Importance of Talent Management in HRM

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What is Talent Management

Talent Management is an advanced way of utilizing human resources in an organization to achieve organizational goals. This includes hiring, training & development and retaining the most suitable employees in the organization. Strategically, the talent management process runs through the entire life cycle of an employee (Brooks, 2019).

In organizations, it is very important for leaders and HR managers to establish effective talent management process as this directly affects organizational performance and to achieve competitive advantage in the markets.

By following a strategically developed talent management system, organizations are able to attract employees who are most suitable for the organization based on the organization’s culture, nature of business, vision and required skills. Also, recruiting employees not only most suitable for the company but also who have good attitudes will secure the company’s ethics. Moreover, these employee skills can be further sharpened by proper training and development sessions, and in the long run, organization will be able to create talented leaders.

 

Talent Management Process

Figure 1: (Next Innovation Asia, n.d.)

The talent management process comprises planning, attracting, selecting, developing, retaining and transitioning steps (Danao, 2022).

1. Planning – Relates to identifying the requirements and gaps of human resources, preparing job descriptions for job roles in order to guide the selection system.

2. Attracting – Relates to making decisions about whether the required employees are to be acquired from outside of the organization or to be selected from existing staff. Nowadays organizations use many talent-attracting methods based on social media platforms which are more efficient and productive.

3. Selecting – Refers to the process of choosing the most suitable employee for a position. Written tests, interviews, discussions, industry information and studying past track records are some of the conventional methods are used for this. In modern HRM, AI enabled solutions are also used.

4. Developing – Development of recruited employees is the next step. Based on the organizational culture, code of ethics, procedures, rules and regulations HR managers develop their employees. Timely providing of training programs, circulating other information cause to improve knowledge of employees.

5. Retaining – Keeping talented skillful and loyal employees are one of challenges HR managers face all the time. Concerning employee complaints, offering opportunities, promotions, salary increments, other benefits help to retain employees.

6. Transitioning – HRM should create a positive work environment for employees and should work on employee growth. Employees will stay in an organization for a particular time duration. HR should make succession plan for smooth employee transition from the recruitment till the retirement or resignation of employees.


Importance of Talent Management

Talent management is important to increase the competitive advantage of an organization, maximize employee values and to improve overall organizational performance.

1.       Effective talent management improves organizational performance.

Researches have proven that rapid allocation of talent (speedy shifting of talent across strategic priorities), Human Resources Management influence in creating a positive working environment and Strategic focused HRM (HRM understands the business priorities) are combined in effective talent management (McKinsey & Company, 2023). 

2.       Talent management enables organizations to be competitive.

Organizations can stay stronger when recruiting and developing the most suitable employees for the organization’s positions. Also, this helps to face market changes and reduces risk (Andreev, 2023).

3.       For Innovation.

Talented employees come up with innovative ideas and new ways to solve organizational problems.

4.       Branding of an Organization

Organizations can be branded by practicing of effective talent management system in the long run. This again supports acquiring the best employees continuously to the organization (Andreev, 2023).

5.       To reduce employee turnover.

An effective and sustainable talent management system can retain employees and reduce employee turnover.

 

Conclusion

Talent management is a well-developed strategic method of managing human resources management where the same covers the entire cycle of an employee in an organization. Practicing effective talent management processes by an organization avails to improve performance as well as competitive advantage.

 

 References

Andreev, I. (2023) Talent Management. [Online] Valamis. Available from: https://www.valamis.com/hub/talent-management?_gl=1*13borg*_ga*MTk5NTQ0NTY3LjE2OTAzMDA3Mjg.*_up*MQ..*_ga_WH32P1Y0T3*MTY5MDMwMjU5OS4yLjAuMTY5MDMwMjU5OS4wLjAuMA..#importance-of-talent-management [Accessed 26 July 2023].

Brooks, A.(2019) What is Talent Management and why is it so important.[Online] Rasmussen University. Available from: https://www.rasmussen.edu/degrees/business/blog/what-is-talent-management/[Accessed 26 July 2023].

Danao, M. (2022) What is talent management? Everything you need to know. [Online] Forbes. Available from: https://www.forbes.com/advisor/business/what-is-talent-management/#talent_management_process_section [Accessed 26 July 2023].

McKinsey & Company (2023) What is talent management. [Online]
Available from: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-talent-management [Accessed 26 July 2023].

Next Innovation Asia (n.d.) What is talent management.[Online]
Available from: https://nextinnovationasia.com/blog/what-is-talent-management-hrtalky-com/ [Accessed 26 July 2023]

Comments

  1. Nimantha Wickremasinghe (22087331_MN7234ES)2 August 2023 at 08:18

    Talent management is an important part of HRM as you pointed out here especially when it comes to reducing attrition. Traditional organisations need to start transforming their HRM strategies to manage talents in their organisations for the benefit of the workers and the growth of the businesses.

    ReplyDelete
  2. E211227_Mohamed7 August 2023 at 07:47

    These talent management depend on the recruiting process, which I believe is the key to efficient talent management. Organizations provide the groundwork for effective personnel development, retention, and overall organizational growth by carefully choosing and onboarding employees with the proper skills, potential, and cultural fit.

    ReplyDelete
  3. Dinesh Chamira Wijesingha11 August 2023 at 07:09

    Fantastic blog content! Talent management is the compass that directs an organization's success; it is not just a checkbox in HRM. HR professionals ensure the right people are in the right roles and foster a culture of growth and innovation by strategically nurturing and developing employee skills. Effective talent management is crucial for creating a resilient and thriving workforce in today's competitive environment.

    ReplyDelete
  4. Madara Gamage ( MBA-2023)13 August 2023 at 05:33

    Talent management is important for organizations as it provides a strategic advantage, enhances employee engagement and retention, enables succession planning, improves performance and productivity, fosters innovation, enhances employer brand and reputation, and leads to cost savings. By investing in talent management, organizations can build a strong and capable workforce that drives long-term success

    ReplyDelete
  5. Lakshani N Ulladupitiye13 August 2023 at 06:20

    Talent management in an organization aims at ensuring employee recruitment, trainingand development, performance reviews and their compensation. Working towards enhancing agood talent management system in the organization ensures these components of human resourcecontribute to the success of the organization

    ReplyDelete
  6. Champali Wijayanayake13 August 2023 at 06:46

    talent management is selecting the correct person for the correct job from the level of recruitment to retaining where as this will directly create an impact on the organization vision. HR plays the main role in identifying employee talents and re structure and assign them with correct work.

    ReplyDelete
  7. I U K Yaddehige18 August 2023 at 08:19

    The article clearly describes how to prepare HR succession plans for a smooth employee transition from hire to retirement or resignation. Employees leave an organization if their job becomes monotonous or learning activities cease over time. Talent management focuses on job rotation and encourages the workforce to acquire new skills as per the market demand.

    ReplyDelete
  8. Dushantha Sanjeewa LMU MBA 22087342 18 August 2023 at 19:53

    Talent management explaining employers recruit and develop a workforce that is as productive as possible and likely to stay with their organization long term. When implemented strategically, this process can help improve the overall performance of the business and ensure that it remains competitive as well.

    ReplyDelete
  9. Rashid Uwais19 August 2023 at 10:59

    In a world where skilled professionals are in high demand, talent management has become a game changer. Your point about aligning individual goals with organizational objectives is particularly insightful. When employees feel that their aspirations are valued and supported, they tend to be more committed and productive. Sharing real-life examples or case studies could further illustrate the positive impact of effective talent management.

    ReplyDelete

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