01 Apr The 4 Components of a Talent Management System
Talent management is a term that’s used frequently in business communications. But, like other phrases that are used often, the true meaning of this term tends to get muddled. Here, we’ll revisit the core definition of talent management, as well the major components that it comprises.
Review: What Is A Talent Management System?
The system by which your HR department attracts, develops, motivates and retains employees so that they are productive and engaged is talent management, according to Johns Hopkins University.
As you can see, the components of an effective talent management system are embedded within its definition.
The Four Components
Your company’s ability to attract candidates is important, but what’s more important is your ability to attract the right talent. Many organizations make the mistake of seeking out candidates based solely on skills and experience. These are of course critical factors for performance, but equally as important is job fit. It’s certainly more time-intensive in the beginning to hire according to the fit between the employer and employee, but it’s a better alternative to high turnover costs.
Both employee development and motivation tend to fall under the umbrella of performance management. Developing your employees’ skills and providing them growth opportunities is perhaps more important than ever before, and as Harvard Business Review states, “Dissatisfaction with some employee development efforts appears to fuel many early exists.” It’s important to not only provide growth opportunities, but also to identify the ways in which each individual hopes to excel in the company. Managers must then act as coaches and provide the resources employees need to excel (mentorship, time, courses and workshops to develop skills, etc.)
Motivating your employees is critical for keeping them engaged and committed. It’s not just about having employees who are happy to come to work, although that is an added benefit. Higher employee motivation is linked to better results and lower retention: employees who are most motivated perform 20% better than their peers, and are 87% less likely to resign (source: SHRM Research Quarterly).
How do you retain your employees? Certainly, steps two and three can boost retention, but it requires a bit more than that to ensure that you’re boosting retention and reducing turnover. You can take a proactive approach to stopping retention before it happens by holding stay interviews. These periodic, informal one-on-one meetings between managers and their employees can help determine what employees like and dislike most about their jobs and the company, so you can make informed decisions to help them stay.
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