Attracting and Training Competent Personnel to Serve the Sustainable Development Strategy – A Core, Ongoing Task of the Boards of Directors in Textile Enterprises

Twenty years ago, when the scale of industrial enterprises was still small and less diverse, recruiting labor and enrolling students in the textile industry did not pose too many challenges. Companies could select talent, and with a solid entry-level workforce, we were able to cultivate a fairly skilled group of personnel, even without highly systematic training and development. This workforce laid the foundation for an exponential growth phase, increasing the industry’s scale tenfold compared to 2005. However, with the strong development of the country and the significant investment in high-tech industries to Vietnam, attracting both simple and highly skilled labor has become difficult. Over the past five years, the workforce has consistently decreased by about 2-3% per year. From an economic efficiency perspective, this workforce reduction has been offset by new technologies, allowing total output to continue growing. Yet, from a human resources development perspective, the pool of talent for training “talents for the textile and garment enterprises” has become scarce, placing both short- and long-term pressures on the companies in the industry.

Therefore, this issue must be recognized as an ongoing core task for the boards of directors of enterprises. New strategies are required to overcome these increasingly acute challenges. This article provides an overview of essential tasks for boards to attract, identify, and train competent personnel for their organizations.

What is “talent”?
According to Dave Ulrich, the world’s leading human resource management expert (named the most influential figure in human resource development by HR Magazine in 2010 and awarded the Nobel Colloquia Prize for leadership in economic and business thought in 2010), “competence” and “talent” are two distinct concepts. As Ulrich explains, “competence” is a necessary condition; for someone to become genuine “talent,” they must possess several additional qualities.

A “competent person” cannot be considered “talented” if their competence is innate but remains dormant and is not utilized to create value. In other words, no matter how intelligent, if they are unwilling or unable to apply their abilities, they are deemed to lack value.

Conversely, some competent individuals generate significant value but also create disruptions, complications, or conflicts within their organizations. Such individuals cannot be classified as “talent” or considered the “vital essence” of an organization.

Dave Ulrich introduces a formula for talent often referred to as the 3C Theory, comprising:

• Competence – ability,
• Commitment – dedication
• Contribution – meaningful impact.

He defines Talent = Competence × Commitment × Contribution. This formula is based on extensive surveys of thousands of businesses, including half of the Fortune 500 companies, and over 40,000 individuals identified as “talent” in the labor market.

Awareness, Guiding Perspectives, and Talent Attraction Strategies of the Board of Directors

Before addressing the specifics of talent attraction and development, it is essential to emphasize that the prerequisite for cultivating talent within an enterprise lies in the awareness, guiding perspectives, and strategic planning for talent attraction by the Board of Directors (BoD). Without a clear strategic vision at the highest level, all training, attraction, and talent compensation activities will only be isolated, short-term solutions to address immediate gaps.

So, what is this awareness and guiding perspective? In the book My Vision (published in 2013) by the ruler of Dubai and the Prime Minister of the UAE, he writes:
“In Africa, every new day, a gazelle wakes up knowing it must run faster than the fastest lion, or it will be eaten. At the same time, a lion wakes up and stretches, knowing it must run faster than the fastest gazelle, or it will starve to death.”

Thus, whether one is a gazelle or a lion, they must “run their fastest.” Within a business, the ones “running” every day are undoubtedly the entire workforce, and those who set the pace and lead the charge must be the “talent.” This means that the BoD, and particularly the chairpersons, must maintain daily awareness of how to ensure their organization is “running the fastest.” This perspective and orientation must be seen as a routine of the BoD, in line with its role in determining the development strategy and the speed of its execution within the company.

What is the prerequisite for implementing a Talent Attraction Strategy?
For talented individuals to join the organization, the prerequisite lies with the top leadership. This involves building trust within the organization through trust in its leadership. In the preface to My Vision, the author emphasizes:
“Trust in a leader can only be established through actions, not words.”

Leaders must take concrete, visible actions through company policies that inspire “talent” to believe and progressively demonstrate the 3Cs (Competence, Commitment, Contribution) within the organization.

