What is Talent Management?
We all know that teams
with the best people perform at a higher level.
Leading organizations know that exceptional business performance is
driven by superior talent. People are the difference. Talent management is the strategy.
Analyst research has proven that organizations using talent management
strategies exhibit higher performance than their direct competitors and the market in general. From Fortune 100
global enterprise recruiting and performance management to small and medium business eRecruiting, leading companies invest
in talent management to select the best person for each job because they know success is powered by the total talent
quality of their workforce.
The knowledge age moved the basis of economic value
to information assets through integrated communications and computer technology. Now the competitive battlefront is for the best people because they are the true creators of value.
This requires new thinking and a new mission to achieve business success. These factors—coupled with the need to align people directly with corporate goals—are
forcing HR to evolve from policy creation, cost reduction, process efficiency, and risk management to driving a new talent
mindset in the organization.
One important distinction is the evolution of the difference between
tactical HR and strategic talent management. Transactional HR activities are administrative overhead. Talent management is
a continuous process that delivers the optimal workforce for the business.
In this new model—instead of being the owners of processes,
forms, and compliance—HR becomes the strategic enabler of talent management processes that empower managers and employees
while creating business value.
With this view, talent management may be defined as the implementation
of integrated strategies designed to improve processes for recruiting, developing and retaining people with the required
skills and aptitude to meet current and future organizational needs.
Workforce cost is the largest category of spend for most organizations.
Since nearly all competitive business factors have become commoditized, talent is what ultimately drives business success
and creates value.
Though it may seem intuitive, it is worthwhile to articulate the fundamental
significance of successful talent management practices:
- The key enabler of any organization is talent.
- The quality of people is the last true competitive differentiator.
- Talent drives performance.
Talent management requires strong dedication, from the company and
professionals, all directed towards having the right talent doing the right work at the right time. That’s when
talent truly drives higher business performance.
Society of Human Resource Management
(SHRM) survey
