2. TALENT MANAGEMENT PROCESS IN HUMAN RESOURCE MANAGEMENT

 What is Talent Management?

 The different ways Talent Management is defined by different authors:

 

Armstrong & Taylor, 2014, (p.263) ‘Talent management is the process of ensuring that the organization has the talented people it needs to attain its business goals. It involves the strategic management of the flow of talent through an organization by creating and maintaining a talent pipeline’.

 

(Fonseca, 2022) ‘Talent management is the cycle of recruiting and training employees with the goal of keeping them in an organization. It is a never-ending process as it is concerned with the development of a high-quality workforce’. 

 

Armstrong & Taylor, 2014, (p.263) Talent management was defined by Tansley and Tietze (2013: 1804) as follows: ‘Talent management contains strategies and protocols for the systematic attraction, identification, development, retention and deployment of individuals with high potential who are of particular value to an organization.

 

According to Lewis and Hackman, (2006) Cited in Armstrong & Taylor, 2014, (p.264)

Talent management is defined in three ways:

1.     as a combination of standard human resource management practices such as recruitment, selection and career development;

2.     as the creation of a large talent pool, ensuring the quantitative and qualitative flow of employees through the organization (i.e. akin to succession or human resource planning);

3.     as a good based on demographic necessity to manage talent.

 

 

The process of talent management is based on the proposition that ‘those with the best people win’. It merged in the late 1990s when McKinsey and Company coined the phrase ‘the war for talent’. It has now been recognized as a major resourcing activity, although its elements are familiar.

 

The fundamental concept of talent management - that it is necessary to engage in talent planning to build a talent pool by means of a talent pipeline – is a key concern of human resource management.

Armstrong, & Taylor, 2014, (p.263)

 

(AIHR - Academy to Innovate HR, 2023), What is Talent Management? Definition, Process, and Strategy [2023]

 

Importance of Talent Management

 

·       Attracting Top Talent

·       Diving Organizational Performance

·       Better Succession Management

·       Stronger Organizational Culture

·       Promoting Innovation

·       Developing Employee Skills

·       Improving Employee Retention

·       Enhancing Agility

·       Avoiding Unnecessary Costs

 

Talent Management vs Talent Acquisition

These two aspects are often confusingly understood. They are both related HR processes and they cover varying aspects of human capital management. The difference should be identified and understood in order to implement this effectively.

 As cited in Fonseca, (2022)

Talent management is concerned with the whole process of securing high-potential candidates, mentoring, and motivating them throughout their stay with a company. It keeps top talent within an organization through employee engagement and employee retention programs. However, it also involves succession planning and sets guidelines for employee departures to ensure seamless and low-impact transitions. Talent acquisition, on the other hand, is focused on the recruitment process. It involves workforce planning and hiring talented employees to fill manpower requirements. 

 

 

(Foseca, 2022) Talent Management Acquisition Processes

 

The Talent Management model

This talent management model helps you guide you through and optimize your process of talent management visualizing the essentials. This model is named as the AARRR model.

 

 

 

(Vulpen, n.d.) HR Talent management model

 

The AARRR model, also known as the Pirate Metrics model, is a prevalent outline that characteristically frameworks the various stages of the customer journey. It can also be applied to talent management to help HR professionals visualize the employee expedition within the organization.

 

(Vulpen, n.d.) Stages of the AARRR model in Talent Management

 

 

 

The AARRR model gives the opportunity for HR professionals an outline to planning and implementing their strategies in talent management and identifying the opportunities for improvement. Concentrating on each phase of the model, will eventually help the organization and you can build a strong workforce to succeed in the current competitive business atmosphere.

 

10 Effective Tips to Creating a Talent Management Strategy

1. Recognize your organization’s strategic priorities.

Initially focusing on the strategic priorities and what the goals are is much more significant before implementing this strategy to your business. This will enable to give emphasis on the areas for talent management and assist to determine the skills and categories of employees that the organization is looking to recruit, develop and retain.

 

2. Define your talent management goals

Significant talent management goals provide precision about what you want to achieve in terms of talent management. It allows you to find the key areas that require consideration and where to focus your efforts and resources.

Vulpen, (n.d.) To start defining your goals, you can ask yourself the following five questions proposed by Roger L. Martin:

What are the aspirations of the organization and what are the goals that enable us to        measure progress?

 What specific talent management activities do we want to focus on?

·     How will we beat the competition?

·     What capabilities do we need to build or continue to win?

·     How do we track progress and improve? 

 

3. Create a talent management framework

A talent management framework is a structured approach to managing an organization’s talent that aligns talent management practices with organizational objectives.

Using a framework enables HR professionals to ensure they’re focusing on the most impactful talent management practices that help create value for the organization. This results in more effective talent management strategies that support long-term success.

