1 Explain the key elements of Talent Management System.

Explaining the key elements of a Talent Management system

Answer: Key elements of a Talent Management System

Recruitment and Selection: Recruitment is the process of finding and hiring the best-qualified
candidate for a job opening, in a timely and cost effective manner. Recruitment and retention
have become a big challenge for organisations due to the continuing global talent shortage, the
changing worldview of work by new generation employees entering the workforce, and the ever
increasing evidence that poor recruitment decisions have a direct impact on the bottom line.

Induction: Induction is the process of formal entry of the selected candidates into the
organisation and preparing them for their new role. Employers should not assume that new
hires can cover for themselves, and will only need brief introductions and a chunk of corporate
information to get them started. Although lost profits due to the training of a new hire has been
estimated as 1.0 - 2.5% of total revenue, it is clear that this induction period is vital given that
6.3% of people leave within the first 6 months of starting in a new role, which is typically due to
their induction experience. A proper induction program helps to reduce employee discomfort,
improve productivity and save money.

Training: Training is a way to develop new and existing employees’ knowledge, skills and
competencies by bringing the employees to an agreed standard of proficiency through various
methods such as teaching, instructions, facilitating practices and exercises. An effective, useful
and timely training experience not only offers progressing development chances that support
the individual in the role, but also helps the organisation in achieving its broader objectives.
Such training, where possible and practical, should be “in-time” rather than “in-case”. The
training provided should meet the training requirements or demands of individuals and groups
precisely at the time when new skills are needed.

Capability development: Customised improvement opportunities for key talent are seen as an
essential component for motivation and retention of employees. In the present scenario,
developing the current employees is more cost effective and efficient means of managing talent
rather than recruiting new people and using vital resources on their training. Career
development has a major impact also on job satisfaction.

Performance: A performance management system increases the productivity and confidence in

an organisation, if planned and implemented effectively. The increasing number of new
generation employees in the workforce adds thrust to the importance of a transparent,
objective performance management process as they perform best in a culture that encourages
feedback. Performance management systems should be visibly related to training or
development and recognition or compensation systems within the organisation in order to
increase productivity and retention.

Retention and succession: Retention is the measure taken to encourage the employees to
remain in the organisation for longer period of time. Employee retention is an important issue
for top leaders in organisations all over the world. In today’s world, employers compete to
attract and retain the talent in order to fulfil their organisational objectives. Talent retention is
necessary to good quality, customer satisfaction and operational efficiency. Typically,
companies prefer to induct 85% of their leaders through internal placement. For example,
Hewitt’s Top 10 Companies in the Asia Pacific develop 76% of their leaders internally while a
global survey found a 30%failure rate when placing highly sought after external talent.

2 Define Talent Management. Discuss the Talent management Approaches.

Definition of Talent Management
Explaining the Talent management Approaches

Answer: Talent management is defined as a conscious and systematic approach taken up to

attract, identify, develop and retain productive and engaged employees with aptitude and
abilities to meet current and future organisational needs by fulfilling the business/operation
critical roles. The goal of talent management is to create a high performance, sustainable
organization that meets its strategic and operational goals and objectives.

Talent management Approaches

Talent selection
Having the right person in the right job is the key to the success of any business, while having
the wrong person in a key position adversely affects an organisation. Every key job or position
has a number of complex requirements that might be difficult to identify. Talent selection is an
enduring procedure that requires proper planning in order to achieve the expected results.
The Talent selection consists of five selection processes. They are:
 Job benchmark
 Assess candidates
 Compare job and talent
 Behavioural interviewing
 Selection
Talent alignment
A truly talented individual has many choices and over time will choose to associate themselves
with an organisational environment they calibrate with. Talent alignment explores all the
possible talent strategies in the talent model and the organisational framework that will attract,
retain and motivate talent. Different types of talent exist and individuals may be considered
talented in one perspective and not necessarily in another. Talent alignment considers talent in
terms of both competence required and a capacity for attraction and alignment. Organisational
culture constitutes the framework within which talent works and this can be either beneficial to
talented people or be an area of conflict. The talent environment can range from a foul and fatal
environment through to a good, great or even inspiring environment. There are tools to gain
greater insight to these environments. Knowing the current and desired framework, one is far
more able to explore appropriate media.

