In the final blog of the series, the fundamentals of a good talent strategy have been highlighted. Companies looking for a successful talent management strategy need to:
Think long term
Most corporate programs are short-term. However, since the results of efficient talent management are not very visible in the short term, it has phenomenal long term benefits. For instance, if companies were to consider how a candidate could get critical market-experience and skills for a CFO position someday, they can bring him into the company at a much lower cost and the return on investment would be greater.
Measure the right outcomes
Effective talent management has to move on from the traditional measures of grading outcomes, such as employee satisfaction, productivity, engagement, collaboration and retention. New strategies need to derive outcomes from practical measures such as:
- Filling positions with promising candidates from within the organization
- Developing job-specific employee skills and leadership competencies
- Assessing and later validating these through recruitment, selection and development processes
- Evaluating talent managementâ€™s impact against financial and nonfinancial performance objectives
Adopt a disciplined approach
Talent management remains difficult to define and its processes and outcomes vary widely across organizations, geographies and sectors. However, it is seen that all the top performing companies in the E&Y study have good talent management strategies in place and treat talent management as a disciplined process. To do so, companies must align to business strategy, integration of talent programs and validate business strategy execution.
Develop a leadership strategy
To develop leadership, Deloitte suggests that companies should engage top executives to develop leadership strategy and actively govern leadership development, align and refresh leadership strategies and development to evolving business goals, focus on three aspects of developing leaders, i.e. developing leaders at all levels, developing global leaders locally and developing a succession mindset, and lastly Implement an effective leadership program which is customized to your companyâ€™s profile and unique.
Top performing companies are all investing more in talent, focusing on closing skill gaps, customizing training and development programs, identifying future leaders earlier in their careers and have robust selection plans in place. As per E&Y, they also focus more on soft leadership skills to lead effectively in a complex global business environment. Deloitte too has placed a lot of weight on developing leadership skills, while Towers Watson suggests that the key is to work on retaining top performers and high potential employees.
Effective talent management strategies can go a long way in cutting costs and simultaneously increasing productivity. It will also lead to a better work environment and enable companies to tap the most valuable form of capital, i.e. human capital, to its maximum potential. Talent Management is a mammothâ€™s task, but to prepare for the uncertain and volatile business climate of tomorrow, companies cannot afford to ignore this aspect.