Tag: Compliance Management

Competence Based Management is comparatively a modern method to find on the means by which firms achieve excellent performance and also more important sustain that good performance. The significance of this method lies in the fact that it can provide a theoretical explanation about the way in which firms will be able attain and also sustain competitive advantage. This management approach provides the theoretical approach that can explain this method in a methodical and ordered manner.

In this method it is important to give stress to the competence of an organization rather than the environment in which it functions. So it is rather a method that looks inward into the organization. Therefore, this theory will be useful to understand the abilities of an organization that help it to achieve competitive advantage. It is considered to be based on four pillars namely dynamic, systemic, cognitive and holistic aspects of competences of the organization. Fundamentally competence should include these four natures of the organization to attain competitive advantage.

For every position, employees require specific competencies; qualities they need in order to perform their work well. In most cases, they are already in possession of these qualities.

At the same time, there are also many possibilities for developing various competencies. This is exactly what competency management is all about. When developing their competencies further, employees will be able to perform their tasks even better.

This will ultimately benefit the company. Many companies engage in competency management because it allows them to align business objectives with the knowledge, skills, and professional attitude of their employees. If it is clear what competencies are required, companies may adjust their recruitment policy accordingly.

Steps:

1. Description of General Core Competencies

By first determining which core competencies are important, the organisation can create a general portfolio of the people it’s looking for. What is the company’s core business, how does it distinguish itself from competitors, and how does the company aim to profile itself to the outside world?

This step is at the strategical level, and revolves around the question of which core competencies are required to remain successful in the coming years.

For instance, an airline company will place great importance on competencies such as customer focus, service-oriented, solution-oriented, and communication. These are the competencies required of employees in every department and within all business units.

2. Development of Competency Profiles

Once the core competencies are clear, one can start determining the competencies of the individual employee. Naturally, these must be derived from the core competencies.

Each department requires specific knowledge, skills and professional attitudes. In the same airline company, technical and analytical insight will be important among the technical staff, whereas stress-resistance will be considered one of the core competencies for the cabin crew.

If job-oriented competencies are not yet clear, it may help to establish profiles on the basis of interviews with managers and employees.

Moreover, the established competency profiles may be added to the job descriptions. A complete list of competencies may also be included in a competency handbook as a useful way to contribute to competency management.

3. Making Competencies Measurable

Once it is clear which competencies apply to the various positions within an organisation, it is recommended to make these competencies measurable. Competencies may be linked to result areas and performance indicators.

This will take place at department level (tactical level), and it is the task of managers to clearly communicate this to their employees. By indicating in advance what is required of employees and how individual competencies are measured, everyone will know what is required of them.

This is made even clearer on the basis of SMART objectives; what are the Specific expectations, how is it Measurable, is it Acceptable and Realistic, and what is the Time frame?

For example, based on the number of complaints handled, this approach allows the airline company to evaluate how customer-oriented an employee has been in handling complaints during the past year.

4. Create Support

Regular employees will not necessarily like it if only management and middle management are in charge of determining the competency profiles. They’ll get the impression that all the decisions are made for them.

By involving employees in drawing up the competency profiles, they will be more inclined to take these competencies to a higher level. Competency management will only be successful by creating support among employees.

In addition, employees must understand its usefulness. In the event of any resistance, it is the task of management to conduct individual conversations with employees.

5. Implementation Competency Management

Ultimately, all competencies must be integrated into the human resources policy. The implementation of competency management is only a fact once it has become part of the corporate culture.

At the operational level, the competencies will then form the basis of both the selection process and development process of current staff. Competency profiles are implemented and used during assessment, performance, and personal development interviews, as well as during general job interviews.

Features

• Pinpointing triggers for each role.
• Identifying the key success factors.
• Laying direction for superior performance.
• Serving means for communicating performance expectations.
• Ensuring that the employees obtain greater transparency about their roles.
• Providing opportunities for development.
• Setting defined expectations from employees.
• Creating a more empowered workforce.
• Employing the workforce effectively.

