Most people think that HR and talent management are one and the same, but this couldn’t be further from the truth. Talent management in and of itself is a new, progressive look at managing your human resources and finding the right people for your company based on their knowledge, skills, experience, culture, goals, and more. What is “talent management,” you ask? How is it different from “talent acquisition”? Talent Management is the ongoing process of developing and retaining employees throughout a company. Think: employee coaching and developing employee training programmes. Talent Acquisition is the process of attracting and hiring skilled employees to fulfil a company’s business needs. If you think that your company doesn’t need talent management, your opinion will definitely change after reading this article. Here are seven reasons to use talent management.
1. Attract Skilled Employees
The biggest difference between talent management and HR is that the former functions in terms of strategy while the latter focuses on tactics. Talent management involves planning ahead for longer periods of time and setting long-term goals rather than short-term ones. This approach helps attract skilled employees regularly. When managing the hiring process according to traditional HR practises, you will only be able to come across one or two experienced and highly skilled workers once in a while. But with talent management, they can be found faster and easier.
Related: How To Calculate Your Cost-Per-Hire
2. Develop Employees’ Potential
Another feature that sets apart talent management is the fact that it spreads far beyond the hiring process. Once you hire the best people, you will have a literal human capital that can be developed if treated in a proper way. Skilled workers are often the ones who want to improve themselves and move up on the career ladder. They are eager to learn and are always up-to-date with the latest advances in the industry. If you provide them with an environment that will give them opportunities, they will take them. It’s all up to you whether you want your company to grow by letting its employees develop.
3. Motivate Employees
Directly related to realising the potential of your workers, motivating them is an integral part of managing your human capital properly and talent management also pays attention to it. A great way to motivate your employees is to constantly showcase their performance and provide feedback on their work. Rewarding them for their achievements will significantly boost their confidence as well as raise your authority in their eyes. Don’t be afraid to set more difficult goals for them once you see that they are willing to work even harder. After all, a good employee will always be up for a challenge.
Related: Employee Engagement Checklist
4. Boost Performance
Just like good performance motivates your workers, good workers can boost your company’s performance. With the joined forces of every individual that you organise with the help of talent management, you will be able to get to your aims faster. Moreover, when your company already has well-performing employees, newcomers will want to show themselves in the good light more eagerly. A healthy atmosphere of competitiveness will inspire your workers to new achievements while celebrating the mountains you conquered will lift the team spirit.
5. Improve Retention Rates
Finding and hiring good workers is one thing, but making them stay in your company is a completely different one. Because HR looks at short-term goals rather than the long-term ones, it often fails to see the bigger picture, and this may result in your retention rates dropping drastically. Talent management, on the other hand, looks at the different aspects of every potential employee to predict whether they will be a good fit for the company. It encourages you to think about the reasons for your employees leaving or staying in your company, which helps you to create the best working conditions and career opportunities for them.
6. Increase Customer Satisfaction
Good employees equal good customer support equals high customer satisfaction rates. It’s as simple as that yet many companies seem to forget that the most important role in providing your clients with a good experience is played by their workers. But even if your best employees are not directly related to customer relationships, it will all still come down to this. After all, if you think of it, the effort put in by your regular worker will result in your customers being satisfied with your product or service.
7. Ease Transition Periods
Talent management helps you make sure that your employees are trained properly. They possess the necessary skills to perform their assigned tasks, but they can also step in when another employee retires or leaves the company. This, in turn, eases the transition periods making them run smoother and hit the performance of your company less strikingly.
To sum up, talent management is a more up-to-date version of HR that isn’t afraid to look for the best people for your company.
Frank Hamilton has been working as a translator at translation service TheWordPoint. He also loves travelling and speaks Spanish, French, German and English.