Why Talent Management is an important Business Strategy
Talent Management is an art or science used to improve business values and to make companies and organisations to attain their goals by using strategic human resource planning. Talent Management analysis of an employee means, Performance and Potential are the major areas to be evaluated. Talent Management Strategy is supported by two criteria i.e., HRIS Human Resources Information Systems & HRMS . Human Resources Management Systems. Now – a – days Organisations are very much aware about their talent or to increase their talent for achieving in the hyper competitive or in the complex global economy. It also emphasis on the need to recruit, retain, develop & reward and make people to perform by managing their talent as an important resource for attaining the best possible results.
In an organisation, talent should be maintained, otherwise “gaps” may exist from top-level management to the front lines through mid-level leadership ranks. And researchers are stating that, every year from 2007 onwards 10% percent of increase in output is marked by finding managerial talent in organisations.
It is a cyclic process which is undergoing in all most all organisations. The Key components of a highly effective talent management process include:
- To know clearly the current and future business strategies of organisation.
- To understand the “Key gaps” between the current talent and the required talent needed to make the business successful.
- By understanding talent management of employees performance in current position as well as to the next level can be enhanced. Accurate hiring & promotion decisions can be taken.
If we are analysing the importance of HR professionals with senior leaders or CEO in an organisation, the Figure mentioned below shows their involvement or engagement with Talent Management.
If talent management is considered as the core of an organisation. To make it effective, both HR professionals and Senior leadership or CEO must work together. And it is analysed that the most crucial and successful initiatives are taken by the HR with prime, energetic and enthusiastic support from the CEO or Senior leaders, who are providing budget, resources, manpower, communication and other attributes for success. So talent management can be considered as an important business strategy. A research study made by Mc BASSI & Co. stated that the categories of human capital management (such as leadership practices, employee engagement, knowledge accountability, workforce organisation & learning capacity) helped in increase in stock market returns and better records. Another research study by IBM found that organisations which having effective talent management can attain high percentage of financial outperformance than organisation having poor talent management.