Objectives

Objectives set out both the general and definite intents of the organization. Strategy is thus formed by the objectives. Over all objectives identify the following:

• The intention of the organization
• Long and short-term aspirations and ambitions of the organization
• The decision-making structure of the organization
• The foreseen results of its plans and actions.

The main determinants of the objectives of an organization are:

• The characteristics of its business activities
• The available resources
• The organizational culture
• The stakeholders and the influence they exert
• The operational environment

Talent management software is technology that human resource management professionals use to manage employees as a competitive advantage. Talent management can refer to a standalone application from a niche vendor that specifically addresses one part of the process, such as a learning management system. Or the HR technology can be an integrated suite of software applications aimed at the entire employee lifecycle.

In the latter sense, talent management software is often referred to as a talent management system and automates certain processes from the time potential employees apply to when they are hired until they retire. Talent management systems typically contain applications that fall into the broad functional areas, referred to as pillars. In recent years, cloud-based talent management software has become the prevailing norm.

Pillars of talent management

Traditionally, there were four pillars or modules of talent management applications, but in recent years, a number of experts and vendors refer to five pillars of talent management. Regardless of the number and names, talent management systems include applications that fall into one of these following broad functional areas. The names and number of pillars change depending on the talent management systems vendor, but the concepts remain the same:

• Recruitment and onboarding
• Learning and development
• Performance management
• Compensation management
• Succession planning

Talent Management System is designed to keep track of talent within an organization. Talent is classified as valuable members of personnel and prospective employment candidates who have applied for open positions. If you plan on working the expanding field of TMS, you will need to learn how to navigate through a TMS system and how to utilize the system as you scope out, qualify and hire talent. The best TMS used today by mid-sized and large corporations will keep track of data at many different points in the employee life cycle. The data that the system compiles can then be used for strategic professionals for several different purposes that benefit the organization.

Data can be used by professionals who work in the Human Resources department in a number of different ways. You have to consider how organizing company data and running specific reports can help you do your job in HR before you reject the efficiency of any type of program. If you work in HRM, you can integrate your TMS system and your application tracking system so that you can easily sift through applications and organize them. This helps you efficiently identify quality applicants or place others on a wait list for future job postings.

Another benefit of a quality TMS system is that other departmental managers can enter data and rate an employee’s progress. This helps HR assess the employee’s performance to see if they are candidates for a raise or a promotion. By having this system in place, you can retain those who are an asset and discipline those who have not been committed to their job. If there is room for improvement, managers and HR professionals can provide their employees with training materials so that employees can further their skills. By keeping track of the talent in these software systems, only the best applicants are chosen and only the best employees are retained. This eliminates costs and reduces the time it takes to manage human capital.

Assessing an organization’s human capital to ensure that everyone has the right skills is very important. By using a TMS, organizations can eliminate hindering talent gaps that might exist to create a skilled workforce. Today, HR is all about strategy. Using specific metrics and data to assess the quality of the workforce is extremely important for recruitment, training and even incentive purposes. By working as a team, HR managers, supervisors and departmental managers can all work together to make better organizational talent decisions. With answers to the question, “What is a Talent Management System?,” you can build your understanding and show employers why you are a good candidate.

In adverse economic conditions, many companies feel the need to cut expenses. This should be the ideal environment to execute a talent management system as a means of optimizing the performance of each employee and the organization. Selection offers are large return on investments. Job analysis and assessment validation help enhance the predictive power of selection tools. Data points such as cost-per-placement or average time to recruit are critical in predictive analytics for talent management. These evaluation methods use historical data to provide insight. However, within many companies the concept of human capital management has just begun to develop. With more companies in the process of deepening their global footprints, more questions have been asked about new strategies and products, but very few on the kind of leadership structure that will bring them success in their globalization process. “In fact, only 5 percent of organizations say they have a clear talent management strategy and operational programs in place today.” The impact of globalization on talent management practices is specifically covered in several recent books.

