INTRODUCTION
Talent management is a powerful tool used as a guide to identifying the employee lifecycle with ease by providing the insight and instruments necessary to make effective changes to the staff of an organization and promote personal development and loyalty within an organization (Adamsen, 2016; Trost, 2014). Wide varieties of opinions on both the definition and the activities associated are present with the term Talent Management. Armstrong (2008, p. 168) defined it as “Talent management is basically about the identification and development of potential. It can be defined more elaborately as the process of identifying, developing, recruiting, retaining and deploying talented people. The term talent management may refer simply to management succession planning and management development activities, although this notion does not really add anything to these familiar processes except a new, although admittedly quite evocative, name”. According to Cappelli (2008, p. 1), talent management is referred to as “talent management is simply a matter of anticipating the need for human capital and then setting out a plan to meet it”. But Lewis and Heckman (2006) state that the exact definition of the term talent management cannot be specified since numerous authors have diverse versions of their own and instead, have been defined in three ways.
- The combination which consists of usual human resource practices or human resource areas which specialize in recruitment, selection and career development.
- Talent pool concepts in which employees are recruited to an organization using a defined process.
- Recruitment in general despite the position in the organization.
Therefore, a decent description of the term talent management is tough to state. Andrés Hatum (2010), articulates that a certain amount of features, which incorporates talent management must be conferred before presenting a description for talent management (Hatum, 2010). Table 1 and below provides a summary of these features.
Table 1, Attributes commonly used to characterize talent management
Table 1, (Continued)
(Hatum, 2010)
With reference to Table 1, Hatum (2010) splits the above features into three categories. The first approach narrates traditional HR practices such as recruitment, selection, training and performance measurement, the second approach narrates concepts such as HR planning, strategic HR management and succession planning and the third approach narrates a more overall interpretation linking talent management to various subjects such as leadership and talent pools.
Nevertheless, whichever the definition of talent management is, “It is not essentially different from human resource management or human resource development. Both are about getting the right people in the right job at the right time and managing the supply and development of people for the organization” (Iles et al, 2010, in Armstrong & Taylor, 2014, p. 264).
THE PROCESS OF TALENT MANAGEMENT
An ideal talent management process aims at competency and power of employees within an organization (Sweem, 2009). Therefore, the main task of an HR manager/executive is to forecast the shortfalls in advance based on the organizational changes and experience. But prior to all of this, the talent gap should be identified. Different initiatives should be taken to improve the availability of the required talent and knowledge. Armstrong & Taylor (2014) presents the process of talent management from a higher level as a pipeline that operates within the parameters of talent strategy and policy and starts with talent planning, followed by a sequence of resourcing and talent development activities to produce a talent pool.
Figure 1, The Talent Management Pipeline
(Armstrong & Taylor, 2014)
To get a clearer picture of the above pipeline, Armstrong & Taylor (2014) provides a detailed flow chart of the process of talent management shown in Figure 2 where the process begins with a strategy which provides the best outcome for individuals which eventually results in a talent pool that preserves the talent stream required by the organization.
Figure 2, The Talent Management Process
(Armstrong & Taylor, 2014)
Talent Management originates from the term, “the war of talent”, which arose to point out the difficulties faced in organizations during the recruitment process of talented people (Armstrong, 2006). Organizations that implement the “the war of talent” approach tends to focus more on external applicants, rather than the internal employees. A successful talent management strategy should encompass the strength to address and resolve any imbalance between the supply and demand of talent. Many organizations consist of employees more than the required amount but never for the actual positions. Even if talent management is about employee development and succession planning, suggested in many definitions and articles, it should also focus on an organization to achieve its objectives (Cappelli, 2008, in Armstrong & Taylor, 2014).
To build a strategy, first, the key competencies of the organization should be identified. Key competencies can be defined as the elements which are critical to the success of the organization. Secondly, it is crucial to stabilize the flow of these competencies (Merlvede, 2014). The flow can be summarized with 5 keywords.
- Buy – Recruit new talent
- Build – Invest in learning by supplying training to the existing employees
- Borrow – Bring external consultants/professionals to enhance the skills
- Bounce – Remove employees who interrupt the talent development process.
- Bind – Pay attention to talent retention.
Berger & Berger (2004) describes four steps that should be followed to create a successful talent management system.
