Human capital may be your organization’s greatest investment but may not receive the same amount of attention as your other business capital (financials, property and technology). Implementing sound talent management strategies can help your HR organization move from a process-focused operation to a key strategic contributor, resulting in competitive advantages for your company.
In fact, companies that implement talent management best practices are poised to outperform their industry’s return to shareholders by up to 20 percent, based on a survey conducted by McKinsey & Company.
By developing and implementing these 5 fundamental strategies, you can build a foundation for talent management success.
1. Identify Business Goals
Identifying specific business goals will give you the criteria required to determine what talent you need to help your organization achieve success. To do this, HR needs to expand beyond analyzing transactional HR processes and engage with business leaders to support their needs and objectives.
By providing managers and executives with pertinent talent management data and metrics, HR professionals will help internal stakeholders make better decisions — like where to invest to find quality talent or what level of staffing will be required to trigger a desired outcome.
2. Align Business and Employee Objectives
Effective talent management serves both the needs of employees and the business. It is also critical to understand where your industry is going and what talent will keep you ahead of the curve.
Keeping this in mind, evaluate how company initiatives map to departmental and individual competencies and answer questions such as how can we find talent to meet business demands in the current market, how can we improve employee commitment, and how can we develop succession plans with career paths for employees? Then communicate talent management objectives supporting company initiatives to align everyone in the organization.
3. Engage Employees
Engaging employees is the best way to increase job satisfaction and engender a high-performing workforce. But how well do you know your employees? Exploring social networks like Facebook or LinkedIn can give you a wealth of information about employee skills, competencies, and passions. High performers can be encouraged to take on new roles in other parts of the organization. Setting performance objectives that align with company strategies encourages employees to have an affect on business performance and helps them to see their work as meaningful.
4. Develop a Qualified Talent Pool
What are the sources of your most qualified talent? If you don’t already know, go back and run the numbers on where you found and how you landed your top hires over the last couple years. Internally, build your supply of talent with succession planning. This includes insight into the capabilities required throughout your company and an inventory of talent competency and skills.
The key is to understand what “talent supply” you have access to in order to fill the right jobs with the right talent. Evaluation of where your best employees came from can put you on a road to developing your ace candidates into ace employees. And building a talent pipeline even if you aren’t hiring is a strategy that will put you ahead in a tight economy. Take advantage of the supply of great talent now to put your firm in a better position for when hiring ramps up in the future.
5. Tighten Compliance Measures through Automation
Wherever possible, HR processes should be repeatable, auditable, and documented for compliance purposes, as research has shown. Paper-based processes, data-entry redundancies and assumptions are not sufficient to keep your organization up to the current standards of compliance any longer.
Automating recruiting, background checks, drug testing and electronic I-9 services, not only accelerates the time-to-hire, saving time and money, but also establishes a process that mitigates risk related to human error and manual controls. Compliance efficiency also translates into cost savings — and business value.
Implementing fundamental talent management strategies can put you ahead of the competition. Evaluating these 5 simple areas of your talent management efforts will better position your firm to thrive while competitors simply work to survive.
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