General Discussion
Industry 4.0, automation, and robotization are changing the way of work. As a result, there is an increasing need to develop appropriate strategic talent management and strategic agile management. Industry 4.0 has created an enormous gap between employees’ current skills and future job demands. To succeed in the workplace, new employees must change their thinking and have enough different and relevant competences. These competencies are creativity, critical thinking, networking, communication, and goal orientation. Organizations no longer need narrowly focused engineers but must have a combination of several competencies. Thus, it is crucial that, according to Balog (
2020), Industry 4.0 enables the analysis of large amounts of personnel data, which enables organizations to adapt to changes faster and take a more analytical approach to recruitment or discovering talents within the organization. Identifying, developing, and retaining talent is of key importance in management practice (Pio et al.,
2021). To succeed in the current VUCA environment, numerous organizations are striving to enhance their agility (Attar & Abdul-Kareem,
2020). In contrast to traditional organizations that may appear rigid, hierarchical, and linear, agile organizations are more organic in nature, striking a balance between stability and dynamism, and are capable of adapting to an ever-evolving and unpredictable future (Zavyalova et al.,
2020), which is also confirmed by our research.
The results in Table
4 indicate that acquiring a talented employee has a positive effect on the development of strategic talent management, and the development of talented employees has a positive effect on the development of strategic talent management. Table
1 shows that the key factor in acquiring a skilled employee is the recruitment of candidates possessing the appropriate skills necessary to accomplish their work successfully. This is followed by the importance of the candidate’s competencies, the candidate’s ability to think creatively, the candidate’s work experience, and the candidate’s ability to connect/network with others. Thus, in the era of Industry 4.0, organizations must develop new talent management approaches that must be more dynamic and future-oriented. The identification of talents must be carried out objectively and according to a standardized procedure, and no longer according to one’s judgment, as was the practice in the past. When developing talents within organizations, organizations must use various variants of training. Organizations need talented employees who will know how to work with technology in lean production and big data, which are characteristics of Industry 4.0. Even though technology can replace human work, it cannot replace human knowledge, critical thinking, and creativity. In today’s technological era, organizations cannot rely on producing the same products repeatedly. Employers seek individuals who can devise new approaches and generate innovative ideas. Workers who can anticipate and solve problems creatively are highly valued. Effective communication skills, including negotiation, discussion, and clear writing, are also essential. Employers seek employees who can distinguish between reliable and false information. With increasing responsibility, employees must confidently evaluate situations and make decisions, despite gaps in available information. As technological advancements accelerate, workers’ demand for creativity grows. They must become more creative to leverage the benefits of new products, technologies, and work processes.
Table
1 shows that the most critical role in the target development of talented employees is taking care of retaining suitable candidates with help to acquire the necessary skills for their career plans. This is followed by employee training, which focuses on developing specific competencies and skills per the organization’s needs. The third important role in the target development of talented employees is enabling employees to attend education and training regularly. The fourth is to provide opportunities for the growth of talented employees and the opportunity to develop employees’ careers further in the organization.
To reduce the probability that talented employees leave the organization, their attitude toward the organization should be considered when selecting colleagues. Candidates who are ready to accept and work following the values and culture of the organization are the most suitable. In candidate selection procedures, communication, appropriately asked behavioral questions, colleagues’ involvement, and combining different selection methods, which contribute to creating a synthetic assessment of candidates, are essential. To attract and employ talented employees, the organization must have its strategic plan containing the appropriate resources and strategies. By acquiring and retaining talented employees, the organization will operate successfully in a competitive environment, as talented employees are more efficient in performing their work. In addition to employment and motivation, strategies for attracting and developing talented employees and keeping them in an organization are vital to acquiring and retaining them, regardless of any necessary changes to the organization’s system, structure or policy.
According to Birou and Hoek (
2021), Kafetzopoulos (
2022), Kravariti and Johnston (
2020), Latukha et al. (
2022), and Mujtaba and Mubarik (
2022), it is vital that talents in the organization have the possibility of continuous education and development. Talent acquisition consists of attracting, finding, and selecting highly talented individuals, which differs from organization to organization. In general, Birou and Hoek (
2021), Shet and Nair (
2022), and Vecchi et al. (
2021) emphasize that talent acquisition decisions are made through various analyses that organizations create based on employee data and comparative information from other sources. They use such analysis in recruiting talented colleagues inside and outside the organization. When acquiring talented employees, the organization should ask the candidate about his work-related skills and experiences, which might be helpful to the organization in possible future challenges or when transferring the candidate to another workplace.
