Jeff Smith, Former BlackRock HR Executive, on How Talent Management Can Increase Efficiency
Human resources professionals are tasked with maintaining organizational efficiency while fostering a productive and engaged workforce. Jeff Smith, former global head of human resources at BlackRock, offers valuable insights into how strategic talent management can streamline operations and reduce organizational bloat.
His view is that many companies struggle with unnecessarily large head counts. “Most companies need fewer people than they think they do to be successful,” says Smith. “This goes against the perception that companies are always lean and understaffed. With stronger talent practices, most firms could cut head count without compromising output or growth.”
Time as a Scarce Resource
One of the primary contributors to organizational bloat is the mismanagement of time. In many companies, time is treated as an unlimited resource, leading to inefficient practices that drain productivity.
A study found that executives receive an average of 30,000 emails annually, senior executives spend more than two days per week in meetings involving three or more co-workers, and 15% of an organization’s collective time is spent in meetings, a percentage that has increased every year since 2008.
These findings underscore the need for companies to treat time as a scarce resource, much like they treat financial capital. By bringing discipline to time budgets, organizations liberate countless hours of unproductive time and fuel efficient growth.
Strategic Talent Management
Jeff Smith advocates for a comprehensive approach to talent management that helps organizations streamline operations. He emphasizes the importance of aligning roles with individual strengths and passions. “Try to find work that sits at the intersection of what you naturally excel at and what you feel passionate about,” says Smith.
Ensuring that employees are in roles that leverage their strengths and ignite their passions is a vital step in maximizing productivity and engagement while potentially reducing the need for additional staff.
Evidence-based people management practices should also be at the center of human resources strategies, says Smith. He cites What Works by Iris Bohnet as a valuable resource. It “provides great insights on data-driven, evidence-based people management practices,” he says.
Leveraging data analytics enables organizations to make more informed choices about hiring, development, and resource allocation, potentially identifying areas of inefficiency or redundancy.
Prioritizing Leadership and Manager Development
Jeff Smith identifies leader and manager development as a top priority for human resources in 2024.
“Leaders need to drive change and help drive strategy and create culture,” he says. “Part of this is skill development, but part of it is creating the right job for leaders and managers and the right incentives to do it. They need both compensation and recognition.”
Effective leadership significantly impacts organizational efficiency by ensuring clear direction, fostering employee engagement, and making strategic decisions about resource allocation.
Creating a Purposeful Culture
A strong, purposeful culture drives employee engagement and productivity, potentially reducing the need for excessive management layers or redundant roles, says Smith. He adds, “Culture is everything — it is what you stand for, how you do work, what you are held accountable for and how it feels to be somewhere.”
He suggests a shift away from traditional, linear career paths toward more flexible structures.
“I think an evolving theme is the phasing out of traditional linear career paths, static job descriptions and inflexible structures,” he says. “There is more moving toward flexible and iterative career journeys that allow people to use their skills and build.”
This approach can lead to more efficient use of talent, as employees can be deployed where their skills are most needed, potentially reducing the need for additional hires.
While these strategies can significantly contribute to reducing organizational bloat, their implementation is not without challenges. Human resources professionals must navigate potential resistance to change, ensure that reducing head count doesn’t compromise quality or employee well-being, and maintain a balance between efficiency and innovation.
With the rise of remote and hybrid work models, leaders must adapt these strategies to new realities.
Smith acknowledges the complexities of this shift. “I am a believer in hybrid. In the end it comes down to the job and the company and what needs to get done.”
Smith’s insights offer a compelling case for how strategic talent management can address organizational bloat. Treating time as a scarce resource should drive the process of aligning roles with individual strengths and passions. Human resources professionals can play a crucial role in implementing data-driven practices, fostering accountability, developing strong leadership, and creating purposeful cultures. The key, says Smith, is to build from a strong foundation.
“I think getting the basics right and executing them is far more important before you are innovating,” Jeff Smith says. “Pay people right, have great hiring practices, develop your leaders, have a culture of feedback, ensure leaders know their expectations. Have good solid processes, then innovate on top of that.”