To begin with, the necessary assessment tools and the scales should be developed. Each employee should be assessed based on an agenda which consists of accepted measures to monitor employee competency performance and potential. Next, application tools to develop training and development solutions should be supplied, in order to support an organization’s core competencies. Certain knowledge gaps exist between an employee’s expertise and an organization’s requirement. This gap can be eliminated by providing the required training and development. Subsequently, assess each employee’s core abilities with the expected forecast. i.e. evaluate the employee based on the measures that were set in the first step. Finally, action plans are prepared after employee evaluations. A perfect action plan is a plan that can be readily adapted to an organization (Berger & Berger, 2004). Therefore, an ideal talent management strategy takes an approach where the skills of everyone is highlighted in such a manner that an individual’s success contributes to the organization’s success (O’Reilly and Pfeffer, 2000, in Armstrong, 2006).
Talent Planning is defined as “the process of establishing how many and what sort of talented people are needed now and in the future” (Armstrong & Taylor, 2014, p. 267). An organization must consider aspects such as the type of talent required for a position and the proficiencies that the position should improve along with the identification of a capable candidate since the organizational success depends on the number of objectives achieved (Hatum, 2010). Various questions with regard to the organization may arise at the time the organization objectives are being defined. Therefore, it is crucial to determine the targeted audience of the succession management program. Such programs can be based on factors such as specific key positions, particular people with the capability for progression or high-potential people capable of climbing up the career ladder within the organization (Berger & Berger, 2004). The objectives that an organization must cultivate for its stability and success can have a direct impact on the match between the position and the identified candidate’s skills (Hatum, 2010).
However, apart from scrutinizing its organizational capabilities, an organization must take additional measures to attract the best talent. One such measure is an EVP. EVP stands for “Employee Value Proposition” (Hatum, 2010). An EVP can be defined as the “holistic sum of everything people experience and receive while they are part of a company – everything from the intrinsic satisfaction of the work to the environment, leadership, colleagues, compensation, and more. It’s about how well the company fulfils people’s needs, their expectations, and even their dreams” (Michaels et al, 2001, in Hatum, 2010, p. 38). EVP summarizes the effects employees expect and receive upon employee performance. In other words, an EVP comprises of aids that illustrate the characteristics of an organization. Thus, a good EVP boosts an organization’s status which results in talent attraction and retention (Hatum, 2010).
How an EVP assists an organization to compete against the competitors is explained using an example given below.
The Royal Mail Group is the chief employer in the UK. The main aim of the Royal Mail organization was to promote divergent thinking within the organization since in their opinion divergent thinking gives rise to better performance rather than parallel or similar thinking. A diversity review was conducted to identify the organization’s market position and to attract the best candidates to achieve its diversity goal. The Royal Mail Group has introduced a graduate program in which more than 100 new recruits joins the organization. The main purpose of the program is to identify the aspects of Royal Mail which should be improved to attract a diverse set of graduates. Mentioned below are few identified aspects (Hatum, 2010).
- Corporate social activities such as the energy reduction programs, health and well-being initiatives and charity events.
- Challenges and opportunities at the organization.
- Master of Posts concept (Hatum, 2010).
Nevertheless, hiring top talent for an organization cannot be guaranteed by the use of an active EVP. In order to hire the correct employees, company staffing processes such as recruitment and selection processes are critical (Hatum, 2010).
Another measure to attract the best talent is the identification of the appropriate recruitment channels based on an organization’s culture and characteristics and selection practices which helps an organization to select the best candidate for a given position. In simple terms, this can be defined as the employment processes which helps a company achieve its talent goals. An EVP cannot be depended upon since it doesn’t result in the hiring of the best talent. Therefore, the recruitment and selection process of a company is desired to ensure an organization hires the best candidates. Thus, if the recruitment and the selection process isn’t well planned and the organization loses both time and money (Hatum, 2010).
An organization must recognize the industries and the selection processes used by the competitors. Additionally, instead of attempting to fill the current vacancies, it is mandatory for an organization to search for new talent in order to broaden their scope (Hatum, 2010). Improved results can be achieved within a slight duration when the most appropriate contenders are encouraged, and the best people are hired. Professionals state that the price of an incorrect hiring decision can vary from 20% to 200% since it will be based on the newly hired employee’s unproductive which would lead to inefficiency. A replacement for such an employee would consequence in an added cost for training of another employee (Merlvede, 2014).
Therefore, it is crucial that an organization has sophisticated recruitment and a selection process. Merlevede (2014) describes a few challenges and the relevant solutions encountered with regard to recruitment and selection.
