Things You Should Know About Talent Management

Things You Should Know About Talent Management

Contact Us

Recruitment

The pandemic is the dramatic factor in which work trends have entirely changed. HR teams have to ensure the management of in-house, remote, and contractual employees all at once which includes hiring, training, development, and compensation management. 

A strategic and systematic HR talent management procedure will likely help in making the whole employee life cycle a smooth one. In this article, we are going to help you to understand everything you should know about talent management.

What Is Talent Management?

Talent management contributes to organizations’ efforts to get access to and foster competence in the long term. It comprises talents, innovations, and organizational strategies that enhance the team to move forward to achieve the result through the best performance. 

It is not surprising that replacing one employee costs much more than just retaining the ones you already have. Based on the reports published in Gallup, the cost to fill a new position ranges between one-half to double the employee’s annual salary. If your company has a hundred people that are paid $50,000 annually then the amount of the team member turnover may be $660,000 to $2.6 million per year.

Talent Management vs Talent Acquisition

Although talent management and talent acquisition may appear to be the same but there are some different points. The main goal of talent management is to build and retain excellence after hiring while the main task of the talent acquisition process is attracting and recruiting people for your company.

The Fundamental Principles Of Talent Management

Here are the six basic principles of talent management. 

Strategic Talent Acquisition

Think about what kind of talent the organization will require depending on the core corporate strategy. If a company wants to stay on top of technological trends, it can bring in technical talent on board or encourage employees to add some tech-related skills. The company strategy could always go through changes thus it is also significant to adjust and make improvements in your talent strategy as well. 

Ensuring Internal Harmony

The HR talent department should design and refine the talent management systems within the organizational ecosystem in a dynamic manner. As an example, employees may be evaluated through feedback and performance during every quarter but this must happen in consistency with equivalent positions across the organization and its subsidiaries. At the same time, compensation adjustments should be equal for the same positions. Alternatively, when the staff is not treated fairly, the employees don’t feel valued which in turn may lead to poor employee retention.

Leadership Engagement for Growth

Staff members usually love to work for a company that allows them to grow themselves and develop their skills. Therefore, organizations need to allow employees room for growth by providing them with development programs, job rotations, and new assignments. A professional development procedure is the most effective way to enhance company culture according to the Harvard Business Review. Furthermore, this study proved that 93% of employees stated that they would quit the company less rapidly if it invested in their careers. 

Cultivating Cultural Alignment

It is widely recognized that most companies usually depend on the cultural fit when hiring new employees. These companies have specific values and rules and decide whether the candidate can fulfill those requirements or not. For instance, a company that considers creativity in higher regard would choose candidates who are closely linked with a creative background or who participated in creative projects. In addition to this, they can also roll out various training methods and practices to remind the employees of the company’s values, and how they can put them into action. 

Employer Branding for Distinction

What is your competitive advantage that will make you different and stand out from your competitors in hiring and retaining the best talent? Why would you like people to work for your business? In order to be visible and stand out, employers need to position their brand as unique and have higher brand awareness in the local communities. For instance, campaigns in universities, focus on unique long-term opportunities, current advantages, and ongoing promotions. 

Global-Local Talent Equilibrium

Companies with active international operations struggle with international talent management issues. Managers and HR teams must be able to adopt the local culture and behaviors and also adjust accordingly to the particular country’s situation.

As a consequence, companies can choose various degrees of intelligence to find a balance between the global and local. Given the cultural gap in work attitude, an American company may offer more autonomy to the talent unit in South Korea or Japan. Likewise, organizations such as Starbucks and McDonalds do have standard items of frappuccino or chicken—yet they also come up with products that are tailored to the local people.

Master Payroll Management with Intelligent Payroll Software
Get Started

Talent Management Process

The six steps of the strategic process to manage talent in an organization comprise planning, drawing, selecting, training, keeping, and transitioning. 

Here is the step-by-step process: 

  • Talent Development: Develop the human capital needed, identify key roles, make out the recruitment plan, and also a few other aspects that need to be addressed in your business strategy.
  • Recruitment Strategy: Have a widespread job recruiting campaign via social media advertisements, career portals, and referrals. It is also possible to scan the candidates through recruiting software to find the suitable one as the positions are open. 
  • Candidate Selection: Select those who are suitable for the position with a series of screening processes through interviews, written tests, skill assessments psychometric tests, and many others. Candidate tracking systems are also another method that will help you to run the hiring procedures efficiently and organize the candidate information and the communications of the applicants.
  • Employee Onboarding: In addition to hiring an employee, run an effective onboarding procedure so that the employee can be comfortable with the job role. To improve employee retention, grow them with opportunities in the form of training sessions, mentorship, and peer coaching.
  • Retention Strategies: The cost of onboarding a new hire is higher than the cost of keeping the one already in place. To support companies to retain existing staff, companies may need to increase the employees’ pay over time, offering them chances for career growth, asking for their feedback, and showing flexibility.
  • Succession Planning: Resourceful staffing departments will spend funds on the cultivation of employees’ professional growth as well as the development of a better working environment. Employees will not remain in your organization forever— nevertheless, you can conduct exit interviews and have succession plans in place for a good flow of the organization. Besides this, you can motivate the most long-time employees to gain their retirement benefits and promotions to maintain them to be with you for the long term.
Find your next employee with FastLane
Post Jobs

The process of recruiting and keeping talented employees comprises the tasks of onboarding, recruitment, employee development, and all the other steps in between. If a talent department can successfully handle all these things, it can increase retention and hence the company will succeed.

How FastLane Can Help You?

Unlock your business’s potential with FastLane‘s comprehensive HR payroll & recruitment services. From talent acquisition to employee retention, we provide strategic support tailored to your organization’s unique needs. Contact us today to streamline your talent management and achieve exceptional results!

Frequently Answered Questions

A talent management system implies the whole process of handling the employee life cycle including onboarding, recruitment, development, compensation management, and other related procedures.

The six main principles of talent management are alignment with strategy, internal consistency, management involvement, cultural embedding, employer branding through differentiation, and finally, balancing global and local needs. The companies that follow these principles will be able to develop a concrete strategy and culture.

The principal components of talent management are planning, attracting, selecting, developing, retaining, and transitioning. Organizations are required to develop a recruitment strategy that will make them the most suitable candidates who will apply for the job. Hence, they can offer opportunities to their employees to develop, which will enable them to keep their people and also plan for a smooth transition.