talent mangement and employee retention

8/17/2019 Talent Mangement and Employee Retention

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Que.1 Explain the key elements of Talent Management System.

Ans.1 Talent management practices and techniques have evolved over time in response to a changingworkplace. The most effective talent management processes are organisation-specific and react to anorganisation’s distinctive business and human capital framework. Talent management includes a range ofinterdependent processes and procedures that need to be properly integrated. The organisation will not achievethe desired level of human capital performance if talent management processes do not operate as a unified

group.

The key elements of Talent Management System are explained as follows

Selection Selection is the process of choosing a candidate amongst a number of probable candidates.!ecruitment and !etention has become a big challenge for organisations due to the continuing global talentshortage" the changing worldview of work by new generation employees entering the workforce" and the everincreasing evidence that poor recruitment decisions have a direct impact on the bottom line.

!ecruitment process that is not merit-based and has poor reliability and validity are a burden to an organi#ationand can ever expose the company to discrimination claims. $oor hiring choices can affect the organi#ation inadditional recruitment costs" training and orientation costs" loss of time" lost opportunity" lost revenue" loss ofcompetitive advantage" tarnish image and reputation. %t is about recruiting the right people in the right place at the

right time. &rgani#ations need to fil ter their attraction" recruitment and selection approaches to ensure they havethe right talent on board to enable them to remain competitive. ' global view that includes a diverse workforce iscritical.

!ecruitment process that is not merit-based and has poor reliability and validity are a burden to an organisationand can even expose the company to discrimination claims. $oor hiring choices can affect the organisation inadditional recruitment costs" training and orientation costs" loss of time" lost opportunity" lost revenue" loss ofcompetitive advantage" tarnish image and reputation. %t is about recruiting the right people in the right place at theright time. &rganisations need to fil ter their attraction" recruitment and selection approaches to ensure they havethe right talent on board to enable them to remain competitive. ' global view that includes a diverse workforce iscritical.

%nduction and training %nduction is the formal entry of the selected candidates into the organisation and Trainingis to develop their knowledge" skills and competencies by teaching with respect to the organisationalrequirement. (mployers should not assume that new hires can cover for themselves" and will only need briefintroductions and a chunk of corporate information to get them started. 'lthough lost profits due to the training ofa new hire has been estimated as ).* + ,. of total revenue" it is clear that this induction period is vital giventhat /.0 of people leave within the first/ months of starting in a new role" which is typically due to their induction experience. ' properinduction program helps to reduce employee discomfort" improve productivity and save money.

'fter an effective" useful and timely training experience should be the progressing development chances thatsupport the individual in the role" but also the organisation in achieving its broader ob1ectives. Such training"where possible and practical" should be 2in-time3 rather than 2in-case3 to provide training environments andmaterials that change to meet individual or small group demands precisely at the time when new skills areneeded.

4apability development 4ustomised improvement opportunities for key talent are seen as an essentialcomponent for motivation and retention of these people. %n the present scenario" developing the current

employees is a more cost effective and efficient means of maintaining internal talent pools rather than recruitingnew people and wasting vital resources on their training. 4areer growth also has a ma1or impact on 1obsatisfaction and commitment" to an organisation that relates directly to the retention of dynamic employees.

5oth high potentials and core contributors should be given enough opportunities to develop by the internal talentmanagement in order to maintain operational effectiveness and output. 6ey performers and core contributorsrequire different growth experiences that should be modified accordingly for maximum profit. 4ommitted leadersare required to emphasise the idea on both groups given their competing business priorities.

The Talent 7evelopment structure adopted by an organisation needs to support the talent capabilities required for the future and needs to be able to blend with ongoing changes. 8ood leadership quality in a global andincreasingly diverse workplace is a highly sort after competence" and this must be embedded into anycomprehensive development program. &ther elements will be established by thebusiness strategy.

