How ‘boundaryless’ are the careers of high potentials, key experts and average performers?
Highlights
► We tested contrasting assumptions from the careers and talent management literature. ► More support was found for the assumptions from the talent management literature. ► The ‘best’ employees are most often found in traditional–organizational careers. ► Traditional–organizational careers were found to be most satisfying. ► Career type is determined by performance indicators rather than career orientation.
Introduction
Talent management is the differential management of employees based on their relative potential to contribute to the competitive advantage of their organizations (Lepak & Snell, 1999). It is often described in the management literature as “a strategic imperative” (Ashton & Morton, 2005, p. 28). In contrast, voices in the careers literature label it “at best an anachronism, and at worst a false promise used to keep valuable employees in organizations” (Baruch & Peiperl, 1997, p. 356). The contemporary careers literature emphasizes the untenability of the traditional–organizational career based on the fact that organizations can no longer promise long-term employment to employees, let alone a rapid progression along the organizational ladder (Arthur and Rousseau, 1996, Sullivan, 1999). As a result, the premise that hard work and the display of exceptional talent will be rewarded by steady upward advancement is said to be undermined (Baruch & Peiperl, 1997). Simultaneously, however, the current demographic situation (characterized by skills shortages in the labor market due to lower birth rates, a larger relative percentage of older employees, and large-scale retirements) along with changes in the psychological contract between employers and employees that imply decreased loyalty (Rousseau & McLean Parks, 1993) are causing organizations to more than ever focus on talent management as a strategic tool for attracting and retaining valuable employees (Silzer & Dowell, 2010).
So which is closer to the truth? Should talent management be buried alongside the traditional–organizational career? Or can talent management (still) offer added value to organizations and individual career actors alike? Considering the degree of interest in both ‘new’ careers and talent management, surprisingly few empirical studies on these topics are found in the literature. Several authors have argued that careers researchers need to study actual facts about modern-day careers rather than develop new dogmas (Arnold & Cohen, 2008). The current paper aims to integrate the careers and the talent management literature by empirically testing some of their contradicting assumptions.
Section snippets
Assumptions advocated in the ‘new’ careers literature
The contemporary careers literature seems to advocate three general assumptions about careers, that lie at the heart of the hypotheses in the current study: first, that the best people nowadays are in ‘boundaryless’ careers (Sullivan, 1999); second, that boundaryless careers are generally more satisfying (e.g. Baruch and Peiperl, 1997, Tulgan, 2001); and third, that careers are increasingly self-directed and guided by people's personal career orientations (e.g. Forrier, Sels, & Stynen, 2009).
Assumptions advocated in the talent management literature
Along 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 (Baruch & Peiperl, 1997). However, there is a huge gap between the positions taken in the careers literature with regard to talent management, and those taken in the management literature. In fact, ever since Michaels, Handfield-Jones, and Axelrod (2001) coined the
Hypotheses
The ‘new’ careers literature (e.g. Arthur & Rousseau, 1996) has identified the following employer inducements and employee attitudes as being characteristic of the traditional–organizational career: high job security offered by the employing organization (hypothesis 1); a high degree of organizational support (hypothesis 2); regular upward promotions (hypothesis 3); regular pay raises (hypothesis 4); and high organizational loyalty (hypothesis 5) and commitment from the side of the employee
Procedure and sample
Data for this study were collected by an online survey, as part of a broader Belgian research initiative addressing current issues in talent management. Twelve internationally active for-profit organizations (from the banking, insurance, business consulting, ICT, energy, and automotive sector respectively) agreed to participate in this particular lap of the project. The study had a case–control design. Employees identified as high potentials (defined as employees with exceptional leadership
Results
Table 2 presents the means, standard deviations, and correlations between the study variables.
Hypotheses 1 through 7 were tested using multiple mediation analysis. Table 3 reports the strength of each indirect effect and its related confidence intervals. Closer inspection reveals that significant indirect effects on career satisfaction were found only for the high potential category, and only for the mediators organizational support (hypothesis 2), promotions since entry (hypothesis 3), and
Discussion
All in all, we found more empirical support for the assumptions advocated in the talent management literature than for those advocated in the careers literature. First, we found that both employees identified as high potentials and as key experts reported higher job security and salary increases since organizational entry than average performers. In addition, the high potentials also reported more organizational support, more promotions, and higher organizational commitment. Only for loyalty
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