Employee Experience, Recruiting, Talent Management
Talent management is a strategic and organized approach to attracting, developing, and retaining top talent. A successful talent management strategy aligns employee engagement and growth with organizational results.
A talent management strategy is critical to every business. If your organization was one of the many impacted by the Great Resignation of 2022 (or if you're clued up on how workplace culture affects business profits), you'll know how important it is. After employees across the U.S. realized how unhappy they were with the state of their workplaces, they went walking 鈥� and employers were left scrambling.
鈥淭he Great Resignation was a war for talent,鈥� says Matt Bush, principal strategic advisor with 逸遊娛樂城庐. 鈥淎nd that talent was renegotiating what they expected from employers.
The bar has been raised. People now expect more equitable treatment, more flexibility, more care for their health and well-being outside of work. And as that norm changed, talent management had to change, too.鈥�
What is talent management?
Talent management is the process of meeting employees鈥� needs at every stage of their life cycle with the company 鈥� not just at recruitment but through retention and their eventual exit from the organization. A successful talent strategy includes:
- Recruitment
- Compensation (pay, perks & benefits)
- Onboarding
- Connection and community
- Employee engagement
- Training and development
- Company culture
- Purpose
- Succession planning and exit processes
And while talent management can be slotted into the overarching role of human resources (in some companies, those roles may even be one and the same), it鈥檚 also a separate entity that extends beyond the HR department.
鈥淗R focuses a lot on the procedures and policies and paperwork or recruitment 鈥� that first step of talent management,鈥� explains Seth Willis, senior culture coach with 逸遊娛樂城. 鈥淏ut it鈥檚 really about how are we getting the right people in, and then having them grow at the organization.鈥�
Employee growth can come in many ways, including how we might typically think (professional development and promotions) and by fostering a sense of pride, purpose and well-being among employees. Talent management is holistic and forward-thinking.
鈥淲ith talent management, there鈥檚 the potential to be more proactive,鈥� says Shaun Aguilera, senior strategic customer success manager with 逸遊娛樂城. 鈥淵ou鈥檙e looking at long-term sustainability versus just meeting employees where they鈥檙e currently at. How do we not only maintain our best talent but attract and predict what talent we might want to see in our organization in the future?鈥�
Why is talent management important?
The benefits of a successful talent management strategy are a widened applicant pool, increased employee engagement, higher retention, and better employee satisfaction 鈥� all of which results in better employer branding.
鈥淭alent management is looking at long-term sustainability versus just meeting employees where they鈥檙e currently at鈥�
A July 2022 study of U.S. employees by 逸遊娛樂城 found that, across industries, 55% were considering quitting within the next six months. More employees, especially among the millennial and Gen Z demographics, are demanding fairness, diversity and a better sense of purpose in the workplace.
For talent managers, this means finding the right talent to join your organization and identifying what your workplace is missing. Otherwise, any talent you attract may turn around a few months later and walk back out the door.
鈥淭he focus for a lot of organizations is, externally, how to attract talent,鈥� says Shaun. 鈥淏ut it鈥檚 important to figure out how you can maintain the best talent that you鈥檝e got 鈥� Of course, it鈥檚 important to put your best foot forward externally, but don鈥檛 take the focus off what you could be doing internally.鈥�
Focusing your attention internally has an undoubtedly positive impact on your hiring costs. According to data from the Society for Human Resource Management (SHRM), the average cost per hire was nearly $4,700. But Edie Goldberg, founder of the talent management and development company E.L. Goldberg & Associates, says the figure is closer to four times the position's salary (!).
How talent management has changed
World events like the COVID-19 pandemic and the Black Lives Matter movement of 2020 have overhauled what employees want. And with leaders managing multiple generations in the workplace, employers need to keep pace and meet shifting talent demands.