$erformance ' performance management system increases the productivity and confidence in an organisation"if planned and implemented effectively. 'n example of the problems in performance management is that" 09 ofsurveyed 'ustralian organisations using appraisals had no formal performance management policy in place.


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The increasing number of new generation employees in the workforce adds thrust to the importance of atransparent" ob1ective performance management process as they perform best in a culture that encouragesfeedback. $erformance management systems should be visibly related to training or development andrecognition or compensation systems within the organisation in order to increase productivity and retention.&rganisations can also defend themselves against legal action resulting from discrimination or unfair claimsthrough use of a legitimate and fair performance management system.

!etention and succession !etention is the measure taken to encourage the employees to remain in theorganisation for longer period of time. Succession helps an organisation to ensure that employees are hired andtrained to fill each key position within the organisation. (mployee retention is an important issue for top leaders inorganisations all over the world. %n today’s world anabundance of 1obs are available in the market for a 1ob seeker and therefore employers must compete to attract and retain the talent they need to fulfil their organisationalob1ectives. Talent retention is necessary to good quality" customer satisfaction and operational efficiency.

Typically" companies prefer to induct : of their leaders through internal placement. ;or example" !ewards and metrics Talent management builds support and relationship between earlier independent effortsthrough its common ob1ectives" metrics and rewards. Thus" no independent effort can be considered successfulunless the overall talent management effort is also successful.> 5alanced metrics Talent management attracts managers’ attention by instituting a system of methods andrewards that ensures every executive is acknowledged and rewarded for excellence in human resourcemanagement. %t simultaneously evaluates employee commitment to ensure that managers reach theirproductivity goals while using the appropriate organisation behaviours.> 5usiness approach The talent management approach is not taken from an overhead or administration model. %tis created from and replicates other successful business process models" like supply chain management"finance" and lean manufacturing.> !ecognition of the business cycle The talent management strategy involves identifying the different types oftalent required with respect to changing business situations. 4onsequently" talent management requires theconstant internal movement of talent in and out of 1obs and business units based on current business needs andwhere the company is in its business cycle.> Truly global Talent management encourages attracting" retaining" and developing the best talent no matterwhere it is.> ;ocus on service ;lawless service is the expectation of talent management. 4ustomer satisfaction" processspeed" quality" and commitment are continually measured.

> 'nticipation ?hile conventional recruiting and retention tend to be reactive" talent management is forwardlooking. %t predicts and alerts managers about upcoming problems and opportunities. %t indicates managers to actbefore the need arises in talent management issues.

The overall ob1ective of this unit helps you to understand the Talent Management System and how it isimplemented in an organisation. %t also explains the critical success factors used to ensure the organisationshave the right people in the right 1obs. This unit provides a list of primary and applicable merit principles to statethe responsibility and role of an organisation and workforce productivity. @ou also came to know about the keyelements which are required for an effective Talent Management System.

Que.2 Define Talent Management. Discuss the Talent management Approaches

Ans.2 Talent management is the integrated process of ensuring that an organi#ation has a continuous supply ofhighly productive individuals in the right 1ob" at the right time. !ather than a one-time event" talent management is

a continuous process that plans talent needs" which includes the following builds an image to attract the very best


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ensures that new hires are immediately productivehelps to retain the very bestTalent Management Talent Management is useful to both the organi#ation and the employees. %t is defined as a conscious andsystematic approach taken up to attract" identify" develop and retain productive and engaged employees withaptitude and abilities to meet current and future organi#ational needs by fulfilling the businessAoperation critical

roles. %ts goal is to create a high-performance" sustainable organisation that meets its strategic and operationalgoals and ob1ectives. Talent Management 'pproaches Talent Selection


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Geed H %mportance of (mployee !etentionIet us understand why retaining a valuable employee is essential for an organi#ation.