Today, the staffing companies in India have realised the potential to correct Talent Management Strategies. The burning issue with many companies is that they spend a lot of time developing their talent but spend very little to retain and develop them. A glowing example of a successful talent management strategy is third party payroll. Talent management is also sometimes known as HCM (Human Capital Management) and HRIS (Human Resource Information System). Contractual staffing will have a significant role to play in the talent management system of the future.

Distinctly called human capital management, employee relationship management and workforce management, among others, talent management is not a new concept, but one that in the past corporations haven’t been set to finalize. India Talent Management has become one of the most important buzzwords in Corporate HR and Training today. Right talent is the greatest asset for any enterprise and one of the essential roles of HR is to make sure that the employees with the right skills stick with the company for long enough. The issue with many companies today is that their organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent.

Employees who had high performance and high qualification scores were classified as “stars” and constituted the talent pool. Employees in other segments needed performance development, qualification development, or both.

Defining Strategic priorities: For any business strategy, the starting point is always the business’s strategy. Strategic priorities are vital in selecting the focus areas of HR. They answer questions like should we value more sales or marketing. Are we focusing more on enlarging the customer base or on deepening our customer relationship? Is third party payroll a viable option? Are we working in a project-based manner, or are we an operational partner for our clients? Indeed, the answers to these questions will impact the skills you are looking for in the new employees, and the staffing companies in India realize that.

Workflows: A number of workflows can be redesigned based on talent management practices. For example, you can support the digital transformation that the organization is going through by adding digital skills to your company’s pre-selection assessment.

Software Systems: Software plays an essential role in executing a talent management strategy, and in the future, it will play a significant role, especially in third party payroll.

Training: Training will be another central focus area, especially in this digital age, where company-wide transformations are common.

Money is not enough

Money attracts but it does not retain. The job-hopping frenzy in the Indian workforce, particularly among ambitious, talented millenials is enough to prove that point. A recent Mercer survey backs it up: 54% of Indians are seriously considering leaving their current employer, and in the 16-24 year age bracket, that increases to 66%. Yes, two-thirds of your call center could potentially be gone by the end of the year. Some will no doubt be chasing a hike in salary, but as is the case elsewhere, when it comes to knowledge workers, more knowledge is also what they are after.

Talent management in India should be seen for what it is: a risk management strategy against the business impact of having inadequate or insufficient human resources to fulfill organizational objectives. If that is the case, both local Indian companies and multinationals operating in India have much work to do.

Information technology and system have changed the way business gets conducted. Every decision-making process is enhanced with utilization of an information system. Information systems have been deployed by human-resource team to enhance employee employer relationship.

Companies require great deal of contribution from employee for its success though information systems have made several processes automated.

Talent Management

Talent management and human-resource management are completely two different fields, although the human-resource team is responsible for talent management.

Talent management is organization focus towards complete management of recruitment, retention, development of brightest talent available. The focus of talent management is to attract best talent in the market and convert them into efficient and effective work force. Talent management team is responsible for hiring, maintaining and retaining the best talent.

Talent Management Evolution

Talent management finds its roots in earlier workforce management and human management concept. Earlier concept saw intervention of human resource in managing and retaining talent. However, with talent management, this responsibility is transferred to manager.

Talent management empowers manager to take upon greater responsibility. The manager is actively involved from talent acquisition, recruitment process, retaining and development of the employee. Organizations have their own approach towards talent management. Certain organizations include only their star performers as part of talent management, whereas some organizations consider all staff within talent management.

Talent Management as a Strategic Tool

The race for talent has never been more competitive, even as organizations try to load the “talent” in their workforce. The “talent” employees with specialized skills and competence who ensure the organization is able to win in today’s competitive market and sustain itself during times of uncertainties such as the one we face today.  Needless to say, organizations also feel the need and pressure to manage these key resources.

With the “Talent” becoming the most critical resource, it is imperative for CHRO (Chief Human Resource Officer) of today to have the required intelligence, real-time data and information of the talent management processes implemented within the organization and right tools and techniques to measure the effectiveness of those processes. They have realized that it is equally critical to build and maintain a talent management ecosystem, which includes seamlessly integrated digital and IT (Information Technology) empowered systems, which enable real-time information tracking, thereby enabling speedier and accurate decision making.

