1.
We are here today to launch, first, the new Firefly initiative which is a collaborative programme to develop talent in MTI and six of its statutory boards and, second, a new Economist Service for the public sector. Employees as Voluntary Investors
2.
A few months ago, my old professor from the Harvard Business School, Christopher Bartlett, visited Singapore and proposed a different way of looking at the employer-employee relationship. He said that we should view employees as "voluntary investors" of their own intellectual capital. Just as traditional investors are free to move their capital around, employees are also free to invest their talent in the areas where it brings them the highest return. Just as investors would evaluate the risks and returns of their investments, employees too would weigh the opportunity costs and benefits of joining a particular organisation before committing to one, and never permanently. The old Japanese system of life-time employment no longer works. It is hard to maximise returns on your capital if you are stuck in certain stocks.
3.
Professor Bartlett's idea reflects the quiet revolution in talent management. Organisations have come to accept that talent, rather than financial capital, is their most important asset. "People are our most important asset" is not a cliché anymore. It has taken on a new meaning in the Knowledge Economy.Generation Y Demographics
4.
Because talent is increasingly a form of capital, it has become more difficult to manage. The balance between employers and employees has shifted in favour of employees. Educated employees enjoy greater choices and naturally become more demanding. Twenty five years ago, when a young man or woman secured a job upon graduation, there was a sense of relief and gratitude. The scholarship bond meant guaranteed employment. Today, the bright graduate is bombarded with multiple job offers. The current global economic slowdown may dampen the employment market temporarily but the world demand for top talent will not slacken.
5.
A study conducted in the US last year, at the height of the dot-com boom, found that 25% of students expected to make their first million before 30, and two-thirds expected to be more successful than their parents. Only 20% expected to stay with their first employer for more than three years. Although the collapse of NASDAQ has restored a sense of reality, the long-term trend, which is propelled by technological developments, remain unchanged.
We are here today to launch, first, the new Firefly initiative which is a collaborative programme to develop talent in MTI and six of its statutory boards and, second, a new Economist Service for the public sector. Employees as Voluntary Investors
2.
A few months ago, my old professor from the Harvard Business School, Christopher Bartlett, visited Singapore and proposed a different way of looking at the employer-employee relationship. He said that we should view employees as "voluntary investors" of their own intellectual capital. Just as traditional investors are free to move their capital around, employees are also free to invest their talent in the areas where it brings them the highest return. Just as investors would evaluate the risks and returns of their investments, employees too would weigh the opportunity costs and benefits of joining a particular organisation before committing to one, and never permanently. The old Japanese system of life-time employment no longer works. It is hard to maximise returns on your capital if you are stuck in certain stocks.
3.
Professor Bartlett's idea reflects the quiet revolution in talent management. Organisations have come to accept that talent, rather than financial capital, is their most important asset. "People are our most important asset" is not a cliché anymore. It has taken on a new meaning in the Knowledge Economy.Generation Y Demographics
4.
Because talent is increasingly a form of capital, it has become more difficult to manage. The balance between employers and employees has shifted in favour of employees. Educated employees enjoy greater choices and naturally become more demanding. Twenty five years ago, when a young man or woman secured a job upon graduation, there was a sense of relief and gratitude. The scholarship bond meant guaranteed employment. Today, the bright graduate is bombarded with multiple job offers. The current global economic slowdown may dampen the employment market temporarily but the world demand for top talent will not slacken.
5.
A study conducted in the US last year, at the height of the dot-com boom, found that 25% of students expected to make their first million before 30, and two-thirds expected to be more successful than their parents. Only 20% expected to stay with their first employer for more than three years. Although the collapse of NASDAQ has restored a sense of reality, the long-term trend, which is propelled by technological developments, remain unchanged.
part 1 ...to be continued...
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