Right off the bat, talent management sounds like another human resource term that reinvents something obvious by giving it a fancy name.
We don’t think so!
Talent management refers to the efficient hiring, retaining and developing top talents available in the industry. We believe that the greatest asset of a company is its talented employees.
Companies are always at the risk of losing their high performing talents. This makes talent management that much more important.
Ultimately companies can effectively address their human capital management and development which stems down to overall business development.
Listen to our podcast on: Developing Talent In Your Organization
Why Talent Management?
Now that we have a fair idea of the definition, let's look at why is it so important.
1. Attracting talented employees
In today’s marketplace, there is a great war for talent. To win the war you need to stand out from the crowd. Investing in talent management helps you create a superior employer brand. A strong employer brand organically attracts top talents.
2. Filling gaps in the workforce
Whatever the size or age of your business, one thing is sure to happen. Attrition. Investing in Talent Management will ensure that you identify the gaps in the critical areas of your workforce. Identifying gaps ensures a continuous flow of talented employees to fill the gaps.
A complete workforce not only ensures a smooth flow of operations but also saves your employees from burnout due to gaps in the workforce.
3. Engaged WorkForce
When HRs were asked about the most important benefits of talent management, an engaged workforce was on top of the list.
An effective talent management strategy involves steps for employee engagement. Employee engagement not only helps to create a productive workforce but also promotes development.
This pillar includes everything from the onboarding of the employee to monitoring the satisfaction of the employee. It allows HRs and managers to finetune strategies that work towards the development and satisfaction of employees.
4. Retain Employees
If having an engaged workforce is the numero uno benefit, then employee retention is the next in line. There is no use in hiring talent only to see them leave after some time, right?
It's worse if he ends up working for your competitor!
Research has shown that companies investing in TM end up having 69% less attrition than the ones who don’t. These companies can motivate and retain their employees better than others.
Low attrition rates mean that you end up saving resources and time on recruitment.
5. Effective Business Strategy and Client Satisfaction
Skilled, engaged and motivated employees contribute towards an effective and productive workforce. An efficient work environment results in the optimization of your business strategy.
Optimization finally leads to superior services and products in the output which leads to increased client satisfaction.
Also, an optimized business strategy refines and simplifies the structures of a company which leads to the reduction of confusion. Also having an integrated and structured organization meets the needs of the clients faster as the points of contact are reduced.
Talent Management Processes
Now that we have gone through why is talent management crucial for your company, let's look at how you can develop a TM model.
While there are various models available when can broadly categorize them into 5 components-
Let's look into these in detail.
Probably the first step in any model. Proper planning sets the stage for the ultimate optimization of your model. Usually, planning involves the following steps-
Understanding the business strategy.
Identifying the gaps in the workforce.
Developing the appropriate job description.
Creating a plan for recruitment.
Before developing any workforce plan, a prior assessment of previous initiatives should be done. Any unsuccessful attempt in the previous stint should be avoided.
Insanity is doing the same thing multiple times and expecting different results.
Succession planning should be carried out based on the current workforce behavior and situation. The talent and skills required for the current plan should be clearly developed into a good job description.
It's no surprise that an unclear job description adds to the frustration of both the management and the new talent.
The planning stage ensures the workforce to be integrated rather than segmented. A well oiled integrated workforce ensures proper communication to the recruitment team regarding the kind of talent required. Also in an integrated workforce, other departments can also provide inputs regarding the kind of the talents required.
Also, having a plan makes sure that the company is prepared for any changes with resources and time in hand.
Consider a company that is facing attrition in the top management. It is difficult to recruit people in top management. So a plan must be put into action which focuses on developing talent internally.
2. Attracting Top Talents
There is no use of identifying the gaps and developing a plan if you cannot attract top talents. There are a few key areas you need to look at when we talk about attracting.
The pool of top talents
We believe that marketing for an inferior product is meaningless. Sure for a short period of time you can boost sales. But in the long run, business is going to go down.
It's no different when we talk about jobs.
You can attract top talents with fierce employer branding.
But only for so long.
If you have a toxic work culture, irrespective of employer branding, employee attrition is going to happen. And soon, the word of your toxic work culture is going to spread far and wide.
It's important that you invest in employee engagement. This not only creates a positive employer brand but also improves employee retention, increase productivity and improve business. Also if your employees are happy and satisfied they tend to act as your brand ambassador.
We believe that the future of branding is personal.
A message shared by an employee gets far more engagement than when it is shared by the company. And people are more attracted towards the opinions of employees. So positive reviews in sites like glassdoor and indeed gets precedent over your employer value proposition.
Of course, you also need to invest in your employer brand.
50% of people don’t want to work for a company with a poor employer brand.
90 % of job seekers apply for a company with a strong employer brand.
67% of employees don’t mind a pay cut when working for a good employer brand.
A good employer brand provides authenticity and credibility to your work culture.
At last, your recruitment campaign must reach the intended audience. Make sure your job listings are made available on all the job portals. On top of that make sure your application process is simple and seamless.
60% of job seekers quit in the middle of an application process due to its complexity.
Your work doesn’t end here. Make sure your career page is optimized and simple.
Let us take Bain & Company for an example. Even though the roles in the company are fairly technical and complex, their career page is that much simpler. Seamless user experience not only speaks volumes about your professionalism but also helps you gather the top talents.
3. Selecting Talented Employees
This is a crucial stage in the talent management strategy. Your selection procedure is the key to how well your new talent will perform.
There are various channels through which you can select the right candidate.
You can conduct group exercises, personal interview or even a written test.
But you should be wary about what kind of selection procedure you invest in. You don’t want to conduct an aptitude test for a sales position. Similarly, you should not test the leadership skills of a very independent and technical position.
Selecting the right candidates will not only optimize your business strategy but also keeps your employees satisfied.
4. Learning And Development
According to a survey conducted in 2018, 94% of talents prefer companies which provide scope for professional training and development.
Every dollar invested in employee learning and development returns $30 in productivity.
It is important you take appropriate steps to enhance the skills and proficiency of your employees. This gives your employees satisfaction that they are progressing in their career paths.
To get an idea of how to go about it, this list should make some sense.
Identifying your company goals.
Identifying the gaps in the skillsets of your employees.
Professional training to bridge the gaps in the skillsets.
The first step should be to identify what values and goals do your company strives for. It is important because this needs to be considered as a base while considering the options for development programs.
Then comes identifying the gaps in the skillsets of your workforce which act as a hindrance towards your goals. And finally bridging those gaps with the help of appropriate training programs.
An atmosphere of learning and development not only increases employee retention but also develops a culture where your company is more adaptive to changes.
5. Motivate And Retain
Employee retention is a crucial part of any company. The good news is that you don’t need to do anything much if you have already invested in the previous options.
On top of following all the above-mentioned practices, you need to improve accountability, communication and the perception that employees are valued by the company. This develops a superior work culture where employee retention is improved.
Most importantly you need to take into account your middle managers. Good managers promote positivity in the workplace which is reflected in your employees. Good leaders sets the norm of what is acceptable in the workplace which leads to superior work culture.
In today’s industry, talent management is a very effective tool for developing your company’s growth. Usually, companies with talent management will see an increase in employee turnover.
Competition is for talented employees is increasing so it's of utmost importance that you get on the talent management bandwagon. And Fast!