McKinsey Company’s 2017 study, which surveyed 600,000 employees, found that talented employees are 400% more productive than their average counterparts. Similar findings from business studies indicate that this productivity gap widens in jobs with greater complexity. Specifically, in highly complex occupations such as information and interaction-intensive work and software development, talented employees are 800% more productive (McKinsey Company,
2017). Therefore, we propose developing strategic talent management with crucial aspects that contribute to the successful development of strategic agile management, which will increase the organization’s competitiveness. With our proposed model, employers will be able to find appropriate solutions to retain their talented employees in the organization successfully and thus, strive for a competitive advantage (Kafetzopoulos,
2022; Latukha et al.,
2022; Mujtaba & Mubarik,
2022; Shet & Nair,
2022; Vecchi et al.,
2021).
Based on the results in Table
4, we found that talent leadership has a positive effect on the development of strategic talent management, and agile leadership has a positive effect on talent leadership. Results indicate that agile leadership positively affects the development of strategic agile management. Table
1 shows that the most important role in talent leadership is ensuring that every talented employee is adequately qualified or educated. This recommendation is followed by recommendations concerning keeping talented employees with the highest potential in the organization, seeking an opportunity to improve the working and cooperation between talented employees, and paying attention to talented employees at the individual level. The following two essential roles (the fifth and the sixth important) in talent leadership are continuous improvement in the organization and striving to ensure that each talented employee is engaged in their work performance. In an ever-changing market, businesses are continually searching for ways to gain a competitive advantage. The measures taken by an organization to set itself apart from its rivals are crucial. However, whether a company achieves this by creating innovative products or lead-generating marketing campaigns, one crucial element is necessary—a proficient workforce. The workforce is the most critical asset of any company. The fundamental purpose of talent management is to establish a motivated workforce that grows within the organization and contributes to its ongoing progress. If executed effectively and tailored to the company, talent management can result in a sustainable competitive advantage over the competition for many years.
Moreover, Table
1 shows that the foremost factor in effective agile leadership is an organization’s adoption of an agile management style, which encompasses meaningful participation of subordinates in decision-making processes and implementation of innovative management techniques, which is followed by agile leaders act as visionaries and coaches, not as planners or controllers, and employees understand how their individual objectives support the organization’s strategic objectives.
Based on the results of talent leadership and agile leadership, we can observe that both types of leadership complement each other. According to the findings of the authors Adhiatma et al. (
2022), Jackson and Allen (
2022), Kafetzopoulos et al. (
2022), and Maheshwari and Yadav (
2019) with agile leadership approaches, organizations successfully impact the productivity of talented employees. The objective of agility is to achieve a particular outcome, and its implementation is flexible, considering the internal and external factors of the organization. Individuals who adopt an agile mindset hold the belief that they can enhance and refine their skills and capabilities continuously through learning, perseverance, and enthusiasm. Problems often arise when employees do not know exactly what their tasks are, what the organization’s goals are, and what is expected of them (Attar & Abdul-Kareem,
2020). Leaders do not care about their careers, development, and organizational advancement. They are also not involved in planning the tasks and goals of the organization (Adhiatma et al.,
2022; Attar & Abdul-Kareem,
2020). Both current and future markets reward organizations with the capability and willingness to adapt. Market leaders have established cultures and management styles that foster innovation and creativity, commonly known as agile approaches. These approaches enable leaders to quickly change direction in response to our world’s volatile, uncertain, complex, and ambiguous nature. The challenges brought about by COVID-19 have only heightened the need for agility, particularly as remote and hybrid work arrangements require even greater flexibility. Through literature review and research, we found that agile leadership employs situational, transformational, and servant leadership philosophies, promoting adaptability rather than rigid systems that stifle new ideas. By encouraging flexibility in the workplace, teams are empowered to experiment and generate new, creative ideas supported through effective communication, leading to greater team satisfaction and involvement.
