Globalization and technology are advancing rapidly, resulting in several changes in the nature of work. As a result, businesses are adopting new practices and strategies to gain a competitive edge by managing human capital more effectively.
Recent research from McKinsey shows- “A strong correlation between effective talent management and higher organizational performance.”
Therefore, recruiting and retaining top talent has become critical for any company’s success and growth. It helps firms outperform competitors, achieve business goals, and gain profitability and sustainability.
Talent management focuses on every aspect of people’s processes, from recruitment to onboarding and offboarding. It encompasses workforce planning, employee engagement, learning and development, performance management, succession, and retention.
This blog highlights the various benefits effective talent management offers an organization.
First, let us look at how talent management has progressed.
How has talent management evolved in recent years?
Gartner defines talent management as “the recruitment, and retention of talent, which involves a combination of workforce management processes across the employee life cycle.”
This definition of talent management has always been broadly the same. However, the focus and impact on employees and business have changed. In the past decade, the workforce has undergone several dramatic short-and-long-term shifts. As a result, companies now understand that the holistic development of the entire workforce is essential for company growth.
Therefore, the current model of ‘Effective Talent Management’ came into practice. It helps businesses provide personalized learning opportunities for employees that help them leverage the workforce to its true potential. It also enables them to identify employee objectives and align them with company goals.
At a broader level, the entire talent ecosystem is undergoing rapid changes. Therefore, businesses can leverage robust resource management tools to effectively streamline talent acquisition, workforce planning, and performance management. That way, companies can easily attract, grow and retain the industry’s best talent.
Since its inception, talent management has come a long way; now, let us look at the significance of talent management.
7 Effective Benefits of Talent Management
Talent management aims at the growth of both the company and its workforce, and thus, it brings in varied advantages for both parties. Let’s look at some benefits of talent management:
1. Enable strategic hiring to meet future work demands
Talent management enables managers to implement strategic hiring processes across the enterprise. It helps find resources whose skills and competencies align with the organization’s future vision. This allows businesses to identify the skill gaps for future and pipeline project demands.
Once the requisite skills are identified, firms can adopt various resourcing measures to bridge the gap. It includes training or hiring a permanent or contingent workforce, etc. Thus, strategic hiring prevents last-minute firefighting and hiring high-cost resources.
2. Ensure timely allocation of resources to the right job
One of the significant benefits of talent management is ensuring the proper allocation of resources based on the project demands. Talent management helps managers identify the right resources for the job based on experience, skills, qualifications, etc.
Since talent management also keeps managers updated about the employee skills and where their interest lies, they can also allocate resources to profitable projects. Additionally, when resources’ interests are considered while assigning them to tasks, it motivates them and boosts productivity and engagement.
3. Facilitate the multi-skill building of resources
Aligning employees’ career objectives with the organization’s future goals is one of the focal points of talent development. Therefore, it is essential to facilitate multi-skill building opportunities across their areas of interest.
Through methods like training, upskilling, job rotation, and shadowing, employees gain hands-on experience and expertise across the verticals of the organization. This eliminates the monotony of performing similar tasks and enhances morale, productivity, and retention.
4. Foster diversity, equity, and inclusion (DE&I)
To ensure a successful project, organizations need creativity and innovation. Talent management enables organizations to go beyond their domestic boundaries and find skilled talent. Thus, having a diverse and inclusive team helps in bringing fresh perspectives and ideas to maintain a competitive edge.
Moreover, resources from various backgrounds and places bring different approaches and experiences. Therefore, it helps in effective problem solving and increased ROI through their varied insights. In addition, a diverse workforce also helps to meet the requirements of global clients and customers.
5. Boost employee engagement and productivity
As mentioned, allocating the right resources to the right job is one main benefit of talent management. However, when under/over skilled employees are assigned to projects, it leads to employee burnout, disengagement, and project delays. Therefore, resources must be optimally utilized to ensure their engagement and productivity.
According to Gallup, “utilizing the skills and strengths of employees regularly improves their engagement by six times.”
Managers can engage resources in diverse projects or those that interest them to boost their morale and productivity. In addition, promoting shadowing and cross-departmental collaboration helps employees utilize their skills more effectively, thus improving engagement and productivity.
6. Enhance employee retention rates
High employee turnover rates affect the bottom line resulting in decreased productivity, training costs, etc. Therefore, organizations need to retain their top talent to ensure business sustainability. Talent management provides a systematic attraction, hiring, and development of employees.
Furthermore, it makes the employees feel valued and respected. This also improves and strengthens the relationship between employers and employees. Employees are given opportunities to grow and progress in their careers, thereby enhancing retention rates.
7. Form succession planning for critical roles
Succession planning is a crucial aspect of talent management. Once critical employees retire or leave the organization, these positions can be given to deserving, competent internal employees instead of external hiring. This will help utilize the diverse skills of the employees within the company.
Furthermore, since these employees already understand the company’s internal functioning, objectives, and goals and have undergone training programs, it will reduce the onboarding and training costs. Additionally, it will also help reduce the turnover rates as employees feel appreciated and acknowledged, which will elevate their engagement.
How can resource management software help in effective talent management?
Saviom’s resource management tool can play a crucial role in implementing talent management practices. For example, resource managers can use the forecasting feature to foresee the pipeline project demands and initiate a strategic hiring process.
Furthermore, resource capacity planning helps identify the skill gap in advance, avoiding last-minute scuffles for a competent workforce. Then, depending on the project scope and duration, organizations can hire a permanent or contingent workforce.
With the 360-degree visibility of the tool, managers can view the resource profiles with attributes such as competencies, skills, cost rate, etc., and streamline resource allocation.
Finally, using utilization reports, managers can identify over or under-utilization of resources and optimize the workload. These measures ensure maximum productivity and utilization of resources.
In addition, managers can publish open positions mentioning specific details such as skillset, qualifications, experience, cost, etc. These positions are notified to all relevant resources across the organization. The resource manager can then select the best-fit candidates during allocation. Giving resources to work that suits their competency and interest enhances task ownership and helps them stay productive.
Talent management plays a vital role in creating a stable workforce that can make organizations reach greater heights. Companies can acquire the benefits mentioned above by pairing the talent strategy with the right resource management tool. It helps identify employees’ true potential, gives them opportunities to diversify their portfolio, and aids organizations in achieving their strategic goals. Thereby enhancing business profitability and sustainability.