Why Managing Talent Effectively Improves Business Performance and Reduces Costs?
Talent management is an organisation’s commitment to recruit, hire, retain, and develop the most talented and superior employees available in the job market.
From my perspective talent management is the way in which organisations manage and develop their workforce, right from hire to retire. As you’ll see within the definition above, most people consider recruitment to be part of the talent management process however, I think it’s important to keep attraction methods and internal talent management strategies slightly separate however, ensure that they eventually merge to form your overall EVP (employee/employer value proposition).
Organisations have a responsibility to enable their staff to perform better and develop quicker. No matter if you’re two or twenty thousand employees, talent management should be a priority for your business and below I go on to say why. But first, I wanted to make you aware of some of our FREE tip sheets that may be usefully.
Why is it important and benefits?
High performing culture – as an organisation begins to manage and develop its talent more effectively, the process of culture change begins to take place. Once these behaviours and processes are embedded within the business, it will become the norm for your employees and leaders to perform to the highest standard.
Improved employee experience – we spend most of our lives in work. Imagine being part of a business who want to constantly develop and improve you – it creates a positive experience for you as an employee. If this can happen as early as the recruitment or onboarding stage, then your engagement with that business will increase and you may even become an advocate for that organisation.
Lower attrition/hiring costs – as a business’s confidence in managing talent increases, they may turn towards an apprenticeship strategy. This is likely to significantly reduce recruitment costs, along with increasing retention. Also, attrition is likely to decrease due to increased transparency, (clearer) opportunities to develop internally and better employee recognition.
Are you keen to understand if you’re managing talent well in your business? Take our FREE assessment here Free Assessment
Risks if you don’t manage talent effectively?
Succession Planning – how many times do you see organisations lose a key leader/employee and have no “back up” plan? This is where succession planning falls into place. Succession planning allows your organisation to pro-actively deal with issues, as appose to being reactive, which can often be costly and lead to “panic” decision making.
Workforce Planning – similar to succession planning, workforce planning allows you to be pro-active about your organisations future state. Change is so prevalent within today’s world if you do not have an understanding of your long term requirements, then you may end up under resourced and unable to deliver your service to an optimum level – all of which have commercial impacts.
Attrition – it is important to remember that not all attrition is bad attrition… however, when you start to lose your high performing/high potential employees, then you need to rethink your approach to talent management. Losing these people can slow down business growth and restrict your organisation’s ability to reach optimum performance. Finally, attrition often hinders your attraction opportunities moving forward – word of mouth can often dent your brand image.
Rencai and Talent Management:
So, what can you do better manage talent across your organisation? Click on the title below to learn more about each area…
Many organisations providing support within the talent area tend to focus on leadership development, which in reality is only a percentage of the issue/opportunity. From a Rencai perspective we’ve been brought in to support a number of organisations with their organisational development strategy. Our work has included:
- Learning and Development
- Graduate Recruitment
- Employee Engagement
- Succession Planning
- Workforce Planning
- Employee Wellbeing
- Employee Experience
- Resourcing Strategy
- Roles and Responsibility definition
- Pay and Gradient reviews
- Leadership Development
In the first instance we typically conduct a short diagnostic using our suite of digital tools that enable us to understand our clients pain points, areas that require attention and also get a feel for what has been going well. From this feedback we then work with your internal team to map out key priorities and then design a programme/project plan, that is then implemented.
Talent is not something that can be ignored, it’s a great commercial opportunity for clients to reduce costs through higher retention, improve performance through higher engagement and increase client/candidate attraction through an improved EVP.
As you can probably tell, this is an old blog of ours however, we still have plenty of ideas on how to help you to better manage talent. If you’d be interested to learn more then contact Harry directly on [email protected] or register your details here and a member of the team will be in touch.