Talent management is a process of identifying, recruiting, developing, and maximizing the productivity of human capital in order to achieve organizational goals. It determines the potential of employees and applies their skills to be productive.
Employee engagement assists organizations to gain talented employees who are happy with what they do. Organizations must focus on talent strategy for sustainable growth because it can directly impact business growth.
Talent management is at the heart of business growth. It is the job of HR professionals to find, attract, and retain talented people to serve their customers and achieve organizational objectives.
Effective talent management is not a straightforward task, and there are many challenges that HR professionals can face. For example:
- The workforce demographic changes every year, so HR professionals must map out a strategy for each age group.
- Many conversations are happening on social media channels which means that it’s hard for employers to keep up with the newest trends.
- There’s a shortage of qualified talent in some industries, making it difficult for employers to find the right people.
How important is talent management to business success?
Talent management is becoming increasingly crucial to business success. These days, few organizations will survive without investing in their talent.
This question may seem silly to some of us in the “people business”, but it’s the one executives and business owners deal with every day. They make decisions and take actions that answer this question. According to years of employee engagement research, “only 30% of employees feel like they are company’s greatest assets.”
The importance of developing a team is often overlooked in a quest for growth. Is there anything that might be more valuable to the success of a business than human capital? Let’s dive right into the definitions and research results.
The definition of talent management.
Talent management is the process of gearing your organization so that it becomes capable of creating, attracting and retaining talented people.
Recruiting, developing, engaging and retaining talent are all functions that affect the company’s strategy and culture. Major organizations are putting more effort into those to help execute their strategic plan. The key to success is consolidating your goals while adapting to your company’s environment.
It’s all about managing your people strategically to help you reach your goals more quickly. It is believed that having the right people in the right place at the right time can be your most significant competitive advantage.
So, what sort of company do you want to be?
Company culture includes the shared values, beliefs, and behaviors inside an organization. Organizations do have cultures, and these can have a significant effect on how the company functions. For example, the culture of a company might be more collaborative or work-oriented – and this will affect things like professional development, team building activities for employees.
For example, investment firms have conservative cultures, including linear hierarchies, formal dress codes, reserved executive parking spots, and regulations. The company may also offer professional development courses and reward employees with promotions.
In this case, a small design company may have an informal work culture with relaxed dress codes and a matrix-style organizational structure. You’ll find that they focus more on paid time off for volunteering over team-building workshops.
According to the CGMA, 68% of a company’s value derives from one factor alone – its people. And if you’re viewing your employees as expenses, then all you’re seeing are the numbers on the payroll.
However, when you start considering them as assets and hire people who share your core values, you realize how much value each person brings to your company in the form of skills, knowledge, and experience.
You may know that investing in your people can lead to a significant ROI because the more skills they have, the more they can use them to achieve your goals.
Key Takeaways – Talent Management
Rather than considering your people as expenses, consider them assets.
- The non-financial components of a company, namely its people, are so influential to its success that 68% of its value comes from them.
- Unmotivated employees can lose up to 2 hours of productivity per day, costing your business thousands of dollars. If you motivate them and add as little as 15 minutes of productivity per day, you’re likely to see tens of thousands in extra profits each year.
- Turnover is detrimental not only for profits but also to the employees. It costs people their jobs and also affects morale. The cost of replacing a staff member can be 90-200% of their base salary. Furthermore, it would help if you kept in mind that losing an employee may lose your customer base.
- Recruiting employees is an important task that needs planning. You need to keep in mind a few things before starting the process: When it comes to recruitment, you should think of yourself as the marketer who is “selling” your product to your most important customers. You want to sell them on your company’s behaviors and values that they exemplify more than its skills requirements. Lastly, constantly tailor your recruitment efforts based on the individual you’re recruiting for.
It’s crucial to keep up with industry best practices by constantly training your employees. It can be done with behavior-based performance management — focus on what your employees are doing right, and provide them with additional training to help improve the areas where they need it the most.