Question

Many employers facing industry job shifts also are confronted by workforce changes due to retirement of key executives and employees. One firm that has “drilled” well in the oil equipment and services industry is National Oilwell Varco (NOV). Based in Houston, Texas, the fi rm has over 20,000 employees working in manufacturing, selling, and servicing oil and gas equipment. Several years ago the CEO at NOV, Pete Miller, recognized that all of the senior management executives were baby boomers. The CEO realized that many of these executives would be retiring about the same time, so NOV would face a significant vacuum of talent to be replaced. Two senior executives were given the assignment to prepare for the changes, resulting in a plan labeled “Next Generation.” To generate a supply of potential leaders, technical professionals, and others, NOV had to broaden its recruiting process beyond the normal oil-based states, such as Texas, Louisiana, and Oklahoma. Miller also demanded that foreign candidates be considered, because of the expanding global oil market. A specific focus of NOV recruiting efforts included foreign students at U.S. universities who had high English communication skills and other relevant capabilities. Up to 40 individuals at 10 universities were interviewed, and then the primary candidates went through two more interviews by NOV middle managers. Those candidates who “passed” this phase spent two daysin Houston going through additional interviews and selection means. Finally, the individuals selected were offered jobs at NOV. This process has continued during the past several years. Once the selected individuals go to work at NOV, they spend one year in job rotation, with four assignments of three months each in different business areas. This rotation provides the individuals with a broader view of NOV and its operations. During the rotation, candidates participate in various efforts, including development programs and mentoring by various division managers. A unique part of NOV’s talent management process is that after the individuals complete their one-year job rotation, they become “draft candidates.” Modeled after the National Football League draft, each business unit identifies which individuals they want on their “team.” After completing the draft, individuals get jobs in the different business units. NOV’s “Next Generation” program has been successful. The retention rate for the drafted candidates is over 90%, higher than normal in the industry. Also, its recruiting costs have declined. So there has been a payoff for both NOV and its employees. 1. Discuss how NOV's efforts combine different phases of talent management to reach a successful result.

Answer 1

Talent management is one of the strategic decisions of organisations or commitment of organisation in attracting, recruiting, retaining and developing the most talented and superior workforce available in the market. Talent management includes all the process and systems which are required for recruiting and retaining the best workforce. In simpler words we can say that Talent Management is a way of taking great people to great performance. Importance of Talent Management Strategically thinking: Talent management helps in taking strategically decisions. Eg what type of leaders and managers will be required in growing and acquiring the other business. Understand key roles: Talent management helps in defining and understanding the roles and responsibilities to be played by the leaders and managers. Identifying the requirements of key roles: Key roles includes the roles of superior leaders or directors of a company. At the time of hiring higher management, Talent management helps in identifying what exactly the roles a person has to play for a higher position. Understanding the internal talent of a company by using assessment centres.