Strategic Talent Management: Importance for The Company’s Success
When people talk about what an organization is, most are talking about the structure, purpose, and mission, while forgetting that first of all any organization is the people working in it. If a company’s management and HR-departments want people to use their abilities for the good of the organization, it must be recognized that they have these abilities. Therefore, talent management means management of skills and talents of employees in order to use them to achieve organizational goals. Today, half of the largest organizations call talent management a key priority. This is evidenced by data from a study Right Management, engaged in career counseling within ManpowerGroup. As part of the study, representatives of 537 companies throughout the world were interviewed. It turned out that for 49 percent of organizations talent management is a top priority. More than 13 percent of the organizations stated that it is a secondary priority. At the same time, 38% of companies said that talent management generally is not included in their spectrum of priorities (Berger & Berger 2010). This paper will examine strategic talent management and its importance for the company’s success.
With a well-organized HR strategy, such as strategic talent management, a company receives an opportunity to achieve great results and improve its performance. The talent acts as an indicator of the level which other employees should try to reach. Strategic talent management ensures that talents are motivating their colleagues by their enthusiasm and unusual, creative approach to problem-solving. It is necessary to involve talent in the team, because otherwise instead of motivation they can cause disorder of work. An example of great results caused by applying a talent management HR strategy is the experience of the Hay Group Company (Berger & Berger 2010). They solve human resources issues by means of classical talent management: they put the right people in the right positions at the right time in line with the strategic goals of their clients. According to Berger & Berger, HR management team members of Hay Group Company understand that the existing apparatus of managers is not able to solve tasks efficiently and does not have the appropriate managerial skills and professional competencies. Thus, re-training the existing apparatus is an ineffective solution. Therefore, Hay Group Company formed a talent reserve among young compatriots with high potential. The target group from which the talents were selected was the educated youth. The reason for this choice was the presence of a willingness to learn (learning ability); the desire to make a career (leadership); a need to change the situation in the workplace (ability to innovate); a system of values and loyalty.
Strategic talent management is a system of organizational, economic, and socio-psychological measures aimed at increasing the levels of competence in critical kinds of activities from a business point of view through the implementation and development of programs to attract, acquire, develop, promote, and retain talent (Bibb 2016). Talent management is also an integrated approach to managing various HR-processes, including recruitment, hiring, rapid adaptation, training, performance management, leadership development, and planning of job succession. Talent management is an attempt to predict what human resources companies will need and to create conditions for the timely involvement. It can be compared to the work of specialists in logistics and supply chains. They predict the demand to determine which components or materials may be necessary. Then, they find ways to buy and deliver them exactly when they will be needed. Logistics management is associated with a constant struggle with variability and uncertainty. The same problems exists in the talent management HR strategy (Bibb 2016).
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There are also different types of strategies which can align with competitive business strategies. In the case of consumer strategy, the organization and the employee have no common goals and values, but there are mutual interests. Use of labor capabilities of an employee occurs, but employees use company opportunities to meet their needs. The co-development does not occur, however, this way can be successful (Oakes & Galagan 2011). With the affiliate strategy, the organization and the employee have a mutually beneficial partnership, in which there is a coordination of goals and values. Employee development is provided by the organization and, in turn, increases the employee contribution to the development of the firm (Oakes & Galagan 2011). With the identification strategy, relations are based on the correspondence of goals and values; the driving force behind the implementation of the potential employee is the development of the organization, and vice versa – the organization develops and each of its employees increases their potential (Oakes & Galagan 2011).
Addressing Core HR Functions in order to Attract, Develop and Retain Talent
Among other things, any talent management strategy includes recruitment, assessment, training and development, retention, and leadership of the program. Each of these aspects must be closely linked to the organization’s goals. In work design, it is very important to clearly understand where regulations and the conveyor are more important, and where a carte blanche and s free schedule should be provided. It can be achieved by individual communication with each talented employee. A job analysis will be conducted by two criteria, which are performance and potential. The level of labor productivity has always been the standard tool for measuring the cost-effectiveness evaluation of the worker. However, talent management policy focuses on the development of the capacity of staff through training, skills development, and improvement of professional liability. Selection of innovative people who can independently solve creative problems will be based on the set of creative tests. Compensation will focus on non-material aspects to a greater extent, since talented workers are prone to express an emotional attitude in their work. Non-material motivation will offer potential employees special incentive programs, including the promotion and financial incentives, such as stock options programs or lendings. For training and development, the organization will hold meetings on the topic of development of talent and work with invited coaches. Performance management will be conducted during monthly individual meetings aimed to discuss the work and career potential of each employee by identifying failures and successes. Employee relations will be constantly monitored and improved due to conducting team building trainings.
