Organizations recognize that they ought to have the best talent in order to thrive in the hypercompetitive and all the time more intricate global economy. Along with accepting the need to recruit, train and keep hold of talented people, organizations are conscious that they have to manage talent as a decisive resource to realize the best promising outcomes. Hardly any, organizations nowadays have an ample supply of talent. Gaps subsist at the top level, middle level and even at the lower rung. Talent is progressively more scant resource, so it must be managed to the fullest effect. The idea of managing talent is not novel. Five or six decades before, it was observed as a marginal accountability best transferred to the personnel department. At the moment talent management is considered as a critical organizational function that is taken so seriously. In The Conference Board’s 2007 CEO Challenge study, CEOs’ rankings of the significance of “finding Qualified managerial talent” improved by 10 percentage points or more when compared to the identical research carried out just one year earlier . Research conducted in 2008 by DDI and the Economist Intelligence Unit (EIU) established that 55 percent of executive level respondents said their firms’ performance was likely or very likely to suffer in the near future due to deficient leadership talent. This point of view was restated in one-on-one interviews with top executives, conducted as part of the same research study. This importance on talent management is unavoidable known that, on average, companies at present expend over one-third of their profits on employee wages and benefits. Your Organization can produce a new product and it is effortlessly imitated. Decrease your prices and competitors will chase. Go after a money-spinning market and someone is there right behind you, vigilant to stay away from making your preliminary mistakes. But imitating a high-quality, highly engaged human resources is practically impracticable. The capability to successfully hire, retain, deploy, and engage talent-at all levels-is really the only true competitive lead an organization enjoys.
TALENT MANAGEMENT DEFINED
There is no lack of definitions for this phrase used by company leadership the world over. Talent management is a mission significant practice that guarantee organizations have the quantity and quality of human resources in position to congregate their present and future business priorities. The procedure covers all key facets of an employee’s “life cycle:” selection, training and development, succession planning and performance management.
Significant components of a exceedingly efficient talent management process include:
A lucid understanding of the organization’s existing and future company tactics
Recognition of the key gaps linking the talent in place and the talent requisite to make business success.
A sound talent management plan intended to close the talent gaps. It is supposed to also be incorporated with strategic and business plans.
Precise hiring and promotion choices.
Association of individual and team objectives to corporate goals, and given that clear expectations and pointer to administer performance.
Expansion of talent to boost performance in existing positions as well as willingness for evolution to the next level.
A focal point not just on the talent strategy itself, but the rudiments obligatory for winning Implementation.
Business impact and human resource success dimension during and after execution.
Organizational Key drivers of Talent Management
Workforce trends drive talent management strategies. Issue such as an ever more global and virtual workforce, diverse generations functioning together, longer life expectancies and an empowered workforce have eternally altered the workplace. Owing to demographic adjustments, the pool of employees is also progressively more varied–from age, gender and ethnicity to lifestyles, relocation patterns and civilizing norms. Organizations are by now captivating benefit of these workplace trends. Talent management strategies also offer the skeleton for diversity and insertion. Proctor and Gamble, for instance, sense that recruiting the precise blend of employee is a chief part of talent management and it recruits several of its leaders as university recruits.
Anticipated Skills Shortage
Although not all organizations, industries and professions will face deficient in ability, companies are by now contending for talented employee. For instance, there will be sharp talent shortage in the areas like customer service, health care, computer hardware field etc. In addition, as eminent in the report of Future of the U.S. Labor Pool Survey conducted by SHRM in 2005, the expected loss of talented employees in the subsequent decade will differ by organization size, segment and industry. For example, big organizations–as compared with small and medium companies–are further alarmed about loss of talent from the retirement of the baby boom age band, and government organizations are further concerned on the subject of the loss of gifted talent than private companies.
Measuring Business Impact
Talent management metrics bond human capital investment to financial performance. Numerous companies have started to comprise talent management in their dashboards or scorecards. For instance, HSBC, a banking institution, exercises the Balanced Scorecard[TM], along with talent management in learning and growth. Scorecards present a clear “line of prospect” to organizational tactical goals by relating talent management to aims and assessment of employee performance. Measures may comprise issues like results of employee survey, attrition(e.g., talent pools) and the number of temporary employees.
Superior Source of Value Creation
“The monetary value of our companies consistently depends upon the eminence of talent. In fact, the Brookings Institution established that in 1982, 62 percent of an average company’s value was attributed to its physical assets (including equipment and facilities) and only 38 percent to intangible assets (patents, intellectual property, brand, and, most of all, people). By 2003, these percentages nearly tumbled with 80 percent of value attributable to intangible assets and 20 percent to tangible assets”.
Changing Employee expectations
In Today’s context, employee expectations are rapidly changing .This forces organizations to place a superior prominence on talent management strategies and practices.
“Today’s Employees are:
More and more fascinated in having challenging and meaningful work.
More loyal to their profession than to the organization.
Less cooperative to traditional structures and authority.
More concerned about work-life balance.
Geared up to take ownership of their careers and development.
Reacting to these numerous challenges makes it tricky to capture both the “hearts” and “minds” of today’s workforce.
Relationship between better talent and better business performance
More and more, firms seek to measure the return on their investment in talent. The outcome is a body of “proof” that paints a undeniable picture of the bang talent has on business performance.”
To Highlight Just a Few:
A 2007 study from the Hackett Group established that firms that do extremely well at managing talent post earnings that are 15 percent superior to peers. For an average Fortune 500 company, such an enhancement in performance means hundreds of millions of dollars.
A study from IBM found public companies that are more efficient at talent management had higher percentages of financial outperformers than groups of similar sized companies with less effective talent management.
To maintain stupendous business results in a global economy, companies will alter and reinvent their approaches to talent management. Successful “talent management calls for strong participatory leadership, organizational buy-in, employee engagement and workplace scorecards with talent management metrics”. Firms that master talent management will be well equipped for consistent long term growth in employee performance for years to come.