The main objective of most companies for the year 2017 should be associated with the management and talent development clearly emphasizing on skills or special qualifications, mainly in administrative and technical levels. Human Resources (HR) Department through talent management processes and procedures should be able to contribute to the overall effectiveness and financial performance of companies today. With regard to talent management, the most important area in which HR should primarily focus is on the assessment of employee skills related to business strategy and recruitment.
It is of particular importance to understand the processes a Company should follow to recruit or retain the right people with talent. Understanding the availability of talent either within or outside the enterprise in conjunction with an understanding of how talent management can be useful for the company’s strategy, can lead to a more interactive relationship between strategic choices of the business and how talents are trained and managed.
Attracting talented people has always been important, but maintaining talent becomes increasingly critical, because companies nowadays operate in complex markets worldwide. This has created a situation where the performance of talented people within a company has significant impact from the very lowest till the upper management levels. The ratio in many critical positions between good and poor performance of a talented employee reaches up to 100 to 1, and this fact is causing growing knowledge-based businesses to focus on talent as a source of competitive advantage.
Google is a good example of a company with excellent recruitment and talent management. They have identified the need of maintaining talented people within the Company and this is translated to the way in which the HR department thoroughly examines both the type of talent that the company is seeking and the type of jobs it offers. Furthermore, they have identified critical positions in the organization whose performance can differentiate from the competitors and of course that these positions are covered with the right talents. This is an important and critical part of the entire recruitment and selection process. Google, like 3M, began to provide to their employees 10-15% time to work on individually selected projects that the company funds and supports which in turn drives innovation and creativity throughout the organization. In addition, these companies have positions that match the talent of people and as a result they have succeeded to attract and retain the talent within the organization. Gradually this has enabled not only the implementation of the business strategy, but also the growth and development of the strategy according to the abilities of their employees and the ability to attract top talent from the external market.
The question is why more companies are not focusing on talent. Some executives believe they can live without the top talents within their business. Others believe that talent management is important, but not perceived as being equal contributor to business success like financial management or engineering. Finally, many executives fail to see the relationship between proper talent management and link to business strategy while others have no experience and knowledge in talent management having being trained only in finance or engineering sciences and believe that only hard skills have an added value and improve the performance of a company.
The challenge then for Company is not only to prove the importance of talent management, but also to show that talent management and strategy should be linked to business strategy and success.