In addition, the successful achievement of employee results can also be negatively affected by the fact that colleagues do not feel valued or do not trust the leader, which is reflected in bad relations in the organization and leads to the departure of talented employees. Various research (Adhiatma et al.,
2022; Attar & Abdul-Kareem,
2020; Garcia et al.,
2021; Kafetzopoulos et al.,
2022; Maheshwari & Yadav,
2019) show that a good relationship with colleagues and managers in the organization is significant to employees. Many organizations have a terrible climate, and the leader does not change or solve it, so talented employees leave. Often the reason for the departure of talents is also a lack of understanding with the leaders. They feel disrespected and unappreciated, so they decide to leave. Additional training should be offered to employees. Most want to be educated, acquire knowledge, and grow with the organization. In this way, the organization will gain the trust and professionalism of all employees. It is also necessary to constantly discuss with employees what they want and plan their careers, ascents, and promotions. In this way, employees will feel valued, and their loyalty to the organization will also increase. Thus, agile leadership significantly impacts successful talent leadership, which further leads to the successful development of strategic talent management and the successful development of strategic agile management to achieve higher competitiveness.
The research of the State of Agile cultural survey (JCURV,
2022) on 1.392 respondents from America (17%), Europe (62%), Africa (4%), Asia (5%), and Australia/New Zealand (12%) shows that employee satisfaction was 160% higher from employees in organizations that introduced agile leadership compared to those that were not agile.
Based on the results in Table
4, we found that designing talent teams have a positive effect on the development of strategic talent management and designing talent teams have a positive effect on designing agile teams. Furthermore, results in Table
4 and Fig.
2 show that designing agile teams positively affect strategic agile management development. Table
1 shows that the most critical role in designing talent teams is that the talent team understands the organization’s overall strategy and second, that the talent team has the necessary resources and information to achieve the organization’s goals. The third important role in designing talent teams is that the employer or leader gives frequent, actionable feedback to the talent team, which is followed by regularly organized meetings where talented employees or talent teams exchange their ideas and solutions and recognize the outstanding work of the talented team.
According to Table
1, the most significant aspect of designing agile teams is to ensure that all team members possess an understanding of the organization’s operations, business environment, and future priorities. This is closely followed by the importance of fostering a strong sense of team spirit within the organization to promote agility. The key roles in designing agile teams include team members striving toward common organizational goals, possessing a positive attitude toward change, new ideas, and technology, being capable of making quick decisions, and resolving issues related to change quickly. Organizations must develop increasingly innovative products and services to operate and survive in today’s VUCA world. Complex problem-solving is best left to small, cross-functional, autonomous, and self-organized teams that take full responsibility for their work and prioritize delivering value over merely performing tasks. They perform their work very quickly and efficiently and regularly adapt and improve their working methods based on the feedback they receive from users and other stakeholders. Such teams also do not have a leader who makes all the decisions alone, but the leadership task is distributed among all team members.
Edmondson and Gulati (
2021), Grass et al. (
2020), Khanagha et al. (
2021), and Peeters (
2022) highlight that agile teams are recognized for their flexibility and superior performance, allowing them to release new products quickly and remain competitive. Nevertheless, merely labeling a team as agile does not guarantee success. Peeters (
2022) stresses that achieving agility in organizations requires specific skill sets, and effective communication is crucial for successful talent and agile teams (Edmondson & Gulati,
2021). It is vital to maintain open communication channels through regular team meetings, email correspondence, and other methods. Team members and management should provide and receive constructive feedback frequently, not just during traditional annual reviews. Additionally, setting clear project expectations and keeping team members informed of any changes that may arise is essential for effective communication. Clear project expectations should be established by leaders, and team members should be encouraged to ask questions throughout the project process. Additionally, there should be a plan in place to automatically update team members about any changes that may need to be made to the project.
According to empirical research conducted by Ramirez-Mora and Oktaba (
2018), adopting the agile way of working improves team performance. It is essential that all team members understand their roles in fulfilling the business objectives and approach stakeholders with a single voice. In this regard, the team leader should take the responsibility to unite the team and align them with the principles of agility.
Based on the results in Table
4, we can conclude that the development of strategic agile management is positively influenced by supporting an agile management culture within the organization. As indicated in Table
1, creating a work culture that values agile employees and is based on agile team spirit, trust, openness, dedication, and experimentation plays a crucial role in fostering an agile management culture within the organization. This aspect is followed by the assertion that an organization should foster a culture where agile employees have a strong sense of purpose and passion for their work and where the culture motivates them to stay with the organization.