- Identify the right candidate – Articulate a model which consists of job requirements based on values and skills.
- Attract the right candidates – Create a job advert that captures the attention of the appropriate candidates.
- Select the exact CV – Develop a candidate or profile template which maps the job requirements, rather than resume observation.
- Select the best match - Based on the developed template in the third point mentioned above.
- Minimize cycle time – Communication between the employer and the selected recruit is an important factor as this can affect both the organization’s and the recruit’s time. For example, if the organization is interested in a certain recruit, that recruit should be made aware of that immediately.
- Motivate to join – Be aware of the candidate’s motivational patterns.
- Talent retention – Implement actions to retain employees.
Moreover, after successful recruitment and a selection process an organization is equipped with new recruits as well as the existing employees. An ideal talent management strategy must be implemented such that it ensures the combination of the new recruits and existing employees outcomes in a positive manner to the organization. Furthermore, an organization should comprise of a development strategy to support its varying requirements (Hatum, 2010).
Armstrong & Taylor (2014) states that “learning and development policies and programmes are key components of talent management. They aim to ensure that people acquire and enhance the skills and competencies they need. Policies should be formulated by reference to ‘employee success profiles’, which are described in terms of competencies and define the qualities that need to be developed” (Armstrong & Taylor, 2014, p. 267). What should be kept in mind here is that talent development is dissimilar to training. Training focuses on the employee performance on a short term basis. But development focuses on the long term and prepares the individual to manage multifaceted issues in the long run. A company’s main focus should be on developing talents which are crucial for a company’s success. In order to do so, an organization’s business requirements have to be defined as the first step. Mutual goals for development comprises of engrained individuals in areas of leadership, extreme capabilities, high achievers and perilous talent (Hatum, 2010). Concept of “Superkeepers” emerges at this point. Super keepers can be defined as a small but a superior set of individuals who represent and reflect an organization’s core competencies and values and who have been proved to gain superior accomplishments while inspiring others to do the same. Training provided to the super keepers is different from the training provided to the other employees. A holistic approach, the unearthing of deep interactive insight, the active participation of top management and sustained relationships with the trainer or the organization are few factors that represent difference mentioned above (Berger & Berger, 2004). This is confirmed in the book “Next Generation Talent Management” where super keepers are referred to as the “high potentials” which comprises of the ability to accomplish many complex tasks in the future. Performance is an important factor as well. On the contrary, performance is a measure to identify talented individuals. In contrast, to measure performance, one’s past is needed. Past implies if an individual possesses a good track record and the impact that particular individual had on the organization’s results (Byham et al, 2002, in Hatum, 2010).
CONCLUSION
The success of an organization depends on the organization’s talent management strategy. The talent has to be nurtured in such a way that it helps an organization achieve its objectives. The nurturing doesn’t always have to be similar to other organizations. Breaking the rules may sometimes result in a positive impact. Retain talented individuals and encourage them to achieve the best. Even though the focus is short-term or long term inducements, creativity plays a major role in talent retention.
REFERENCES
Adamsen, B. (2016) Demystifying Talent Management: A Critical Approach to the Realities of Talent. 1st ed. Hampshire, Palgrave Macmillan.
Armstrong, M. (2006) A Handbook of Human Resource Management Practice. 10th ed. London, Kogan Page.
Armstrong, M. (2008) Strategic Human Resource Management. 4th ed. London, Kogan Page.
Armstrong, M and Taylor, S. (2014) Armstrong's Handbook of Human Resource Management Practice. 13th ed. London, Kogan Page.
Berger, L. A and Berger, D. R. (2004) The Talent Management Handbook: Creating Organizational Excellence by Identifying, Developing & Promoting Your Best People. 1st ed. New York, McGraw-Hill.
Cappelli, P. (2008) Talent Management for the Twenty-First Century, s.l., HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION.
Hatum, A. (2010) NEXT GENERATION TALENT MANAGEMENT - Talent Management to Survive Turmoil. New York, Palgrave Macmillan.
Lewis, R. E and Heckman, R. J. (2006) Talent management: A critical review. s.l.,Elsevier Inc.
Merlvede, P. (2014) Talent Management: A Focus On Excellence. [Online] Available at: https://bookboon.com/ [Accessed 18 April 2019].
