Economics/Business

Why is talent management important/vs People Management/5 reasons

Do you know the importance of talent management in an organization? Do you understand the consequences that bad management or lack of management can cause for your company?

So, major issues, such as low performance, little engagement, loss of professionals, among other organizational harms, are associated with poor management of talent in companies or even the lack of this practice.

In this article, you will understand what talent management really is, how it differs from people management and what are the reasons to implement and value this sector in your company. Check out!

What is Talent Management

Managing talent is providing employees with the best scenario for them to perform within the positions they occupy. Once people’s abilities and potential are identified, the manager’s role is to adapt each individual to the places where they will reach their maximum potential.

Think of it like this: a person who knows what he’s good at and who directs his efforts toward that specific skill certainly has a better chance of leveraging and improving what he already has.

In addition to creating this favorable place for people’s development, it is important to consider that talent management also minimizes barriers that can impede the growth of a team, such as bureaucracy or lack of tools.

People Management vs Talent Management

As similar as the functions of these two areas may be, there is a noticeable difference in the way in which each is exercised.

People management

People management is the most generic type of administration related to bureaucratic issues. It includes, for example, payment of salary, definition of vacations, bank of hours, receipt of certificates etc. It is a coordination that is limited to the fulfillment of labor matters.

Thus, it plays a role focused on meeting the daily needs of professionals in the company.

talent management

On the other hand, talent management is concerned with the employee in a more individual and strategic scope . Therefore, its function is to create functional plans, aiming at the constant development of each professional according to their individualities.

Here, it is understood that talent management is an evolution of HR , which considers: managing people in a personalized way with the objective of continuously developing talent.

Importance of talent management

The profile of the labor market has undergone significant changes, which leaves many professionals insecure about the demand for opportunities.

A survey carried out  showed that 48% of the young people interviewed feel anxious about the future , due to this instability.

For this reason, companies need to understand that the best way to not lose talent due to this insecurity is to offer them help.

Again, retaining talent has always been important, mainly because no manager wants to lose their most efficient employees to the competition.

However, the current moment demands a relationship of partnership, trust and empowerment.

Company and professional must help each other , discovering new ways to show the abilities of each individual, making this a much healthier and more evolving relationship than a simple race against its biggest competitors.

In short, the HR model and the way it sees talent management is undergoing a process of disruption , which represents the key for companies to be well positioned in the digital transformation process .

Technology is an empty resource when it receives investments in isolation. She needs strong human support.

Thus, talent management facilitates the absorption of new technologies, reduces costs with layoffs and new hires, allows professionals to have a satisfactory career plan and motivates teams.

This is how organizations can visualize successful results .

5 reasons to manage talent

Knowing the differences between people management and talent management and how important it is, here are some reasons why you should implement this type of management as soon as possible.

1. Optimization in recruitment and selection

When a company invests in talent management, the selection process becomes much smarter. From the beginning of the hiring process, it is important to understand which skills stand out in a candidate and, from there, understand which are the appropriate skills for that position offered.

Once you already know which profile you are looking for and which types have applied for that position, your selection process becomes more streamlined, more targeted and more intentional. In this sense, there are tools that can help in the process, such as the DISC methodology , which can be a great differential when choosing a candidate.

2. Talent retention

One of the great difficulties of companies is to keep their employees engaged and satisfied in their occupations . Today, people are no longer attached to the time they stay in the same job. Therefore, if they receive a better job offer, they easily migrate to another organization.

These collaborators are often capable people, who will be lacking in the workforce. Therefore, a company that practices talent management understands what the skills of this professional are and manages to adapt them, so that this employee feels satisfied in their position.

Still, it makes him realize the advantages of professional growth and want to continue progressing more and more, together with the institution to which he belongs. Consequently, this professional will feel valued and the chance of him being attracted to other companies is much lower.

3. Increased productivity

Another benefit for the company that performs talent management is the increase in productivity which, as a result, leads to an increase in revenue and profit .

Still thinking about satisfied employees, it is known that people who are happy in their work produce more and better. Thus, when an individual is in a place that values ​​them and provides a favorable environment for their development, naturally, they present a job well done, directly contributing to the company’s success.

4. Improvement in the organizational climate

A good measure of business success is the level of employee satisfaction with the business climate. In this sense, an organization considered “good to work for” attracts people and is valued, standing out in the market.

Therefore, if your employees are in the right place, compatible with their talent, the organizational climate of your institution tends to improve considerably.

5. Engagement

According to surveys, companies that practice talent management have professionals more engaged in the organization’s purpose . Thus, people are more interested in the company’s cause, in its purpose, as they feel part of the mission where they work and engage more in the activities proposed to them.

Based on the above, it is prudent to state that companies of all sizes and markets need to include this type of management. A genuine concern for the human being and the creation of actions to contribute to the true progress of a professional are practices that, when adhered to , bring a remarkable evolution in the organizational context.

Therefore, understanding the importance of talent management, knowing the difference between a traditional and archaic management and an innovative and promising one, now all that is left is for you to apply this management model and transform the way you positively exploit the talents present in your company.

Talent Management Practices

There is no magic formula for managing talent.

Throughout this text, you have probably already noticed that it is an entire internal change in the HR posture that will provide more strategic actions.

On the other hand, in addition to considering human capital with greater importance, we can mention some other points that are essential for modern talent management.

Are they:

Quick allocation of new talent

Strategic HR is governed by indicators , and it is not by chance that one of them is focused on the allocation of new talent.

The time a company takes to complete the hiring process and also the integration of new employees, says a lot about its performance in people management.

When a new professional adjusts quickly, it means they have been recruited based on a cultural fit analysis , as well as being placed in activities specifically geared to their skills.

This is also a reflection of a management that closely monitors the process, encouraging teams to be cross-functional.

Valuing the employee’s experience

Strategic talent management has a special focus on employee experience.

This means that the proposal is to make him feel part of something big, that he likes to go to work and that he feels comfortable with his colleagues, whether they are from the same sector or even leaders, managers or directors.

Direct contact with leaders, exchange of feedback , and support for participation in important project decisions, among other actions, are valuable examples that enhance this experience.

Alignment with organizational culture

Talent management must be focused on aligning professionals with the company’s strategy and the entire organizational culture .

The power of that management would have no value if it were based on employees who don’t really care about the goals and priorities of the organization they work for.

In this aspect, it is also worth noting that the company’s values ​​are taken into account in the modern corporate environment.

In other words, it is important to dedicate yourself to being an authentic company, which considers and cares about the social roles played by its human capital components.

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