Talent Management Basics:
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 vs. 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.
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 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 into practice as a way to find, retain, and develop talent.
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.