Reference no: EM133026734

Background and Context

ProfessionalCo (an assumed name) operates within the professional services industry and delivers knowledge- based services and is structured as a member firm of a larger private listed company, headquartered in the United Kingdom, and operating in over 150 countries. ProfessionalCo is responsible for the Asia-Pacific region with this part of the multinational business self-described as one of the largest management consultancy firms operating within the region. Clients engage ProfessionalCo's services via a distinct Business Unit (BU) which offer deep expertise in various areas of speciality including consulting, accounting, finance, taxation, digital transformation and strategy. While able to operate independently, the firm maintains partnership ownership with two levels of seniority - equity partner and non-equity partner - creating a situation whereby equity partners are simultaneous "employers" and "employees" as revenue and equity are distributed amongst these stakeholders. The senior executive team comprising of the Chief Executive officer (CEO), Chief Strategy Officer (CSO), Chief Operating Officer (COO) and Chief Financial Officer (CFO), are responsible for setting the firm's strategic direction.

Boasting over 44,000 staff, its workforce is separated into either a Corporate-based role which focuses on the provision of services delivered subsidiary-wide, or within a specific part of the business. That is employees either work for the organisation in the subsidiary headquarters (referred to as Corporate Executives) or in a distinct Business Unit (referred to as a Business Unit Executive). Each Business Unit (BU) differs in relation to the services and knowledge provided to clients, workforce size, number of partners, and the skills and capabilities desired in high performers. The firm's Human Resource function is also separated into three teams: recruitment; policies and practices to be implemented organisation-wide; or workforce management within a specific BU.

Importance of Talent Management

In stark contrast to many of their competitors, ProfessionalCo did not seek to dramatically downsize during the organisation during 2007-2009's period of economic uncertainty (otherwise referred to as the Global Financial Crisis on other parts of the world). Instead of making a large part of the workforce redundant, ProfessionalCo implemented a new remuneration policy severely restricting pay increases, bonus and equity distributions. The CEO was particularly proud of the ability to "keep its workforce in tack" during the wider Global Financial Crisis and frequently referred to this action (or lack of action) as the firms' unbridled commitment to talent management.

References to the importance of talent and talent management feature prominently in both internal and external talk and texts. The firm publicly declares that talent and talent management is imperative to its operational and strategic ambitions. The importance of talent management stems not only from the inherent connection between the quality of its internal workforce and organisational success but also the desire to compete in and win the widely heralded "War for Talent". Asserting the presence of a talent shortage, ProfessionalCo deliberately invested in enhancing the firm's external reputation to "win its unfair share of talent". Recognised as an Employer of Choice operated as a further mechanism to pull potential talent towards the organisation and to widen the external talent pool.

Operating within a knowledge-based industry presents a unique set of challenges for talent management because, without talent, there would be no ProfessionalCo. The fixed relationship between talent management and the firm's operations further compounds the imperative need to manage "talent" effectively. Professional services are different to production or manufacturing organisations which provide stakeholders with physical goods and/or services as the value proposition and "talents" of its workforce represent the sole source of competitive advantage. That is, knowledge-based firms such as ProfessionalCo sell services to clients. These services are founded on the skills, capabilities, and knowledge of the people within. While many organisations adopt the adage that "Our people are our most important asset", this sentiment is factually correct for ProfessionalCo as the people-based assets underpin all assets within the organisation. Driven by a formalised talent management strategy to "grow" concerning size and revenue, the subsidiary, proactively invested in talent management policies and practices to enhance the organisations competitive positioning domestically. Employing discourse by strategy approaches which recognise the power of words and talk in shaping actions, the firm's senior executive team explicitly encourage everyone to "take action and invest in their talent" to achieve the subsidiaries strategic ambitions and goals. The charismatic CEO acted as a salient stakeholder in all talent management and strategy interactions and was frequently observed conversing with employees about their experiences working at ProfessionalCo, instigating opportunities to garner real-time data about the organisation's progress and the ability to balance client and workforce needs.

Workforce Management issues

The ability to enact an integrated approach to talent management - whereby all Business Units and Senior stakeholders were "doing the same thing" - and realise formalised strategic ambitions, however, is encased in complexity for the following reasons:

Talent management practices were not founded upon a pre-established definition of talent. There is no single agreed upon understanding of "who" (individuals or everyone) and "what" (skills and capabilities or pivotal roles and positions) is talent across the organisation.

Although talk about talent permeates throughout the organisation with the term "talent" used frequently to describe certain policies and practices, Corporate HR executives acknowledge that there are vastly different perceptions of what "talent" looks like (the criteria for identification).

There are also divergent opinions about whether the subsidiary should adopt and enact an inclusive or exclusive approach to talent management.

Above mentioned is the case study

The question is:

Context: ProfessionalCo has been impacted by Covid-19 (March 2020 onwards) resulting in (unanticipated) decreased revenue.

A business report and In the report we have to:

Identify and explain the remuneration issue.

1. Executive summary - overview of issue(s) identified.

2. Issue identification and explanation - identify associated renumeration issues and challenges explain why (why, why) you think these are major issues for the organisation broadly and the HR Director specifically.