What is talent management?

Talent management is the method an organization uses to ensure it has the right people in the right positions to help the company achieve its goals. It involves careful workforce planning,  targeted recruitment  , and strategic hiring. It also includes ongoing efforts to retain employees through career development and growth.

Organizations can take specific actions to shape their workforce and achieve essential talent management objectives, such as:

• Building a strong company brand and positive reputation to attract the best employees
• Using referral programs to find qualified, pre-screened candidates who are most likely to perform well and stay for the long haul
•  Onboarding , inboarding (moving or promoting current employees), and retaining efficiently to increase productivity and leverage critical experience
•  Creating  a succession plan that provides a pipeline of employees who can easily fill critical, vacant positions
• Helping employees grow and improve their performance by training them
• Analyzing data to meet key performance indicators (KPIs) and achieve overall organizational goals

Keep in mind:  Workforce talent  is not defined only as someone who is high-performing, nor is it just a specific high-level activity. Talent can mean different things to different departments, organizations, and industries, and also includes soft skills like motivation, problem-solving, and communication.

What is the purpose of talent management?

Talent management is used to identify, recruit, and retain top-level employees. But on a broader, long-term scale, its objectives are:

• Increased employee engagement  and satisfaction 
• Help your organization stay competitive in the industry and marketplace
•  Reduce  employee turnover , which saves money on recruiting and training

Who is responsible for talent management?

While the human resources department plays a primary role in developing and implementing a talent management strategy, it should be an organization-wide effort. Executives, middle managers, and employees all contribute in their own way, and they must work together to create a positive company culture that supports and nurtures their team.

The role of the HR department is to:

• Identify barriers to talent management.
• Propose talent management strategies.
• Lead efforts in the implementation and execution of these strategies.

The role of the executive is:

• Approving talent management strategies and the framework for achieving them.
• Be committed to the proposed HR approach and methods.
• Promote management involvement in processes.

The role of the middle manager is to:

• Use available tools and processes to identify, develop, and promote internal talent.
• Engage employees and empower them to discover and develop their skills.
•  Evaluate and document  improvements in employee performance .

The role of the employee is:

• Implement company-aligned performance goals.
• Provide feedback on available development and growth opportunities.
• Participate actively in your career development planning.

How to Create a Talent Management Strategy

Talent management processes can look a little different for each business. A personalized, agile approach can help you meet your organization's unique needs and evolve as those needs change in the future. The following are the key steps in a talent management strategy:

• Step 1:  Identify your company’s priorities and goals, especially those driving new initiatives.
• Step 2:  Identify internal and external challenges that impact your ability to meet organizational goals.
• Step 3:  Assess where your company is now and where you want it to be in the near future, and consider the risks of not filling those gaps.
• Step 4:  Obtain executive consensus and communicate strategies to middle management and employees.
• Step 5:  Define success criteria in both implementation and effectiveness.
• Step 6:  List each current talent management process and make adjustments as needed.
• Step 7:  Track, measure, and evaluate your company's progress and successes.

What is a talent management system?

Talent management systems help organizations execute their strategies by collecting, storing, and analyzing information related to potential and current employees. It strikes a balance between meeting immediate workforce needs and designing long-term solutions. Most talent management systems include three major components:

• Identifying gaps and making plans to address them:  This increases company efficiency and productivity, as well as the overall quality of your workforce.
• Recruiting and hiring employees:  Finding people to fill needed positions helps your company reach its overall goals.
• Growing and developing current employees:  These efforts   boost your retention strategy , employee engagement , and your organization’s brand.