Sweem, S. L. (2009) Leveraging Employee Engagement through a Talent Management Strategy: Optimizing Human Capital through Human Resources and Organization Development Strategy in a Field Study, s.l., Benedictine University.
Trost, A. (2014) Talent Relationship Management: Competitive Recruiting Strategies in Times of Talent Shortage. Berlin, Springer.
A requisite pool of qualified and talented employees can simplify the process of achieving the organizational goal and help focus on issues that really matters in the interest of the organization. Therefore, the overall purpose of talent management is to maintain a skilled and efficient workforce for the organization. In modern-day organizations, the importance of talent management is high. Unless an organization has the required talented workforce, it cannot succeed in attaining its goal even if it possesses other factors such as natural resources, infrastructure, and technology. In fact, it is people who take an organization to its next levels of success.
ReplyDeleteI agree with you 100% on this. A talent mindset requires the engagement of the entire organization, starting from the top, it is imperative that the CEO and top management team have a talent agenda. A talent agenda makes talent issues part of top management’s daily responsibilities. Further, a talent agenda helps make top management accountable for establishing talent standards for the organization. This is important because it helps leaders recognize that talent management requires investment of real money and that talent reviews are strategic issues (Hatum, 2010).
DeleteA requisite pool of qualified and talented workers will make easier the process of achieving the organizational goal and facilitate focus on problems that actually matters in the interest of the organization (Kevin Oakes, Pat Galagan 2011).. Therefore, the general purpose of talent management is to keep up a talented and efficient work force for the organization. In modern-day organizations, the importance of talent management is high. Unless a company has the desired talented personnel, it cannot succeed in attaining its goal although it possesses other factors like natural resources, infrastructure, and technology. In fact, it is people who take an organization to its next levels of success.
DeleteIn addition to the content above, it is important to consider about following view point of Talent Management. Since human resources are the biggest assets for any organization, employers have to well managed and take care of their employees all the time. These employees generate value for the company and employee success is totally depend on their skills and competencies (Snell, 2011). Therefore, HR managers have to be ensured that human resource use in its optimum for exceptional business results. Hence, talent management of employees has positive impact on the attitude of the employees and the organizational performance. Further by accounting effective measures to manage talent pool of individual talents will be provided competitive advantage over their competitors (Bano, et al, 2011). All in all this would improve organizational learning and development initiatives and also focus more on their retention strategies (Sareen and Mishra, 2016).
ReplyDeleteThere is another reason why a firm’s talent management strategy should be led by top management. Say that line managers were instead the owners of a firm’s talent management initiatives. Now consider the impact of line managers who are not committed to the talent management process. Rather than facilitate the development or performance of their employees, such managers are likely to present obstacles to productive employees trying to access organizational opportunities. Thus, as Heinen & O’Neill (2004) point out, CEOs should be the ultimate owners of the talent management process. What role, then, should the HR department play in a new organizational architecture based on talent management? Human resources is an enabler, a catalyst; the area most involved in strategic talent decisions. Talent management thus provides a great opportunity to show the strategic importance of the HR department. In practice, however, HR departments rarely take advantage of this opportunity. Keith Hammonds’ (2005, p. 40) critical article on the HR area illustrates the crisis the area has gone through over the years: ‘After close to 20 years of hopeful rhetoric about becoming “strategic partners” with a “seat at the table” where the business decisions that matter are made, most human-resources professionals aren’t nearly there. They have no seat, and the table is locked inside a conference room to which they have no key. HR people are, for most practical purposes, neither strategic nor leaders.’(Hatum, 2010).
DeleteAt the end the leaders were convinced that HR required a step-change in its evolution to achieve its potential and meet accelerating organizational demands. The discovery spawned CHREATE, or The Global Consortium to Reimagine HR, Employment Alternatives, Talent and the Enterprise. The leaders set their sights on the year 2025, a 10-year horizon that futurists suggest is sufficiently distant to break from the inertia of tradition, yet still sufficiently close to be envisioned(John,2015)
ReplyDeleteAt its heart, talent management is simply a matter of anticipating the need for human capital and then setting out a plan to meet it. Current responses to this challenge largely fall into two distinct—and equally ineffective— camps. The first, and by far the most common, is to do nothing: anticipate no needs at all; make no plans for addressing them (rendering the term “talent management” meaningless). This reactive approach relies overwhelmingly on outside hiring and has faltered now that the surplus of management talent has eroded. The second, common only among large, older companies, relies on complex and bureaucratic models from the 1950s for forecasting and succession planning— legacy systems that grew up in an era when business was highly predictable and that fail now because they are inaccurate and costly in a more volatile environment. It’s time for a fundamentally new approach to talent management that takes into account the great uncertainty businesses face today(Cappelli, 2008).
