TALENT MANAGEMENT

The term was coined by McKinsey & Company following a 1997 study.

It was later the title of a book by Ed Michaels, Helen Handfield-Jones, and

Beth Axelrod.

The field increased in popularity after research and the 2001 book on The
War for Talent.
 Talent management is a process used by companies to optimize how they
recruit, train and retain employees.

Through human resources processes, such as strategic workforce planning,

companies can anticipate their needs and goals and attempt to hire a
workforce that reflects those needs.

The plans for managing talent may include talent acquisition, local
parameters, budgets and staffing requirements, among many other
strategies.
 Talent Management is the attraction, selection, and retention of employees,
which involves a combination of HR processes across the employee life cycle. It
encompasses workforce planning, employee engagement, learning and
development, performance management, recruiting, onboarding, succession and
retention.
Talent Management is the systematic process of identifying the vacant
position, hiring the suitable person, developing the skills and expertise of the
person to match the position and retaining him to achieve long-term business
objectives.
Significance of Talent Management

• Right Person in the right Job

• Retaining the top talent
• Better Hiring
• Understanding Employees Better
• Better professional development decisions
• Higher client satisfaction
• Continuous coverage of critical roles
• Engaged employees
• Increase employee performance
• Employee motivation
Right Person in the right Job: Through a proper ascertainment of people skills and
strengths, people decisions gain a strategic agenda. The skill or competency
mapping allows you to take stock of skill inventories lying with the organization.

Retaining the top talent: Despite changes in the global economy, attrition remains
a major concern of organizations. Retaining top talent is important to leadership and
growth in the marketplace.

Better Hiring: The quality of an organization is the quality of workforce it possesses.

The best way to have talent at the top is have talent at the bottom.

Understanding Employees Better: Employee assessments give deep insights to the

management about their employees. Their development needs, career aspirations,
strengths and weaknesses, abilities, likes and dislikes.
Better professional development decisions: Since development calls for
investment decisions towards learning, training and development of the
individual either for growth, succession planning, performance management etc.

Higher client satisfaction: A systematic approach to talent management means

that there is an organizational integration and a consistent approach to
management.

Continuous coverage of critical roles: Talent management equips companies

with the tasks that require critical skills to plan and address the important and
highly specialized roles in the workforce to its employees.
Engaged employees: Talent management allows companies to make systematic
and consistent decisions about the development of staff, which guarantees the
employees’ skills and development.

Increase employee performance: The use of talent management will make it

easier for the companies to identify which employees will be best suited for the
job that can lead to less performance management issues and grievances.

Employee motivation: Having a strategic talent management helps organizations

keep their employees motivated which creates more reasons for them to stay in
the company and do their tasks.