UNIT 1

MBA HR SE M IV
 WHAT IS Talent Management
Talent management is how employers recruit and develop a workforce
that is as productive as possible and likely to stay with their
organisation long-term. When implemented strategically, this process
can help improve the business’s overall performance and ensure that it
remains competitive.
Talent management practices have evolved over the years to cater to
people-specific trends much like all other aspects of work, and have
changed in fast strides over the last few years. Strategic talent
management is a necessity in today’s hyper-change environment.
Global trends in talent and human capital management have led to a
renaissance of the work-worker-workplace equation.
 Continued…
Talent management is defined as the methodically organized,
strategic process of getting the right talent onboard and helping
them grow to their optimal capabilities keeping organizational
objectives in mind.
The process thus involves identifying talent gaps and vacant
positions, sourcing for and onboarding the suitable candidates,
growing them within the system and developing needed skills,
training for expertise with a future-focus and effectively engaging,
retaining and motivating them to achieve long-term business
goals. The definition brings to light the overarching nature of
talent management – how it permeates all aspects pertaining to
the human resources at work while ensuring that the organization
attains its objectives. It is thus the process of getting the right
people onboard and enabling them to enable the business at
large.
 1. Strategic employee planning
This is about working to your organization’s long-term
strategic plan. What are the goals, and what skills,
personalities and experience do you need to achieve those
goals?
Processes involved:
•Business strategy mapping
•Human resource planning
•Company and departmental goal and KPI setting
 2. Recruiting
Recruitment is the process of actively seeking out, finding and
hiring candidates for a specific position or job. The recruitment
definition includes the entire hiring process, from inception to
the individual recruit's integration into the company.
This is about ensuring that you hire the best people – for
present and future requirements. And that you onboard and
integrate them effectively.
Processes involved:
•Recruitment
•Onboarding
•Employee integration
•Diversity and inclusion
 3. Retaining
This is about keeping high-performing employees
challenged, motivated and happy. Retention is a very
difficult process for many companies, but once you
understand what truly motivates people, you’ll be in a
much better position to retain them.
Employee retention refers to the strategies
organizations use to prevent employees from leaving.
It's crucial to maintain a high retention rate, as high
turnover can be costly and impact team morale. Effective
retention involves competitive benefits, a positive work
environment, and growth opportunities.
Processes involved:
•Retention
•Fostering intrapreneurship
•Performance management
•Real-time feedback
4. Learning and development
This is about upskilling your current employees. It involves careful thought about the skills you
need to develop in the workforce, and which employees would be interested in learning them. It
also involves developing the soft skills required of future leaders.
Processes involved:
•LMS course design
•Professional development
•Mentorship
 5. Compensation
There’s no getting around it, people need to be recognized and
rewarded for their successes. It’s important to review your
compensation strategy, to ensure that people are rewarded for the
right behaviour – for long-term thinking and goal achievement,
rather than just short-term sales.
Processes involved:
•Goal setting and KPI
•Salary and bonus structures
 6.Succession Planning
Succession planning is a process and
strategy for replacement planning or
passing on leadership roles. It is used
to identify and develop new, potential
leaders who can move into leadership
roles when they become vacant.
Succession planning is the process of
identifying the critical positions
within your organization and
developing action plans for
individuals to assume those
positions.
The importance of Talent Management
1. It helps businesses improve performance:With top specialists in your organization, you can
reach any goal. Talent management is most effective of all when it combines three key
components: rapid talent allocation, positive employee experience, and a strategic HR team.
2. It allows companies to stay competitive:By hiring and developing talented employees, your
organization becomes stronger and better prepared to face changes and risks.
3. It drives innovation:New technologies are always hitting the scene, whatever your industry.
Talented employees are able to find ways to harness the capabilities of new tools and solve
problems or come up with original ideas.
The importance of Talent Management
4. It helps form productive teams:The appropriate talent management strategy will allow you to
form a more productive team. This is far more useful than just having a bunch of creative and
talented people in your organization.
5. It decreases turnover:When employees feel valued at a company, when they know they will
have plenty of opportunities to grow in the business, they are less likely to seek work elsewhere.
6. It leads to strong employer branding:Talent management brands your company as an
employer. This helps you to attract the best candidates for future hires.
7. It motivates others to grow:Having inspiring talent on your team will motivate other
employees and help them grow.
STEPS IN TALENT MANAGEMENT
Factors Affecting Talent Management
1. Age and Seniority : there is a positive relationship between age and the retention. The older
an employee within the organization the more he/she want to stay. Moreover it is more
common for the young employees to change jobs at the beginning of their career in any
