Organizations that put people first are the ones that stay ahead of the game. When it pays attention to the manner it attracts, retains and develops its employees (referred to as “human capital” or “talent”) it gives the organization an edge over its competitors.
Talent Management is a strategic process involving careful workforce planning, so organizations can assess their current workforce needs and develop strategies for future staffing requirements.
But, if you’re wondering what Talent Management is and is it essential for an organization’s success, the answers are provided below.
Understanding Talent Management
To explain talent management simply, it is investing in the organization’s most essential commodity, its people. For an organization to accomplish this task, it must recruit candidates with in-demand skill sets, provide continuous learning and development.
A 2018 McKinsey survey found that 99% of participants who rated their company’s talent management as highly effective also reported outperforming their competitors, compared to 56% of participants without effective talent management systems.
Talent management’s long term impact is attributed to sound talent attraction and retention strategies, which contribute to a sustainable competitive edge.
A practical example of talent management is given below:
Large tech companies sometimes find difficulty in diversifying, especially with launching new products or shifting their focus from selling software licenses to offering comprehensive cloud-based solutions. To accomplish this, the company must identify employees proficient in cloud technologies, customer services and data analysis.
To build this powerful workforce, businesses require talent assessment tools, like Zenithr’s psychometric or competency based assessment that helps the business identify the right candidates with the right skills.
Zenithr utilizes Thomas International’s psychometric and competency testing. As a registered member of the British Psychological Society, Thomas International develops assessment program to assist managers with:
- Improving hiring accuracy
- Talent mobility
- Onboarding
Additionally, for the organization to build its power workforce, it should put performance analytics systems into place. These systems provide managers with actionable insights, thus enabling them to effectively work with their teams in achieving the organization’s vision.
Key Practices for Effective Talent Management
There are five key areas marked for effective talent management are as follows:
1. Talent Acquisition
The initial stage of talent management involves vigilant workforce planning. It takes into account employees’ key competencies, skills and capabilities the organization requires to fulfill its various roles, aligning those with short term forecasting and predictive planning.
It includes attracting and acquiring talent through internal or external candidates or outside portals.
2. Performance Management
The second phase of talent management involves developing employees’ goals and expectations, building support structures, performance evaluation, avenues for feedback, addressing and rewarding performance outcomes.
3. Employee Onboarding
An organization’s onboarding process is essential in attracting and retaining top talent and ensuring satisfying employee experience. Research shows nearly 40% of employees leave the organization within the first three months of employment because of an unsatisfactory employee experience.
Zenithr’s Employee Onboarding tool provides support and value to employees with strong surveys to retain talent and create fulfilling work experience.
4. Learning and Development
Learning, or training and development is a joint venture between employees and the business. Traditionally, businesses saw training and development as the employee’s responsibility. However, business and employees now work together to up-skill or reskill employees’ existing skill set or to fulfill new roles.
Focusing on building skills, especially soft skills like empathy, leadership or adaptability helps the organization shorten the skills gap. Using Zenithr Competency Based Assessment will assist organizations identify and build soft and hard skills.
5. Improve transparency and trust
Receiving feedback from team leaders or supervisors empower employees to build their strengths thus reducing employee turnover and increasing engagement. This encourages employees to meet the organization’s key goals.
6. Compensation and Rewards
Employers taking a holistic view of compensation and rewards improves their employee experience. This ensures the organization’s perks and benefits go beyond the monthly paycheck.
Employees enjoy a little extra from their employer, it may not always be monetary. Satisfied employees seek validation for work completed. Compensation and reward can come in the form of paid vacation, healthcare, dental coverage and retirement plans like 401(k) contributions.
7. Employee Engagement and Retention
Job satisfaction and the effectiveness of talent management strategies influence employee engagement and retention.
Engagement reflects the emotional commitment employees have toward their work and the organization, while retention refers to an organization’s ability to retain top talent, particularly high performers, from seeking other opportunities.
Zenithr’s Elevate is the ideal tool for lasting impact throughout the organization. It is a smart online automated system allowing employers to efficiently analyze employee data, thus reducing employee turnover and improving employee engagement.
Talent Management Strategy
An effective talent management strategy fully supports and boosts an organization’s goals and vision. Effective talent management involves assessing workforce dynamics and anticipating future challenges through various strategic tools, like those mentioned below:
- A SWOT analysis on talent assessment evaluates internal strengths and weaknesses, along with external opportunities and threats, to align workforce planning with business goals.
- Scenario planning helps organizations anticipate potential future events, assess their impact, and develop strategies to effectively respond to crises.
- Environmental scans examine broader assessments, which analyze economic, social, political, and technological factors influencing long-term success and industry scans. It looks at trends and disruptions within the organization’s sector and the impact thereof.
- Senior leader interviews refine the organization’s strategic objectives. Employees need regular updates and feedback from those seniors. It gives them a sense of value to the business.
- Employee Interviews and Surveys determine employee experience initiatives. They identify performance gaps and development needs.
Zenithr Experience gives employees a voice. It adds value to employee’s voice by analyzing their thoughts and feedback which improves top talent retention, encouraging new talent acquisition.
Conclusion
Talent Management is an essential tool organizations can use to attract, develop and retain employees. With strategic talent management systems and viable business solutions like those offered by Zenithr, businesses build a powerful workforce that drives long-term success.
By harnessing tools like Zenithr talent Management and psychometric assessment, businesses can identify candidates with the right skills set and cultural fit.