 

 

(Vulpen, n.d.) Talent Management Framework Example

  

4. Set up a talent management process

A talent management process is a systematic and structured approach to identifying, developing, and retaining talent. It typically involves steps like sourcing and attracting talent, engagement and culture, and promotion and succession planning. Vulpen, (n.d.)

According to Fonseca, (2022), Talent management can improve a company’s performance through acquiring and retaining the best talent across teams,..…. companies must adopt an integrated talent management program, which unites all of HR’s functions into one cohesive system that’s aligned to and supportive of a company’s business strategy and organizational objectives.

 

(Fonseca, 2022) 11 Step Talent Management Process

5. Focus on the most impactful talent management practices

Prioritize the most effectful talent management practices when implementing this strategy. This will help to have a huge impact on achieving your strategic goals.

 

Employer Branding - A strong brand image attracts the best candidates

 

Candidate Experience - This influences the employer brand and the reputation of the company

 

Selection - Selecting the right candidate with the right skills is crucial in talent management

 

Referrals - Employee referral programs help to choose the right candidate onboard. Its an efficient strategy to implement

 

Onboarding - When the employees are given the proper onboarding experience it helps to speed up the productivity thereby, increase the employee retention.

(ABDO, 2020) New Hire Needs - The 4C’s

(ABDO, 2020) 7 Things to Do Before a New Hire’s First Day

(ABDO, 2020) 6 Tips for a Good Onboarding Process

 

Inboarding - The internal employees need to be promoted; they will require to be supported to reach maximum potential.

 

Engagement - the more employees are engaged the more they are motivated and they perform well and the more possibility for them to stay.

 

Retention - This strategy known as the employee retention strategy helps to retain the top talent on board.

 

Learning and Development - Providing education and necessary training once they are recruited is a vital part of managing talent. This helps to perform well and retain the best talent.

 

Performance Management - The performance of the employees needs to measured and managed thereby help them to fill their gaps in skills. This is a crucial part of talent management.

 

People Analytics - Leveraging data can certify that you are reaching the right KPIs that will eventually have an impact on productivity.

 

To stay in focus....

Edie Goldberg, expert in talent management and the future of work, uses a strategic prioritization assessment for each talent management initiative:

1.     What is the strategic relevance of the initiative/program? (High, Moderate, Low)

2.     What is the line demand for the initiative/program? (High, Moderate, Low)

3.     How much time will it take to design?

4.     What are the resources required to successfully execute on the initiative/program?

5.     What do you anticipate will be the challenge with implementation? (High, Moderate, Low)

 

“Based on these factors, I would prioritize those items with higher strategic relevance and line demand, especially if the implementation challenge is low,” explains Goldberg.

“Time and resources required would play a role in prioritization as you will want to identify some quick wins (low resources, low time to design), and only engage in resource-intensive projects with implementation challenges if they are very strategically relevant and demanded by the line.”

Cited in (Vulpen, n.d.)

6. Prioritize employee development

Reassure the employees to partake in current training and development programs provided by the company to help them develop new skills and advance their careers. Giving them the opportunity to learn and develop makes them feel like they are valued and treasured by the employer. This helps boost the motivation, thereby productivity and the commitment to the job and the organization. They are also more likely to stay with the company for the long term, reducing turnover and associated costs.

McKinsey & Company, (2023), Building workforce skills, via training and reskilling or upskilling, will be essential to support new ways of working and new business priorities. And focusing on skills particularly social and emotional skills (sometimes called soft skills), including empathy, leadership, and adaptability can help close existing skill gaps.

 (Vulpen, n.d.), Prioritizing employee development builds a stronger and more skilled workforce.By investing in training programs, as well as leadership development, organizations can ensure that their employees have the skill sets and knowledge needed to perform their jobs effectively. This results in better performance, higher quality work, and greater innovation within the organization.

  

7. Track your progress

(Vulpen, n.d.) Keeping track of the progress of your talent management efforts provides a clear picture of their impact over time. What’s more, monitoring talent management metrics helps you pinpoint areas where your strategy excels and areas where you need to improve.

Some metrics that you can measure include:

 ·       Talent turnover

·       Talent distribution / Talent demographics

·       High-potential talent

·       Time to full productivity per FTE

·       Training spend

 

By collecting and analyzing data on workforce development and performance, organizations recognize trends and patterns that are used to inform future talent management decisions.

  

8. Use a talent management dashboard

Vulpen,(n.d.) A talent management dashboard is a digital tool that allows HR professionals to track and visualize metrics in real time. The dashboard provides a comprehensive view of talent management processes, which allows managers to make data-driven decisions.

The data displayed includes key performance indicators, such as employee retention, productivity, and engagement. With this dashboard, there is simply improved visibility into the talent pipeline.