The pressure’s on from 7ay &ne in a high performance environment. ?hile some thrive under pressure" otherswill falter. (lissa Tucker"


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;or example %f a top salesperson sees her current role as a rung in the ladder up to senior management" outlinesome long-term goals that will get her there. %f another is 1ust in it for the money" keep him in challenging rolesthat will reward him for working hard and allow him to play hard.0. Make retention personal(very employee is motivated by different things" and retention strategies thus need to be tailored down to theindividual level.Steve Miranda" Managing 7irector of the 4enter for 'dvanced %ndividual award determinations includeconsideration of adherence to compliance-related goalsJ > ' significant portion of variable compensation isprovided in long-term compensation payable over three years" sub1ect to reduction for detrimental conduct" andmay be sub1ect to performance-based clawbacks for key risk takers Ce.g." based on profitabilityDJ and > %n order tofurther align their interests with those of shareholders" senior and higher paid associates are compensated withlong-term incentives such as equity. %n addition" the following processes have been established to ensureappropriate governance and on-going consistent application of the compensation principles). 4ompensation decisions are made in a manner that reflects adherence to governance process andprocedures. ,. %ncentive compensation design involves the following practices > 4ontrol functions Ce.g." 4ompliance and!iskD that report independently of the lines of business and are compensated independently of the lines of

businessJ and > 'n incentive certification process is utili#ed that requires line of business heads" risk heads andcompliance heads to execute a certification stating that they have reviewed and approved the appropriateincentive plans" believe the plans to be well aligned with the line of business’ and the 4ompany’s business

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strategy and performance ob1ectives" do not believe the plans encourage excessive risk taking beyond theorgani#ation’s ability to effectively identify and manage risk" and believe the incentive plans are compatible witheffective controls and risk management. 0. The 4ompany conducts an incentive certification process to include annual certifications prior to the annualaward date for incentive awards by the line of business heads and the head of !isk to the effect that thedeterminations of incentive pools and the allocation of incentive awards Ci.e." the mix and formD have been madein a manner consistent with 5ank of 'merica’s incentive compensation principles Creferred to aboveD. 9. The

4ompensation and 5enefits 4ommittee of the 5oard of 7irectors receives direct input from the !isk function. . 't the line of business level" the !isk" 4ompliance and 'udit functions are responsible for surveilling businesspractices and processes Cincluding the operation of incentive designD. /. %ndependent control functions provideinput into each line of business’ performance ob1ectives and review incentive compensation designs. 'nnually"any risk issues identified by the independent audit function are included as a key consideration in associate payawards" including compliance with rules established by the ;ederal !eserve 5oard and 5ank of 'merica’sinternal policies and procedures" as well as compliance with internal risk metrics.4ompensation practices at large financial institutions were a key contributing factor to the global financial crisis.The ;S5 $rinciples for Sound 4ompensation $ractices and their %mplementation Standards C$rinciples andStandards" $HSD were developed to align compensation with prudent risk-taking" particularly at significantfinancial institutions.The $rinciples require compensation practices in the financial industry to align employees’ incentives with thelong-term profitability of the firm.The human resources professional community has expanded how it defined the discipline generally known as

compensation and benefits to rename it Ptotal rewards.P The definition of compensation and benefits was ratherlimited--mainly the perception of it--to mean what you pay employees" and the types of benefits such as medicalcoverage" income protection options" vacation and sick time.4omponents of Total !ewardsTotal rewards is a relatively new term coined by members of the human resources professional community andadopted by human resources associations" such as the Society for


