For many people, talent management is simply just another complex HR term. But in reality, the concept of talent management is not at all complicated. It implies the commitment of a company to hire, retain and develop the most skilled and qualified candidates in the employment market. It essentially involves the various systems and work processes that are associated with creating and retaining a superior workforce.
Talent management activities are way larger than the sum of individual tasks. It includes a set of tasks that integrate to magnetize, motivate and retain employees. Talent management touches upon almost all the major human resource elements, right from employee onboarding and performance management to the basic hiring processes. The key aim of talent management is to augment company productivity by encouraging employees to perform better. Superior productivity of a company will invariably lead to greater profits for the business, which marks the high importance of this HR activity. If talent management is done efficiently, it can help companies to outperform their competitors and reap beneficial business outcomes.
Processes coming under a talent management system
- Recruitment planning meeting
- Job description development
- Application materials review
- Phone or online screening interview
- Credential review and background checking
- Making the job offer to the selected person
- Employee onboarding process
- New employees introductions
- On-the-job training
- Goal setting and feedback
- Coaching and relationship building
- Formal feedback systems like performance management or an appraisal process
- Ongoing employee development
- Promotions, lateral moves, transfers
- Employment termination
Importance of efficient talent management
Attract Top Talent
It helps companies to hire the most skilled, qualified and talented employees. By having a robust talent management strategy in place, a company shall be able to create an attractive employer brand that can organically magnetize the best talents, which contributes to improved business outcomes in the long run.
Continuous Coverage of critical roles
Efficient talent management practices allow organizations to be prepared for gaps in critical thinking and formulate plans to address highly specialized roles in the workforce. Hence, companies shall have a consistent flow of workers to fill important roles. This will make sure that their operations run smoothly, and their stakeholders are content. The consistent inflow of critical employees shall also aid in ensuring that the other staff members don’t have to deal with extra workloads, which may cause burnout.
Increase Employee Performance
Proper talent management processes make it easier to identify perfect fit employees for a company and reduces the instances of taking wrong recruitment decisions that do not add value to the company. This also helps in reducing performance management issues and enables the employers to see to it that their top talents stay at the company for a longer period.
Organizations can make consistent and systematic decisions about their staff development processes, with the help of a good talent management strategy. The employees are likely to feel better motivated and engaged when a fair development process is maintained, which helps increase the retention rates and aids companies to competently meet their operational requirements. When the employees are effectively engaged, they are likely to work more proactively towards the business goals, which is important for increasing business performance and client satisfaction.
Retain Top Talent
A properly planned and structured onboarding process significantly augments the retention percentage at a company. Due to this, companies are also able to save on hiring and performance management expenses in the long run.
Higher Client Satisfaction
Maintaining a systematic approach towards talent management allows for a consistent management approach and organization-wide integration. This translates to superior communication and collaboration, as well as the dissolving of silos within the business. The client satisfaction rates typically go higher with an integrated approach as their needs are likely to be met faster.
Integrating talent management system at a company
The talent management process should be effectively integrated into the business strategy of the company. Employees are the lifeblood of any company, and hence a good degree of focus should be put upon attracting and retaining them. Effective talent management also involves sharing detailed insights about diverse talented employees, as well as their potential career paths across the company. This aids diverse departments to effectively identify perfect talents when certain opportunities arise.
Companies that undertake such a succession planning process can make sure that the best talents of their firm are perfectly trained and well-equipped to assume the next position in their career path. The system of success planning coming under talent management benefits both the company and the employees and plays a major role in boosting the retention rates of the firm. In large scale companies, Human Resources Information Systems (HRIS) are ideally needed to competently track employee career paths and manage the opportunities available to them.