Effective Talent Management System

Talent is a rapidly increasing source of value creation. The financial value of our companies often depends upon the quality of talent. In fact, the Brookings Institution found that in 1982, 62 percent of an average company’s value was attributed to its physical assets (including equipment and facilities) and only 38 percent to intangible assets (patents, intellectual property, brand, and, most of all, people). In this century these percentages have nearly flip-flopped, with 80 percent of value attributable to intangible assets and 20 percent to tangible assets.

Workforce demographics are evolving. Organizations wage a new “war for talent” these days. Today, according to CareerBuilder, more than half of those age 60-64 are working (up from 46 percent in 1996). And that number is expected to reach 60 percent by 2026. Many hold top positions, squelching the opportunity for lower-level talent to advance and leaving younger workers feeling stuck and potentially looking for opportunities with other organizations, further fuelling the war for talent.

The context in which we do business is more complex and dynamic. Hyper-competition makes it more difficult than ever to sustain a competitive advantage long term. New products and new business models have shorter life cycles, demanding constant innovation. Technology enables greater access to information and forces us to move “At the speed of business.” Global expansion adds to these challenges a single company may, for example, have its headquarters in Japan, its R&D function in China, and its worldwide sales operations based in California.

Boards and financial markets are expecting more. Strategy + Business magazine once described CEOs as “The world’s most prominent temp workers.” This continues to be increasingly true: In the first nine months of 2019, according to Challenger, Gray, & Christmas, 1,160 U.S. CEOs in left their jobs a 13 percent jump from the same period the previous year, and the highest number of CEO departures since the company first began tracking it in 2002. Boards and investors are putting senior leaders under a microscope, expecting them to create value. This pressure, most visible at the CEO level but generally felt up and down the org chart, drives a growing emphasis on the quality of talent not just at the C-level, but at all levels.

Benefits

Strategic hiring process

Having a TMS can help you recruit those really talented candidates that everyone is after. By integrating tasks such as posting job descriptions, tracking applicants and making it easy to manage offers, a TMS streamlines your hiring process, allowing you time to focus on the candidates.

Connecting and sharing data

The right TMS can integrate and align core HR processes. While much of the data collected through a HRIS is stored in silos and can be difficult to reach and analyse, an integrated TMS shares data across the entire system allowing for easy access. This gives a clearer understanding of what that data means for your business and enables you to make informed, strategic business decisions.

Improved onboarding experience

An organised and efficient approach to onboarding is achievable with a TMS. You can create employee profiles which hold all of the information and data collected during the recruitment and hiring processes. Automating the new hire paperwork can save both you and the new hire time which you can then use to focus on the new recruit.

Employee development

A good integrated TMS should include options for employee learning and development. It enables employees to take courses, develop skills and in some cases pursue certifications relevant to their professional development. TMS solutions also collect data on what skills an employee has and allows the HR team to assign training which the employee can then access from their personal profile.

Increased employee and manager engagement

If you’re looking to increase engagement in your company, implementing a TMS can help. The employee profile empowers employees and managers to interact with the employee’s professional career progression. An integrated TMS solution encourages them to invest in the organisation and align their daily work with the business goals while also focusing on their personal goals.

Retain top talent

Once you have the best employees, you need to keep them. With all of the employee information hosted on one platform and neatly organised into an online profile, you can track performance reviews, goals, skills and career aspirations to make sure your employees are happy and on the right track. Having a TMS in place to capture all of that data makes it easy to analyse and report on which employees need developing, monitoring or even promoting.

Improved employee experience

As we know, employee turnover is something to be avoided at all costs. A TMS that integrates with payroll improves the employee experience by allowing access to payslips, holiday requests and management of sick leave. Organisational charts can also be included, letting employees know the reporting and management structure of the company.