Talent development
A talent development process is the basis of a career affiliation with the employees. The
development process gives the organisation opportunity to set objectives that will ensure that
the organisation realises the absolute potential of each employee. The Talent Development
Process analyses employee development at the organisation, group and individual level. The
primary motive of either a career or performance development is to help employees set up
realistic goals, assess their particular strengths, and chart where they can best contribute and
grow. Successful development programs not only help an organisation to assist an individual in
the development process, but also address the activities of self-development undertaken by the
individual. The development strategy is established on the basis that most development occurs
on the job through experiences gained by effectively performing the daily task. Developing
relationships with key individuals throughout the organisation to get the context on their
business is also an important development activity. Finally, formal learning programs
approaches are the used to ensure that individuals in the company have sufficient knowledge
and skills to be able to effectively carry out their jobs while continuously learning and growing
as professionals.

Talent retention
An efficient employee retention program is an organised endeavour to create and promote an
environment that encourages employees to remain with the company by having policies and
practices in place that address their various needs. As there is huge expectation from
employees, employers have to extensively change the way they manage the talent. Talented
individuals constantly require new challenges and objectives they can achieve, and a continuous
supply of data and resources they can utilise to solve business problems. And naturally, the
employees will in return demand more lucrative and good compensations, an encouraging work
environment and effective HR policies.

3 Explain the key elements of Talent Management System.

Explaining the key elements of a Talent Management system

Answer: Key elements of a Talent Management System

Recruitment and Selection: Recruitment is the process of finding and hiring the best-qualified
candidate for a job opening, in a timely and cost effective manner. Recruitment and retention
have become a big challenge for organisations due to the continuing global talent shortage, the
changing worldview of work by new generation employees entering the workforce, and the ever
increasing evidence that poor recruitment decisions have a direct impact on the bottom line.

Induction: Induction is the process of formal entry of the selected candidates into the
organisation and preparing them for their new role. Employers should not assume that new
hires can cover for themselves, and will only need brief introductions and a chunk of corporate
information to get them started. Although lost profits due to the training of a new hire has been
estimated as 1.0 - 2.5% of total revenue, it is clear that this induction period is vital given that
6.3% of people leave within the first 6 months of starting in a new role, which is typically due to
their induction experience. A proper induction program helps to reduce employee discomfort,
improve productivity and save money.

Training: Training is a way to develop new and existing employees’ knowledge, skills and
competencies by bringing the employees to an agreed standard of proficiency through various
methods such as teaching, instructions, facilitating practices and exercises. An effective, useful
and timely training experience not only offers progressing development chances that support
the individual in the role, but also helps the organisation in achieving its broader objectives.
Such training, where possible and practical, should be “in-time” rather than “in-case”. The
training provided should meet the training requirements or demands of individuals and groups
precisely at the time when new skills are needed.

Capability development: Customised improvement opportunities for key talent are seen as an
essential component for motivation and retention of employees. In the present scenario,
developing the current employees is more cost effective and efficient means of managing talent
rather than recruiting new people and using vital resources on their training. Career
development has a major impact also on job satisfaction.

Performance: A performance management system increases the productivity and confidence in

an organisation, if planned and implemented effectively. The increasing number of new
generation employees in the workforce adds thrust to the importance of a transparent,
objective performance management process as they perform best in a culture that encourages
feedback. Performance management systems should be visibly related to training or
development and recognition or compensation systems within the organisation in order to
increase productivity and retention.

Retention and succession: Retention is the measure taken to encourage the employees to
remain in the organisation for longer period of time. Employee retention is an important issue
for top leaders in organisations all over the world. In today’s world, employers compete to
attract and retain the talent in order to fulfil their organisational objectives. Talent retention is
necessary to good quality, customer satisfaction and operational efficiency. Typically,
companies prefer to induct 85% of their leaders through internal placement. For example,
Hewitt’s Top 10 Companies in the Asia Pacific develop 76% of their leaders internally while a
global survey found a 30%failure rate when placing highly sought after external talent.