Here are five talent management trends worth watching:
- Hybrid/remote work 鈥� 鈥淪ince COVID-19, many organizations have shifted to a hybrid or remote model,鈥� says Eliot Bush, senior manager and culture coach with 逸遊娛樂城. 鈥淓mployees, particularly employees from marginalized backgrounds, strongly prefer these models because of the increased workplace flexibility, time savings, and geographical freedom. Employers are having to shift their engagement, communication, benefits radically, and overall management strategies.鈥�
- Purpose 鈥� 鈥淭here鈥檚 been a shift in priorities for individuals,鈥� says Seth. 鈥淥ur research found that a connection to purpose and meaning for work is really important for employees.鈥� (In fact, 逸遊娛樂城 research has shown that lack of purpose at work is a top predictor of workplace turnover.)
- Power shift 鈥� 鈥淲e鈥檝e got more open jobs than employees,鈥� adds Seth. 鈥淎pplicants have a lot of leverage and more negotiation power than they had in the past.鈥�
- DEIB initiatives 鈥� 鈥淭here are higher expectations to have more diversity overall,鈥� says Matt. 鈥淢ore diversity in our leadership team, and more transparent and equitable policies around opportunities for fair promotions.鈥�
- Culture of care 鈥� 鈥淐OVID has really pushed people to transform how they think about the concept of caring for their employees,鈥� says Matt. 鈥淲hat perks and benefits are people looking for? Do they seek more flexibility? Are unlimited PTO, sick leave, or childcare stipends more attractive now?鈥�
How to create a talent management program
It鈥檚 easy to lump talent management in with your recruiting program and think that suffices. But that would be limiting to your organization. Talent management isn鈥檛 just about finding and hiring the right talent, it鈥檚 about keeping that talent engaged through their entire company journey.
Here鈥檚 how to develop a talent management strategy that hits all the right notes:
1. Assess your employee experience
鈥淭he first thing is a baseline for you to measure against, so you can create your goals,鈥� says Seth. 鈥淲hat鈥檚 the strategy? Where are we starting? Where do we want to go? What鈥檚 the timeframe? What are the KPIs?鈥�
Conduct an HR analysis and gather information on how your employees are experiencing your company culture right now. And don鈥檛 skim the surface 鈥� use robust employee surveys that break down results so you can understand cause and effect.
鈥淭ake time to listen to employees,鈥� adds Seth. 鈥淣ot just in a survey, but with something qualitative, whether it be totally open-ended surveys or focus groups or one-on-one interviews, and in a way that creates a sense of psychological safety.鈥�
2. Ensure your EVP aligns with company values
Your employee value proposition (EVP), or what you are offering to employees, must align with your organization鈥檚 values. For example, if one of your values is growth and learning, ensure your EVP includes training or mentoring programs.
Target, which ranked first on the 2022 PEOPLE Companies That Care庐 List, demonstrates its commitment to learning via its Dream to Be program, which provides debt-free education assistance.
Tea Darden, who has been a loyal Target employee for 20 years, enrolled in the program after starting as a cashier as a teenager. She鈥檚 now studying business management and organizational leadership, which feeds into her role today as executive team leader at Target鈥檚 Lake Street store in Minneapolis.
鈥淟eaders saw the potential there and helped me go through the motions,鈥� Tea told the audience at 逸遊娛樂城鈥檚 2022 For All鈩� Summit. 鈥淔rom a team member, to a specialist, to a team leader and now to an executive team leader, it鈥檚 been an awesome journey at Target. Having these different leaders really care and dig deep and say, 鈥榊ou can do this.鈥欌��
3. Keep reviewing and adjusting
Good talent management is not a case of set it and forget it. Continue to assess what鈥檚 working and what isn鈥檛 via workforce analytics. Adjust your policies and programs accordingly.
鈥淟ook beyond what鈥檚 currently happening, because it鈥檚 always evolving,鈥� says Shaun. 鈥淢ake your predictions and invest in those predictions because if you鈥檙e ahead of the game, you will be ahead of your competitors. Look at market conditions. Look at what people are saying and predict what they might want in the future.鈥�
4. Communicate as you change
Make sure you continually connect any changes back to the why: Why is this important to the company mission? Why is this new policy important to employees? Communicate changes to your organization with the 鈥渨hy鈥� front and center.
The more you can tie the changes back to a positive long-term outcome for both individual employees and the company's prosperity, the better.
