. Byham, 2003), future executives (e.g. Spreitzer et al., 1997), talent (e.g. McCall, 1992), and promotability (e.g. Cook & Emler, 1999). Our search led to a set of 38 articles. The journals covered were Journal of Management, Academy of Management Journal, Leadership Quarterly, Journal of Occupational and Organizational Psychology, Administrative Science Quarterly, Journal of Organizational Behavior, Career Development International, Journal of Social Psychology, Career Development Quarterly, Journal of Vocational Behavior, Human Relations, Organization Science, Human Resource Planning, Organization Studies, Journal of Applied Psychology, Personnel Psychology, Journal of Career Development, Personnel Review, and Journal of Management Studies. In addition, we ran a search in PsycINFO to identify relevant articles published in other journals. Furthermore, we added six well‐known books to the list as we felt they represented seminal work done in the field of talent management and early identification of leadership potential (i.e. Barham & Oates, 1991; Cox & Cooper, 1988; Kotter, 1988; Kouzes & Posner, 1987; Sternberg, 1986; Zenger & Folkman, 2002). Appendix A provides an overview of the articles (38) and books (6) identified as relevant in the literature search 3 . Although the presented overview may not be exhaustive, we are confident that it is, at least, representative of the published work within the field. In the first, qualitative part of our study, we will incorporate the identification criteria found in the literature search into one model of leadership potential. Using various qualitative techniques (focus groups, Q‐sorts, and multidimensional scaling) we will reduce the acquired information into a more interpretable and workable, multidimensional, model of criteria essential to the early identification of leadership potential. 3 A list of 545 leadership potential identification criteria was assembled. It is available
from the authors upon request.
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Different parties involved in assessments of leadership potential In previous studies of leadership potential, several parties have been identified as being (partly) accountable for its assessment. A survey study by Pepermans et al. (2003) found that top management, immediate supervisors, the HR department, line managers other than immediate supervisors, and the talented employee him or herself can all be involved in assessments of leadership potential (the order in which the parties are listed denotes their degree of involvement). An important question in this respect is if these different parties, with their different perspectives on, and interests in the process of identifying the organization’s future leaders are able to come to a shared understanding of which criteria are most relevant in assessments of leadership potential. A study performed by Cook and Emler (1999), for instance, found that different perspectives on leadership potential (i.e. bottom‐up nomination versus top‐down selection) influence the outcomes of potentiality assessments. Dries and Pepermans (2008) found that HR managers and employees identified as high potentials held different opinions about what makes someone a high potential or not (where HR managers stressed career self‐management and initiative taking, the high potentials seemed to believe that they possessed ‘innate’ leadership skills). Another study, by Guthridge, Komm and Lawson (2006) concluded that talent management programs often fail to reach their goals – and that CEO’s, business unit leaders and HR professionals each blame the other parties for this failure. Consequently, the validity of multi‐rater assessments of leadership potential may be threatened by ‘dissensus’ among the parties involved (Remdisch & Dionisius, 1998; Ruderman & Ohlott, 1990). Low inter‐ rater agreement is often found in appraisals of performance and potential. This is especially true for managerial jobs, which tend to have ambiguous performance standards and immeasurable outcomes (Lombardo & McCall, 1982). Although most members of an organization will probably agree on generic role behaviors of leaders (e.g. as in Mintzberg, 1973), implicit theories and self‐interests may cause differences in the degree of emphasis each role is given. There are three commonly accepted explanations for the low agreement between any two raters: selective perception, or differences in the performance information available to different raters (higher levels of agreement are found between raters at the same hierarchical relationship to the ratee than between raters of different levels); variations in criteria used by individual raters, both in the type used and the importance (or relative weight) attributed to them, according to their implicit theories of
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leadership potential; and unique rating tendency or style (leading to different types of rater bias, e.g. leniency, halo, or range restriction) of different individual raters (Tsui & Ohlott, 1988). However, in order for HR policies to contribute to the strategic goals of an organization, both the consistency of and the consensus about these policies is essential. The former refers both to the consistency of espoused (i.e. intended) and inferred (i.e. perceived) organizational values and to the consistency of all HR policies as a whole. The latter means that principle HRM decision makers in organizations have to agree when setting strategic goals and designing HRM practices for achieving those goals. A ‘weak’ talent management system, for instance, will not contribute optimally to the organization’s goals because individual processes might dominate, or collective sense‐making may result in shared interpretations that may be inconsistent with organizational strategic goals (Bowen & Ostroff, 2004). In the second, quantitative part of our study, the multidimensional model of leadership potential developed in the first study was presented to a sample of top managers, line managers and HR managers (i.e. the main parties involved in assessments of leadership potential within organizations). We examined the degree of consensus between these different parties in terms of the relative weight they attached to different criteria that may be used to assess leadership potential. We expected to find differences