organization wherein it is not easy for an older employee to find another job.
2. Salary and Benefits The relationship of salary and benefits with talent retention is another
aspect of making people stay in the organization. Fair remunerates and rewards to the
employees have been found to have a significant negative effect on the intention to quit from
the organization.
Factors Affecting Talent Management
3. Working Environment Employee Retention is another biggest challenge and involves how to
create and maintain daily working environments in which the talented ones can productively
pursue the joy of work and financial benefits from their individual or collective contributions.
New generation executives are looking for challenging assignments with adequate
compensation to get professional satisfaction whereasan effective work-life balance strategy is
not simply about complying with the law
4. Succession Planning There are different perspectives about succession planning but almost all
of them hold a common root. Some consider it as a process of planning for succession of
choosing the next senior team. For other groups, it is an adequate pool of proper talents for in-
house recruitment. Some succession planning is a “future-proofed” strategy that enables the
organization to grow and perform in the future successfully
Factors Affecting Talent Management
5.Training and Development: Training is a key retention factor for the talented employees in any
organization at any age, Offering a higher salary is not the only important factor motivating
talented employees working with an organization but other kinds of motivation such as career
path, career development, and open communication are important factors as well.As long as
employees feel that they are learning and growing, they will be less inclined to leave. On the
other hand, once employees feel they are no longer growing, they begin to look externally for
new job opportunities.
Factors Affecting Talent Management
6. Organization Culture Organizational culture has a substantial effect on whether talent
management activities will succeed and contribute to improving results. It is the central to an
organization’s ability to manage its knowledge more effectively.
7.Organizational Commitment Organizational commitment of an individual is his/her
psychological attachment to their organization. In fact it can make or break the bottom line.
Employees who are most committed perform 20% better and are 87% less likely to resign.
Commitment has a significant and positive impact on job performance and on workforce
retention
Factors Affecting Talent Management
8. Job Security Increasing numbers of organizations mergers and acquisitions have left
employees feeling displeased from the companies that they work and haunted by concerns of
overall job security. As a result, employees are now making strategic career moves to guarantee
employment that satisfy their need for security. On the other hand, employers have a need to
keep their stuff from leaving or going to work for other companies.
9. Job Flexibility: Work practicethat allows the employees a certain degree of freedom in
deciding how the work will be done and how they will coordinate their schedules with those of
other employees. Job flexibility is vital for retaining employees of any age.
Factors Affecting Talent Management
10. Job Satisfaction In the present hypercompetitive and increasingly complex global economy,
Job satisfaction represents one of the most challenging area faced by today’s service based
companies’ managers when it comes to managing their employees. A positive and favorable
attitude towards the job indicates the job satisfaction. A study on employee engagement and
business success showed that employees who wereextremely satisfied at work were four times
morelikely than the employees who are dissatisfied.
11.Identify and Differentiate Talented Employees:It refers to the classification of individuals in
different groups with different levels of talent
Factors Affecting Talent Management
12.Provides Meaningful and Challenging work Nine out of ten managers think that people stay
or go because of money, which is actually not the case. Money and benefits matter, but what
the employee’s want the most is challenging and meaningful work, good bosses, and
opportunities for learning and development. Challenging and meaningful work in any
organization requires the application of various skills, self-control and participation in the
important issues of the organization. Provides meaningful and challenging work refers to
ensures that subordinates are able to link their individual contribution to organizational and
divisional strategic direction.
13.Leadership Leadership can be described as a process of social influence in which one person
can enlist the aid and support of others in the accomplishment of a common task, Organizations
will be more effective in their talent management if they encourage active leadership by
managers. A study by Mwangi (2009) revealed that a majority of both the current and the past
employees agreed that the nature of leadership styles had an effect on the staff morale.
14.Communication: Studies have indicated that effective communications improve employee
identification with their agency and build openness and trust culture. Increasingly, organizations
provide information on values, mission, strategies, competitive performance, and changes that
may affect the employee’s interest.
 Talent Management System
A talent management system, or TMS, is an integrated software platform that supports core
talent management processes, including recruitment, employee onboarding, performance
management, learning and professional development, compensation management, and
succession planning. These processes, and the technical capabilities that support them, are
typically delivered via software modules. So, businesses can start with what they need and add
additional functionality as they grow.

