Why Talent Management?
People are the most important part of an organization. Attracting and retaining the most talented employees is essential for any organization in order to grow and thrive in today’s business world. Those organizations who do this the best will consistently be near or at the top of their industry.
An effective talent management system will help attract and keep employees.
Talent management is a set of integrated processes designed to help organizations optimize their human capital through employee recruiting, training, advancement, and retention.
A company can attract new employees with various incentives (e.g. salary, bonuses, benefits, or vacation), but if they do not have a complete and effective talent management system, they will not retain those employees. Employees need recognition, rewards, ability to grow, and a sense of purpose. If employees do not get these from their current employer, they will look elsewhere.
Studies have consistently shown that the opportunity to continue to grow and develop their professional and personal skills is a major motivator for why employees stay at a job. Being recognized and rewarded for good performance is another key motivator. Employee like to know they are appreciated and that their talent is recognized.
Employee turnover happens in all companies. Stemming the flow of employees leaving the company should be a top priority for all organizations.
Employee turnover is an extremely costly expense which often goes unnoticed by many executives and management teams. If someone leaves, their production goes with them. If the new person is not hired immediately, the entire production level of the one who left reverts back to the remaining staff. Even if the person is hired immediately, they will not have the same level of production until they are trained and have performed for a while.
Unfortunately, the morale of the rest of the staff can be lowered due to their increase workload. Having the ability to slide a person into the position with little or no time needed to get them up to the normal production speed and quality alleviates most of the negativity.
The bottom line is that the cost of recruiting, hiring, training, and developing new employees to perform at a level equal to the level of the one who left can be extremely expensive. Therefore, retain all the talented and productive employees you can.