Talent management practices are evolving in today’s human resources landscape. Business activities and core functions have largely been replaced to help them adapt and innovate faster.
At its core, talent management functions to meet the need for human capital and establish a plan to address that. In fact, talent management failures continue to be a source of ongoing challenges for companies. Research shows that less than 30% of companies offer formal supervisory and management training.
Adequate training and employee retention go together. According to Teamsstage.io‘s new findings, inadequate employee training accounts for 40% of resignations. In contrast, employee loyalty increases by 30% to 50% in companies with effective training programs.
In addition, Harvard Business Review research indicates that 72% of employees believed their performance would improve with corrective feedback. And who’s going to pay them? You as the leader.
Talent Management Is a Critical Part of HR
So what is talent management? We can define it as an organization’s commitment to recruit, hire, retain, and develop the best and most talented people in the workplace.
During this time, businesses must implement talent management strategies. It aims to attract, develop, retain and employ employees with the skills and abilities required to meet a company’s current and future needs.
What Makes Talent Management Matter?
Businesses are based on talent, making talent management — attracting, developing, and retaining people — an integral part of a successful organization. We can say this is a critical element of talent management goals.
McKinsey’s study shows that talent management is important to organizational performance. 99% of participants reported being more likely to outperform their competitors.
Companies with very effective talent management are also six times more likely to report higher total returns to shareholders (TRS) than their competitors compared to those whose talent management is very weak.
Yahoo Applied It to Succeed Too
The Society for Human Resource Management (SHRM) conducted research and found that more than 53% of 384 HR professionals canvassed said their organization has clear talent management initiatives.
Successful organizations like Yahoo Inc., one of the subjects of SHRM’s study, reported putting talent management first. It is an example of talent management that is applied well.
Managing Talent in a Digital Age
As HR technology evolves and grows, so do the processes. HR leaders must create a comprehensive strategy and invent creative solutions on how technology can play a key role.
To get there, HR can use a talent management system. What is Talent Management System?
It’s an integrated software platform supporting key talent management processes, including recruitment, employee onboarding, performance management, learning and career development, and compensation management.
Furthermore, those processes, as well as the technical capacities that support them, are generally provided by software modules. It allows businesses to start with what they need and add functionality as they expand.
Today’s Talent Management Comes with Different Rules
Besides technological adoption, organizations face the case for workforce diversity. Any fact tells us that today’s consumers and job seekers are paying attention to a company’s position on diversity.
According to Glassdoor, almost 70% of active and passive job seekers assess whether a company’s workforce is diversified before applying for or accepting an offer of employment.
It shows that businesses that create a culture of inclusion are getting better results. This factor also forces companies to stimulate the workplace with new creativity. To achieve these goals, businesses must:
Focus on developing leadership
Another space gets a great deal of attention in developing leadership. Coaching and mentoring are becoming much more important for large-scale talent growth. It means enabling employees to demonstrate initiative and contribute to the growth of others.
Strengthen performance management
Disruptive changes also influence the way performance evaluations are performed. To better understand their performance and expectations, today’s employees must have regular, honest, and transparent conversations with their managers.
Ongoing and regular discussions are useful for tracking employee aspirations, motivations, and support needs.
Embrace diversity and construct inclusion
With a younger workforce, new visions of growth, flexibility, reward, recognition, aspirations, and motivation exist. To address this situation, organizations can work towards interventions that balance the playing field.
Invest in learning possibilities
Traditionally, learning occurs only on the job. But we must invest more in learning opportunities.
Either way, many learning platforms are available on the market. Organizations can look for the latest technology to offer their employees personalized, interactive, and intuitive course modules.
Attracting and retaining people in this complex business environment is very challenging. As a talent management objective, employers should rely on one goal: to prioritize talent retention.
