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 29 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 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.
The Key Components of Talent Management:
- 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?
Talent management is a very comprehensive way of looking at human resources.
It takes human resources and makes it the responsibility of the whole company, from the top down, rather than the job of a single person, department or contractor.
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 and retains them. 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 4.4 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.
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.