Talent consists of those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential. Talent management is the 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. Talent management is highly strategic. It aims at maintaining the company's innovation and performances relying on the long term capacity of its human resources. An effective talent management is one of the highest valuable assets an organization can have. If talent management is performed professionally it can become an organizations backbone for economic success. Why is talent management fundamental?
Know-how, innovation and experience constitute the main advantages that organizations can have over their competitors. The most talented employees drive these advantages. Therefore talent management should focus on the organization's talent: the most skilled and experienced individuals. Attracting, developing and retaining talent is fundamental to a company remaining ahead of its competition. Many studies are forecasting a shortage of talents for the near future. One of the main reasons is the demographical trend happening in the developed countries. The World Economic Forum has researched this in depth: "To sustain economic growth, by 2030 the United States will need to add more than 25 million workers and Europe will need to add more than 24 million employees...almost all industries and countries will require sizeable increases in the percentages of highly educated people in their workforces". As a consequence talent management is becoming a growing concern for HR professionals. A holistic approach to talent management should target on finding and attracting the best talent in the market with a superior talent acquisition tool kit: talent sourcing, employer branding, headhunting, talent pools, referrals etc (a talent acquisition strategy can be seen as an answer to the "War for Talents"), on the other side, it needs a talent strategy around training and development to train, coach and mentor existing talent (referred to as "Make talents, not War"). In reality both strategies have to go hand in hand. You cannot have one without the other. If you are able to attract good talent, but cannot retain it your recruitment will be like a hamster on a treadmill. And if you spend a lot of money on training and development but are not able to attract the right talent your talent management strategy will not blossom and will suffer. What are the processes to manage talent successfully?
If talent management is executed correctly it can have a strategic impact on an organization. Good talent management involves much more than simply "attracting, developing and retaining" talent. The Human Resources function is a patchwork of several specialty functional areas of expertise each requiring a solid understanding and discipline. These functional areas are typically considered to be: Workforce & Succession Planning (Talent Attraction & Recruiting) Performance Management (Learning & Development)
Compensation & Benefits
To manage talent successfully, all these silos need to be fully integrated and have to work together. At first Workforce and Succession Planning defines future talent needs by quantity and qualifying needs according to the business strategy of an organization. Performance Management delivers an overview of the already existing talent while Talent Acquisition and Recruiting should close the identified gaps in the "Talent map". Talent Acquisition should also include areas like Employer Branding. As a best practice it is highly recommended that companies use the support of an RPO firm for...
References: 1- http://www.cipd.co.uk/hr-resources/factsheets/talent-management-overview.aspx
2- Some of the studies on Talent Gap are: "Global Talent Risk" World Economic Forum survey 2011, "Creating People Value 2011" The Boston Consulting Group, "Employing the next generation" Future Work Forum.
3- Global Talent Risk -Seven Responses, by the WEF in collaboration with the Boston Consulting Group
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