Talent is a key determinant of business success. A well-designed talent management system is essential for business growth as it connects human resource functions with business outcomes. It engages employees, human resource leaders, and business leaders to meet business objectives through performance and goal management.
Talent management involves the planning of human resources strategically while building business value and supporting organizational goals. It addresses the key components like successful employment process, employee learning and development, performance management, and retention. It brings an enormous difference to cultural norms and making of the business as it demonstrates that you are a product-driven and business-model driven company. Studies indicate that organizations that succeed in talent management will grow 58% faster and brings 72% more profit.
Talent management falls under four basic pillars as:
- Recruitment – job description, job postings, screening, and interviewing
- Hiring – background check, job offers, employee start data, and onboarding
- Retention – seeking feedback, ongoing employee learning and development initiatives, promotions, lateral movement, transfers, and also the termination
- Development- on-the-job training, goal setting, and career pathing
Let’s understand the actual benefits of talent management efforts taken by global talent managers here in detail.
Benefits of talent management in business
Talent management enables organizations to maintain ranking across the entire lifecycle. A few of the benefits include:
- Attraction and retention of top talent
- Increased business productivity and profitability
- Increased growth and competitive advantage
Attraction and retention of top talent
Instilling the power of innovative technologies and recruitment systems enables organizations to find, engage, and prioritize the right talent. It helps the talent managers to create a healthy talent pipeline. Implementation of next-gen talent management solutions enable the organization to –
- source talent from a wider network,
- attract the right talent by showcasing employer branding,
- score candidates easily, shorten the recruit process time,
- create a talent pool beyond geographic limits,
- provide a strong candidate experience, and
- ensure that new talents start on the right foot
Increased business productivity and profitability
The right blend of employee aspirations with organizational demands increases engagement and productivity. It empowers the employees to take an active role in boosting the organization’s response to market demands.
Identifying the aspirations of employees and encouraging them for learning and development programs brings profitability by reducing recruiting costs. Data-driven insights help HR and talent management professionals to optimize talent management strategies, programs, and succession planning solutions.
Increased growth and competitive advantage
Employee skills development ensures that your organization can deliver the top-notch experiences your customers expect. Reports say that 79% of customers leave the business to a competitor due to poor service within a week.
To bring a difference to the customer solutions, it is necessary to gear up the employee team to respond to the customers’’ demand. Learning and development programs, collaboration, and performance management enable the talent managers to skill up the team, align them with the organizational goals, improve customer loyalty, and engage employees as well. This leads to long-term profitability.
Engaged employees lead to superior customer experiences. Happy customers foster customer loyalty and gain a competitive advantage in the market.
Studies suggest that organizations with high employee engagement experience a 10% increase in customer ratings, a 21% increase in profitability, a 20% increase in sales, 41% less absenteeism, and 24% less turnover.
Though we find a long list of benefits here, there exists a lack of skilled talent for skilled positions. Studies indicate that it is most pressing in Asia-pacific (36%), Europe (24%), Norway (32%), Germany (31%), and Netherlands (24%). Some of the challenges of HR and talent management professionals face includes:
- Lack of skilled talent for key positions
- Lack of optimal employee engagement
- Less number of high-potential leaders
- Loss of top talent to other organization
- Lack of productivity
Leadership development is the primary focus of talent management investments. More than one in our organizations are ready to invest in the talent management strategy. Several organizations feel that they are not sufficiently maintained the initiatives as they experience a pressing skills shortage for the competencies required to drive their business forward. To combat these issues, HR professionals need to upskill through talent management certification programs. Talent management certification programs enable the candidates to stay updated with the current trends.
Given that most organizations globally plan to invest in leadership development, it is time to get certified and grab the position. Get qualified to stay in the race.