Why talent management is a critical part of organizational success
Dr. Riitta Lumme-Tuomalahead of growth at Aalto University Executive Education in Finland, argues that new ways of working require leadership skills that are more important than experience and that organizations in growing sectors wrongly prioritize experience over detriment of potential.
At its core, talent management is a strategic process of attracting and retaining high-quality employees, developing their skills, and continuously motivating them to improve their performance. The intention is, essentially, to create an engaged and engaged workforce that will contribute to the success of the organization by continually developing their own skills and abilities relevant to the organization using them to achieve not only their own goals, but the strategic objectives of the entire organization.
Talent management has many elements. First, organizations need to grow their current employees to build a workforce that can impact the organization’s competitive advantage. This is done by sourcing in-demand skills, investing in continuous learning and skill development, and managing and improving performance.
This is crucial to meet the current and future talent needs of the organization, and includes formal and informal training, employment challenges, performance support and coaching. This is extremely beneficial, as talent development has an extremely positive effect on the organization’s attractiveness and employer image.
Talented, high-potential people tend to be interested in career progression, challenges, and professional development opportunities. This is also linked to talent retention, as employees who feel they receive support in the form of development opportunities and recognition from the organization are more likely to stay and want to grow with the company. business organization.
Investing in your employee experience is essential
Talent management also involves the organization looking at how it can attract talent. Therefore, organizations must understand the needs of the talent they seek and align their incentive and reward systems with those needs. Undeniably, to enable this, organizations need to keep in mind that they need to be clear about their own values in order to be able to maintain a healthy and inclusive organizational culture. Companies that invest in the employee experience, from retention to development and more, allow their employees to rely on a successful philosophy that will benefit the organization for a long time, even after their paths diverge.
It should be noted however that while the role of retention in talent management is crucial and other talent management activities have a significant impact on retention, talent management goes beyond planning succession and risk management.
Succession planning is a process of identifying and developing new leaders who can replace old leaders when they leave, retire or even die. The planning here is generally a closed process, so those who have been selected are unlikely to know they are on an estate list. However, in today’s increasingly unpredictable business environment, it’s important to note that long-term succession plans are becoming obsolete. Therefore, organizations must be able to adapt to change and should aim to achieve goals one review period at a time. This should be part of their overall strategy, to help solidify their long-term success.
Talent management is linked to strategy
Talent management is really strongly tied to the broader organizational strategy, which should outline an organization’s total commitment to attracting, identifying, developing and retaining the best talent available. Strategic talent management refers to the activities and processes carried out by people in key positions within an organization that contribute to overall sustainable competitive advantage.
Additionally, strategic talent management refers to the development of a talent pool of high-potential, high-performing individuals to fill those strategically important roles in the future. This involves developing a distinguished HR structure to enable these positions to be filled with competent people and to ensure their continued commitment to the organization.
This is understandably complex, especially considering that in recent years there has been a fundamental shift in the way strategic positions are defined. Traditionally, jobs were differentiated in terms of input, whereas now the focus is on output potential, i.e. understanding how an individual can leverage that talent to succeed in a way that complement the organization and its values.
Today’s management styles now require leaders to learn soft skills such as emotional intelligence, self-awareness, and high levels of influencing skills. This is primarily so they can move forward effectively, aligned with the overall trajectory of the organization. With this in mind, organizations across all industries need to implement talent management initiatives that focus on problem solving, strategic decision-making, and setting goals and directions.
An increasingly complex talent management environment
Ultimately, people are at the center of any organization. Without the right talent, organizations risk a poor work culture and a serious lack of productivity. Organizations today face an increasingly complex talent management environment, and therefore those who manage talent effectively will certainly have a viable advantage over those who do not.
To keep up with this rapid rate of change, organizations must quickly leverage the skills of their people to enable innovation and growth, and must continually invest in their people. Ultimately, talent management matters because engaged employees are more productive employees, which in turn positively affects the overall longevity and success of an organization.