Talent Management - HRM

 

                                                                  Figure 1 - Talent Management

One of the essential and most important things that the employee needs to recognize at the initial stage of employment is his own importance. To identify this turning point, he needs to identify the skills he has to offer for his organization and his identity.

Proper handling of one's knowledge is what one needs to realize one's own identity and talents.

An essential and important factor in human resource management is talent identification and talent management.

The value given to this organization, and the importance of the direction of success is one of the main determinants that positively affects all aspects of the organization's production, employee value, customer value, short-term and long-term success, and social recognition.

This is so powerful that it can turn an entire organization upside down.

 

“Systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organisation, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles.” (Chartered Institute of Personnel and Development, UK) 

Figure 2 – talent Management Introduction

                                                Figure 3 – Contribution of HRM to Talent Management

What is Talent Management

Talent management policy is an organization's dedication to recruiting, hiring, retaining, and developing the most skilled and proficient employees available in the employment division.

Talent management comprises all of the work processes and engagement activities that are related to retaining and developing a superior workforce.

This is the business strategy that organizations hope will enable them to retain their topmost talented and skilled employees.

Just like employee involvement and employee recognition, it is stated as the business strategy that will ensure the attraction of top talent in competition with other employers.

When you build a brand that communicates that you are dedicated to a talent management strategy that will ensure that he or she will have the opportunity to develop professionally, you attract the best talent.

Studies have shown consistently that the opportunity to continue to grow and develop their professional and personal skills is a major motivator for why employees take and stay at a job.

(Upasana Singh, Talent management: The game-changer in business, August 23, 2023)

Figure 4 – Contribution of HRM to Talent Management

HR processes: Talent management is about a set of HR processes that integrate with each other.

It goes beyond individual HR functions.

A talent management strategy requires a holistic outlook on these processes to maximize its potential.

Key focus areas: Talent management touches on all key functions of HR, including recruitment and selection, performance management, rewards, and employee development.

Employee performance: The ultimate goal of talent management is to increase performance.

This is best achieved by creating a system that motivates and engages employees to perform to the best of their abilities.

When it’s done right, companies can build a sustainable competitive advantage and outperform their competition through an integrated system of talent management practices that are hard to copy and/or imitate.

In other words, talent management is a process aimed at driving performance through integrated people management practices.

It is primarily the responsibility of HR professionals to lead talent management efforts.

                                                                Figure 5 – Talent Management Model

Talent Management Model

 Talent management includes;                                      

• Talent acquisition (and recruitment),
• Learning and Development,                                        
• Organizational values and vision,
• Performance management,                                         
• Career pathways and succession planning.

While there are many talent management models, the elements of talent management can generally be categorized into five areas;

 

Planning

The planning stage of talent management is comprised of 3 key areas.

1.       Understanding the organizational/ business strategy

2.       Evaluation and measurement/analytics

3.       Developing a Workforce Plan

 

Attracting

Attracting Involves:

1.       Employee Value Proposition

2.       Marketing

3.       Talent acquisition

4.       Consultants/Freelancers

 

 Developing

Developing Involves:

1.       Onboarding

2.       Performance Appraisals/Management

3.       Learning and Development

4.       Capability frameworks

5.       Career pathways

Retaining

​Retaining Involves:

1.       Culture

2.       Remuneration strategy

Transitioning. 

Transitioning Involves:

1.       Succession planning

2.       Internal mobility

3.       Retirement

4.       Knowledge management

5.       Exit interviews (Mona Momtazian, What is Talent Management and Why is It Important?, September 1, 2023)

                                                                            Figure 6 – Talent Management Model

Why is talent management so important?

As already mentioned, talent management has a significant impact on an organization’s success.

 

Attracting top talent

HR applies effective talent management strategies to help identify the specific skills and qualities they need in new hires, making the recruitment process more efficient and effective.

Driving organizational performance

Employees with the right skills and competencies in the right positions are able to maximize their contribution to the organization, resulting in improved productivity and organizational performance.

Better succession management

Effective talent management includes identifying and developing high-potential employees to assume key roles in the organization in the future.

Stronger organizational culture

Implementing talent management practices helps foster a positive and supportive organizational culture, which boosts morale, productivity, and overall performance.