Steps to Attract, Identify, and Build the 3Cs in Enterprises

Competence

An employee is considered competent when they possess the knowledge, skills, and values suited for today’s tasks and, more importantly, remain relevant for the future. Competence involves the 3 Rights: the right skills, in the right position, and performing the right job. The main challenge lies in predicting new skills and job roles that are not part of traditional operations but are critical for survival in an era of circular production and innovation. Identifying and defining these emerging roles is a strategic responsibility of the Board of Directors (BoD).

In simple terms, daily operations, handling orders, and organizing production fall under the remit of executive management. However, forecasting the company’s future trends and identifying the “3 Right” people for that future is a BoD responsibility.

There are four steps to determine and develop competence:

Step 1. Establish a Competency Framework

• • What are the current social and technical competencies available within the company?
  • How is the business environment changing, and what strategies are in place to respond?
  • Based on future scenarios and strategic choices, what technical and social competencies must employees demonstrate?

The BoD and executive management need to identify key positions critical for both daily operations and long-term development. The framework should include, but not be limited to, managerial roles from senior to mid-level and specialized technical positions essential for sustained high efficiency. The challenge lies in the rapidly evolving technology and operational methods, which introduce roles and requirements not yet clearly defined. Research and forecasting must inform these competency frameworks.

Step 2. Evaluate Individuals and Teams
Once competency standards and job role expectations are defined, employees can be assessed against them. In recent years, talent evaluation has incorporated both job performance and behavior.

Step 3. Develop Talent with the “6B” Toolkit

• • Buying: Recruiting, sourcing, and integrating new talent into the organization.
  • Building: Developing employees through training, practical work, or life experiences.
  • Borrowing: Bringing knowledge into the organization via consultants or partners.
  • Bounding: Appointing the right individuals to critical positions.
  • Bouncing: Removing underperforming or redundant personnel.
  • Binding: Retaining talent.

In theory, enterprises should use all six tools to develop their talents. In practice, however, textile companies face difficulties in “buying” talent due to the industry’s low attractiveness. Therefore, they must focus on the other five tools, emphasizing short-term strategies such as internal training, coaching, and assigning challenging tasks. At the corporate level, talent borrowing can be coordinated to transfer skilled individuals from stronger units to weaker ones. Borrowed talent solves immediate workforce issues and, more importantly, builds new specialized teams and injects fresh energy into less innovative organizations. Concurrently, removing weak performers to create a conducive environment for talent is a key leadership responsibility.

Step 4. Monitor, Identify, and Develop Competence
Talent is evaluated not only by the value they create for the company but also by their ability to develop future generations of talent. Simply excelling individually is insufficient to be recognized as a talent in an organization.

Dave Ulrich emphasizes:
“Talent must excel in today’s tasks and especially in those of the future. It is a grave mistake to judge talent solely based on past achievements. Instead, organizations must look ahead to determine what kind of people they will need in the future.”

Commitment

Competence alone is insufficient without commitment. Commitment means employees are willing to dedicate themselves fully to the success of the company. Some individuals may be highly skilled, intelligent, and experienced but fail to create value due to a lack of effort or dedication.

Employees are more likely to commit fully when they perceive that contributing to the organization also benefits them. These “benefits” can include:

1. Vision: A clear sense of purpose and direction.
2. Opportunities: Growth, development, and learning.
3. Incentives: Fair and reasonable compensation.
4. Impact: A visible connection between their work and results.
5. Community: A supportive environment of colleagues, managers, and leaders.
6. Communication: Transparency about what is happening and why.
7. Flexibility: Empowerment and adaptable working conditions.

Evaluating employee commitment requires in-depth processes, including channels for monitoring, listening to, and addressing their concerns to maintain and enhance their dedication to the organization.

Contribution

In the past, talent evaluation often focused on two factors: competence (the ability to work) and commitment (the will to work). However, for the current and future workforce, these are no longer enough. Talent must also contribute and be acknowledged for their efforts.

Contribution means understanding the meaning and purpose of one’s work. As Dave Ulrich stresses, talent must also experience fulfillment and a sense of purpose in their professional and personal lives.