DeleteAdditionally I would like to add some views about Retention and Succession as well.
ReplyDeleteIn Talent Management, Retention and Succession are two of biggest issues that companies are facing. (Ali and Boustani, 2014)
Retention of knowledge workers can become a source of competitive advantage for a company (Sigler, 1999). One of the greatest benefits of a talent management is its effect on the recruitment and retention of valuable employees.
According to Lalitha (2012) employee retention is the biggest challenge faced by HR in the modern economy. The author suggested some effective retention strategies and Procedures i.e. employer branding, changing hiring practices, talent management, and exit interview (Ali and Boustani, 2014).
Indeed. For retention and succession coaching for retention is very important. Coaching key employees is becoming an increasingly popular trend. As pointed out by Larson and Richburg, on leadership coaching, “While coaching focuses on the individual, its successful implementation brings significant benefits to both the individual and the organization. These benefits include retention of valued talent, increases in productivity, development of high-potential performers, greater job satisfaction for the participant, and achievement of organization objectives.” Many organizations are assessing these potential benefits and extending coaching deeper and deeper into their organizations. Karol Wasylyshyn, discusses the trend of Superkeeper coaching that targets “must keep” individuals. She defines Superkeeper coaching as “a company-sponsored ‘perk’ for top high-potential employees, a customized development process intended to accelerate effectiveness at work. This coaching is based on a collaborative relationship among the employee, his/her boss, his/her human resources manager, and an executive coach.” The key to coaching success is that “coaching for Superkeepers must be positioned in the company as an essential ‘perk.’”(Berger & Berger, 2004)
DeleteIn addition to your subtopics here I like to expand the scope. There are two approaches for talent management. First is Inclusive approach that gives the importance to all employees of an organization. Inclusive approaches have been developed through the areas such as retirement policies and health benefits.
ReplyDeleteThe second one is exclusive approaches (EA), by differentiating a portion of employees from total. This can be applied for employees as well as for particular jobs.(Gallardo-Gallardo et al. 2013, p. 295). Form the military history, the exclusive approaches have been developed and EA consists with resource optimization theories as well as theory of Matthew effect in sociology. EA leads to workforce differentiation in academic literature in talent management. (Collings & Mellahi 2009, Huselid & Becker 2011, Lepak & Shaw 2008).
Workforce differentiation/ segmentation is a main branch in the strategic human resource management (SHRM) literature , is making sense that the investment on the individuals or the jobs depends on the expected outcomes from the employees / jobs.
Furthermore, Retaining talent requires long-term thinking and creative planning. Most employee retention programs focus on developing attractive benefits packages, which often include features such as holiday pay, schedule adjustments, and competitive compensation. However, benefits packages are not sufficient to address turnover problems and thus, such focus prevents organizations from developing a holistic view of turnover issues and, in turn, truly effective retention practices (Hatum, 2010).
DeleteI would like to introduce here that what is the strategic job which gets help form talent management, because the efforts of talent management(TM) is filling those strategic jobs in the organization. Generally the talent management focuses on filling executive level jobs (C-Suite) that directly merge with organisation performance.
ReplyDeleteHowever after the development of Exclusive approach to TM, the scope of the strategic job was changed. As per the new definition, the strategic job can be avail throughout the whole organization (Boudreau & Ramstad 2007).
For example, the bank branch that I’m working, there are no specific work scope for individuals. Any time individual is asked to work in credit firm and the next day he/she will work in pawning or as a teller. In our on the job training session, the necessary training and development programs will be given according to the designation.
The desire to be accepted into the best circles and be perceived as an up and- comer has the potential to motivate even very bright people to act in ways that go against the grain of their own inherent values. It is critical in the early stages of development that companies make goals, expectations, and ethical practices crystal clear. Orientation to service, whether to an organization or a new role, is a critical stage of development for all professionals. This phase should consist not
Deleteonly of a well-designed and competently delivered picture of the organization’s mission, vision, and business direction but also a thoughtful introduction to the values that drive decision making, areas of legal compliance, and practices that are deemed acceptable and unacceptable. Too often there is a rush to put highly skilled people into service as soon as possible. “They’re certainly smart enough to pick this stuff up along the way, and we’ve needed someone really sharp in this job for a long time, so assign him or her a coach and let’s go!” Putting high-potentials to work the third day on the job, following only the requisite payroll and benefits introduction, may seem like the most expedient way to get someone up to speed. However, this practice invariably leads to gaps in understanding that may prove embarrassing or disastrous for the individual(Berger & Berger, 2004).
