Talent management is a process that integrates the knowledge, skills, competencies, and behaviors of an organization’s people with its strategies and operations to deliver strategic business value. Talent management encompasses the ideas of workforce planning, performance management, employee engagement, leadership development, learning management, succession, and career planning.
A talent management strategy consists of five key components, which are:
Talent management is all about managing talent to ensure that the organization’s most critical resource: People deliver to its most potential. The heart of talent management lies in ranging the organizational goals with employees to provide a sense of purpose and direction. Talent management seeks efficient role mapping, attracting and retaining the right talent, and maximizing the productivity and performance of existing talent.
Most companies are adopting talent management as a part of their HR strategies because it creates a competitive advantage. Some of the top benefits of talent management are –
Talent Management has become popular in recent years because it has been proved that an effective talent management strategy can increase ROI up to 200%, increasing employee satisfaction levels.
Talent management tools are the internal systems and processes used by HR to manage and measure employee performance, development, and retention. The key objective of a talent management system is to enable the organization to retain and develop the best people in the business while also motivating them to achieve their goals.
Talent management tools should also include an effective strategy for identifying, developing, and retaining top talent. In particular, they should help with: Map the organization’s talent landscape at different levels individual, team, departmental, and organizational talent maps.
Tailor various HR processes like recruitment, performance reviews, succession planning, etc. on an individual level based on the personal profile (9 potential box analyses), career aspirations, etc.
Track an individual’s career goals and progress in achieving them over time.
There are three dimensions to Talent Management:
Talent: the ability or potential to perform work productively and efficiently.
Tasks: a specific job or work activity performed by an individual or a team.
Time: the number of times an employee works for an employer is usually measured in hours per week.
Talent acquisition is attracting and hiring the right talent to achieve organizational goals. Talent acquisition management helps identify internal talent to fill in a new role. At the same time, talent management is an overall ongoing activity of attracting, nurturing, developing, and retaining talent on the whole.
Talent acquisition deals with identifying, attracting, selecting, and hiring new employees. It includes advertising, interviewing, screening, and selection using various tools like psychometric tests, references checks, etc., leading to offer letters and employment contracts.
Talent Management is a process that involves four phases:
These phases are vital for any organization to be successful. In each step, a different set of skills are required; hence, all the four-phase must be carried out effectively by an individual or team to ensure that the right set of individuals is hired who meet both the requirements of the job the needs of the organization. Talent acquisition deals with the identification, attraction, selection, and hiring of new employees, whereas talent management is an overall ongoing activity of attracting, nurturing, developing and
Typically the role of the Human Resource Manager is to drive the talent management processes and policies within an organization. Once these are in place, talent management becomes a shared responsibility amongst all employees. In other words, everyone within an organization has a part to ensure that the talent management policy is effective.
HR Managers and executives should ensure that a practical framework is in place so that it can adequately assess employees for their performance, have their overall performance reviewed by their managers, and have their career growth aligned with the organization’s goals.
Managers must ensure that they delegate work effectively, develop people competently through training and knowledge sharing sessions, and provide constructive feedback to employees as required.
Employees should be motivated to perform at their best through intrinsic and extrinsic rewards such as recognition, promotions, pay raises, and benefits, among others. They should also take up any opportunities provided by the organization to grow in terms of skills, knowledge, or even location based on their preferences and interests.
Talent management is more than just hiring and retaining the best talent. It also entails building a strong leadership pipeline and creating talent management practices to cater to millennials.
Challenges faced by Talent Management:
1. Attracting and retaining talent across all levels
2. Building a solid leadership pipeline
3. Creating talent management practices to cater to the millennial generation, which is known to possess certain unique qualities that make them an unpredictable bunch
4. Lack of objectivity and transparency in performance appraisals
5. Ensuring the quality of hire in the long run.
6. Lack of data adherence limiting meaningful people insights to improve efficiency.
In a nutshell, talent management is about getting the right people in the right jobs and then making sure they are engaged and inspired to perform continuously.
Performance Management is one of the many facets of talent management that deals with performance appraisal. It creates an environment where employees can improve their performance and a process by which it can measure an employee’s performance against goals.