Talentism is the new capitalism. This was the message delivered in Davos this year in a research report carried out by Mercer and the World Economic Forum. The report reached the conclusion that talent is “the fuel that drives the engine of the global economy”. Talent is an enabler for private companies, governments and academic institutions to close skills gaps and remedy talent shortages, while also moving more to employability and employment.

“In response to particular labour market failures, talent mobility practices can effectively boost labour supply, stimulate demand, or better equilibrate supply and demand through changes in the cost or quantity of labour − all of which lead to growth,” states the report.

In her article “Talent is driving the global economy and HR directors need to ensure they keep their competitive advantage in the boardroom”, Cathy Bussey at HR Magazine reports that the driver of the world economy is talent and while line managers are taking greater responsibility in this area, HRDs would be wise to maintain their knowledge and competitive advantage in the boardroom. Bussey started her article by quoting Sue Brooks, MD of Talent Management specialists Ochre House, who said: “There is self-evidently a link between a country’s GDP and the size of its working population.” Having said that, Bussey explained that in this tough environment, businesses need to adapt not only to survive but moreover to bring innovation and creativity to the table – which is impossible without the right talent. However, she noted that assigning responsibility for talent management − in that it might not be up to HR directors to devise a talent strategy any longer − poses challenges to businesses, not least because the nature of talent is changing. Traditionally, talent has been the responsibility of the HR function, as part of its overall people remit. However, as Bussey rightly proclaims, it is impossible for HR directors to have a detailed working knowledge of every individual in an organisation employing hundreds or even thousands of people.

As such, Bussey argued, HR often turns to line managers to utilise their in-depth knowledge of the workforce. However, as recent research by Roffey Park, published in the February issue of HR magazine revealed, the line resents “extra duties” being foisted on it, and can often look at talent management as merely one more thing getting in the way of their day job. Bussey quotes Hannah Sandford, head of business psychology at HR consultancy, ETS who pointed out: “We in HR constantly think ‘why aren’t line managers doing this?’ We don’t give them enough credit for the fact that it is really difficult, and line managers are not experts in talent management. For the line, it is just an extra thing to do.”

Andrea Ranyard, L&D director at ITV, believes that it is imperative that HR assists line managers to take ownership of the talent management agenda: “It is essential to involve line managers and they are very much central to the success of our talent strategy at ITV.”

“Managers are in the best possible position to nurture talent,” Ranyard added.

Niki Rouse, head of people at training venue supplier, an employer of 250 staff in London and Birmingham, is of the same opinion as Ranyard. “In some of the more corporate or public sector organisations, HR tends to sit in an office, as opposed to being on the floor operationally and understanding what is happening in the business and seeing staff. Then you will rely on data that’s coming out of performance management or talent systems. You are always going to need line managers’ input, as they work with people in the day-to-day business.”

On the other hand, Matthew Mellor, MD of search consultancy Armstrong Craven, believes that involving line managers in planning a talent pipeline might lack a strategic imperative. Indeed, Mellor fears that using the line for talent management can be more of a cost-cutting exercise than a decision prompted by the needs of the business. “In this climate, we have seen a lot of businesses cut costs, and where departments − including HR − have been rationalised and resized, talent management has been put to the line. Where businesses do this well, it is an opportunity to improve talent management,” Mellor maintains.

Continuing with the above argument, Bussey quoted Chris Phillips, VP for EMEA marketing at talent management consultancy Taleo, who explained that the ratio of line managers to employees is likely to be 1:5 or 1:10, whereas for HR staff it is more likely to be 1:100. Hence, this implicates that a realistic and effective talent-management solution should incorporate both HR and the line.

“HR’s role is to support and facilitate the process,” explains ITV’s Ranyard.

What is more, HR also needs to have accountability for talent management, making sure it is being performed effectively. Without the support from HR, Bussey explained, there is always the threat that managers could home in on individuals who remind them of themselves in some way − the ‘like me’ approach.

“This can be challenging,” says Sandford at ETS. “You end up with people being evaluated and identified as talent on the basis of their personality, not what they deliver.”

Sinéad Hasson, MD of market research recruiters Hasson Associates, states: “On a day-to-day basis, attracting talent should be the responsibility of hiring teams and HR. HR should identify the correct channels − recruiters, job boards and events, for example − and line managers can then work to help direct HR and support their recruitment goals.”

However, Phillips warns that the tools and processes put in place around talent management need to be tailored to the needs of the line manager − not to the convenience of HR. “In the past, this hasn’t been done very well,” he notes.

“HR has either put in processes and systems that are there to suit its own needs, rather than those of the line manager. Or, it has introduced self-service tools that push a lot of work into the line manager role. Neither solution is effective.”

As such, it becomes imperative that HR thinks carefully about how much time it is spending on processes, and how much time it is spending connecting with the business leadership. Nick Holley, director of the Centre of Excellence at Henley Business School, emphasised that HR should not be put off by this.

“What really matters is, are you influential? Are you building the capability of your organisation? Sometimes that can be done more effectively behind the scenes, rather than at the boardroom table,” Holley maintains.

Talent strategy, like people strategy, needs to evolve, concluded Bussey − but as Valerie Scoular, group HR director of Aegis Media, rightly points out this doesn’t mean that HR directors need to be left out in the cold.

“In a world where talent is mission-critical for business success, line managers need to lead the charge on attracting and retaining top talent. Talented people want to work for inspirational leaders,’’

“HR’s role is to provide thought leadership and exciting talent opportunities to support managers in getting the best out of their people. The best talent work happens when the individual, the manager and HR all work in partnership,” Scoular concluded.

Ms Camilleri is a researcher at the Foundation for Human Resources Development (FHRD)