Most importantly, with a TMS, an organisation can link human resource planning to its business
strategy. This ensures proactive measures are in place to provide the necessary talent that will
support the current and future goals of the business.
How does a talent management system work?

A TMS integrates all of the HR modules needed to attract, hire, and develop employees.
Although it is common for individual modules – such as recruitment or performance
management – to be referred to as talent management systems, standalone modules lack the
multi-faceted capabilities of a truly integrated system, which supports the entire talent lifecycle
and its processes, from initial candidate acquisition right through to succession planning.

Talent management systems typically run in the cloud. A cloud platform provides a range of
benefits, including larger data storage capacities, more robust security, and easier integration
with complementary applications such as payroll, training programmes, career planning, and
other systems, as well as the secure storage of employee data (such as personal information,
demographics, and compensation).
 The key elements of a talent management system.
1.Plan. Ensure talent strategies align with the needs of the business.
Work with leadership teams to understand business objectives, then
ensure the talent strategy supports these outcomes.
2.Recruit candidates. Source talent globally, nurture candidates
throughout the recruitment process, and leverage the efficiencies
of a comprehensive applicant management and tracking system.
3.Onboard employees. Optimise new hire engagement with a
dedicated onboarding portal. Ramp employees quickly with
paperless new hire processes. Automate workflows for on-, off-, and
cross-boarding.
4.Manage employee performance. Help employees manage their
goals. Use guided action planning for continuous performance
management.
5.Plan and design compensation models. Reward and recognise
strong performers.
6.Develop and retain employees. Provide modern and engaging
learner experiences. Schedule and carry out compliance training.
Develop proactive succession plans and actively develop leaders.
 Capabilities of a talent management system
A TMS allows an organisation to implement an end-to-end talent strategy that aligns with
the objectives and goals of the business. For example:
•Recruitment: Attract and hire the best candidates who, in turn, become high-performing
employees, boosting productivity and improving organisational strength.
•Development: Build skills and adaptable teams to help drive business performance.
Identify and cultivate strong leaders for continuous growth.
•Retention: Help employees grow in their careers, increasing engagement and retention.
A talent management solution also provides operational efficiencies, using a centralised
model for planning, data sharing, and other interactions. Digital workflows replace manual
and offline processes for greater efficiencies in the backend, allowing HR personnel to focus
on higher-value work.
The activities associated with a TMS generate personal and confidential data, which the
system stores in a secure database. Powerful analytics and reporting capabilities help
inform strategic planning to ensure that the business achieves its immediate and longer-
term talent goals.
With a talent management system, the company can easily plan, measure, and
communicate talent results and overall value to the business.
Talent Management Assessment tools
Creating Talent Management System
1.List organization’s core competencies and assessment tools

2. Training and development solutions

3. Assessment of Employee core competency and potential forecast

4.Action Plans
Issues And Challenges In Talent
Management
When it comes to talent management,
organisations are struggling to identify and develop
internal talent.
It’s true; business owners have a lot to focus on. From new business development to keeping
existing clients happy, there’s a lot to think about. It’s no wonder talent management is filed
under ‘Pesky tasks HR needs to take care of’. But the reality is that a company’s ability to recruit,
manage, develop and retain high-potential employees is vital for growth.
Being able to truly understand your talent—what they’re good at, what others think they’re
good at, who they’d be best working with, and what teams they could successfully fit into—is
the difference between an efficient, growing organisation and a stagnant one. Businesses need
to evolve their talent strategies if they hope to remain competitive in the race to attract and
retain top talent.
 1: Finding internal candidates
With global skills shortages, record staff turnover rates and
resource constraints, organizations are being tasked with
sourcing top internal candidates to fill vacancies.
A major challenge in talent management is having a clear view
of the talent you have, informed by data, to know who to
develop, how to develop them, and when.
Just as employees are expected to align their strengths with a
company’s needs, organisations must match their business
requirements to their employee’s strengths and link them to
suitable career opportunities.
Not doing so could impact the employee experience, with
employees choosing to leave for further career advancement
and personal development.
 2: Identifying growth potential