This is achieved when both the organization and individuals can answer the following seven questions:

1. Who am I? – Employees understand their identity, roles, and responsibilities within the organization.
2. Where am I going, and why? – The organization helps employees achieve their goals.
3. Who am I going with? – Support systems are built to ensure employees do not feel isolated.
4. How do I cultivate my spirit? – The organization upholds moral standards such as humility, service, forgiveness, and gratitude.
5. What challenges will I overcome? – The organization helps employees tackle challenges with enthusiasm and confidence.
6. How do I access resources? – The organization assists employees with health, workspace, and financial needs.
7. What inspires me? – The organization fosters a joyful and fulfilling work environment.

In the “3C Equation,” the three variables are multiplicative rather than additive. If any component is missing, the others cannot compensate. For example, a person with low competence cannot be considered talented, even if they are committed and contribute. Likewise, talent must demonstrate skills, dedication, and purpose through their work, effort, and contributions.

How to Identify Talent Within an Organization?

Identifying Talent Through Personal Goals

An individual’s actions and behavior within the organization often reflect their objectives. Talented individuals typically have clear strategies and goals, aiming not only for personal growth but also for the success of the entire organization. Such individuals are not afraid of losing their positions or overly eager to display their abilities. Their words and actions are natural and genuine.

Recognizing Talent Through Actions

Talent often manifests in different stages—emerging, growing, or fully developed. However, talent always includes innate qualities. These might include unconventional thinking, exceptional traits, or standout performance in their work.
Talented employees consistently exhibit distinctive qualities that set them apart. The organization’s role is to observe and assess objectively to identify those worth retaining.

Evaluating Talent Through Peer Feedback

To identify talent within the organization, leaders need objective perspectives and should avoid being influenced by negative biases. An effective talent attraction and retention strategy includes listening to subordinate feedback. Peer evaluations provide critical insight into identifying individuals with high potential.

How to Retain Talent?

Define Roles and Responsibilities Clearly for New Hires

To retain new hires, it is essential to clarify their roles and responsibilities from the start. This ensures businesses can select the most suitable candidates while helping new employees perform effectively in their roles.

Strong Leadership: A Key to Retaining Talent

Talented individuals often assess whether a company’s leadership can help them develop their skills and reach their career goals. They are more likely to work for organizations led by capable and inspiring leaders. To attract and retain talent, businesses must prioritize having strong and effective leadership.

Develop a Clear Business Strategy

Talented employees are drawn to leaders with vision and companies with clear long-term strategies. Without a well-defined plan, their contributions may feel wasted. Professionals are unlikely to commit to organizations lacking prospects or an environment conducive to their growth and contribution.

Offer Competitive Benefits

Providing fair and competitive compensation packages, along with opportunities for advancement that match employees’ capabilities and contributions, is a proven strategy for attracting and retaining talent. Without these, talented individuals are unlikely to stay long-term. Therefore, businesses need to establish equitable and attractive benefit structures.

Build a Robust Organizational Culture

This includes fostering regular engagement activities and promoting professional conduct within the workplace. Building a team united by shared values and a unique company culture is one of the most effective ways to attract and retain talent.
Organizations with weak cultures or poor employer reputations will struggle to attract talent. A strong, positive culture makes it easier to draw in and retain skilled individuals. When employees resonate with the company culture and find it a good fit, they are likelier to stay loyal to the organization.

Attracting, identifying, training, utilizing, and evaluating talent within a company is a strategic responsibility of the Board of Directors (BoD), with the Chairman playing a pivotal role as the initiator and leader. This is a critical sub-strategy that the BoD and its Human Resources and Compensation Committee must prioritize and implement consistently. It is unrealistic to expect talent to emerge naturally, especially in a fiercely competitive market economy, including intense human resource competition. This task is even more challenging for the textile and garment industry, which is not inherently attractive to job seekers. However, it remains the only viable solution to ensuring the sustainable growth of the enterprise. Successfully transforming the slogan “Employees are the most valuable asset of the textile and garment enterprise” into concrete actions and policies is essential. This approach will help the labor market recognize the company as an employer of choice, deserving to attract and retain top talent.

Translated from Chairman of Vinatex Le Tien Truong’s publication in 2024.November Textiles and Fashion Magazine