How to Develop a Talent Management Strategy
Successful companies have a well-defined talent management strategy in place to make sure their teams utilize the skill sets of their employees the right way, acquire the right employees, and take retention seriously. Companies that realize how important it is to make an investment in their teams from the beginning are usually more successful with loyal, happy employees.
What is talent management strategy?
Simply put, it’s a plan to optimize employee performance and keep the business competitive. Human resources play a huge role in a well-developed talent management strategy, as well as understanding how the business strategy drives the talent working for the organization. Talent management strategy is important because it helps in locating, training, and developing the people you need to not only meet business goals but inform decision-making and allocate resources.
Following companies with best talent management practices can serve as a blueprint for developing a talent management strategy of your own. The big five include Microsoft, Starbucks, Marriott International, Google, and PepsiCo. What makes them so successful? They thrive off talent management and view it as one of the key pillars of their success. They believe in training, relationships, development, culture, inclusivity, and balance throughout the organization, committed to putting people first.
What is good talent management strategy?
Good talent management strategies have fully defined objectives and desired outcomes that can be quantified; they identify the needs of current staff; they can be tracked; they find behaviors and traits that are beneficial to the company, and they use systems and tools to organize and streamline their strategies. Talent management is about more than just offering perks and benefits – it’s a true realization that happy teams grow beyond the bottom line.
A few talent management initiatives can include:
- Employee training and development tools
- Standardized tracking and performance measurement
- Employee recognition and appreciation
- Career development paths
- Culture compatibility
- Internal leadership development
Talent Management Process
It’s no secret that a good talent management process has HRM at the helm. Talent management in HRM is a key piece of the puzzle that works when the right tools and systems are in place. The HR function helps in providing the right environment for employees to develop and further their careers, helps align performance goals with strategic business goals, and tracks productivity and performance.
HR is instrumental in attracting talent that matches the company’s culture but can also help improve business performance. When HR is not aligned with the culture, the process fails. Beyond acquiring new talent, talent management also includes onboarding, development, engagement, and retention of good employees.
Talent management strategies of leading companies all have a few things in common: the talent management process 8 steps to success. This includes:
- Treating candidates like customers to attract talent
Candidates should have a complete experience when interacting with your company, feeling like they were treated professionally and with respect.
- Aligning strategic plans
Every employee should have a purpose and place within the organization.
- Having clear goals, expectations, and job requirements
Employee roles should evolve and be reviewed on a consistent basis.
- Measuring progress
Employees want to know how they are doing and should have regular, timely feedback.
- Building and keeping engagement
Management should have initiatives and practices in place that start and keep employees engaged while improving their performance as a team.
- Offering fair compensation and regularly rewarding staff
Companies that pay well with good work/life balance strategies in place help employees feel seen, heard, and valued.
- Having safe outlets for employees to share concerns
Employee feedback is instrumental in helping companies become more effective throughout the organization.
- Having well-defined structures for development, improvement, and advancement
Employees need opportunities to thrive and advance or they will go look elsewhere.
These steps should be the foundation of your talent management policy to create a thriving workplace environment.
Talent Management Framework
A talent management strategy framework is the blueprint for how companies design and implement their talent strategy. The components of an effective talent management framework all work together, building on each one.
The framework usually begins with skill assessments, then on to career paths, development, and succession planning. Supporting career growth and development helps upskill employees, which benefits both the employee and the organization. The area of succession planning is often overlooked but is very important because it ensures continuity in the business when there are shifts in leadership. The succession plan taps into those top performers who have been trained and developed and identifies the knowledge and skills needed in current employees that could easily move into the C-suite.
Like a well-oiled machine, these components build an organization of learning, engagement, and retention. Companies that do not have a talent management framework or efficient talent management systems and software in place that are tailored to the specific needs of the organization can seriously hurt the business goals of the company. This structure is needed for positive human capital management and workforce planning that helps acquire, maintain, and retain the best talent for moving the company forward.
Talent Development Strategies
Effective talent management strategies have a way of storing and updating all the data collected from defined talent initiatives. This allows HR to compare the information to current market data. An all-in-one system can help companies effectively manage these talent management strategies, providing talent that is better informed while creating opportunities for better business decisions.
How to write a Talent Strategy
Many companies use a talent management strategy template which includes including the organizational priorities and business objectives of the company, creating HR-related goals to address the business goals and fill in the gaps, reviewing and improving current talent management processes, and implementing systems to measure results and reassess where needed.
Some talent management strategy examples that may be included in the talent strategy include nurturing growth mindsets within the team, investing in upskilling and reskilling, creating mentorship opportunities and formal internal programs, placing a high-value on individualized growth plans, building partnerships across the company, partnering with external providers to provide additional training, and evaluating and adjusting these tactics on a frequent basis to make sure all employees benefit.