Talent management is actively used by organization as a strategic tool. Companies need to blend talent management with business strategy as to boost employee management activities. The onus of attracting and managing the best industry talent is on the respective managers.

Organization needs to develop a process through which employee talent can be recognized and shared. This would enable best utilization of talent across the organization.

Employees are encouraged to manage their individual development plan.

Talent Management System

A talent management system is an information technology solution to manage four corner points of human-resource management:

• Recruitment
• Performance management
• Learning-development management
• Compensation management

The existing enterprise resource planning systems are focused on employee transaction such as payroll, leave management, etc. The talent management system looks at providing human-resource solution for long-term strategic goals.

The key features and development history are as follows:

• Talent management system became a reality with the advent of client/server technology. It was now possible to electronically manage applicant base important for multi-national companies. The Internet and data analytics also helped the development of the talent management system.
• Talent management system became important to manage high-performance work environment, reduced top management attrition, increase employee satisfaction, create talent pipeline, and develop better compensation models and creation of uniform performance measure metrics.
• The two driving points of the talent management system are recruitment and retention.

An organization needs to align its business strategy with human-resource strategy to develop and manage effective talent management system. A development of the talent management system requires the following:

• Finalization of various competencies around which future development of an employee is to take place.
• Creating of a human-resource model to rank and stack the existing workforce.
• Examine the current human-resource process to identify the developmental areas.
• Develop tools to increase existing talent pool.
• Pro-actively identifies future skill set requirements and manages the talent pool accordingly.

Adoption of technology focuses on below key areas in an integrated talent management ecosystem:

• Digitize HR processes across talent management areas
• Align talent with business strategic needs
• Precise decision making in real-time
• Improved talent pipeline management
• Wider and targeted global talents reach
• Reduce hiring cycles and recruitment costs
• Effective talent mobilization and deployment
• Improve networking and collaboration among talents, employee engagement
• Align compensation and rewards with employee performance and business objectives
• Predict future situations and realign strategies by taking evidence based actions
• Measure impact of the HR value chain

A talent management solution can bring a variety of benefits to an organization. For one, implementing an integrated Talent Management Suite (TMS) can smooth the flow of information across HR, payroll, and benefits administration. This sharing of data can enable your business to better innovate and your employees to better perform. It doesn’t only help HR administrative needs however, talent management is a business strategy, so the software simplifies business processes and allows room for improvement in the top talent in the company.

Involve Employees Right off the Bat

When you’re determining your businesses requirements with respect to features and functionality, it is important to consult your employees, managers, recruiters, learning and development specialists and/or HR specialists to find out what they think they need in order to improve business strategies. Although HR specialists will be the ones using the software the most, it’s critical to get input from your employees and managers because they will be the ones most committed to its adoption. So it’s helpful getting them involved with the requirement settings and identifying any challenges/ day-to-day work the new talent management software will need to address.

Involve a Cross-Section of Users in the Software Selection Process

Once you’ve got your basic requirements down and are ready to look for a product/vendor, involving a cross-section of users from across the organization to participate in the process can help a lot. This approach will help you ensure the selected product or vendor will in fact meet the needs of the various departments and users in the organization, and that no group or department is overlooked. This also helps ensure a better understanding in terms of what is available in TMS and, if any, what compromises may need to be made and why.

Cultivate Top Talent

Another key step to ensuring employees across an organization get on board with a new TMS is to cultivate top talent in all areas of the organization. These employees are considered top talent because they are more than ready to embrace the change and help the organization move forward. If you engage these people in the implementation processes, you build on their knowledge and engagement with the software so they may become social influencers for others. By leveraging their enthusiasm and early adopter mentality, it will help to encourage other employees to be just as enthusiastic of the new software.