4 Explain the key Compensation principles. What do you mean by Total rewards?
Describe the elements of Total rewards
Explaining the key compensation principles
Definition of Total rewards
Explaining the elements of Total rewards

Answer: Key Compensation principles

 Consider the unique characteristics and specific needs of organisation: The unique
characteristics and specific needs of the organisation need to be considered for the
formulation of compensation plans. An understanding of compensation plans among
competitors will create a competitive edge. The process should be developed in
alignment with the strategic requirements of the company. Here process refers to the
approach to the programs and their implementation and alignment refers to the
measures, performance requirements, reward, and the cultural values of the
organisation.

 Integrated total rewards system: Compensation plans need to be expanded and

integrated along with the programs, tools and practices that impact the action of people,
so as to effectively manage and maximise talent. Compensation needs to be viewed as
part of an integrated total rewards system that consists of both what the organisation is
willing to offer and what the individual perceives as rewarding for his/her contribution
to the organisation.

 Aligning rewards to organisation strategy: Individuals should be able to relate to

rewards that should be aligned with the strategy and key drivers of the organisation’s
success. The importance of programs applied universally in an organisation may vary
among individuals of an organisation. To make the rewards more meaningful
organisations need to divide their internal environment at a macro as well as micro
level.

 Creating magnetic culture through rewards: Rewards should result in the creation of
magnetic cultures. Magnetic culture is defined as an environment that draws people,
retains them and gives them good reasons to contribute in an energised fashion.
Employees who are proud of their workplace, and work product, recommending its
products and services to others and considering their organisation as the best place to
work are characteristics of a magnetic culture.

All of the tools available to the employer that may be used to attract, motivate and retain
employees can be termed as Total Rewards. Total rewards include everything the employee
perceives to be of value resulting from the employment relationship. The general elements of
total rewards include salary, bonuses, stock options or participation in the equity of the
organisation. All these elements involve financial investments. Rewards which do not result in
monetary benefit can also be used. Examples of such rewards are developing skill, putting into
practice one’s ideas. These help in reducing the financial investments of the company and
provide a higher degree of satisfaction to certain individuals.

Elements
1. Compensation: Providing monetary value in return for the work performed is known as
compensation. Job performance and job satisfaction can be improved by providing
compensation. The business needs, goals and available resources are factors that govern
compensation plans.
Compensation may be used to:
 Recruit and retain qualified employees.
 Increase or maintain morale/satisfaction.
 Reward and encourage peak performance.
 Achieve internal and external equity
 Reduce turnover and encourage company loyalty.
 Modify (through negotiations) practices of unions
2. Benefits: Benefits provided by the organisation can be either due to law or other benefits
which the company is willing to provide to employees though not mandated by law. Facilities
such as minimum wage, overtime, leave under Family Medical Act, unemployment and workers
compensation and disability are enjoyed by employee since they are made mandatory by law.
Benefits such as Hazard Pay, Health Care, Maternity, Paternity, and Adoption Leave, Paid
Holidays, Pay Raise, Severance Pay, Sick Leave, Termination, Vacation Leave, Work Breaks and
Meal Breaks are benefits provided by employers to employees in order to retain them within
the organisation.
3. Work-life: Attracting, recruiting, motivating, and methods employed to retain the workforce
determine the success of an organisation. Organisations need to be really flexible in order to
retain and develop the workforce and so as to enjoy their commitment and loyalty towards the
organisation. Organisations need to constantly work on improving the quality of work life of the
employees.
4. Performance and recognition: Recognition for performance is an integral and important
component of the total rewards portfolio and provides a high return on investment. Workers
value recognition for achievement more than any financial reward. Awards directly associated
with performance further motivate individuals to perform better. These recognition programs
are highly cost effective and valued by employees and are able to reinforce desired behaviour
among employees. It is a proven fact that there is a strong link between non cash incentives and
improved job performance.
5. Development and career opportunities: Career opportunities can be defined as 'Providing
employees an opportunity to grow', especially to those employees who deliver performance.
Development could be in terms of a promotion, increase in pay, acquiring higher skills and
opportunity to avail certain exclusive perks. Career development cannot be viewed as a
managerial responsibility but it is a composite process. Factors that need to be considered are
the people involved, their ambitions, generating roles in accordance with their potential, and
creating job positions to satisfy the growth and development ambition of employees.