The State of Agile cultural survey (JCURV,
2022) on 1.392 respondents from around the world shows that building a robust and agile culture in the organization will result in an increased commercial performance of 237%. Organizations using small-scale agile deployments in individual teams or projects report a significant increase in commercial performance compared to pre-agile results. This shows that a significant initial impact can occur when basic agile mechanisms are applied, such as focusing on your customer, being more collaborative, and empowering teams (JCURV,
2022). Thus, supporting agile management culture impacts the organization’s successful implementation of strategic agile management.
Balog (
2020), Carvalho et al. (
2021), Kapor (
2022), Malik et al. (
2021), and Mani and Mishra (
2020) argue that traditional organizational cultures, while suitable in the past, are no longer sufficient for today’s challenging environment. To improve organizational agility, it is essential to understand the unique cultural characteristics of each organization, which can be modified and enhanced (Adhiatma et al.,
2022; Badakhshan et al.,
2020; Kahl et al.,
2022). The variety of organizational cultures is vast, and rethinking operations and cultures are critical for organizations to tackle new challenges. First, the importance of the safety of employees in the organization must be emphasized. An agile culture must support changing requirements, trust and empowerment of teams, technical excellence, self-organizing teams, and continuous improvement. Incorporating the agile mindset into the organization’s culture is an ongoing process that requires consistent understanding and implementation. To fully adopt daily agile practices and development goals, the agile shift must be synchronized with the organization’s culture. This comprehensive and iterative approach involves understanding the organization’s objectives, improving the process to achieve them, and continuously testing, learning, and adjusting practices.
Based on the results in Table
4, we found that the development of strategic talent management positively affects the development of strategic agile management. The role that plays the most critical part in developing strategic talent management is demonstrated in Table
1, which involves implementing various recruitment strategies to attract skilled individuals and creating an environment that values and listens to the ideas of talented employees. Developing strategic talent management requires a set of key actions, such as providing employee training in mentoring and coaching, aligning talented employees with the organization’s mission and vision, creating a stimulating work environment, establishing programs to retain high-potential employees, implementing policies that foster career growth and developmental opportunities, and engaging individuals who possess creative thinking abilities. Alqershi et al. (
2022) and Kafetzopoulos et al. (
2022) argue that a talent management strategy involves implementing innovative recruitment and performance management initiatives to nurture an organization’s human assets. By improving standard talent management processes, the organization can leverage its human capital to drive growth and success (Birou & Hoek,
2021; Kraichy & Walsh,
2022; Vecchi,
2021). Talent management ensures that employees are assigned appropriate work and are motivated and challenged, resulting in higher morale, growth, and retention rates. In a competitive job market with a shortage of skilled employees, a well-defined talent management strategy provides a significant advantage.
Table
4 demonstrates a positive relationship between the implementation of strategic agile management and an organization’s competitiveness. According to Table
1, the most crucial factor in the development of strategic agile management is providing adequate training to employees to perform their tasks effectively. The next critical aspect is offering training programs aimed at enhancing the potential of high-performing employees. Additionally, organizations must encourage fast learning, decision-making, and action cycles. Finally, businesses must strive to incorporate new digital technologies to create products and services that meet the evolving demands of business partners. To develop a strategic agile management approach, it is crucial to foster small, high-performance teams with a high level of autonomy, enable quick adaptation to environmental changes, conduct regular evaluations of employee performance and provide recognition for good work, offer rewards to top-performing employees, and continually monitor changes in the business environment while seeking feedback from various business partners.
According to Table
1, the most critical factor for competitiveness is the organization’s ability to outperform its key competitors in terms of growth, profitability, and innovation. This is closely followed by meeting customer expectations for products or services and timely delivery. Other significant roles in competitiveness include the organization’s superior ability to anticipate future customer needs, close collaboration and support among business and functional units, and exceptional alignment of resources and capabilities that complement those of major competitors. Agile business practices, which involve optimizing workflow, developing employee skills, and providing mentorship, are known to generate significant value for organizations of all sizes. In fact, research has shown that 55% of agile organizations achieve top-quartile financial performance, compared to just 25% of average organizations (Marymount University,
2022).