The Challenges and Opportunities within the Workforce Issues in the UAE
The main challenge of the UAE labor market is the fact that earlier the main motivation to work for members of staff was the increase in wages and the expansion of the social package. For top management, attractive opportunities in the form of expanded social package, paid entertainment expenses, possible participation in the company’s capital, and including the ‘golden parachute’ in the contract. This has significantly softened the landing of many top managers (Bickham 2015). However, now more and more companies do not seek to diversify the types of payments. Moreover, many of them have found reasons to reduce salaries. Thus, most companies’ investments in employee development are minimal. Career plans are not developed, they often simply do not exist. People grow mainly due to the transition from one job to another. Employers are accustomed to treating their own employees worse than the customers. This results in employees’ loss and the need to review the principles of working with people (Bickham 2015).
Talent manager ensures the activity of the company, allowing the use of investments in talented personnel in the area of middle and senior management. Thus, an HR manager should be guided by strategic talent management principles that can help the company to develop people on whom the success or failure in business today depends more than ever. This is critically important.
Additionally, the discrepancy between the objectives and management methods is the main reason for the failure of many employers who are trying to work with exceptionally gifted experts (Dagdeviren 2015). A good HR specialist solves this issue by close communication with the talent and revealing their unique qualities. Thus, they get the opportunity to provide talent with the necessary working conditions, therefore, promoting the company’s success. The level of unpredictability defines methods of talent management. If it is low, HR manager needs clear procedures, accountability, discipline, and the hard work schedule of the day. If it is high, then only the final result with minimal tracking control of how and at what time the work is done. These tasks are solved by HR manager whose work significantly contributes to dealing with such issues within the workforce.
There are also interesting possibilities in the UAE labor market. Power was transferred from the company to the staff. Now, talented people have a more powerful lever, which increases their career expectations. The cost of talent is growing. It is both a challenge and an opportunity for organizations. They will have to try to win the battle for talented managers. HR manager can help to conduct constant monitoring of the market. As soon as they find out that some well-known specialist in the market is thinking about changing jobs, the company is willing to hire talent and even open a position for them. In other words, HR manager can help growing companies move from a reactive approach, when they need to urgently close some position, to a proactive preventive approach, which consists of studying the market and forming the appearance of talent resources (Morgan 2014). For example, the company realizes that with time it would need a new director of the business direction. Then, HR manager begins to call people from competing firms. As a rule, no one refuses, since such a proposal is really tempting.
The Importance of Relevant HR Management and Talent Management
In the concept of human resource management, staff was regarded as easily replaceable resource like the costs that should be controlled. Under the influence of factors such as increased competition, an increase in the speed of technological progress, the expansion of globalization, and the emergence of structural changes in the economy a change in attitudes towards the staff occurred. In the XXI century, the HR management is seen as a valuable strategic resource, a key factor in the company’s success (Dagdeviren 2015).
Thus, human resources management is a strategic direction that promotes the survival and development of the company in a rapidly changing business environment. HR concept is based on a philosophy that focuses on business and management. Thus, the importance of HR management for the company is the fact that it continues to perform administrative and operational functions, but there is a characteristic orientation HR-processes on business objectives at the same time. The operational function is implemented in the current human resources management activities. It is planning, recruitment and selection, adaptation, development, evaluation, and certification.
Operational and administrative work with the staff gives any organization a competitive advantage because it does not stand out among competitors. The individuality of the company is associated with the strategic orientation to work with the staff on implementing human talent and conquering the market. The advantage of a strategic HR approach to human resources management is the orientation of HR-processes on the business goals of the organization, enabling staff to develop such competencies that will enhance the organization’s ability to successfully implement its marketing strategy (Dagdeviren 2015).
Due to the fact that sustainable competitive advantage of organizations is increasingly associated with intellectual capital, there is a need for organizing knowledge of talent management processes. In connection with the steady fall in the growth rate of most world economies, talent management has become a topical issue, because companies are forced to curtail many of the programs on personnel management, and because people are now literally at a premium. Skilled talent management has become the key source of competitive advantage. Companies that are looking for more efficient workers need to develop, inspire and retain talented employees, so that they will get a better share of this critical and scarce resource and increase their performance higher than the others.
Speaking of talent management, it can be said that the effectiveness of the implementation of a particular skill or set of work depends not only on the knowledge possessed by the employees, but also on their abilities and attitudes. In the terminology of HR personnel management, luggage consisting of attitudes and abilities is called talent. Talent management consists of constant identifying of talents of the staff and the use of them for the good of the company. This idea is to target the development of employees in the search and disclosure of its potential. Today, the talent management strategy, which earlier was the part of the HR strategy only for some employers, has had the time to become a trend. However, the level of time and resources allocated to talent management is clearly insufficient and, therefore, unresolved staffing issues do not allow to perform business tasks assigned to the companies. Talent management is a way to make the work more interesting for the employees, thereby, keeping the best of them.