5 Explain the organizational issues pertaining to Talent Management.

Answer: Organizational issues

Organisational issues pertaining to talent management could arise because of focus and fit.
(i) Focus: The different types of focus are:
Step by step focus: In this, managers look for employees with potential to take one step ahead
in their career. Talent management needs to have a proactive approach to both skill
enhancement and career progress
Leadership focus: The leadership focus of talent management function is to produce future
leaders. Organisations need to work on the required talent to equip employees to become future
leaders
Functional level or workforce level focus: Talent management can be associated with the
recruiting and training of functional or professional groups. This is what the functional or
workforce level focus stresses on.
Specific critical posts: The specific critical focus of talent management brings about the role of
talent management in filling individual posts that are difficult to be filled in and are a risk to
business

(ii) Fit: There are several dimensions to getting the fit right. These include:
Fit to focus: This answers the question “how will the process achieve the strategic objectives?”.
Fit to focus is associated with involving both senior managers and the workforce for the talent
management program. The talent management program needs to be aligned with the
organisations strategy in order to be efficient. Linking the talent management program with the
strategy ensures that the program is never static and remains future oriented and helps to
measure employee development.
Fit to culture: This answers the question “will the process reflect the organisation's values,
purpose, and underpinning philosophy?”. The structure of the corporation is a major reason for
the cultural challenges facing the organisation. The structure could be centralised or
decentralised. Organisational culture can also be affected by the decision making process, or
transparency of organisation and so on. The talent program can fit right by certain degree of
openness in the organisation, transparency, employee involvement and so on. Cultural fit is
highly essential for the success of the organisation.
Fit to workforce: This answers the question “what do employees want talent management to
do for them?”. Fit to workforce can be achieved by ensuring that the talent management
processes understands the psychological contracts between organisation and employees. The
talent management process must be in alignment with the needs of the individuals.
Fit to other HR policies: This answers the question “how will talent management integrate and
be supported by other HR practices?”. The talent management processes need to fit with other
HR policies and processes in order to be effective.
Fit to management capability: This answers the question “does the current workforce and
management have the capability and capacity to make talent management work?”. Talent
management processes require commitment and capability for the process to work. A talent
mind-set needs to be established throughout the organisation. Senior managers need to support
the talent management process while the line managers along with HR need to spot, develop
talent and manage performance and provide feedback.

6 Write short notes on:

a)Workforce Analysis
b)Talent Review

Answer: a) Workforce analysis: It is a systematic process in which an organisation identifies

the critical jobs and competencies, needed for the current and future employees, and develops
strategies to overcome any gaps. Its main priority is using information to obtain an overview of
the workforce and targeting talent management initiatives which include:
a) Identifying critical job roles for analysis and planning.
b) Reviewing knowledge/skills/attributes needed.
c) Determining employee population for review.
d) Gathering demographic information.

After recognising organisational priorities, the next step focuses on the roles and skills needed
for the department to be successful.
o Identification of critical roles: The management team determines the key job functions and
roles that will be the primary focus of the talent review discussions. Based on the requirement, a
talent review committee focuses on any of these groups:
a) All staff in a particular function or organisation unit.
b) A specific group or job category of the employee population.
c) A specific level of leaders, managers, or supervisors.
o Inventory of skills and knowledge: Here, the leaders discuss on skills, knowledge, and
performance that are prerequisite to success for the identified job roles. This information serves
as a basis for evaluating the performance and potential of a particular employee group. This
process also includes an overall strength/gap analysis of the department that encapsulates
existing workforce capabilities and identifies gaps that is required to be met by external hiring
or internal development initiatives.

b) Talent review: Talent review helps in developing a clear talent management strategy and to
increase awareness of available talent and successors in an organization. All organizations
should conduct regular talent review meetings to be prepared for a variety of business changes,
such as mergers, company growth, or a decrease in talent needs. It is designed to review the
performance and career potential of employees, to discuss possible vacancy risks of current
employees, to identify successors and top talent in the organization, and to create development
action plans to prepare employees for future roles in the organization.

A Talent Review is a process to involve more senior business executives in sharing and
analysing talent information, mostly focussing on an overall succession management process.
Compared to talent alignment sessions, talent reviews present a chance to discuss talent at a
higher level of depth and focus.

It provides an overview of how to encourage a discussion of key talent in the given ways to:
a) Identify readiness and potential for future assignments or positions.
b) Review possible succession plans.
c) Determine strengths and development needs of employees.