Why Talent Management is Important for Companies

Jul 3, 2018 by

Photo by Ruthson Zimmerman on Unsplash

Talent management is not just another annoying Human Resource term. It is a useful term which describes a firm’s commitment to recruit, develop, manage, train, and retain the best employees. It includes all the processes that are associated with developing and retaining the top talent.

With an aligned talent management strategy is in place, firms hope they will be able to retain the top talent and skilled employees. Just like employee recognition or employee involvement, talent management strategy ensures the top talent stays in competition with other employers within the same industry.

It comes across as a great advantage when you tell a prospective employee that you have a dedicated talent management strategy in place. This tells them that they will have ample opportunities to grow professionally. At the same time, it allows you to attract the best talent from the talent pool. Various studies show that the opportunity to grow professionally is the primary motivator for skilled employees looking for a job change.

Processes of Talent Management Strategy

The following are the various processes of a talent management strategy:

  • Job description development
  • On the job training
  • In-house interviews
  • Goal setting and regular feedback
  • Relationship building by manager
  • Training and coaching
  • New skill training
  • Career planning
  • Formal feedback system

Now that it is established what is the definition of talent management, below are some of the main reasons why organizations need to invest in talent management:

Attract Top Talent: A talent management strategy helps you attract the most skilled employees. With this in place, you are able to create an employer brand, which helps in organic talent attraction. Case in point, a strong employer brand has always been known to attract superior performance, loyal employees, better employee engagement, and low employee turnover rate.

Better Employee Motivation: It creates more reasons for potential candidates to be attracted to your organization. This is further corroborated by a recent research conducted by Chandler and Macleod where 91% of the people stated they wanted more than just the salary to stay engaged and motivated at work.

Engaged employees – An organization is more capable of making effective strategic decisions about staff development, ensuring that the employees you need for the job already have the skills, thus saving you money on staff development. Additionally, employees feel more engaged when there is a fair process for development in place, thus an increase in the attrition rate.

Better business performance: When employees are motivated and engaged, they tend to work towards business goals – which has a direct impact on business performance and client satisfaction.

Organizations must integrate talent management strategy with regard to all the employee related processes of the organization. It is important for reporting managers to attract and retain skilled and talented employees – within a talent management system. Placement consultants need to make sure that they have a database of companies with an effective strategy for talent management in place as it involves sharing of information about skilled talent and their potential career progression within the organization.

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