As a business leader or an employer, you have most likely heard the term “talent management.” You may have even dismissed it as just “HR jargon. For every company, employees play a significant role in operating a business plan, they possess the skills inventory and abilities that qualify them for a given role. Because of this, these individuals are considered to be the “talents” of a company. But of course, if a company would want to see progress in their internal operations then it is important to understand what is meant by ‘’talent management and why it is an important business strategy to develop’’.
So, talent management helps improve performance management of the business to allow companies to reach their desired smart goals. This would include recruiting, training, developing and rewarding individuals in order for them to perform accordingly; the major focus is targeted towards managing people; which is one of the most important assets of an organization. The CIPD (Chartered Institute of Personnel and Development, UK) goes on to define ‘talent management’ as, “Systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organization, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles.”
So with that in mind, this article will give five (5) reasons why talent management is a very important business strategy to be developed.
- It eliminates or minimizes skill/talent gaps: With proper talent management, you are able to select, train and retain high potential employees with different skills; for varying jobs. This brings about the situation where there is a ready pool of top talented staffs for the future of your business. Moreover, a strategic talent management will help you create an employer brand that could attract potential talents for your market.
- It gives you the right view of your workforce as assets: Talents management helps you to rightly manage and value your staff. For instance, their salaries should be well proportionate to their workload, and properly imbursed. Their salaries should never been seen as expenses.
- High potential employees can be turned into effective agile leaders: After identifying and recruiting the ‘good-fit’ employees, a strategic talent management will engage in the development of these high potential employees till they become leaders in their fields. Instead of recruiting totally new persons into leadership positions, talent-manage the good ones you have. These set of your workforce can also be responsible for critical positions in your company.
- Increases employee motivation: 91% of employees surveyed by Chandler and Macleod said that they wanted more than just money to feel engaged and motivated. This simply means that employees need more reasons than money to stick to your organization, like a higher purpose. With increased motivation, employees will be more engaged and performance will equally improve.
- Higher client satisfaction: With all the advantages of talents management listed above, they will naturally culminate in giving your clients the satisfaction they desire.
Finally, “The key is to develop and promote insiders who are highly capable of stimulating healthy change and progress, while preserving the core.” – Jim Collins.