It’s incredibly difficult to develop an employee who is either

unwilling to be developed, or unable to be developed. The more
someone is both willing and able to develop themselves, the
greater your return will be on the time, money, and effort you
invest in that person’s development.
One of the biggest problems organisations face, is that they are
unable to identify their employees potential and willingness to
grow and change. If they could do that, they’d be able to identify
high potentials early on.
 3: Boosting Performance
Even if you’ve identified an employee’s growth potential, HR
departments are struggling to boost their performance. Why?
Mostly because talent management is still done retrospectively.
At the end of each year, HR will sit down with employees to see
where they went wrong. The problem with this approach, is that it
doesn’t allow companies to anticipate problems and suggest
actions to boost performance before it’s too late. Predictive
performance analytics is key to making this happen.
Data and analytics helps organisations simplify processes and make
decision-making better, simpler and faster. Predictive performance
analysis uses data and information to make informed predictions
about how well employees or job candidates are likely to perform
in their roles.
Predictive talent analytics helps HR professionals and managers
anticipate future performance, find areas for improvement, and
make decisions about hiring, training, and development to ensure
better outcomes in the workplace. It can also help to predict and
prevent turnover and attrition.
 4: Collating Training Needs
In many organisations, training happens in isolation. Talent
management teams typically provide training to new employees
once off. Afterward, employees must convince their managers to
approve additional learning and development, where the benefits
for the company may not be obvious, or the training isn’t
necessarily aligned to the employee’s growth needs.
The problem here, is that training viewed from an individual
perspective may not align with the organisation perspective.
However, not viewing training from the perspective of employees
may result in them leaving for better development opportunities.
Employees must be able to identify their own development needs
by comparing their strengths to the company’s needs, and then
developing specific skills and behaviours that complement this.
 5: Assembling Teams
We all know that building strong teams is imperative to a company’s efficiency. But how do you build a
team when you’re not sure who works best together? HR needs a way to combine people with
complementary strengths into teams to take projects from concept to implementation.
Talent management strategies
 Effective Talent Management Strategies
1.Create a top-notch onboarding process
2.Showcase your company culture
3.Provide development opportunities
4.Recognize and celebrate employee success
5.Develop your talent pool
6.Invest in the right performance review software
7.Build a positive reputation

https://www.hrmorning.com/articles/talent-management-strategies/
 1.Create a top-notch onboarding process
crucial time in any new hire’s experience with your company. First
impressions matter.
Onboarding helps new team members get familiar with your
company culture while also giving them the tools and resources
they need to hit the ground running, mitigating the “trial by fire”
major impact on the confidence with which new hires approach
their new role, so it’s imperative that it be well-defined and
comprehensive, making the employee feel like they’re supported
and set up for success.
Building an onboarding process will take time, but it’s well worth
the investment.
 2. Showcase your company culture
Company culture is often a leading driver in whether an
employee feels like they’re a good fit with the business or if
they choose to look for employment elsewhere.
Offering competitive wages is not enough
What makes your business a delightful place to work? What
keeps your employees committed to your company
brand values, team building opportunities, how you treat each
other, how you approach feedback, vacation policies, your
stance on work-life balance, and so much more.
it’s always evolving, and it can change for the worse if you’re
not careful. Take time to assess your current company culture
to determine what’s missing and how you can improve
 3. Provide development opportunities
Ensure development opportunities play a key role in your talent
management strategy, as this will reduce turnover rate, improving
your employee retention.
Employees don’t want to feel stagnant in their career. Ensuring
everyone on your team has opportunities to develop and grow
within your company will prevent them from looking for those
development opportunities elsewhere
The benefits of investing in training programs are twofold
Build a robust development program that’s multi-faceted, including
technological skills, soft skills, career advancement opportunities,
networking opportunities, education, and personal development.
 4. Recognize and celebrate employee success

Celebrating employees when they succeed or reach a milestone

makes them feel like they’re a valuable member of the team as
opposed to a disposable lemming. No one wants to feel as
though they’re just another number or brick in the wall.
Constantly seeing the same people succeed will sow resentment
among team members. Top talent should, of course, be rewarded
for their hard work, but it’s important to remember that every
employee contributes something unique to your workplace.
Recognizing and rewarding employees, even if it’s a simple shout
out in an email, makes people feel seen.
 5. Develop your talent pool
A huge aspect of successful talent management is to have a
pool of qualified candidates to choose from both internally
and externally. Building a talent pool you can pull from in an
emergency saves time when you’re left scrambling and
reduces the likelihood of a bad hire.
​Optimizing the talent pool within your organization is also
beneficial, as you can help your current team grow and
expand within the business. Instead of constantly looking for
replacements and retraining, you can help your current team
develop into higher levels within the company.
 6. Invest in the right performance review
software

Performance reviews are vital to talent management, but

they’re not easy. If handled poorly, they can quickly result in
hurt feelings and resentment. As any HR professional knows,
when employees feel unfairly singled out, at best, it can
cause major headaches for HR, and at worst, it will result in
team members looking for employment elsewhere.
company handles performance management and reignite
productivity.
The best talent management software includes learning
management and succession planning capabilities, applicant
tracking, and performance management, which helps
companies give continuous, transparent feedback.
 7. Build a positive reputation

If your employees are happy working for you, it’s a walking

advertisement for your company. The more satisfied your employees are
with their work and your company culture, the more likely they are to
brag about it to their friends, family, acquaintances and your own
customers.
Talent acquisition begins internally with the satisfaction of your current
employees. Take time to assess how your team members feel about their
respective roles, your company culture, and the company as a whole.
Look at hard metrics like retention, surveys, and performance reviews.
Thank You