Promoting innovation

By challenging their employees to grow and develop, organizations create an environment where people can voice new ideas and innovate.

Developing employee skills

Talent management focuses on developing employee skills through training, mentoring, and coaching. By investing in employee development, employers encourage performance and career growth.

Improving employee retention

Talent management practices that prioritize employee engagement, recognition, and career development help retain valuable employees and reduce turnover rates.

Enhancing agility

Businesses that effectively manage talent adapt to changing business circumstances and emerging possibilities more swiftly.

Avoiding unnecessary costs

It can be expensive to recruit and onboard new employees. High turnover can disrupt business operations and lower morale. (Erik van Vulpen, Talent Management: 10 Tips for a Successful Strategy, November.2023)

                                                                                Figure 7 – Talent Management Model

Talent Management and Talent Acquisition: Are They the Same?

 

While,

Talent management covers the entire employee lifecycle,

Talent acquisition is focused on recruiting and hiring candidates.

This includes everything from screening resumes to conducting interviews to onboarding new hires into the organization.

While it might seem like talent management and talent acquisition are one and the same, there are some key differences between the two.

 

One major distinction is that while both involve managing people, talent acquisition involves finding and attracting those individuals.

In addition to sourcing potential employees, talent acquisition professionals typically work closely with human resources departments to recruit and screen job applicants.

They also evaluate and recommend compensation packages based on skills and experience.

 

The Latest Talent Management Statistics Unveiled

·        Companies that excel in talent management produce nearly 50% higher revenue per employee than those that don’t.

·        A total of 78% of business executives consider talent management a highly important issue.

·        75% of HR leaders believe talent management deficiencies are causing decreased business performance.

·        67% of best-in-class companies are investing in talent management software.

·        High-performance organizations are twice as likely to prioritize talent management practices as low-performers.

·        Only 13% of HR leaders rate their organization’s performance on talent management as excellent.

·        A total of 92% of respondents believe that redesigning their organization is a priority.

·         Around 67% of companies do not provide adequate onboarding for new hires. (ZipDo, Essential Talent Management Statistics In 2023, July 3, 2023)

 

 

Conclusion

Human Resource Management is all about effectively attracting, hiring, and then retaining the employees who for the company are its resources.

HR is not a new function in an organization and has been around for many years.

However, Talent Management is a relatively new niche inside the branch of HR.

Effective Talent Management of an organization aims to reinvent talent in an employee to something bigger and better.

Talent management aims to recognize the talents in employees, nurture them, and manage them effectively.

In simpler terms, you can say that talent management targets to bring out the best in an employee, something that they themselves did not know existed or were aware of, but did not know how to utilize that specific talent.

 

  

References

 

Erik van Vulpen. Talent Management: 10 Tips for a Successful Strategy. November.2023 [Online]

Available at:https://www.aihr.com/blog/what-is-talent-management/

Accessed [24/11/2023]

 

LETÍCIA FONSECA. Talent Management: A Complete Guide [2022]. MAY 13, 2022 [Online]

Available at:https://venngage.com/blog/talent-management

Accessed [24/11/2023]

 

GABBY DAVIS. Talent Management- What Is It and Why Is It Important?. APR 16,2023 [Online]

Available at:https://engagedly.com/blog/what-is-talent-management-and-why-is-it-important/

Accessed [24/11/2023]

  

admin. Talent Management VS Human Resource Management. August 26, 2018 [Online]

Available at:https://www.ibta-arabia.com/talent-management-vs-hr/

Accessed [24/11/2023]

 

Mona Momtazian, What is Talent Management and Why is It Important?, September 1, 2023 [Online]

Available at:https://expert360.com/articles/talent-management-important#:~:text=%E2%80%8D-,Ultimately%2C%20talent%20management%20consultants%20exist%20so%20that%20organisations%20can%20more,business%20strategy%20through%20your%20people.

Accessed [24/11/2023]

  

Monique Danao. What Is Talent Management? Everything You Need To Know. Oct 13, 2022, [Online]

Available at:https://www.forbes.com/advisor/business/what-is-talent-management/

Accessed [24/11/2023]