Companies need talented employees, but sometimes that's easier said than done. Without the right people in roles they are best suited for, no business can succeed. Talent management is a vital piece of the human resources puzzle and something that companies of all sizes need to prioritize. There's a lot to learn about the mysterious world of talent management and its importance to businesses.
What is Talent Management?
If you have ever searched for a new job, you have heard of talent acquisition. It is the process of recruiting and wooing the best candidates to fill open positions at a company. Talent acquisition is akin to branding, making sure the company's brand is on-point to attract the right applicants and nurturing relationships with strong applicants in case they are a fit for future openings.
Attracting the right talent to a company is crucial, but once you have them in the fold, you need to keep them. That's where talent management comes in. Talent management is all about focusing on the talent already in a company and making sure those people thrive in their roles. That might mean identifying all-star employees to groom for promotions, coaching current employees to help them reach their fullest potential or just making sure morale is strong so that talent isn't lost to competitors.
Why is Talent Management Important?
Talent management is vital to the growth and continued success of a company. When you bring in entry-and-midlevel employees, you invest in their growth. In an ideal world, those employees stick with the organization moving up the ranks as higher-ranking positions become available. If talent leaves for another firm, your competitor is getting the benefit of the investment your company made in that employee.
But on a more immediate level, talent retention is important to a company’s bottom-line. The average cost of hiring a new employee is $4,129, and most positions take an average of 42 days to fill. During that time, a department is not running at top efficiency and other employees must pick up the slack. With effective talent management, high-caliber employees will stay with the company longer, contributing to the financial success of the business.
How to Succeed at Talent Management
A lot goes into talent management, and a great talent management program is mutually beneficial to employers and employees alike. Start by taking stock of the current talent pool and the company's current and future needs. Analyze what the current talent needs to prepare them for promotions and more responsibility.
In addition to being prepared for promotions, employees need feedback about their performance in their current jobs. Talent managers conduct skills-gap analyses and implement training programs to help employees fill those gaps. They also work with managers to set up a regular feedback schedule and ensure managers are recognizing employees wins as well as identifying and addressing any shortcomings.
Talent management teams must make company morale a priority ensuring that all employees stay engaged and motivated.