TALENT
MANAGEMENT
Prepared for: Assoc. Prof. Dr. Roshidi Hassan Prepared by: Fahdilah bt Nadzri 2013241154 BM7001DF
Peter F. Drucker
What Is Talent?
According to Morton (2005), talent refers to individuals who have the capability to make a significant difference to the current and future performance of the company.
Micheals (2001) define talent as sum of a persons abilities his or her intrinsic gifts, skills, knowledge, experience, intelligence, judgment, attitudes, character and drive includes ability to learn and grow.
Considered as a complex combination of skills, knowledge, cognitive ability, and potential employee (Moghadam, Beheshtifar (2011)
Talent consists of those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential (CIPD, 2013)
What is Talent Management?
Kehinde (2012)
Implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs
Amstrong (2010)
Use of an integrated set of activities to ensure that the organization attracts, retains, motives and develops the talented people it needs now and in the future
Deb (2009)
Strategic process of acquiring, integrating, developing, rewarding, and retaining personnel with desired competencies and potential to man key leadership positions in conjunction with goals and objectives of the organization in order to attain and/or sustain its competitive advantage
Shukla (2009)
Referred to as Human Capital Management, is the process recruiting, managing, assessing, developing and maintaining an organizations most important resource its people
Bersin & Associat es (2007)
A set of business-focused organizational process designed to attract, manage, develop, motivate and retain key people
My own definition
Process of attract, develop, manage and retain the talented people in organization for current and future growth
Why Talent Management?
Shortage skills
Globalization has led to increased competition and pressure on organisations to use human capital as effectively According to McKinsey (2005), demand for employees (3545y/o) increased by 25% while supply decline by (15%).
Generational Changes
Changes in the demographic composition of the workforce have increased the need to manage talent effectively (Frank & Taylor, 2004). Domination market of generation X and Y ((Busine & Watt, 2005)
Business Success
Effective talent management practices can create enduring competitive advantage. 86% of global business executives believe that talent is the greatest contributor to their companys profits (McKinsey, 2005)
Objectives of Talent Management According to Deb (2009) and Oracle Corporation (2012),
objectives of talent management are:
To ensure that line manager and HR department determine which jobs, when filled with top talent, have the largest impact on the organizations success
To forecast and alert managers about upcoming problems and opportunities.
To identify, network, acquire, retain and develop the best talent no matter where is it
To recognize different types of talent required in the organization depending on changing business scenarios
To build cooperation and integration between various people related activities and strategic objectives through heavy use of common goals, metrics and rewards.
Based on Oracle Corporation (2012),
to promote internal growth based on the organizations needs and opportunities to build effective succession plans to identify individuals with strong potential and support them in pursuing their careers successfully
Talent Management Process
Step 1
Analysis of future skills requirement
Step 2
4 Step Process
Gap analysis including competencies assessment
Step 4
Motivation and retention
Step 3
Training and development
Source: Glen, (2006) "Key skills retention and motivation: the war for talent still rages and retention is the high ground", Industrial and Commercial Training, Vol. 38 Iss: 1, pp.37 - 45
According to Deb (2009), talent management process involved:
Talent Development
Develop capabilities of employees Analyze performance of employees Create learning environment
Talent Acquisition
Talent Deployment
Talent Retention
Develop key retention strategies Make retention plans and program visible, both within and outside organization
Identify, nurture, resource and place high caliber employees
Identify needs, aspirations, interests, skill and competencies of high caliber employees
Talent management system
Sources: Kumudha, & Senthilkumar. (2011). Talent Management: The Key to Organizational Success. Industrial Engineering Letters , 1 (2), 2-14.
Challenges and Strategies to overcome Challenges in Talent Management
Challenges Retaining topperforming employees (Nair, 2009)
Strategies to Overcome Offering a higher total rewards package than competitors (SHRM, 2012)
My suggestion to overcome Providing flexible work arrangement Provide non financial incentives according to employees interest Encouraging employees to make decisions and take risks Give opportunities to highly potential employees to manage big project.
