Are We Properly Rewarding Talented People?

The marketplace is aware of the skills required to be a top tier Chief Financial Officer or Executive Vice President, Human Resources, and their market value, but what about the services executives and managers whose roles are not yet defined?

In companies that fail to take a programmatic approach to developing global services talent or lack a formal governance structure, success is even more dependent on the skills of individuals in these roles. “Those organizations that are successful at this activity [of globalizing services] without establishing a formal PMO [Program Management Office] are probably successful because they have some very strong people who are carrying the load,” says Margel.

And yet these strong people aren’t always properly rewarded for their efforts. “Some organizations, frankly, are going to value this sort of skill set, and some will not,” rues Margel. “Even if they try to pursue an outsourcing or offshoring model, they may never understand or recognize the value of the kinds of experience and talent that are going to be uniquely required to do this work.”

Experts agree that global services capabilities, while valued and in demand, do not yet command a premium, much the way SAP programming or network-architecture skills were valued in the recent past. This tendency moves career risk to the individuals who pursue these roles. Their real payoff may come some time in the future in another career move, when market value and demand catches up with the need for talent.

Will the Talent Shortage Get Worse Before it Gets Better?

The need for training and development, formalization of roles on corporate-organization charts, career-path development and market valuation may be pushed by the velocity of services globalization.

“I think we are already seeing and feeling the signs of a shortage,” says Deutsche Bank’s Margel. “I don’t know that I would describe it as a crisis at this point, but given the projections for increased outsourcing, we are certainly on our way to some very serious difficulties here.”

How long could any shortage last? P&G’s Metz thinks it will be short-lived, and although the competition for people with global services skills is intensifying, the supply will also grow. “The lack of supply may last between one and five more years,” he predicts, “but it’s not the long-term story.”

Perhaps the industry will experience a spot shortage — corporation by corporation. Those, like P&G, who are investing now in training and development in response to their experience, may experience a short talent gap until they build skills internally. Others, just putting their toes in the proverbial offshoring and outsourcing waters, may find that the demand for talent is overwhelming. But the global services talent supply certainly can be addressed by training and development, and standardizing career paths.