Human capital has the potential to differentiate an organization from its competition. It may well be the single most important differentiator. Competitors can imitate each other’s products, processes or services. Ideas can be copied. What cannot be replicated is the source of the ideas – the people. It is an organization’s people, or talent, that will provide a consistent edge over the competition.
The market for talent is becoming increasingly competitive because talent is not an inexhaustible resource. Demographic changes, education shortages, and global labor movement are some of the challenges facing organizations in the war for talent (Morel-Curran, 2008). The tension between supply and demand for talent creates a compelling case for strategic HR – a discipline involving the deliberate and strategic selection, development, deployment, and recognition of top talent.