between the three parties based on the fact that they each have access to different types of information about employees’ potential as well as competing interests in the process. Based on the notion of information availability, we expected line managers to focus more on performance and achievements, and on the effort displayed on a day to day basis. HR managers, on the other hand, might focus more on career aspirations, career planning, strengths and weaknesses, and development goals, as it is their mission to collect this type of information from various sources. Top managers, often not present in the immediate environment of lower‐level employees, were expected to focus on visibility, assertiveness, networking and charisma, as employees high in these qualities are most likely to draw their attention (Ruderman & Ohlott, 1990). Competing interests of the different parties may also play a role. One typical pitfall in talent management, for instance, is that line managers are often reluctant to lose their best people to another department. HR managers can be seen as internal service providers, who have targets to reach (e.g. in terms of how many employees should be identified as high potential each year). Top managers may be intolerant towards deviant profiles and
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(unconsciously) promote only those who are ‘clones’ of themselves. Another possible problem is posed by top managers who feel threatened by upcoming talent, fearing that their own position is at risk (Cook & Emler, 1999). Development of the model Methods Focus groups. In order to reduce the elaborate list of leadership potential identification criteria found in the literature (see Appendix A) into a shorter, more workable one suited for our research purposes, we organized a focus group involving four senior practitioners and three senior academics active in the field of human resources management and talent management. Our research goals were explicated at the beginning of the focus group session. During the four‐hour session, the 545 criteria listed in the original articles and books listed in Appendix A were scrutinized in order to assess their relevance for the identification of leadership potential. Criteria that were removed involved those that were ambiguous in terms of meaning, and those that were identical in meaning to other criteria. Furthermore, some criteria that were categorized as relevant but double or triple barreled (i.e. incorporating two or three different meanings at the same time), were split up into several singular criteria. In a final step, the terminology of each of the 77 criteria that were withheld was standardized in order to enhance interpretability (see Appendix B). Qsorts. The resulting 77 leadership potential identification criteria were printed onto separate numbered cards and sent by post, along with an instructions letter, to a selected group of experts from the talent management field. The experts were instructed to sort all cards into structured piles or ‘Q‐sorts’. They were told to put two cards in the same pile if they were similar in meaning, and in a different pile if they were dissimilar (Parker, 2006). Furthermore, they were advised to only have piles of one card if they were absolutely certain they perceived it as dissimilar from all other cards. After sorting all 77 cards into piles, they were instructed to regard each pile as a category that required a label to capture the shared meaning of the constructs assigned to it. They were then asked to make up a document presenting their categorizations (i.e. labels and card numbers per category) and return it to the researchers. Thirty‐two subject matter experts participated in this Q‐sort study. We chose to work with experts in the field of human resources management
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and talent management as they are familiar with the terminology. To facilitate diverse perspectives half of the sample were students enrolled as Masters of Industrial and Organizational psychology at a large Belgian University (all students had received several courses on the topic of human resources management); the other half were senior human resources professionals specialized in talent management (either within their organization or as consultants). Eleven of the SMEXs were women (34%); twenty‐one were men (66%). The age of the participants varied between 21 and 61 (m = 41.3; sd = 16.37). Analysis. Statistical as well as qualitative analyses were performed on the categorizations that were obtained from the Q‐sort study. The goal of these analyses was to determine the underlying structure of the 77 identification criteria in the form of an inclusive model. To achieve this, we investigated the appropriate graphical configuration of the criteria, and more specifically, the amount of underlying dimensions and clusters (i.e. ‘regions’) in the data by applying multidimensional scaling (MDS). Multidimensional scaling is an exploratory technique that helps researchers determine the underlying structure in sets of data, and is considered particularly useful for the development of theory (Borg & Groenen, 1997). As the aim of MDS is to represent perceived dissimilarities between constructs as metric distances in an n‐ dimensional space, the data from the Q‐sort study needed to be transformed into a dissimilarity matrix first. For each pair of criteria, dissimilarities were calculated as the total number of experts that had not sorted them into the same category. It logically follows that values in the obtained dissimilarity matrix varied between 0 (i.e. all experts put constructs x and y together) and 32 (i.e. no expert put constructs x and y together). A classical ordinal MDS analysis was carried out using the ALSCAL algorithm in SPSS 15.0. Subsequently, adequate labels were determined for the dimensions and regions through content analysis so as to add meaning to the model (Figure 1). For a detailed description of how to perform MDS analyses in combination with qualitative (content) analyses, see Derous, De Witte and Stroobants (2003), and Dries et al. (2008). Results A two‐dimensional model was found, consisting of 4 regions (information processing [1], learning agility [2], drive [3], and charismatic leadership [4]) and 13 subregions: input‐seeking behavior (1), insightfulness (2), decision making (3), problem solving (4), willingness to learn (5), emotional stability (6), personal adaptability