Test the Software Before Launching It

Testing your new talent management software, processes and forms is another important step to a successful user adoption. The last thing you want to do is discourage new users with small issues or glitches; it is easy to make a bad first impression and hard to recover from it. By conducting thorough user testing, for every area, avoids this challenge and reassures a smooth launch. Involving users from each department, especially the top talent employees, may be helpful as well. Having multiple sets of eyes to pay attention to the details will bring different perspectives, making it more likely to catch any problems before making the software available to the entire organization as a whole.

Provide Training and Support

Last, but certainly not least, providing extensive training and support to all your employees is extremely important. Regardless of how easy the user interface, it’s vital for users/employees to be given an introduction to the new software. Don’t overlook the importance of refresher training or more in-depth training down the road as well, this encourages ongoing engagement and use of the new software and avoids information overload in the initial training. Making it simple for users to get help or support, both in the early days and going forward is important as well.

No cookie-cutter approach

These five steps need to be carefully and individually designed for each enterprise. They cannot be deployed with a checklist mentality. 50% of executives who rate their talent programs as excellent stated that they apply design thinking well, and self-identified high-performing companies are three to four times more likely than their competitors to be applying design thinking to their people practices

It is possible to see why such a rigorous approach is necessary. A recent survey found that 63% of all respondents are concerned about the scarcity of critical talent available in the external market. And hand-in-hand with identifying internal talent comes the need to match it to the right roles. According to Aberdeen Group, best-in-class organizations are 81.2% more likely to have a process which identifies the job roles are critical to organizational success.

Identify success measures and milestones

Reaping the full value of an integrated and business-based talent management initiative can require up to two to three years of effort. Therefore, it is critical to articulate before the work begins how you’ll know if you are making the appropriate progress. Set milestones that will help the team assess progress, pace and direction, and agree on the results metrics that will define the ultimate value and impact of this work.

Human resources managers strive to hire employees who fit in with a company’s culture. They must also keep an eye on diversity and equal opportunity as well as both ethical and legal hiring practices. In other words, a company’s culture can be at odds with what’s the right thing to do for HR managers. As issues arise, the HR manager must be adept at resolving conflicts between the demands of company culture and those of ethical behavior.

Harming Some While Benefitting Others

HR managers do much of the screening during the hiring process. By its very nature, screening leaves some people out and allows others to move forward. In short, the ones left out will be harmed by not getting the job no matter how much they need it. HR managers can avoid the emotionalism of such situations by adhering strictly to the skill sets and other requirements of the position, but there will always be a gray area where HR managers may weigh how much each applicant wants and needs the job. If the company culture values skill sets more than desire, the HR manager may have to go against her own urge to reward applicants who have more drive than technical skill.

Equal Opportunity

The Commission regularly monitors company’s hiring practices to make sure there is no discrimination in the hiring process based on ethnicity, sexual orientation, race, religion and disability. However, simply complying with EEOC guidelines does not guarantee ethical behavior. For example, if an HR manager recommends an applicant in order to fill a quota, that decision is unethical, because it will eliminate other applicants that may be more qualified. If the culture of the company emphasizes minimum adherence to the law, the HR manager may face an ethical dilemma when recommending a highly qualified applicant who does not fit the background needed for a company quota.

Privacy

Privacy is always a delicate matter for an HR manager. Though a company culture may be friendly and open and encourage employees to freely discuss personal details and lifestyles, the HR manager has an ethical obligation to keep such matters confidential. This particularly comes into play when the competing company calls for a reference on an employee. To remain ethical, HR managers must stick to the job-related details and leave out knowledge of an employee’s personal life.

Compensation and Skills

HR managers can recommend compensation. While these recommendations may be based on a salary range for each position, ethical dilemmas arise when it comes to compensating employees differently for the same skills. For example, a highly sought-after executive may be able to negotiate a higher salary than someone who has been with the company for several years. This can become an ethical problem when the lower-paid employee learns of the discrepancy and questions whether it is based on characteristics such as gender and race.

Some of the major issues an organization deals with is handling ethical challenges in workforce diversity.

Harming Some While Benefitting Others

HR managers do much of the screening while the hiring process is still on. By its very nature, screening leaves some people out and permits others to move forward. In short, the ones left out will be affected by not getting the job, no matter how much they need it.

