Talent Management - A Successful Business Strategy

by Roopneet Chadha on Saturday 21 December 2013, 10:18 AM | Category: Human Resources| View: 1336 views
 
 
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 Talent Management

Roopneet Chadha

 

 

INTRODUCTION

Talent management is a critical issue for many organizations to meet and exceed current as well as future business strategies and goals. Framework of talent management proactively anticipates and meets business talent demand which is necessary to successfully execute the business strategy. It insights into the business strategy, then accordingly develops as well as retains prior talent and attracting new talent to cope with the strategic needs in order to get best utilization out of tools and processes to deliver talent management solutions[3]. Human resources are the most important asset for the organization. It's people who create

value by using these corporate assets to create products and services that people need. Thus this means that the better people an organization has, the better it will perform. The solution to this problem is to employ the talent management process. For this purpose, Talent management focuses on to attract, develop and utilize the best brains to get superior business results. The future of most businesses is reliant on the acquisition, development and retention of talented people to create the leadership capacity and talent required to implement new strategies so as to meet current and future business needs.

 

Keywords : Career Planning, Competitive Edge, Talent Management, Performance Management

 

Several factors led to the need to attract talented people, which include:

 

• New trends in business growth, often requiring new kinds of talent.

• Economic conditions becoming more complex and this condition will lead to the need for segregated talent and talent management.

• The emergence of many small and medium- sized companies that are increasingly targeting the same people sought by large companies

• The demand for skilled workers in particular is a matter for concern. Global competition for skilled workers is keen; worldwide, many employers are experiencing a talent shortage. A survey of nearly 33 000 employers in 23 countries revealed that 40% are struggling to locate qualified candidates.

• Job mobility is increasing and organizations are finding it harder to retain employees.

 

Knowledge workers display high levels of mobility as the psychological contract has moved on from a previous emphasis on job security and loyalty to the company to the current emphasis on employability and loyalty to one's own career and experience.Most business leaders understand that having the right people in the right place at the right time to maximize business opportunities has become the most important factor in ensuring ongoing organizational success . Water and Wastewater Organization of Lorestan province that has been studied in this research is one of the top organizations in their area of specialization. We think this superiority is obtained by talented human resources, because almost all organizations are equal in their material resources and most important source that create competitive advantage is talented human resources. So we intend to study the level of talent management competencies in the organization and to consider its relationship with employees intent to quit.

 

LITERATURE REVIEW

The concept of talent management as unexpected increase in public in 1981  however its strategic importance has been realized when McKinsey consultants group claimed the human resource as “War for Talent” in late 1990's . McKinsey and company coined the term the war for talent in response to the shortage of skilled employees in the marketplace and the need for organizations to compete for this limited talent pool . This war for talent was prompted by the realization that talent shortages were increasingly becoming one of the biggest human resource concerns for multinational corporations.

 

2.1. Talent management

‘… talent management is the use of an integrated set of activities to ensure that the organization attracts, retains, motivates and develops the talented people it needs now and in the future. The aim is to secure the flow of talent, bearing in mind that talent is a major corporate resource.  talent management may be viewed as the implementation of integrated strategies and systems to increase workplace productivity by developing improved processes of attracting, developing, retaining and utilizing people with the required skills and aptitudes to meet current and future business needs . This definition seems to cover all the activities of

human resource management. Talent management encompasses the instrumentation of unifying strategies or processes in order to enhance the output of a wok place by deploying ameliorate systems and processes for attracting, development, retention and utilization of required skills and abilities of work force and their aptitude matched with the current and upcoming business needs. Creelman defines talent management as “the process of recruiting, hiring and retaining talented employees”.

 

2.2. Competencies

There appears to be a large diversity in the Definition of the term ‘competency'. the concept of competence may be defined as ”what a person is, knows, and does that is causally related to superior performance” .

2.3. Talent management competencies

Most appropriate definition for talent management competencies is: “the implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs”.

According to Oehley, talent management competencies is: sets of behavior patterns that line managers need to bring to a position in order to attract, select, engage, develop and retain talented employees in order to reach specific desirable business objectives for the organization .

