Importance of talent management
Changes to the environment in which banks operate was caused by high risk lending which now have higher capital requirements, tougher regulations and scarcer funding. The economic downturn has affected the banking industry in such a way that fighting for survival is a must; to avoid liquidation, acquisition, closures, takeovers and mergers. As a result, banks are faced with managing risks, compensation and growth itself.
According to Marcus, who did 25 years of research found out that the most successful organisations were those people who focused on what they did best. The bank’s approach was to “accentuate the positive through talent management and leadership development with a goal of measurably increasing its leadership capacity by 2011”. Using the strength based philosophy in the transitional change process, which is valuable in an international environment that is vastly diversified.
Importance of talent management
Talent management involves individuals and organisational development in response to a changing and complex environment. Talent management focuses on driving superior business results through people by:
â€¢ Attracting the right people to the industry.
â€¢ Maintaining and keeping employees fully engaged in their work.
â€¢ Identifying and developing potential leaders.
â€¢ Motivating and rewarding employees’ efforts in innovative ways.
â€¢ Aligning human resource programs, policies and processes to business goals.
Why Talent Management?
âž¢ For banks to survive at this period they need to strategise a long term goal of managing employees during the recession which is short term and after the recession which is long term through the continuous individual personal development(CIPD), right from the recruitment stage. As Haley says “it’s everybody’s Holy Grail to create local internal pipelines and there having continuous supply of talent”.
Banks will survive the recession period because of the talent they retain and develop, as Haley said ”there is not enough supply, so you have to develop your own people”. Without the continuous use of talent management, they will not be able to cope once the recession is over, because they will not have the necessary skills to fill positions quickly to meet evolving business needs.
The fight for existence has lead to a wide scale of redundancies hence a significant lost of talent. With the continuous use of talents management, banks will grow, expand and develop in a competitive market with the skills and talents they continuously develop after redundancies, because the demand out ways the supply for talented people during the recession.
Banks tend to cut down cost, especially on the training and development of employees, forgetting that people and their development is the key to the success of any organisation no matter what the economic climate is. Cutting down cost on training and development can have a long term effect on an organisation, which can lead the organisation to loosing its market share.
The bank gains competitive advantages over its competitors by continuously improving its talent. By identifying the key innovative employees to the organisation that can be further trained and equip to anticipate or solve future problems that may arise. This could be the company’s core competence and being the success factor which could be its competitive edge over competitors.
It develops employees innovative skills needed for and after the recession. Haley said ”its base on the idea that people will be successful because they play to their strengths not because they manage their weakness”, Skills will be available once the recession is over because innovation comes from the best people who are drivers of long term change. It increases the productivity of employees, hence high quality, effectiveness and efficiency is maintained.
The risk of loosing employees to competitors due to lack of motivation during the recession, talent management motivates employees to stay with the organisation long term, knowing there is an opportunity for growth and development. Motivation gives the employees the confidence that they need to carry out their job properly hence innovative skills can be transferred or adopted.
With staff engagement, career planning and continuous personal development plans from the Human resources development department, there will be enough supply of skills and creative innovation. The organisation’s brand will be recognised for its training and development policy, which will attract the best people with the appropriate skills for the Job who can add value to the industry.
Importance of change management
Change is the process of transforming the manner in which individuals or organisations act and requires most employees to learn new skills. Change is perennial in the economic situation that we currently facing, implementing talent management to incorporate change is essential for the success of standard bank which explores new opportunities for growth and increase productivity. It can be very effective when people are involved in the change process, by providing training in new values, skills and behaviours.
Change affects the manager’s leadership roles and employees in which they are all subjects to the same reactions of resistance and constraints. It is vital that the change process is managed properly to reduce the level of resistance. Change management could have a long term effect of being cost effective; it could reduce the cost of future uncertainties that may occur, hence improving the quality of products in the global economy.
The continued use of talent management minimises change resistance, it maintains key skills to boost up the bank hence the talent management is incorporated into the banks’ culture. In order to maximise the talent management process it is essential that the bank adopts Dave Ulrich’s (1997) three legged stool model of Shared Service Centre, Business Partners and Centres of Expertise to make sure the team is well motivated.