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%n another manufacturing plant" rewards have changed" but there havenQt been changes in the culture. Thisfacility has a gainsharing plan in which awards are driven almost totally by production-that is" tons of product outthe door. !ecent awards have added up to 9* to employeesQ base pay. @et" thereQs been no attention given tothe culture side of the equation. (mployees are encouraged to work harder" but their work processes arenQtbecoming more flexible nor are they becoming involved in making important decisions about their work.Moreover" they donQt have contact with the customers. They are driven toward production" period. 'nd thatQsexactly what the facility has gotten. @et quality is very uneven. Iong-time customers are threatening to go to other

suppliers whose service and quality is better and more consistent. 'nd because employees are paid by howmuch tonnage is processed" production grinds on. (mployees also resist any effort to change a pay plan thatQsbeen so lucrative for them. 'nd no one works on the underlying problems. (mployees are involved in achievingproduction" but thereQs more to the equation. $ay alone wonQt get them out of their mental rut or energi#e thework force to make significant changes in their work processes.4ompanies increase customer focus and work in new ways.&rgani#ations of all descriptions are organi#ing themselves in ways that are simple and efficient for theircustomers. Some even invite customers in to help with product design and key features. ;or example" at Seattle-based 5oeing 4o." customer input resulted in important improvements in the design of new 1umbo passengerplanes" including wider aisles and larger storage bins.Some companies have gone a step further by putting the people who do the work in direct contact with thepeople who buy the work. 't a manufacturing plant operated by 5ridgewater" Gew Bersey-based


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found that" although profit is still the most common type of measurement" quality and productivity are nearly ascommon. The research also indicated that by using some of these operational measures and supporting themwith strong involvement and communication efforts" companies reported better results. These plans simply workbetter than those with a one-track financial approach and limited employee involvement.%f a company wants to foster a greater customer focus" the key is to ensure the success of a multitude ofPmoments of truth"P those critical opportunities when an employeeQs actions can make a breakthrough. Thosemoments of truth involve everyone" not 1ust executives or managers. ThatQs why more companies are sharing

both risks and rewards with the people who do the work. (mployees have always shared in the risk" of course.They know all too well that business failures mean 1obs lost. The difference today is that" in many cases"employees across the organi#ation have an opportunity to share in the upside as well. The old standbys of hourlypay" seniority and individual merit pay have been supplemented with other plans that encourage a collectiveattention to the needs of the customer. 't Reeland" Michigan-based


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associated with doing things for your best people and developing their strengths. The needs of theorgananisations and the individual can be met by talent management.&rgani#ational issues could be of because of focus and fit. The different types of focus areStep by step focus.Ieadership focus. /rganiational issues pertaining to Talent Management

&rgani#ational issues pertaining to talent management could arise because of focus and fit. 0i ocus The different types of focus are Step &y step focus %n this" managers look for employees with potential to take one step ahead in their career.Talent management needs to have a proactive approach to both skill enhancement and career progress #ea$ership focus %t is to produce future leaders. &rganisations need to work on the required talent to equipemployees to become future leaders. unctional le)el or "orkforce le)el focus Talent management can be associated with the recruiting andtraining of functional or professional groups. This is what the functional or workforce level focus stresses on. Specific critical posts %t brings about the role of talent management in filling individual posts that are difficult to

be filled in and are a risk to business. 0ii it There are several dimensions to getting the fit right. it to focus ;it to focus is associated with both senior managers and workforce for talent management program.%t needs to be aligned with organisations strategy in order to be efficient. Iinking it with the strategy ensures thatprogram is never static and remains future oriented and helps to measure employee development. it to culture The structure of the corporation is a ma1or reason for the cultural challenges facing theorganisation. The structure can be centrali#ed or decentrali#ed. &rgani#ational culture is affected by the decisionmaking process or transparency of organi#ation and so on. The talent program can fit right by certain degree ofopenness in the organisation" transparency" employee involvement and so on. 4ultural fit is highly essential forthe success of the organisation. it to "orkforce ;it to workforce can be achieved by ensuring that the talent management processesunderstands the psychological contracts between organisation and employees. Talent management processmust be in alignment with the needs of the individual. it to other 45 policies The talent management processes needs to fit with other

7epending on the need" a talent t is a systematic process in which an organi#ation identifies the critical 1obs and competencies" needed for thecurrent and future employees" and develops strategies to overcome any gaps.