2.4. Talent management competencies dimensions

The eight-factor model of talent management competencies is an integrated activities of human resource management in terms of eight basic competencies: Displays a talent management mindset, Attracts and recruits talent, Identifies and differentiates talented employees, Develops employees, Builds and maintains positive relations, Provides meaningful and challenging work, Remunerates and rewards fairly and Manages work-life balance.

2.4.1. Talent management mindset: is a belief that having better talent at all levels provides the means to outperform other organizations [Oehley (2007)] and talented individuals play a central role in the success of the organization.

2.4.2. Attracts and recruits talent refers to having the right employment proposition and brand to attract talent from the external marketplace. Every company needs the right people to be engaged in making the right contributions. To make this happen, a business must first attract the right people to do the right jobs at the right time .A successful attracts and recruits talent program can be a valuable instrument in attracting new and high-qualified employees.

2.4.3. Identifies and differentiates talented employees refers to classification of individuals in different groups with different levels of talent [10, p 140]. In this approach, Employees are classified into three categories according to their level of talent as “A”(top performers), “B”(competent performers) and “C Players” (bottom performers) and encourages the development of A players, the retention of B players and the development or termination of C players .

2.4.4. Develops employees refers to building the skills and capabilities of employees in order to meet current and future demands.  Senior management must constantly assesses people's development needs, provides opportunities and ensures that needs are met in order to fully develop the potential of all employees .

2.4.5. Builds and maintains positive relations refers to understand the importance of interpersonal awareness and has the ability to establish and maintain relationships with employees .

2.4.6. Provides meaningful and challenging work: Challenging works require the application of various skills, self-control and participation in important issues. Provides meaningful and challenging work refers to ensures that subordinates are able to link their individual contribution to organizational and divisional strategic direction. Senior management must actively creating opportunities for employees to be engaged in work that is challenging.

2.4.7. Remunerates and rewards fairly: both financial and nonfinancial rewards, can contribute to the engagement and commitment of talented people by demonstrating that they are valued for their contribution and by operating fairly and consistently .

2.4.8. Manages work-life balance: striving to provide employment practices that enable people to balance their work and personal obligations [2, P 149]. Work - life balance is one of the Competitive advantage for talented employees [Bird (2006)].

2.5. Intention to quit

Intention to leave is defined as an employee's plan of intention to quit the present job and look forward to find another job in the near future.

 

 

Talent Management Strategies to Retain High Potential Employees

At a time when this type of talent is so crucial, organizations must put employee development strategies in place to avoid the pitfall. Corporate environments have taken notice of this talent management concept and have started implementing more structured mentoring programs. These can be a very powerful tool in acclimating employees to the corporate culture and values.

The difficulty lies in finding that perfect match between a seasoned employee with the willingness and openness to mentor someone, and a high potential employee who respects that mentor and is eager to incorporate the knowledge. But when that is achieved, it can be a great employee retention approach.

 

Give them high visibility assignments.,Openly communicate with them. ,Invest in their learning and development ,Measure progress quarterly. 

 

Strategic Talent Management

Strategic Talent Management is a process that ensures that business has the right people in the right jobs at the right time to achieve expected results. This discipline helps organizations understand their current state, forecast talent gaps, and take the necessary steps to close those gaps.

Benefits of Effective Strategic Talent Management

·         Align human capital needs with business strategy

·         Clarify current and future roles and responsibilities

·         Focus training, development and recruitment efforts

·         Ensure knowledge transfer across multigenerational workforce

·         Maximize the contribution of every employee

·         Minimize disruption associated with sudden departures



There is a growing body of evidence to support the idea that companies that align business and leadership talent imperatives have a greater chance of sustainable success. It feels intuitively correct; if you have the right leadership talent in the right place with the right skills and behaviors, then the odds of successfully executing on your business strategy are high. Many of our CEO clients agree and have moved leadership talent to the top of their agenda, assigning responsibility to a senior executive

Executives and HR management have always been focused on basic talent management—acquiring, hiring and retaining talented employees. But, to drive optimal levels of success, business leaders need engaged, high-performing employees. The key to inciting a workforce to greatness is to align your talent management with company strategy, define consistent leadership criteria across all functional areas, and identify specific competencies (analytical, technical, education, experience) to cultivate for continuing growth. 

