The War For Talent

About the Authors

"The War for Talent" is a collaborative effort by Ed Michaels, Helen Handfield-Jones, and Beth Axelrod, three distinguished professionals from McKinsey & Company. Ed Michaels, a recently retired Director of McKinsey & Company in Atlanta, has extensive experience in leadership and talent management. Helen Handfield-Jones, a Senior Practice Expert with McKinsey in Toronto, specializes in organizational development and talent strategy. Beth Axelrod, a Principal of McKinsey in Connecticut, brings a wealth of knowledge in executive leadership and talent retention.

Main Idea

The core message of "The War for Talent" revolves around the critical importance of attracting, developing, and retaining highly talented managers in today’s competitive business environment. The authors argue that the depth and quality of a company's talent pool determine its market leadership. They present a five-part approach to managing talent resources, emphasizing that a strong belief in the importance of talent and strategic actions to support this belief distinguish high-performing companies from average ones.

Table of Contents

1. The War for Talent
2. Embrace a Talent Mindset
3. Craft a Winning Employee Value Proposition
4. Rebuild Recruiting Strategy
5. Weave Development into the Organization
6. Differentiate and Affirm Employees

The War for Talent

The late 1990s saw companies struggling to hire and retain necessary talent amidst fierce competition and the rise of dot-com startups. Despite economic fluctuations, the need for talented managers remains a critical driver of corporate performance. The authors identify three fundamental forces fueling the persistent war for talent: the shift to the Information Age, the intensifying demand for high-caliber managerial talent, and the growing propensity for job mobility among professionals.

“Talent is now a critical driver of corporate performance; a company’s ability to attract, develop and retain talent has not ceased to be important in the current slow economy.” - Ed Michaels, Helen Handfield-Jones, and Beth Axelrod

As the economy becomes more knowledge-based, the value of highly talented individuals continues to increase. Companies need managers who can effectively respond to globalization, deregulation, and technological advances. The demand for top managerial talent remains strong and will persist for decades. Moreover, the propensity for job mobility has grown, with employees frequently changing companies to seek better opportunities and career growth.

Embrace a Talent Mindset

Embracing a talent mindset involves a deep-seated belief that better talent at all levels leads to outperforming competitors. Leaders with this mindset dedicate significant time and energy to strengthening their talent pool, taking bold actions to maintain and grow talent throughout their organizations. For example, Greg Summe, CEO of PerkinElmer, reviewed the performance of his top 100 employees and made decisive changes to enhance the company's talent.

Six actions leaders should take include: