Talent management is a strategy for recruiting, retaining and developing great employees while remaining aligned with organizational goals. It's about managing the experience of employees from end to end, the same way we try to manage the customer experience.
Talent Management Basics:
Why Is Talent Management Important:
It creates a pipeline of great candidates and an employee experience that retains and develops them. Recruiting is difficult now, with more unfilled job openings in the U.S. than ever, underlining talent management's importance.
Many companies still don't have a talent management strategy in place. If you don't, your hiring is probably reactive, being done on an as-needed basis.
It's understandable why you might have a reactive approach to hiring and HR. You're probably stressed enough about filling key positions, and wondering where you'd find the time to build a whole process around your hiring.
But these days, when it's taking an all-time high of 43 days to fill positions, you're going to have less stress and a lot more success if you plan ahead with a talent management program.
Can you wait over a month to bring on your next employee? If not, it's a good time to come up with a strategy that gives you steady access to great talent. It may cost you a bit of extra work in the short term, but long term, when you always know where your next hire is coming from, you'll be thankful.
Talent Management Strategy:
- Plan for the skills the company will need.
- Manage the employer brand.
- Plan, test, and refine a recruiting strategy.
- Work to engage and retain employees.
- Develop strategic training programs.
- Create a succession plan.
How Does Talent Management Fit into Your Business Strategy?
In talent management, everyone from the CEO to a frontline employee is charged with looking out for the next great hire, making sure new leaders are being developed, and ensuring the company's culture inspires and attracts great people. In a company that manages talent, everyone is responsible for creating a great employee experience.
It's especially important though, for HR and CEOs to connect on strategy. If HR has an understanding of the long-term business strategy, they can start preparing now for the hires the company will need in the future.
CEOs are coming around to the idea that talent management is important.
We wouldn't be surprised if we see those numbers swing even more in favor of talent management, given the current state of recruiting.
What Is a Talent Management Specialist?
A talent management specialist owns the talent management strategy at a company. They work with human resources, management, and employees to ensure that a company or organization is developing and executing a solid talent management strategy.
How Is Talent Management Strategy Evolving?
Right now there are some big trends shaping the talent management process. Employee retention is at a low point, with employees holding onto jobs for an average of just 4.6 years, and hiring, as we mentioned earlier, is taking longer than ever. This definitely shows in HR attitudes towards hiring.
As a result, talent management and recruiting strategies are changing. There's more emphasis on improving both the speed and quality of hiring, getting new employees up to speed faster, and managing the employer brand to be more attractive.
Employee engagement is the another big factor in talent management now. In the U.S. engagement is currently at about 30 percent, and seems to decrease with each generation. Low engagement means low retention, productivity, and profitability, along with higher accident rates.
While talent management is evolving, and both CEOs and HR seem aware of the value of talent management and the difficult hiring market we're in, it's interesting to note that 35 percent of companies are still stuck in "reactive" mode - just hiring as needed.
Just 13 percent are actively using a talent management approach that is strategically aligned with the business and prepared for future needs.
So clearly, it's not enough to understand what talent management is - companies and organizations need to put it in practice as a way to find, retain and develop talent.
Metrics to Measure Talent Management:
- Retention rate.
- Employee engagement.
- Internal vs. external hiring (to keep an eye on mentoring and training).
- Candidate feedback on hiring process.
- Time to hire.
- Applicant numbers.
- Successful hires.
What is a talent pipeline management?
Talent pipeline management is the management of a pool of candidates that are already qualified for a position. Your talent management system may include qualified candidates both within and outside of your organization that are in the pipeline so that they can be called upon when a new position opens up. The purpose of having a pipeline is to reduce your hiring time.
What is Cornerstone talent management?
Cornerstone talent management is a popular talent management software system that is used by HR departments in almost every industry. Cornerstone was named the leader in talent management by Gartner. You can learn more at www.cornerstoneondemand.com.
Talent Management Software:
Is a human resources department usually responsible for talent management?
Yes, talent management is typically an HR responsibility. In most companies, one person or a team of people in an HR department will be focused on talent management and may be responsible for the implementation and upkeep of talent management solutions.
What are talent management companies?
A talent management company specializes in acquiring human capital for other businesses. You can outsource your talent management to one of these firms, and they will connect you with the right talent for your business.
What are the primary objectives of talent management?
- To recognize the need for talent that your business may not currently have.
- To create a plan that addresses talent gaps.
- To facilitate effective hiring and promotion.
- To retain employees and keep turnover to a minimum.
- To make the impact of talent acquisition easier to measure.
Talent Management vs. Human Resources
Although talent management and human resources are often referred to interchangeably, talent management is actually a function of human resources. Human resources are the more general responsibilities of managing people in an organization.
That should give you the information you need to get started on building a talent management program and help you understand how employee experience is essential to improving recruitment, retention, and performance at your company or organization.