A number of organizations or business leaders believe that retaining top talent is a boon to the organization and that talent is a commodity that can be bought and thrown easily.
There are however, companies that realize that a high turnover rate is twice as costly as hiring a replacement. What makes these ideologies differ is the effect of retention and the vast pool of skill available in the market.
Organizations have to focus on talent management to ensure that the yearly company planning does not go to waste. It gives Human Resources an opportunity to contribute to the performance of the company and to add value to it.
Re-engineering HR’s talent management may be needed to make the company’s business leaders believe that top talent is important to keep things moving forward in the organization.
The Human Resource Department therefore, has to make necessary adjustments to re-engineer an organization’s talent management.
- Some of the key points that every Human Resource to keep in mind are first, identify if they have the talent to execute the organization’s strategy. Hiring or developing talent then are the best options to attain the company’s goals.
- Second, this means of managing employees does not only aim to develop skills whenever there is a need. Skills of an employee must last longer for more than a year keeping in track with the mission and vision of a company. It might be too costly for an organization to change their strategic goals on an annual basis.
- Third, Human Resource should identify which roles drive the most value in their business, how they get that resource and maintain an acceptable level of turnover. Retention is a key factor in developing talent especially now with companies having diversified culture and working habits.
Employees are not just looking for the right compensation but also the work-life balance and office atmosphere that companies provide.
- Fourth, human resource’s talent management should be able to engage and reward the right talent especially those that are in pivotal roles.
- Fifth, human resource should focus on assessing the skills the organization needs to implement its strategy and the plan for managing and recruiting potential employees.
Human Resource should be able to understand what the needs of their employees are and match it with their roles.
They should also be able to know what the organization needs to do to add the right talent. There are two common ways to do that and that is hire internally or recruit the best talent in the market.
Organizations should not only focus on current performance and leadership capabilities of its employees but also assess the potential for leadership in future roles.
times, hiring internally is the best option versus recruiting a new talent as it saves time in developing the new talent and is more practical in terms of costs. Keep in mind though, that an organization’s Performance Management System must be exceptionally well, in order to identify the right talent for promotion or for a new role.
In summary, talent management has always been important to organizations especially that it has become more critical now that technology has progressed so much that major companies have started to focus their operations on a global scale.
This has created a situation wherein talent has a major impact on the bottom line of each company.
As it is has been accepted by Human Resource scholars, the disparity of critical jobs between good talent and poor talent is 100 to 1. Making work-based organizations focus on talent as a source of competitive advantage.
Therefore, organizations have to dig deeper into their current roster to be able to achieve their goals.