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(7), drive for results (8), persistence (9), personal dedication (10), people management (11), inspirational management (12), and stakeholder management (13) (see Appendix B). Interpretation of the dimensions (see Figure 1). While MDS assures that constructs which are similar are close on the MDS map, the orientation of the axes is an arbitrary function of the input data. Axe rotation of the axes is allowed when it enhances interpretability (Garson, 2008). Figure 1 displays the final model with the dimensions rotated. The first, horizontal, dimension was called extrapersonal versus intrapersonal (context versus self). Criteria at the extrapersonal end of this dimension belong to regions 1 (information processing) and 4 (charismatic leadership). The extrapersonal end of this dimension stands, more specifically, for leadership potential identification criteria referring to processes where input is taken from the work context (i.e. relevant others or situations) and output is generated to enhance this context (e.g. organizational performance). We opted for the term ‘extrapersonal’, and not the more common ‘interpersonal’, as these criteria do not only relate to relationships with others, but also to relationships with the broader work context. Criteria belonging to these regions are ‘being open to new and diverse people and ideas’ (i24) and ‘being able to build high‐performing teams’ (i63), among others. The other end of the dimension, intrapersonal, refers to criteria relating to processes aimed at enhancing personal development and functioning. Examples of criteria at this end of the scale are ‘chasing after variety, challenges and intellectual stimulation’ (i19) and ‘showing drive and perseverance’ (i11). The second, vertical, dimension was labeled cognition versus conation (head versus heart). Criteria on the cognition side of the dimension belong to regions 1 (information processing) and 2 (learning agility). The focus on this end of the dimension is on information processing by the individual (i.e. comprehension, inferencing, decision making, planning and learning). This is illustrated by the criteria belonging to these regions, e.g. ‘reflecting critically on practices and procedures’ (i46) and ‘enjoying complex first‐time problems and challenges associated with new experiences’ (i28). Criteria on the conation side of this dimension belonged to regions 3 (drive) and 4 (charismatic leadership). Examples of criteria at this end of the scale are ‘demonstrating need for achievement (i.e. being performance‐oriented)’ (i33) and ‘actively looking for opportunities to lead’ (i66). Therefore, the conation side illustrates a focus on will, drive and motivation, i.e. the powers that direct effort.
Figure 1. MDS model of all 77 criteria mapped onto 2 dimensions and into 4 regions (dotted lines represent axe rotations)
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Assessment of consensus about the model In order to test our expectations about possible ‘dissensus’ between the parties involved in assessments of leadership potential formulated in the Introduction of this paper, we conducted a second study using an online survey. Methods Measures and procedures. An online survey was conducted among professionals engaged in assessments of leadership potential. Three groups of respondents were contacted, i.e. top managers, line managers and HR managers. Contact data came from a large database from the research department supporting the research. Respondents were also asked to forward the survey to other professionals active in the field of talent management within their networks (i.e. snowball sampling). Respondents were instructed to indicate for each of the 77 leadership potential identification criteria to which extent (on a 7‐point scale ranging from ‘not at all’ to ‘to a very large extent’) they consider these criteria as essential when they themselves are asked for input in assessments of leadership potential. Respondents were instructed to answer according to their own personal experiences with assessments of leadership potential and not rely (exclusively) on formalized criteria imposed by the organization. Finally, respondents were asked to indicate their gender, age, educational level and role in their organization’s processes concerning assessment of leadership potential (roles adapted from Dries & Pepermans, 2008, see Table 1). Participants. A total of 179 respondents took part in the online survey: 52 top managers (29%), 54 line managers (30%) and 73 HR managers (41%). Of these 179 respondents, 60 were women (34%) and 119 were men (66%). The age of the respondents varied between 23 and 65 (m = 44.37; sd = 8.25). As regards educational level, 8% of respondents reported having a high school degree, 23% had a bachelor’s degree, 55% had a master’s degree and 14% obtained a post‐graduate degree. Table 1 illustrates how top managers, line managers and HR managers typically take up different roles within their organizations’ assessments of leadership potential (significant differences were discerned using χ² difference tests). Top managers in our sample were more involved in providing top‐down input on leadership identification policies, and had more decision‐making capacity than line managers and HR managers.
Table 1. Crosstabs and chi‐square difference tests for the different parties and their roles in assessments of leadership potential Top managers Line managers HR managers (n = 52) (n = 54) (n = 73) n % n % n % χ² Role in assessments of leadership potential Providing bottom‐up input to management about 25 48% 40 74% 31 43% 13.38* the leadership potential observed in employees Providing top‐down input to different people in the 22 42% 11 20% 26 36% 6.16† organization about how to identify leadership potential Developing criteria and processes for the identification 23 44% 10 19% 53 73% 36.80* of leadership potential Participating in a committee that decides who is identified 32 62% 21 39% 32 44% 6.11† as a potential future leader and who is not Having decision‐making capacity (or veto right) about who 22 42% 9 17% 11 15% 14.54* is identified as a potential future leader and who is not Notes. % = within‐group percentages; † p