Hi Panchali, Well illustrated writing covering all aspect of your blog topic "Talent Management". As you have rightly pointed out in your conclusion “The success of an organization depends on the organization’s talent management strategy”. In competitive market place, Organizations should try to attract the right talent whilst trying to retain the existing talented employees .Talent is the primary driver of any successful company. Organizations have learned that, depending on what your business strategy is and what challenges you may face at any given time you need the right talent to execute the strategy or deal with the challenge. (Gebelein, 2006). Due to the complex business environment, the main challenge facing many business organizations is the management of talented and critical employees. It has been noticed that the way in which people are managed and developed at work had been the primary factors in achieving improvement in any organizational performance (Matchington and Wilkinson, 1997). Accenture (2001), described people in an organization as the most important asset. Society has now become knowledge based where clearly human capital is considered a key resource and indispensable to the survival of business (Porter and Porter, 2001)
ReplyDeleteYes, absolutely. Many companies consider talent management to be a linear process in which attraction, development, and retention are distinct. But often these companies find that a lack of connections between these different areas makes the entire process internally inconsistent and, hence, poorly aligned with the firm’s overall business strategy. Other organizations focus only on attracting and retaining people, but overlook the critical process of development. These companies tend to find themselves prisoners of short-term practices and policies. For a talent management strategy to be successful, it should be treated as a process in which attraction, development, and retention are all interrelated. While each dimension has its own particular features, their co-ordinated interaction is critical for the coherence of the entire process, and hence for the performance of the firm(Hatum, 2010).
DeleteTalent management practices ensure that the right people want to join the company and effectively bring new, talented workers into the company. Moreover, talented workers are identified and valued, and incentives exist to retain them (Ringo et al., 2008; Brundage and Koziel, 2010, as cited in Langenegger, Mahler and Staffelbach, 2011). To attract and retain talent, the company needs to know what talents want and, consequently, have to set the incentive system in line with their needs. Subsequently, their esteem needs are fulfilled and, as a result, talents demonstrate higher job satisfaction and motivation (Maslow, 1954, cited in Langenegger, Mahler and Staffelbach, 2011). Furthermore, talents are valued and retained by specialised programmes existing within the company; they get meaningful work combined with special rewards. According to previous studies, this appreciation and recognition leads to higher commitment (Beechler and Woodward, 2009; DeConinck and Johnson, 2009, cited in Langenegger, Mahler and Staffelbach, 2011) and job satisfaction (Herzberg et al., 2008, cited in Langenegger, Mahler and Staffelbach, 2011). Furthermore, the quality of work ought to be enhanced through the use of this strategy in view of the fact that experience is an essential source of learning (Kolb, 1984, cited in Langenegger, Mahler and Staffelbach, 2011). The longer the talents stay in a company, the higher the level of company-specific knowledge and qualification remains (Evans and Jack, 2003, cited in cited in Langenegger, Mahler and Staffelbach, 2011).
ReplyDeleteTalent management is not an end in itself. It is not about developing employees or creating succession plans, nor is it about achieving specific turnover rates or any other tactical outcome. It exists to support the organization’s overall objectives, which in business essentially amount to making money. Making money requires an understanding of the costs as well as the benefits associated with talent management choices(Cappelli, 2008).
DeletePanchali, in your article you have extensively covered the talent management theories, models and use of them in successful organizations. I would like to add here that organizations used to practice development of internal talents even during 1950s, and most of the talent development practices used today was common in those years, stretching from executive coaching, 360-degree feedback, job rotation and high potential programs (Cappeli, 2008)
ReplyDeleteTalent management is simply a matter of foreseeing the organizations need for human capital and accordingly setting out a plan to achieve the same in timely and systematic manner. In the current business environment, some organizations does not believe and practice talent management, and completely relying on the outside hiring for any unforeseen talent requirement. Other organizations, which is mostly common on large, established organizations, relying on complex and systematic talent development models and practices for forecasting the organizations future requirement of talents and succession planning. However, it is argued that such talent management legacy systems that was developed in a period where business growth was foreseeable and such models may fail in current context since those are imprecise and expensive to follow in a more volatile environment. Therefore, it is time to explore new ways to handle the talent management for organizations, considering the highly volatile business environment (Cappeli, 2008).