Developing the next generation of corporate leaders (Hewitt Associates, 2008)
Providing employees with opportunities for career advancement (CIPD, 2010)
Creating a corporate culture that attracts the best employees to the organization (SHRM, 2012)
Maintaining a culture of Give employees trust, open opportunity to communication and influence company fairness (SHRM, 2010) decision Listen to the employees opinion and suggestion
Providing meaningful Provide clear job work with clear purpose description about their in meeting tasks, duties, and organizations responsibilities. objectives (SHRM, 2010)
Attracting high quality candidates (Nair, 2009)
Relationship between Talent Management with HR activites
Recruitment Succession Planning Retention
Training and Development
Leadership
Performance
Compensation
RECRUITMENT
Obtain a sufficient number of qualified people at the right place and time (Kirby, Park, Su, Joung & Steven, 2013)
Identify what talent is organization seek and fit well in team (Stan, 2012)
Must having knowledge of capability gaps informs strategic recruitment decisions to maintain competitive advantage (Carris, 2008)
Needs assessment to determine the current and future human resource requirements of the organization (Richardson, 2012)
TRAINING AND DEVELOPMENT
Develop general skills, professional skills and leadership skills (Lochhead, 2013) Creates, delivers, and manages personalized training to help employees contribute fully by attaining and mastering higher individual competencies for current and future roles (ADP, 2010). Establish training and development programs can focus on enhancing skills, competencies, motivation or values in alignment with business strategy (Carris, 2008). Accelerate the development of high potentials through clear development paths and plans to lock high potentials into career paths. (Blass, 2007)
Talent training and Development
Starner (2013) and Johnson (2010), Managerial expert: Coaching It increases how leaders actively contribute to the development of others It helps in reviewing and managing peoples performance It encourages and leads to knowledge sharing It makes decision-making more transparent
Based on Davis and Combs (2010), Peacocke (2006), Technical expert : Technical training Helps employees perform the unique aspect of specialize or skilled work and apply specific tools, equipment and process to the work.
PERFORMANCE
Reduce turnover rate (Rana & Abbasi, 2013) Enhancing individual and team performance (Atkinson & Shaw, 2006) Ensuring greater ROI through people Identify skill gaps and build plans to develop high-potential employees Identify top performers as model for candidates for future positions.
COMPENSATION
According to ADP Inc. (2012), Improve compensation fairness Provide incentives for the future Allocate compensation to high impact positions Align compensation with performance
According to Otis (2011) and Mayhew (2013) what they do: 1. Reward : Bonuses and Cash Incentive, Promotion, Recognition 2. Salary : Salary Benchmarking 3. Benefits : Retirement Saving, Health Benefits Plan
LEADERSHIP
Develop high potential leadership (Jacobson, 2010) Identify leadership competencies, knowledge and experience and personal attributes (Wilkins & Snell, 2010)
SUCCESSION PLANNING
Based on Cannon and McGee (2011) Ensure that organization operate effectively when individual occupying critical positions in department. Align bench strength for replacing critical positions. Employ high-potential individual for different leading post in organization. Allow employees to have opportunities to step forward in their career path.
RETENTION
Provide conducive working atmosphere to ensure employee retain in organization (Iles, Chuai & Preece, 2007) Maintain good relationship between managers and employees (wagner, 2006) Maintain the leadership commitment in organization (Ahmadi & Abbaspalangi, 2012)
How Talent Management Important for:
Cutting cost Maximum output
Time saving technique
Organization
Perfection increase
Employees
Recruitment
Retention
Employee Development Leadership and High Potential Employee Development Performance Management Workforce planning Culture
Benefits of Talent Management: Deloitte Corporation
Ensuring that company has right people in the right positions in the right time Talented employees help companies perform better to fulfill the company goals
Lower recruitment and retention costs
Company will become an attractive employer
Talented and key employees will be retained
More effective succession planning for key positions and sufficient internal sources for recruitment
Talented employees will be staffed at suitable positions and their talent will be used effectively
Losses due to poorly staffed key positions will be minimized
Tools that used in Talent Management
9-Box Grid
The 9-box matrix model combines actual performance and predicted potential.
Most powerful tool to manage talent (OCallaghan, 2008).
Tool for examining talent within organization and making talent decision. This tool help to guide in the identification of individuals who are considered to be high-potential, successors for positions and individual need change in position.
9 grid box outcomes Identify leadership pipeline Indentify turnover risks Identify employees with the potential to provide development assignment Make improve or remove decision about employees and leaders whose skills are out of date.
Effectiveness of talent management
SHRM (2010) mention that effectiveness of talent management can be seen through: Develop an integrated, proactive talent management strategy. Balance grassroots involvement in talent attraction and retention with management accountability. Know the companys business environment and plansthe competitive climate
Know what factors contribute to difficulties in attraction and retention Keep various retention factors in balance Market the company and its brand to current employees as vigorously as to the outside talent pool.
Successful story of talent management
DaVita Company Nissan
CDW Corporation