 Managers can track the progress of each employee from recruitment to development and identify the areas that need improvement. This ensures that talent management strategies are aligned with organizational goals, and managers can make proactive decisions to address probable issues.

  

9. Streamline your efforts with technology

Vulpen,(n.d.) Tools and platforms enable the automation of routine tasks, streamline processes, and provide valuable insights into talent management strategies. One key technology tool is the talent management system (TMS), a software platform that automates parts of key processes like recruiting, performance management, career development, and succession management. 

TMS solutions like Workday, Rippling, and Sage HR help manage job postings, onboarding, training, generating reports and analytics, and employee performance.

  

10. Continuously assess and adjust your approach

 

Vulpen,(n.d.) Continuously assessing and adjusting your approach is vital to an effective talent management strategy. It allows organizations to stay flexible and responsive to changing circumstances, also in the external environment.

 

For example, new technologies, changing customer needs, or industry distractions can all have an impact on the skills and competencies needed by an organization’s workforce.

 

So, regularly reviewing and adapting talent management strategies ensures employees have the skills and knowledge needed to endure effectiveness in their roles. This leads to increased innovation, productivity, and competitiveness, as well as a more engaged and motivated workforce.

  

Conclusion

Talent management is an essential part of HR that involves managing an organization’s human resources strategically to achieve business goals. Implementing effective best practices, having a well-defined talent management strategy and leveraging a range of digital tools will benefit your organization gain a competitive edge. It helps to have a balance between nurturing talent and retaining top talent.

Companies preparing for the future of work can take a variety of steps to help employees build skills and continue learning and growing this is vital, especially considering that hiring new workers can be twice as expensive as upskilling or reskilling existing employees.

Implementing this strategy is not an easy task but when done accurately, your efforts in talent management will be very rewarding, resulting in a high performing and engaged workforce.

References

ABDO, R. (2020) New Hire Needs - The 4C’s [image]. Available at: https://venngage-wordpress.s3.amazonaws.com/uploads/2020/03/new-hire-needs-onboarding-process.png Accessed on 09^th April 2024].

ABDO, R. (2020) 7 Things to Do Before a New Hire’s First Day [image]. Available at: https://venngage.com/templates/infographics/hires-first-day-847dff5a-16b8-4af4-b94d-e60193c79333 Accessed on 09^th April 2024].

ABDO, R. (2020) 6 Tips for a Good Onboarding Process [image]. Available at: https://venngage-wordpress.s3.amazonaws.com/uploads/2020/03/onboarding-process-6-tips-2.png Accessed on 09^th April 2024].

AIHR - Academy to Innovate HR. (2023) What is Talent Management? Definition, Process, and Strategy [2023] [video]. 9 March. Available at: https://youtu.be/NwufHwariTI [Accessed on 09^th April 2024].

Armstrong, M. & Taylor, S. (2014) Armstrong’s Handbook of Human Resource Management Practice(13^th ed) Kogan Page Publishers [Online]. Available at: www.koganpage.com Accessed on 09^th April 2024. 

Fonseca, L. (2022) Talent Management: A Complete Guide [2022] [blog]. Available at: https://venngage.com/blog/talent-management/ [Accessed on 08^th April 2024].

Fonseca, L. (2022) HR Talent Management Process [image]. Available at:https://venngage.com/templates/mind-maps/talent-management-mind-map-3493445f-2cce-491b-9a4c-f5c174a5e588 [Accessed on 09^th April 2024]. 

Fonseca, L. (2022) Talent Management Acquisition Processes [image]. Available at: https://venngage.com/templates/infographics/talent-acquisition-processes-infographic-be2b63f4-2a00-49a1-a72d-fa5ae936712c [Accessed on 09^th April 2024].

McKinsey & Company, (2023) What is Talent Management? [Online]. Available at:https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-talent-management [Accessed on 08^th April 2024].

Vulpen, E.V. (no date) Talent Management: 10 Tips for a Successful Strategy [blog]. Available at: https://www.aihr.com/blog/what-is-talent-management/ [Accessed on 09^th April 2024].

Vulpen, E.V. (no date) HR Talent Management Model [image]. Available at: https://www.aihr.com/wp-content/uploads/HR-Talent-Management-Model.png [Accessed on 09^th April 2024]. 

Vulpen, E.V. (no date) Stages of the AARRR model in Talent Management [image]. Available at:  https://www.aihr.com/blog/what-is-talent-management/ [Accessed on 09^th April 2024].

 

Vulpen, E.V. (no date) Talent Management Framework Example [image]. Available at: https://www.aihr.com/wp-content/uploads/talent-management-framework-example-1.png [Accessed on 09^th April 2024].