Monday, April 19, 2010

6 Reasons Why Talent Management is a Strategic Imperative






I am honored to introduce Sean Conrad as my guest blogger this week. Sean is with Halogen Software a firm that I have personal experience with. Thanks Sean!
Today's business climate is forcing a shift in the role HR plays. Instead of providing administrative support, HR is becoming a strategic manager of the organization's greatest asset – its people. Driven by this shift, the industry is seeing more companies implement integrated talent management processes.
So why has talent management become a strategic imperative for companies?
1. The C-Level is Demanding Succession Plans and Workforce Analytics
Succession planning isn't just about identifying successors for a handful of leaders. It's about identifying the key competencies and skills an organization needs to succeed, both today and tomorrow. It's about identifying the company's high-potential, high-performing employees across all key functions, and grooming them for advancement. Every company needs to know who their top performers are and work to develop talent pools. These talent pools are your lifeblood, whether you're growing, looking for a successor for a key role, or downsizing.
Executives also need analytic data on everything from retention to skill gaps to goal alignment/progress, and talent plans that align with strategic plans. This data allows them to make informed decisions on when/where/how to invest in talent to ensure the organization is able to meet its strategic goals.
2. Companies Need to Secure Top Talent
While the current recession is giving us a temporary reprieve, experts still agree there is a global talent shortage looming, and some fields continue to experience talent shortfalls. The ability to retain and attract top talent will become critical as economic recovery sets in. Companies need to have integrated talent management processes in place to ensure they can attract, identify, develop, reward and retain top performers, and address any skill shortages before they become critical.
3. Need to Keep the Changing Workforce Engaged
Whether it's because of generational differences or employment lifecycle differences, employees from different generational groups need different things from their managers and organizations to keep them engaged and performing. These different requirements make it imperative for organizations to efficiently and effectively align goals, give employees timely performance feedback, provide performance-based development opportunities, and appropriately reward performance.
4. HR Needs Data to Support Their Strategic Role
As HR plays a more strategic role in organizations, HR professionals need integrated talent management processes that deliver data to inform their strategic talent management plans and support organizational goals. The key is to be able to aggregate and analyze the data to provide relevant metrics that assist in organizational management. You can't get that from a manual, paper-based process.
5. HR Needs Freedom From Administrative Burden
Effective HR departments focus on strategy. To do this, they need to reduce the time they spend on tactical or administrative tasks as much as possible. While automating talent management processes and forms saves HR significant and invaluable time both in administering the process, it’s not a panacea. Regardless of whether or not the processes are automated, good business decisions should come from the analysis of the data.
6. Clear and Significant ROI
More and more research, by companies like the Hackett Group, the Aberdeen Group, IBM, HCI and IDC, is showing the strong link between mature, integrated talent management processes and financial results. Truly successful organizations realize that the only true sustainable competitive advantage they have is their people, and they use strategic talent management to maintain this advantage.

Sean Conrad is product specialist at Halogen eAppraisal. He can be reached at sconrad@halogensoftware.com

11 comments:

sara said...

Great article! I totally agree...especially with your assessment on the importance of keeping workforce talent engaged. Our hospital HR is using software from HealthcareSource and we're VERY pleased with the results. I noticed they have a new whitepaper download that I think you'd find interesting. Http://healthcaresource.com/bestpractices?pmc=SM-01
Enjoy, and thanks again for the good read.
Sara

Sean Conrad said...

Thanks for the comment Sara.

It is amazing the positive impact that HR can have on an organization when the tools exist to empower managers and employees & automate things to give HR pros the time to work with managers. The key is for HR pros to make the business case to leadership and get their buy in - from there it's down to finding the right solution for your your organization. :)

One of the other bloggers here at Halogen has some great content in gregards to the health care industry as well: http://www.halogensoftware.com/blog/author/ymartel/

Sue C. said...

Good article, Sean. For organizations which are struggling with the function of HR and haven't made the connection between HR & strategic planning, the criteria from Category 5 and Category 2 of the Baldrige National Quality Award Program are a great place to begin to understand the integration. http://www.nist.gov/baldrige/

Chris Young said...

Nice post Sean, and great outline for the strategic need for effective talent management in any organization!

I've shared your post with my readers in my Rainmaker top five blog picks of the week (found here: http://www.maximizepossibility.com/employee_retention/2010/04/the-rainmaker-fab-five-blog-picks-of-the-week-3.html) to remind them of what makes talent management so strategically important.

Be well!

- Chris Young

Sean Conrad said...

Thanks for the pick Chris! Some great articles there, I'll be sure to tweet that out - and add you to my reader.

Amit said...

The blog is amazing.good to see this post.Keep posting.
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Maj Gen B K Bhatia said...

Organizations will continue to have people exhibiting all shades of performance. They can not afford to concentrate only on high performers. A Talent management solution, therefore, has to nurture & develop people of all kinds to enable their migration into higher shades of performance so that the overall performance curve of the organization acquires a new median. Thus it also includes systems that help HR in transfer management, training management, remuneration & rewards management and employee discipline.
Unless an integrated totality is available, talent management may be a half-baked solution. Thus, talent management has to emerge from the life cycle data base of employees, each organization defining their own approach to develop their solution. No organization will choose to manage the best & leave the rest. Therefore, a fully integrated HR software alone can provide a composite talent management solution.
I have enjoyed reading 'why has talent management become a strategic imperative for companies?'

Chris said...

I liked very much your post, Sean.
Pretty similar to my point of view.
Thanks for sharing your opinion!

nisha said...

I really appreciate the kind of topics you post here. Thanks for sharing us a great information that is actually helpful. Good day!
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Cathy Missildine-Martin, SPHR said...

Nisha:

Thanks for reading. Sean is a very talented and I was delighted to have him as a guest blogger!

Cathy

andi said...

Thanks for this useful post, get so many information about talent management software and also its need in HR purpose.