Talent Management A talent is a special skill or ability a person/employee has. It enables them to act quicker and be more efficient. Those people are needed for special tasks and mostly work in a leading position. There are several reasons why talent management is needed in a successful business. First of all, our society changes to a knowledge- based society and therefor companies need motivated and creative employees. Secondly, in order to stay competitive, innovations are very important and mostly talented workers can grasp a new idea and put it to action.
Talent management is art of Human Resources Management and includes several steps. Firstly, a company has to identify internal or external employees that can be bound long-term to the business. The firm has to invest in an active search. This means that Jobs are advertised in social networks, over the radio, in newspapers or with help of a head- hunter. Secondly, the business company has to attract the candidates. A firm has several opportunities. It can attract people with a high salary and more holidays. But nowadays people not only want a higher salary but also the chance to step up easily in the business hierarchy to a leading position.
Moreover, employees prefer a company with a long-term Job guarantee. The next step in the talent management cycle is integrating your new employees in the firm structure. Let them become part of the team and show them what their Job is. Help them to get settled in their new job with the help of trainings or with other qualified workers. ln order for employees to stay motivated, competitive and creative, a company has to develop their talents. This can for example be done with advanced trainings to keep them updated. One of the most important parts of talent management is motivating your workers.
It has been shown, that motivated and enthusiastic employees work to the best of the company. A company can only stay competitive with motivated workers you see themselves as part of the decision management team. Furthermore, a company should want to retain their talents. The entire selection process is highly costly since a firm invests in advertisement, the selections process, the Job training etc. Also, the employees gained an inside view of the company and its organizational structure. These information can be of high value to competitors in the struggle for market share and competitiveness.
Reasons Why Talent Management Matters 1) Skill Shortages: The labour shortage caused tight labour market with requiring dynamic and complex leadership capabilities. According to McKinsey Report (2005), the expectation for the next 1 5 years is: 2) Genarational Changes: Because of the changing in demographic composition of the workforce, the need of managing talent increased. Example: Australia (one of the countries which are ageing rapidly) In the last 40 years, the average of life of working shortened Now, older workers are working longer than the past.
They retire at 55, 60 istribution of age of Australia for the year 2000 and 2025 (the expectation) is: 3) Business Success: Talent management provides competitive advantage where financial capital is enough It also provides better results for shareholders. According to McKinsey Report 2005 and 2006, 86% of global business executives believe that talent is the greatest contributor to their companys profits, yet 54% of senior managers do not spend sufficient high quality time on talent management.
The Process of Talent Management Talent management starts with the business strategy and what it signifes in terms of he talented people required by the organization. This provides the basis for talent planning. Ultimately, the aim is to develop and maintain a pool of talented people. We used to understand the process of talent management traditionally which is consisted of linear steps. The steps are: 1 . Decide what positions to fill, through Job analysis, personnel planning and forecasting. 2. Build a pool of Job candidates, by recruiting internal or external candidates. 3.
Have candidates complete application forms and perhaps undergo initial screening interviews. 4. Use selection tools like ests, interviews,background checks and physical exams to current candidates. 5. Decide to whom to make an offer. 6. Orien,train and develop employees to provide them with the competencies they need to do their Jobs. 7. Appraise employees to asses how theyre doing 8. Reward and compensate employees to maintain their motivation. This linear form clearly illustrates the main phases of the process however it gives us a impression that phases necessarily follows.
In fact that is not the case it is possible for us to use the information we have gathered in one phase on another previous phase. Today he process of talent management takes the form of a ‘bundle’ of interrelated processes, as shown in the fgure below. This enables us to see the complex relations between phases. This is done through the talent pipeline, which consists of the processes of resourcing, retention planning, succession and career planning and learning and development (especially leadership and management development) that maintain the flow of talent needed by the organization. Its elements are described below.
Talent Planning:Talent planning is the process of establishing how many and what sort of talented people are needed now and in the future. It is a sub-set of workforce planning, as described in Chapter 18, and uses the same techniques. It leads to the development of policies for attracting and retaining talent and the determination of future requirements as monitored by talent audits. It also infuences the development of the roles talented people carry out. Resourcing:The outcomes of talent planning are programmes for obtaining people from within and outside the organization (internal and external resourcing).
They involve the implementation of policies for Programmes:These policies and programmes describe the approach to ensuring that he organization gets and keeps the talent it needs. Attraction policies infuence programmes for external resourcing. Retention policies are designed to ensure that people remain as engaged and committed members of the organization. Line managers can be asked to carry out separate risk analyses for any key staff to assess the likelihood of their leaving so that steps can be taken to encourage them to stay. The outcome of these policies is a talent flow that creates and maintains the talent pool.
Talent Audit:A talent audit identifes those with potential, often through a performance management assessment. It provides the basis for career planning and development – ensuring that talented people have the sequence of experience supplemented by coaching, mentoring and learning programmes that will equip them for carrying out more demanding roles in the future. Talent audits can also be used to indicate the possible danger of talented people leaving (risk analysis) and what action may need to be taken to retain them. Role Development:Talent management is concerned with the roles people carry out.
This involves role development ensuring that roles provide the responsibility, challenge and autonomy equired to create role engagement and motivation. It also means taking steps to ensure that people have the opportunity and are given the encouragement to learn and develop in their roles. Talent management policies focus on role fexibility – giving people the chance to expand their roles by making better and extended use of their talents. Talent Relationship Management:Talent relationship management is about building effective relationships with people in their roles.