Talent management is a core concept of human resource management. But what exactly is talent management, how does it work, what's the importance, and why companies should invest in it?
Talent management refers to a company’s commitment to manage one of the most important assets of a company – its people.
The idea here is to gather people with strong talent and skill to pave the road to success. This is an ongoing process starting with attracting, recruiting, hiring, retaining, and developing the best talent in the employment world.
The word “talent” here, refers to people who are fulfilling business/operation roles and also of those who are viewed to have “high potential” for future leadership roles. It means that the company should make an active approach to recruit the best employee for a role and develop their skill and capabilities in order to retain them for further growth.
It is obvious that talent management is a very important aspect of the business. Every company that is looking for greater success would want to get the best people to work for them and talent management goes a long way in not just retaining, but developing talent.
There are other reasons why a company should invest in talent management, and they are:
- Improve business performance
When the best people work in harmony in the same direction towards a company’s goals, there is no doubt that it will improve business performance
- Develop engaged and motivated employees, which in turn will increase overall employee performance
Talent management focuses on how to find the best role fit for an employee, and how to develop an employee's skills and capabilities. This will make the employee feel appreciated and in turn, it will make the employee more engaged and motivated to do their best and choose to stay with the company for the foreseeable future.
- Attract and retain top talent
Recruit the most skilled and talented employees and provide clear development plans and action. When you are able to develop strategic talent management, you are basically building a great employer brand. It will attract top talent who are looking to work in the working conditions determined by talent management, and in the long term, it will motivate employees to choose to stay with the company. In turn, it will lead to higher employee retention rate and help the company to save more on the recruitment process
- Higher client satisfaction
Talent management will help to find the best fit for a role. It means the employee has the capacity to do his/her job efficiently and bring the best results for your clients.
- Provide coverage for a critical role
When there is a gap in critical roles and skills that threaten operations, talent management people will work fast to cover the gap either by finding someone to do the job or develop a training plan to make sure the employees have the skills they need to ensure smooth running of operations.
Now you know the importance of talent management, but where can you start? First, go through the reasons to invest in it and identify the areas where you wish to strengthen your talent pool. Do you wish to attract top talent or want to have continuous support and coverage for a critical role? Identify it, develop the plan to bring it to fruition, and implement it.