Talent Management
The High Potential Management System is a system that will help manage talented people in the organization in order to keep those people with high potential in the organization for a long time. There are special guidelines for developing those people. Then, it will try to find growth channels in order to have space for those people to show their full potential. This will make them happy and enjoy the work they do. This results in benefits for the employees themselves and the organization at the same time. This system will have management steps according to this diagram.
Talent management (TM) is the anticipation of required human capital for an organization and the planning to meet those needs.[1] The field has been growing in significance and gaining interest among practitioners as well as in the scholarly debate over the past 10 years as of 2020,[2] particularly after McKinsey’s 1997 research[3] and the 2001 book on The War for Talent. Although much of the previous research focused on private companies and organizations, TM is now also found in public organizations.
Talent management in this context does not refer to the management of entertainers. Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organizations to reach their goals. Everything done to recruit, retain, develop, reward and make people perform forms a part of talent management as well as strategic workforce planning. A talent-management strategy should link to business strategy and to local context to function more appropriately (Tyskbo, 2019).
What is talent management?
n good times, it can be easy to take your company’s talent for granted. But do so at your peril—investing in talent management, or the way that your organization attracts, retains, and develops its employees (sometimes referred to as “talent” or “human capital”) can give your company an edge. Look no further than the much-discussed “Great Resignation,” also called the “Great Attrition” or “Big Quit,” of 2021 and its impact. Putting people first is vital to building a healthy workforce.
Get to know and directly engage with senior McKinsey experts on talent management.
Fabian Billing is a senior partner in McKinsey’s Düsseldorf office, and Aaron De Smet is a senior partner in the New Jersey office.
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It’s important to manage talent and deploy it well, and leaders need to know how to rise to the occasion. To help shape workforces that have the skills to achieve, leaders can establish a talent-first culture. Too many organizations don’t consider the talent required to implement different ideas. By putting talent first, companies can improve organizational performance and potentially gain a competitive advantage.
Why is talent management important?
Analysis shows there is a significant relationship between effective talent management and an organization’s overall performance. In fact, in a 2018 McKinsey survey, 99 percent of respondents who reported their company’s talent management was very effective said they outperform their competitors, compared with 56 percent of all other respondents. And the effects may be cumulative, given that abilities to attract and retain talent seem to support outperformance as well.
What actions are linked to good talent management?
Survey findings indicate three practices that are most closely linked with effective talent management:
rapid allocation of talent—that is, being able to move people among strategic projects quickly as priorities emerge and fade
HR’s involvement in creating a positive employee experience
a strategically minded HR team
According to the research, organizations with all three practices in place (only 17 percent of the sample) are vastly more likely than their peers to say that overall performance, plus total shareholder returns, has an edge on their competition.
How to create a talent management strategy
by: Robert Imbrie– Artisan, Guest Columnist, The Predictive Index
Has your company ever struggled to hold onto important employees?
Has it ever hired the wrong people? Or hired the right people, but they struggled to succeed?
These are all signs your talent management strategy is unsuccessful—or nonexistent.
In this article, we’ll show you how to build a talent management strategy that works. We’ll talk about what a talent management strategy is, and how it can make your company more successful. And we’ll touch on how that success breeds employee retention and growth.
Your costs drop.
Labor accounts for as much as 70% of business expenses. Some of that is obvious: salaries, benefits, equipment. But it’s also extremely expensive to train and replace employees.
Every time someone leaves your company, it costs you the equivalent of 6 to 9 months of their salary. High turnover means you pay that cost again and again and again.
Talent management strategies can reduce turnover by improving the employee experience. By reducing turnover, a great strategy takes a big chunk out of your company’s biggest expense.
Your employees power up.
Economists call people human capital for a reason. Just like a business, people benefit from investment. When you improve their skills, you improve their ability to perform at their job.
Talent management programs create development opportunities for your employees. They open mentoring doors, and refine your in-house training. And these approaches have huge benefits. Organizations with a strong learning culture are 52% more productive.
Learning won’t boost your profit overnight. But as your employee skill sets grow, so does your business—until eventually, you dominate the market.
Your business strategy becomes easier to execute.
A talent management strategy isn’t just about hiring or developing or keeping people. It’s about making sure your talent matches your business strategy.
Sometimes companies have a great employee in the wrong place. You might have a leader that’s great at bold visions and aggressive expansion, but is stuck dealing with fine details. It makes the leader unhappy. It also makes your business less effective.
On the other hand, focusing on the strengths of your employees increases performance by 8 to 18%. That’s exactly the kind of approach a talent management strategy is built to carry out.
With a great talent strategy, you can align the behaviors of your employees to their role. In turn, you can align each team to their business objective. Once this happens, your business will start achieving even the most impossible goals.
Investment in learning opportunities
Alongside hiring new talent, organizations are working on giving themselves an edge with respect to value offerings for current employees. Conventionally, learning happens on the job. However, that does not take away the need for investing in learning opportunities. There are innumerable learning platforms available in the market, and organizations are looking for the savviest tech that can provide customized, interactive, and intuitive learning courses modules. Employees are also proactively signing up for online courses from reputed universities. Organizations are strengthening their in-house knowledge management systems with elements like collaborative and interactive learning.
Focus on leadership development
Another space that is receiving a lot of attention and investment is leadership development. Given the fast-paced expansion of the organization, succession planning is a top priority and heavily depends on building a trusted leadership group that’s strategically aligned to corporate goals. Approaches like coaching and mentoring are gaining a lot of importance when it comes to both broad-based talent growth and the more customized interventions needed for leadership development. While executive coaching has been in vogue for a while, organizations are also creating an accessible pool of in-house mentors for promising employees across roles and levels. This empowers employees to be self-starters who contribute to the growth of others, which results in a very satisfying and enriching experience for leaders.
Enhanced performance management
Disruptive change is also impacting how performance reviews are planned and carried out. Organizations are waking up to the ill effects of hierarchy-driven bell curve models on employee motivation. Employees need frequent, honest, and transparent discussions with peers and their managers to get a better sense of performance and expectations. Ongoing and regular discussions are also a practical way to keep track of employees’ aspirations, motivations, and needs for support. This also calls for an evolution of the employer-employee equation.
Greater diversity and inclusion
As the workforce features an increasingly younger generation, there is added emphasis on changing how one views growth, flexibility, reward, recognition, aspiration, and motivation. Employers could learn something from the extremely customizable bouquet of plans that telecom companies offer their customers. Organizations are also busy setting D&I goals for leadership roles that are viewed with the same seriousness as any other business metric. More organizations are working towards interventions that can level the playing field for all.
Organizations are committing to walk the talk and improve their gender ratios, bring women back to work after career breaks and being more sensitive and inclusive in defining policies and benefits that take the needs of all employees into account. In line with that thinking, organizations understand the need for employee assistance programs, as well. For example, avenues like counseling are gaining more acceptance, and data is showing a general uptick in the number of youngsters who are availing such services.
As we head into 2020, we are looking at changes across the spectrum of people’s practices in hiring, learning, development, reviews, rewards, recognition, benefits, diversity, and beyond. As the use of technology in HR evolves and grows, it influences our processes and mindsets as well. This means HR leaders need to draw an overall strategy for the entire gamut of employee experiences and employ imaginative solutions around how technology can play a crucial enabler’s role. It promises to be a fun-filled and fulfilling journey.
