HR talent management refers to a strategic process to attract, acquire, develop, and then retain employees for maximum productivity.

Effectively executing such a strategy creates a strong long term commitment to the organization, improving the company’s performance and helping to maintain a competitive edge over its competitors.

What is Talent Management in HR?

Essentially, talent management in HR involves investing into people, which are a company’s most valuable asset. This process includes the recruitment of individuals who possess in-demand and high quality skillsets with an emphasis on future development and career growth within the company.

Example of Talent Management in Human Resource Management

There are many examples of talent management that occur every single day. For example, a shoe boutique in Germany, with about 5 employees, is aiming to move its focus from just selling shoes to offering a more impeccable customer experience.

To do this, the HR management recognizes the need for new managers and associates. This is where they apply tools and tracking systems with the hope of identifying suitable candidates to equip their supervisors with the necessary insight to make a hiring decision.

Why is Human Resources Talent Management Important?

Companies that invest in nurturing and development of their employees are more likely to create a strong culture and working environment. On the other hand, those companies that struggle to attract and retain top talent often face lower customer satisfaction and/or growth opportunities.

The importance of talent management cannot and should not be overlooked, especially for companies that prioritize it. Moreover, they are more likely to achieve sustainable profitability and growth, while pouncing on innovative opportunities.

Key Parts of an HR Talent Management System

Developing a strong talent strategy that would help move the company forward involves the following:

• Align the talent goals with the business’ objectives
• Meet employee expectations and deliver on promises
• Utilize data and insights to make informed decisions

What Does Human Resource Management and Talent Management Include?

Engaging and equipping talent is not a one-off task to ensure proper productivity optimization and driving growth. Employers need to fulfill quite a few responsibilities to succeed in talent management.

They typically include the following:

1. Workforce Planning

Every successful talent strategy starts with identifying the skills and capabilities that are needed to meet the company’s long term business goals.

2. Recruitment

HR talent acquisition involves identifying the right channels to reach out to qualified candidates, communicating the employer’s brand, pre-screening applicants, and then conducting interviews with the top talented prospects.

3. Onboarding

Next comes the onboarding process which introduces the new hires to the company’s cultures and creates a sense of connection. A well-structured process from the HR talent management team will comfort the new members to their team and the business in general.

4. Training & Development

Today, employees expect from their employers a higher rate of support, more resources and opportunities to learn, and a plan for career growth.

5. Compensation & Benefits

Employers who are looking to attract and retain top talent need to take a more proactive approach to compensation and benefits, offering competitive pay, transparency, and meaningful benefits beyond the base salary.

6. Performance Management

Performance management is another important factor that should never be overlooked. Regular reviews, check-ins with supervisors, and clear communication of the company’s goals helps employees to strengthen their skills and reduce turnover.

7. Succession Planning

Lastly, employee transitions, another very important aspect to consider and employ within the talent management strategy. Namely, a company should anticipate transitions, such as advancing to a new role, resignation of an employee, or retirement, as it will help ensure a smooth change while minimizing disruptions within the operational workflow.

The Benefits of HR Talent Management

When employees thrive and are happy, businesses thrive and increase revenue as well. Employers who create a culture that empowers their teams to perform at their best can achieve great benefits, such as the following:

1. Recruiting In-Demand Talent

Employer branding is a cornerstone of an HR talent management strategy. A company’s position can become a sought-after choice among employees, attracting top talent candidates in the process.

2. Improving Productivity

Productivity can be improved by simply having employees learn, develop, and hone their skills to maximize their full potential. Strength-based coaching boosts overall efficiency and vastly improves employees’ qualities.

3. Minimizing Disruptions

Unexpected employee departures or resignations can create coverage gaps. That said, having a diverse talent allows companies to quickly fill these vacancies, maintain flow of operations, and minimize disruptions.

4. Reducing Costs

Retaining high performing employees is a vital component to reduce costs as opposed to consistently recruiting and hiring new personnel.

5. Fostering Innovation

Talented and motivated teams are more likely to come up with creative methods for solving various problems and maximize the benefits of the latest technological advancements.

What Does a Talent Management Process Look Like?

An effective process would involve identifying the right individuals and then empowering them to utilize their strengths. Employers who are very good at this stage in the process typically follow these steps:

a) Recruit

Candidates need to be sourced from different effective channels, such as social networks, job boards, and most importantly, employee referrals.

b) Hire

Once the candidate pool is filled, it is time to narrow it down using analytics tools, pre-screening questionnaires, interviews, and skill tests.

c) Develop

Providing accessible learning and development resources can help employees perform their roles more effectively and grow in their respective career fields.

d) Engage

Engagement tools can keep teams focused, connected, and can identify potential retention risks. This, in turn, would ensure that top performers remain engaged and remain in the company.

e) Perform

Tracking employee performance and data collection can introduce more informed workforce decisions for the human resources talent management team.

f) Recognize

Managing fair compensation packages or benefits and rewarding high performers can improve their focus, productivity, and keep them satisfied.

g) Plan

Developing succession plans can help employees advance in their careers with new roles or upgraded opportunities, retaining top talent, and increasing productivity levels in the process.

Human Resources Talent Management Strategy & Planning

Companies today recognize full well how important a talent strategy is that aligns with their objectives. That said, here are a few key points on how to achieve a quality talent strategy:

Make Workplace Culture a Priority

When employees feel valued within a good workplace culture, they are more likely to contribute effectively and remain in their roles for the long term.

Provide Ample Growth Opportunities

Employees seek new opportunities regularly, unless they start to see clear pathways for career progress within the same company and then receive the much needed support to pursue their own goals.

Ensure Employees Are Using Their Strengths

Identifying each employee’s strengths can help companies to align them with their tasks and roles in a way to maximise their input, leading to increased productivity.

Compensate Workers Fairly

To attract and retain top talent, employers need to have compensation benchmarks specific to the position, location, and industry of operation.

Hire Diverse Talent

Diversity and inclusion brings about fresh perspectives and innovative solutions, demonstrating a company’s approach and how it reflects on the community it serves.

Summing Up HR Talent Management

Employers can strengthen their talent strategies and drive success by connecting people and work more effectively. Making informed decisions, outsourcing administrative tasks, and leveraging latest technological solutions can have a huge impact.

To do that, the focus needs to be on:

• Making decisions based on data
• Leveraging technology
• Outsourcing HR and payroll

An HR talent management team that utilizes the best practices and all available tools will create a top talent pool in their pipeline, enabling the company to fill open positions quickly, increase productivity, and minimize any form of disruption to operations.

Frequently Asked Questions (FAQ)

What is Talent Management in Human Resources?

Talent management in the HR department is how the employer would recruit, develop, and nurture a workforce that would be productive and remain within the company for a long time.

Is Talent Management the Same as Human Resources?

Talent management is not the same as HR since it is an activity with a strategic focus and it falls under the umbrella of the HR department.

What Does a Talent Manager Do in HR?

Talent managers are responsible for leading all talent management efforts within the HR department. They need to create, develop, implement, and manage strategies to align with the company’s goals, values, and culture.

What Are the 5 Core Functions of Talent Management?

The 5 core functions of talent management include:

• Finding and acquiring the right personnel
• Learning, developing, and growing the personnel
• Managing, monitoring, and rewarding performances
• Creating a good employee experience within the company
• Optimizing the strategy and planning the workforce accordingly

These 5 components are the pillars of a successful talent management strategy.