STRATEGIC TALENT MANAGEMENT

WHAT IS TALENT MANAGEMENT?Talent Management is about identifying, attracting, integrating,

developing, motivating and retaining key people across the whole of the business, not just the ‘elite few’ decision-makers, as is so commonly the case.

Talent management activities can include performance management, succession planning, talent reviews, development planning and support, career development, workforce planning and recruiting”

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TM introduced by Mc Kinsey consultants, late 1990’sTM is identified as the critical success factor in corporate world

TM focuses on differentiated performance: A, B, C players influencing company performance and successidentifying key positions in the organization

Why Organizations Need Talent Development?

Why Organizations Need Talent Development?

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• To compete effectively in a complex and dynamic environment to achieve sustainable growth

• To develop leaders for tomorrow from within an organization

• To maximize employee performance as a unique source of competitive advantage

• To empower employees:Cut down on high turnover ratesReduce the cost of constantly hiring new people to

train

STRATEGIC TALENT MANAGEMENT

• In the same way that a successful business strategy is underpinned by an effective HR strategy, to be successful, the talent strategy must be aligned to the business, and both drive and deliver business directives.

• Strategic talent management ensures that effective and timely people strategies are in place to reduce the business risk of being under human-capitalised.

• Business goals need to be translated into workforce needs in order to drive success (Farley, 2005).

The key to inciting a workforce to greatness is to align your talent management with company strategy, define consistent leadership criteria across all functional areas, and identify specific competencies (analytical, technical, education, experience) to cultivate for continuing growth.

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The Talent StrategyDescribes what type of people the organization will invest in and

how it will be done

Besides the specific elements of their creed, the talent strategy of all high performing organizations should have these directives:

1) Identify key positions in the organization (not more than 20, 30 %)

2) Assess your employees and identify the high performers (classify according to their current and future potential)

3) Retain key position backups4) Make appropriate investments (select, train, develop, reward)

What is talent ?

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What is talent ?

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• a person’s abilities, • his or her intrinsic gifts, • skills, knowledge, experience , • intelligence, • judgment, attitude, character, drive, • his or her ability to learn and grow.

HR and TM

HUMAN RESOURCES MANAGEMENT

TALENT MANAGEMENT

o Broad Scope (entire employees)o Emphasize egalitarianismoFocus on administrative functionsoTransactionaloFocus on systems with silo approach

oFocus on segmentation (key group of core employees and key positions)o Focus on potential people oFocus on the attraction, development and retention of talentoFocus on integratation of HR systems

TALENT MANAGEMENT FRAMEWORK

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THE FOUR PILLARS OF TALENT MANAGEMENT

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Talent Management Model

Talent Management Aligned with Strategy

HCS Certification Course, V.2.1, 2009

Talent Management Adoption Model

Line Managers to Talent Leaders, V.1, 2009

GOOD TALENT MANAGEMENT PRACTICES

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Cost of losing a talented employee – $250K-$500K

Number of employees the average manager’s actions

directly affect – 12

Cost of poor hire – $300K - $500K impact

Acquire

Engage

Develop

Deploy

Retain

Plan

Evaluate

Lead

Value of top performers – 2 to 3 times the performance of

average employees

Average time required for a new manager to become productive – 6 months

70% of organizations have a weak pipeline

Cost per day when operating without a key player - $7,000

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Talent Management Systemassessment tools multi-rater assessmentdiagnostic toolsmonitoring processes

Assessment Tools for TM

• Competency Assessment• Performance Appraisal• Potential Forecast• Succession Planning• Career Planning

Multi-Rater Assessment

• Employee. The owner of the career plan that is aligned with the succession plan

• Boss. The primary assessor • Boss’s boss. The key link in the vertical

succession and career plan• Boss’s peer group. Source of potential new

assignments in the same or other function

Monitoring Processes

Results & reviewing regularly:• quality, • timeliness and • credibility

Talent Metrics

• Segmented turnover data• Readiness levels for key positions• Segmented engagement levels• Number of strategic/critical jobs unfilled• Percentage of inside vs. outside hires for

leadership and critical jobs

HCS Certification Course, V.3.0, 2010

Contributing Measures

• Quality of incoming candidates• Quality of hire• Segmented turnover within first two years• Time to proficiency in new job• Depth of talent pools for key and feeder

positions• Number of people promoted outside of

department• Percentage of first choice hires accepting