HR managers can neglect the emotionalism of such situations by adhering strictly to the skill sets and other needs of the position, but there will always be a gray area where HR managers may scale how much each applicant wants and needs the job.

Labor Costs

HR must cope with conflicting needs to keep labor costs as low as possible and to invite fair wages. Ethics come into action when HR must select between outsourcing labor to countries with lower wages and harsh living conditions and paying competitive wages.

While there is nothing illegal about outsourcing labor, this issue has the potential to build a public relations problem if consumers object to using underpaid workers to save money.

Opportunity for New Skills

If the HR department selects who gets training, it can run into ethical issues. As training is a chance for development and broadened opportunities, employees who are left out of training may debate that they are not being given equal opportunities in the workplace.

Fair Hiring and Justified Termination

Hiring and termination decisions must be made without regard to ethnicity, race, gender, sexual preference or religious beliefs. HR must take precautions to eliminate any bias from the hiring and firing process by making sure such actions adhere to strict business criteria.

Fair Working Conditions

Companies are basically expected to provide fair working conditions for their employees in the business environment, but being answerable for employee treatment typically means higher labor costs and resource utilization.

Fair pay and benefits for work are more obvious factors of a fair workplace. Another important factor is provision of a non-discriminatory work environment, which again may have costs engaged for diversity management and training.

By now it’s pretty clear that while working in an organization, we come across people with different backgrounds, cultural beliefs and we need to respect their beliefs. In case an employee feels left out due to some problem, it may not work in the favor of the organization.

The prime focus of talent management is enabling and developing people, since the quality of an organization is determined by the people it employs and has onboard. After hiring and deploying we may say that retaining and nurturing talent is quintessential.

Talent management also known as human capital management is evolving as a discipline that encompasses process right from hiring people to retaining and developing the same. So, it includes recruitment, selection, learning, training and development, competency management, succession planning etc. These are all critical processes that enable an organization to compete and stand out in the market place when managed well!

Talent management is now looked upon as a critical HR activity; the discipline is evolving every day.

• Technology and Talent Management: Technology is increasingly getting introduced into people development. Online employee portals have become common place in organizations to offer easy access to employees to various benefits and schemes. In addition, employees can also manage their careers through these portals and it also helps organizations understand their employees better.
• Talent War: Finding and retaining the best talent is the most difficult aspect of HR management. HR survey consultancies are one in their view that organizations globally are facing a dearth of talented employees and it’s often more difficult to retain them. Further research has also shown that there is clear link between talent issues and overall productivity.
• Promoting Talent Internally: An individual is hired, when there is a fit between his abilities or skills and the requirements of the organization. The next step is enabling learning and development of the same so that he/she stays with the organization. This is employee retention. An enabled or empowered means an empowered organization.

It is also of interest to organizations to know their skills inventories and then develop the right individual for succession planning internally.

• Talent Management to rescue HR: HR has been compelled to focus on qualitative aspects equally and even more than quantitative aspects like the head count etc. Through talent management more effort is now being laid on designing and maintaining employee scorecards and employee surveys for ensuring that talent is nurtured and grown perpetually.
• Population Worries Globally: World populations are either young or aging. For example, stats have it that by 2050 60% of Europe’s working population will be over 60! On the other hand, a country like India can boast of a young population in the coming and present times. Population demographics are thus a disturbing factor for people managers. Still more researches have predicted that demographic changes in United States will lead to shortage of 10 million workers in the near future.
• Increase in Employer of Choice Initiatives: An organization’s perceived value as an employer as helps improve its brand value in the eyes of its consumer. Most importantly it helps it attract the right talent.

Emergence of Digital HR

The number of people using smartphones and accessing the internet is growing at an exponential rate. This increase in digitization has an impact not only on the individuals but on organizations as well.

An increasing number of companies will have to build and design mobile apps for critical HR functions (e.g. recruiting, onboarding, learning, performance, feedback, attendance, payroll etc.) that are easy to use. Digital HR is not just about a mobile App, but how they can leverage technology to connect with their people.