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%ts main priority is using information to obtain an overview of the workforce and targeting talent managementinitiatives which includeaD %dentifying critical 1ob roles for analysis and planning.bD !eviewing knowledgeAskillsAattributes needed.cD 7etermining employee population for review.dD 8athering demographic information.

'fter recogni#ing organi#ational priorities" the next step focuses on the roles and skills needed for the departmentto be successful. %dentification of critical roles The management team determines key 1ob functions and roles that will be theprimary focus of the talent review discussions. aD 'll staff in a particular function or organisation unit.bD ' specific group or 1ob category of the employee population.cD ' specific level of leaders" managers" or supervisors. %nventory of skills and knowledge ?hat are thedemographics of your current workforceK C8ender" ethnic" disabled" fullApart time" classifiedAIT(" etc.D > ?here are the 1obs locatedK > ?hat is the employeeAsupervisor ratioK7oes it need to changeK > ?hat are the pay rates of current employeesK > ?hat is the likelihood of attritionthrough retirementsK @ou can estimate potential retirements by identifying those employees who are eligible forretirement benefits currently and in succeeding years. The value of this type of estimate is limited by the scope of the data in payroll systems. 'dditional information such as total years of creditable service" amount ofaccumulated sick leave" and retirement eligibility of spouses would be very helpful" but is difficult to obtain.Termination !eports Cfrom the payroll systemD" (xit %nterviews and (mployee Surveys > ?hy did the employees leave the departmentK > ?here did they goK > ?hat were theirimpressions of the work environment before they leftK > ?hat recruitments have been completed in the last twoto three yearsK 4heck both your own agency and recruitments done by other agencies for related 1obs. > ?hatrecruitment activities and resources were usedK > ?here did themost qualified applicants come fromK > ?hat do new employees think of your recruitment practicesK 'dditionalmaterials agencies can use to assist in the analysis include > Strategic planning documents. > 4urrent budgetand position reduction information. > (xternal influences on operations. > (xternal labor market and economicdata. CSee links at the end of this document.D Step TwoL7emand 'nalysis (valuating the ;uture Geeds of the 'gency To assess future needs" determine the answers to the following questions >

?hat 1ob functions" if any" could be consolidatedK > ?hat knowledge" skills" competencies and abilities C6S'D are needed to perform anticipated 1ob functionsK> ?hat technology changes will be madeK > ?hat processes could be done more efficiently or effectivelyK > ?hatactivities can the agency stop doing or give upK > 're there opportunities for reorgani#ationK > ?hat are theorgani#ation’s strategic ob1ectivesK > ?hat are the organi#ation’s diversity ob1ectivesK Step ThreeL8ap 'nalysis4omparing Supply and 7emand This step can be completed in a fairly straightforward manner. Simply take thedemand analysis results and match them to your supply results. 'ny mismatches indicate either a pro1ectedunmet need or a surplus" either of which presents a challenge. To fill the gaps between current resources andfuture needs" use the results of the other core components of your workforce plan to craft possible solutions.Some approaches include > (nsure employees with obsolete skills receive the training needed so they cancontinue to contribute. > $rovide a workplace and work opportunities that retain employees. > Train employees in skills that support theagencyQs strategic direction to ensure valuable use of time and resources. , > 7ocument the processes" methods"tools and techniques for positions requiring special skills and responsibilities. > 7etermine the best use of

positions by analy#ing needs rather than 1ust refilling the position in the same way. > %ncrease efficiencies inrecruitment and hiring processes by proactively identifying future anticipated vacancies and completing some ofthe steps in the exam development process prior to positions being vacated. > %dentify training needs"


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classification and compensation issues" organi#ational or position changes. > !esearch labor market availabilityof candidates and possibilities to 2grow your own3 for certain positions. > 4reate affirmative action strategies in aneffort to maintain and increase diversity within the department.

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talent mangement and employee retention

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