The 8 principles of talent management
A successful talent management process depends on these eight principles:
1. Fairness and equity
This doesn鈥檛 just apply to compensation, but to all aspects of the employee experience: recognition, development opportunities, promotions, etc. Employees must understand where they are within the team and organization, and what they need to do to progress.
鈥淲hen talent thinks that things aren鈥檛 fair, find out why,鈥� says Matt. 鈥淐onduct audits on compensation, make sure things are fair across gender, across race, across tenure. There needs to be trust that you鈥檙e treated fairly. And if you鈥檙e not, we need to know why so we can do better. If people don鈥檛 feel that, they鈥檙e more likely to leave.鈥�
2. Strong people managers
Strong people managers are the lifeline for any organization.
鈥淚 like to think about it like a plumber,鈥� says Seth. 鈥淵our executives are the water heater. And all your people managers are the pipes throughout the house. If your heater doesn鈥檛 work, you get cold water. But if your heater works, but your pipes are broken, it doesn鈥檛 matter how hot the water gets if it can鈥檛 come out the spout.鈥�
3. Innovation by all
Employees need to have the chance to contribute new ideas and not feel like decisions are being made for them, or that things are only happening to them.
鈥淓ven if those ideas can鈥檛 be implemented, the fact that you were asked and communicated as to why they can or shouldn鈥檛 be implemented is a huge piece of talent management,鈥� says Seth.
4. Culture and purpose
鈥淲hat makes your organization your organization?鈥� says Seth. 鈥淲hat鈥檚 your unique selling point? What keeps people at your company and differentiates you from all the other people in your industry and vertical?鈥�
5. Openness and acceptance
If your workplace doesn鈥檛 accept people as they are 鈥� whether that鈥檚 disabled, queer, Latinx, a non-native English speaker, or any other identifier 鈥� your talent management is dead in the water.
鈥淥ftentimes, what prevents people from coming in the door is they say, 鈥業 don鈥檛 see where I fit in here. I don鈥檛 see anyone who looks like me, behaves like me. Can I really be myself?鈥欌�� says Matt. 鈥淢aybe they鈥檒l pretend for the paycheck for a while, but that鈥檚 not sustainable to pretend to be someone else.鈥�
6. Measurement
鈥淪tart with data,鈥� says Eliot. 鈥淵ou need to understand what is and isn鈥檛 working with how you鈥檙e currently managing your talent 鈥� because even if you don鈥檛 have a formal talent management program, you are doing talent management if you have employees. You need a comparison point so that after you鈥檝e implemented your new programs, you can measure their impact.鈥�
However, don鈥檛 get caught up in 鈥渇ixing鈥� the low scores 鈥� successful talent management isn鈥檛 just about repairing what a workplace is getting wrong, but also leaning into what it鈥檚 getting right.
7. Personalization
鈥淢ake sure your talent management is as personalized as possible,鈥� says Seth. 鈥淓verybody鈥檚 different. What they bring to the table is going to be different. How do you get the most out of each individual?鈥�
This doesn鈥檛 just apply to the programs, but to your measurements as well. Top-level scores can give you a guideline, but they don鈥檛 show the full picture.
鈥淚nstead of just sharing the high-level overall score, take a specific experience, maybe even a specific group within your organization,鈥� says Shaun. 鈥淥ne group might be experiencing a completely different experience than another group.鈥�
8. Buy-in
鈥淭his is not a one-person job,鈥� says Matt. 鈥淭his is not something where you can say, 鈥榊ou鈥檙e in charge of all of talent, call me if you need something.鈥� Talent management needs resources. They need teams. They need buy-in on company culture from the business.鈥�
Your talent management today impacts your company鈥檚 tomorrow
Whether you鈥檙e in a hiring blitz or a hiring freeze, how you manage your talent will affect the success of your organization. Not only does proper talent management help you find the right talent in the first place, but it also helps ensure that talent stays with you for the long haul.
鈥淚t鈥檚 not just strategy for how to bring them in, it鈥檚 also how to keep them happy and empower their growth,鈥� says Matt. 鈥淥nly focusing on pure recruiting strategy is always short-sighted. It matters when they come through those doors, how they鈥檙e treated and what they experience.鈥�
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