What is Talent Management
In this article we will provide you the elaboration about Why is talent management important and vs People Management with 5 reasons.
When we talk about talent management we refer to the system or strategy that an organization uses to select, hire, train and retain employees effectively. Employees who are motivated to do quality work and are in tune with the company are those who are most likely to grow professionally and move into leadership positions in the future.
Companies develop talent management strategies for many reasons. One of them is to hire the best candidates: people who have the right attitude, skill and experience to adapt to the company’s culture and vision. Talent management strategies also ensure that employees are properly trained and provided with appropriate career development, both for employees to help them achieve their own career goals and for companies to have leaders. in the future, meet performance goals and retain top performers.
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.
1-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.
2-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
When talent management is done right, everyone benefits, both the employees and the company. In the case of employees, talent management offers them the following advantages:
- They can learn new skills through ongoing training and development opportunities, which in turn helps them progress towards their career goals.
- It allows them to find new internal opportunities to capitalize on their skills, interests and experience.
- Makes promotions or transfers to new positions available that provide ongoing challenges and job satisfaction.
It is increasingly common for companies to recognize that human capital is their most valuable asset, which is why hiring, training and retaining the best employees is a fundamental objective. Today, organizations have different analytical tools at their disposal to obtain an overview of the talent pool and deeply understand what each employee needs to achieve success. With the help of these tools , companies can achieve the following:
- Identify needs in advance; for example, positions that need to be filled or skills that some departments lack.
- Attract top talent: people with the right skills who are also aligned with the company’s vision and culture.
- Quickly fill critical positions with targeted selection strategies and effective hiring methods.
- Grow and retain top employees through the use of talent profiles, performance objectives, development plans, learning opportunities, regular performance check-ins, personalized coaching and other tools.
- Reduce employee turnover rates and save time and money.
- Improve business performance and customer satisfaction by having a loyal and experienced set of employees.
What advantages does a talent management system have?
Talent management systems are software applications, typically in the cloud, that aim to help companies implement talent management strategies. Basically, integrated talent management software is responsible for hosting, collecting and analyzing data related to existing and potential employees to ensure that the organization finds, hires and trains employees in the best possible way.
By incorporating emerging technologies, such as artificial intelligence, machine learning and big data, talent management systems can provide the following advantages for companies:
- Forecast future resource needs.
- Develop detailed talent profiles on existing and potential employees.
- Quickly source and select candidates from large talent pools.
- Monitor and forecast employee and team performance.
- Evaluate different parameters in relation to employees (potential, risk, impact of loss and performance) in order to have data for succession planning.
- Provide employees with personalized and dynamic learning recommendations based on their career goals, as well as track their progress.
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.