In addition to what you've mentioned above, to sustain a long-term relationship with employees, organizations must look at new paradigms in terms of development. Organizational silos that impede the ability of people to move within the firm should be avoided in favor of talent pools and greater intra-organizational mobility so that employees can grow from a larger and more varied set of development opportunities. ‘Enhance’, or the connection between attraction and retention, refers to the ability of organizations to boost both attraction and retention through values and actions that enhance the desirability of working and staying with the company. For instance, while the EVP needs to convey a clear message to attract prospective employees, this message will have an impact on the commitment of those already working with the company. Thus, the company’s external image and internal organizational identity are closely linked. Similarly, while a flexible, merit-based rewards system can be an important tool to retain people at different stages of their lives and careers, it is also a factor that is important in attracting talent to the firm. A strong organizational identity also works to both attract and retain talent(Hatum, 2010).
DeleteIn the process of talent management, Performance Management shall be given higher prominence as much as recruitment and selection. What gets measured, gets managed (Drucker, 1954). Hence, it is important to ensure performance of employees are measured during their probation period and periodically thereafter (annually, bi annually or quarterly as necessary) to ensure they are on course, and then develop the employees to ensure they are capable of performing up to the expected level. Performance appraisals are used to measure performance and results can be used in learning and development process, succession planning, and identifying and developing leadership as well. Performance Management will help identifying nonperforming employees or those who fall short in delivering, so the management may take decisions about the non-performers. New Talent management framework presented by Josh Bersin (2010) talks about a life-cycle of integrated talent management. According to him, Talent and strategy planning, Sourcing and recruitment, Performance Management, Learning and development, Succession Planning, Leadership Development, and Compensation are the most important and sequential steps on talent management.
ReplyDeleteMany employers today take a more continuous approach to the performance appraisal cycle. For example, at Toyota Motor s Lexington, Kentucky, Camry plant, the supervisors don’t sit with individual employees to fill out forms and appraise them. Instead, teams of employees monitor their own results, even posting individual daily performance metrics. In frequent meetings, they continuously align those results with the work teams standards and with the plant s overall quality and productivity needs. They do this by continuously adjusting how they and their team members do things. Team members who need coaching and training receive it, and procedures that need changing are changed. This is performance management in action(Dessler, 2013).
Delete“It doesn’t make sense to hire smart people and then tell them what to do. We hire smart people so they can tell us what to do.” - Steve Jobs
ReplyDeleteAs you have mentioned, the term 'Talent management' has been originated from 'The war of talent' - the increasingly competitive landscape for recruiting and retaining talented employees.
The above statement by the founder of 'Apple' clearly suggests that having a mere talent management strategy would be useless if there is no proper talent planning.
A proper talent planning is essential for any organization to reach the goals and objectives with the effective use of available talents.
In today’s talent-hungry market scenario, one of the greatest challenges that organizations are facing is to successfully attract, assess, train and retain talented employees. Talent Management encompasses in itself the entire process of Planning, Recruiting, Developing, Managing, and Compensating employees throughout the organization. Organizations have realized the need for talent management and are now focusing to develop and retain the existing talent in their organization rather than trying to acquire a new talent because the cost of identifying, developing and retaining the talent internally is more cost effective instead of replacing the talent which is lost from external market. Though it may appear initially that in the process of retaining talent, we are spending more in terms of increased wages, rewards and recognition, when we practically analyze,
Deletethe cost of acquiring a new talent is higher. Apart from higher cost of acquiring the new talent it has to additionally face the initial hiccups of this new employee getting along with the organizational goals and strategies(Thomas & Raghavan, 2011).
Since the late 1990s, the concept of talent management has gained increasing currency
ReplyDeletein debates around the strategic contribution of employees to organisational success.
Practitioner reports clearly indicate that talent management occupies a significant amount of senior managerial time and, additionally, that it is something which managers struggle to manage effectively. In the European context, a recent report by the Boston Consulting Group concluded that talent management is one of the five key challenges facing the HR profession. Worryingly, it is one of the challenges which the function was least competent in (BCG, 2007). Thus, within the practitioner community talent management has become an accepted part of the managerial lexicon and gained legitimacy as an important contributor to business success.