Business leaders who implement the best talent management process are more prepared than their competitors to compete in the global economy and capitalize quickly on new opportunities. True success is only available when companies do more than adapt to long-term trends; they must be able to anticipate and jump on new opportunities before the rest of the market. A strategic talent management plan allows you to:

  • Become "proactive" versus "reactive". Fill your critical talent management needs and address company and industry changes promptly;
  • Identify essential skills to be developed in all employees, and minimize training costs by focusing on key development areas; and
  • Improve your recruiting process by identifying high-quality candidates using job descriptions based upon the expertise of your high performing employees holding uniquely valued company or industry competencies.

 

 

Align Individual Goals with Corporate Strategy

The best talent management plan is closely aligned with the company's strategic plan and overall business needs. Goal alignment is a powerful management tool that not only clarifies job roles for individual employees, but also demonstrates ongoing value of your employees to the organization. When you engage employees in their work through goal alignment, you create greater employee ownership in your company's ultimate success; they become more committed to your company and achieve higher levels of job performance. 

To achieve "goal alignment" in your organization, you must first clearly communicate your strategic business objectives across the entire company. By allowing managers to access and view the goals of other departments, your organization can greatly reduce redundancy. Goal sharing also helps departmental heads find ways to better support each other, as well as identify areas where they may be unintentionally working at cross purposes. With everyone working together toward the same objectives, your company can execute strategy faster, with more flexibility and adaptability. Essentially, goal alignment strengthens your leadership and creates organizational agility by allowing managers to:

  • Focus employees' efforts on your company's most important goals;
  • Understand more clearly all responsibilities associated with specific goals; and
  • Strengthen accountability by assigning measurable and clearly articulated goals that are visible company-wide.

There's a problem that small-to-midsized but fast-growing private companies often don't see coming until the damage is done. Namely – they don't recognize until it's too late just how much value is being lost owing to immature talent development, retention, evaluation and recruitment processes.There are many reasons for this phenomenon. Prioritization tops the list. The very nature of high-growth means that a company is so focused on opportunities that it often doesn't notice the ways that sub-optimal talent processes nibble or even bite at performance. Next up is the pace of change. The fact is, with each new surge in sales, de facto, the organization responds and a new company is formed.

The shift from an ad hoc to a strategic talent management program can greatly aid a company in the achievement of its business objectives. And while there is no one-size-fits-all solution for talent optimization, leaders should consider implementing elements such as:

·         Objective metrics The need for metrics seems obvious. However, amid high-growth, job descriptions are often in flux, as is the nature of the associated opportunities. But regardless of these challenges, no company will ever be able to get the most out of its workforce without clearly defining roles and goals as well as addressing issues such as incentive compensation and advancement. What is it that defines success in this role? How is performance measured? Every employee should have a clear understanding of how they fit in. (Too often, they do not.)

·         Strategic alignment Talent, too often, is treated as an afterthought. According to the survey conducted forThe Talent Imperative, fewer than one in ten executives from midsized private companies say their talent strategies are intimately aligned with overall strategic planning. This can be a critical mistake, as any strategic plan must be executed by people. So incorporating the views of HR – injecting talent into strategic planning – becomes an essential and relatively easy to use tool for optimizing overall performance.

·         Targeted training and development As talent and strategy become more closely aligned, companies will begin to get a better handle on their specific talent challenges. Often topping the to-do list: enhancing training and development.

·         Key talent identification/retention Going hand-in-hand with talent training and development, fast-growing companies need to make sure that their most valuable employees are engaged and satisfied: with work/life balance, compensation, strategic direction and a host of related variables. Once dissatisfied, it is often too late to turn things around. Companies need to make a concerted effort to proactively identify and work to satisfy the needs of their most critical talent.

·         Career-pathing As talent processes mature, companies can begin to add elements that can lead to anything from performance improvement to breakthrough. Providing each worker – particularly their most valuable employees – with a clear job description and performance metrics is only a start. The most enlightened companies take matters a step (or two) further. That is, they engage with each employee to get a sense of personal abilities, aspirations and needs to develop a growth and development plan within the organization.

·         Talent mapping Talent mapping is a formalized process of linking the talent on hand to the talent that will be needed to support growth in order to assess shortfalls or gaps. As companies pursue greater alignment between talent management and strategic planning, they begin to see increasingly greater value in talent mapping.

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