Another example can be Microsoft. Their talent management program is outstanding for its application of research conducted by the Corporate Leadership Council (CLC). Microsoft has chosen to organize its talent management effort around five key areas that, according to CLC research, have the most significant impact on high - potential (HiPo) development. Those are
Delete(1) Demonstrating senior leadership commitment to developing leaders
(2) The manager’s continuing engagement in HiPo development
(3) Creating a network of professional contacts that encourages contacts throughout the organization
(4) Stretch development plans with clear goals
(5) Targeted on - the - job work experiences designed to build competencies(Goldsmith & Carter, 2010).
A great deal of turnover research focuses on people who leave, on the assumption that understanding why people depart will help organizations determine how to retain them. Of course, it is also valuable to understand why employees stay. Some recent studies have examined the ways in which employees become embedded in their jobs and their communities. As employees participate in their professional and community life, they develop a web of connections and relationships on and off the job. Leaving a job would require severing or rearranging these connections. Employees who have many connections are more embedded, and thus have numerous reasons to stay in an organization. Therefore you can consider building these connection also a way to manage talent.
ReplyDeleteTrue. An organization’s retention model needs to be comprehensive. The factors above, namely, compensation, career advancement, and social identity, are each critical to a successful retention strategy. A comprehensive compensation system should include individual, group, and company bonuses to incentivize individual effort while also leading employees to work productively with each other toward a common organizational purpose. Career advancement opportunities should have both short- and long-term advancement goals to motivate employees to deliver strong current performance while also developing skills that will further benefit the firm in the future. And the organization’s identity should strengthen an employee’s long-term bond with the firm while a strong department level identity should further motivate performance in the current position. The interaction of the three factors above will also contribute to the success of a retention program. A wide variety of compensation incentives (i.e., individual, group, and company) can help organizations enhance both social and organization-level identity. Short- and long-term career advancement opportunities can help companies to raise awareness of the importance of the firm’s values and culture. Finally, increasing awareness of the firm’s values and culture, that is, building a strong social and corporate identity, will increase employees’ desire to stay with the organization for a long time. Such an identity requires a long-term perspective in terms of career advancement and compensation so that the entire system is viewed by employees to be consistent and coherent(Hatum, 2010).
DeleteAccording to Meyers & Van (2013), talent management is to attract, and hire develop and retain the individuals those who are identified as talented, This is a systematic approach of human resource management. Meyer (2005) pointing out that in the current knowledge driven culture retention and growth of talent are the critical factors. Odierno (2015) describes that talent management helps bringing down the cost of recruitment, proper knowledge transfer, business strategy execution and deliver differentiated services and products to create competitive advantages. Ashton and Morton (2005) argue that having a proper talent management is strategically important and it can create competitive advantage when it becomes a core competence.it always helps to enhance the execution of strategic plan and achieve the operational excellence.
ReplyDeleteThe development of an organizational talent management plan requires the assessment of each employee based on a framework of accepted definitions and measures of competency performance and potential. These core/institutional competencies are expectations of behaviors/skills/values that are crucial to the success of each employee and, therefore, to the success of the entire organization(Berger & Berger, 2004).
DeleteWell explained article, Talent management is a discrete field that stands in contrast to mainstream Human resource management in a number of important ways. In particular, TM should be concerned with understanding where value is added in organizations by human capital, how talented individuals influence organizational performance, and also how talent practice can maximize the contributions of those individuals. (Groysberg et al., 2008) We see the ultimate goal of Talent management as contributing to sustainable over role business performance. The basic premise underlying TM is that effective management of talented individuals requires alternative practices that are qualitatively different than the baseline resource management practices within the organization (McDonnell, 2011)
ReplyDeleteA key gap in TM is what determines high performance? Most articles ignore this question and jump straight into considering how such talents should be managed, implicitly presuming a straightforward linear association between talent and outstanding performance. Moreover, there is the issue of how talent is identified by HR management (Bjorkman et al., 2013). What do organisations look for in individuals when determining whether they are key talent or not?.
Baqutayan (2014) defines the talent as a something an individual with special competencies is having. In a business or other context, these competencies are of strategic importance to the organization. The absence of these competencies would pose an actual situation of crisis for the organization.” In addition to that, “Talent consists of those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential” (CIPD, 2012).
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