Talent management through focused coaching & mentoring

Companies and their employees both need to keep up with the technology. Companies have the responsibility to invest and to explore coaching programs for that. For instance, peer-to-peer training is a cost-effective, integrated and culture driven model. HR should encourage employees for mentoring others by introducing a rewards program for that.

Recruitment backed by data analysis

Technological advancement has revolutionized the recruitment process. Talent acquisition leaders no longer use the old ways to connect with prospects. Rather, they interact on professional networking platforms such as LinkedIn. These platforms have made accessing candidates’ information easy and affordable. Networking platforms also have analytics tools that help HR leaders in making strategic & informed recruiting decision. HR teams now have a better understanding of the job market which makes them more effective in hiring quality people.

Transparent & advanced performance reviews

The old-fashioned, once-a-year performance review system which is both opaque and complicated will be phased out. Today websites like Glassdoor, give employees a forum to rate their company & their managers in a transparent manner. In the years to come, this trend will gain traction in which employees can not only review but also give feedback on a real-time basis.

Impetus on employee engagement, Culture & Brand building

In this global market, top skills are rare to find, and the competition to attract them is fierce. Talent acquisition leaders realize this, and they are focusing more on brand building to attract top talent. The new trend of employee engagement & culture will have a higher value in the years to come.

Talent management can be defined as a constant process that involves attracting and retaining high-quality employees, developing their skills, and continuously motivating them to improve their performance.

There is no dearth of professionals but there is an acute shortage of talented professionals globally. Every year b-schools globally churn out management professionals in huge numbers but how many of are actually employable remains questionable! This is true for other professions also.

The scenario is worse even in developing economies of south East Asia. Countries like U.S and many European countries have their own set of problems. The problem is of aging populations resulting in talent gaps at the top. The developing countries of south East Asia are a young population but quality of education system as a whole breeds a lot of talent problems. They possess plenty of laborers skilled and unskilled and a huge man force of educated unemployable professionals. These are the opportunities and challenges that the talent management in organizations has to face today dealing with demographic talent problems.

Now if we discuss the problem in the global context, it’s the demographics that needs to be taken care of primarily and when we discuss the same in a local context the problem becomes a bit simpler and easier to tackle. Nonetheless global or local at the grass roots level talent management has to address similar concerns more or less. It faces the following opportunities and challenges:

• Recruiting talent
• Training and Developing talent
• Retaining talent
• Developing Leadership talent
• Creating talented ethical culture

Recruiting Talent

The recent economic downturn saw job cuts globally. Those who were most important to organizations in their understanding were retained, other were sacked. Similarly huge shuffles happened at the top leadership positions. They were seen as crisis managers unlike those who were deemed responsible for throwing organizations into troubled waters. It is the jurisdiction of talent management to get such people on onboard, who are enterprising but ensure that an organization does not suffer for the same.

Training and Developing Talent

The downturn also opened the eyes of organizations to newer models of employment part time or temporary workers. This is a new challenge to talent management, training and developing people who work on a contractual or project basis. What’s bigger a challenge is increasing the stake of these people in their work.

Retaining Talent

While organizations focus on reducing employee overheads and sacking those who are unessential in the shorter run, it also spreads a wave of de motivation among those who are retained. An uncertainty about the firing axe looms in their mind. It is essential to maintain a psychological contract with employees those who have been fired as well as those who have been retained. Investing on people development in crisis is the best thing an organization can do to retain its top talent.

Developing Leadership Talent

Leadership in action means an ability to take out of crisis situation, extract certainty out of uncertainty, set goals and driving change to ensure that the momentum is not lost. Identifying people from within the organization who should be invested upon is a critical talent management challenge.

Creating Talented Ethical Culture

Setting standards for ethical behavior, increasing transparency, reducing complexities and developing a culture of reward and appreciation are still more challenges and opportunities for talent management.

The key challenges faced by an organization is retention of such high quality talent, and the key questions to grapple with include:

• How to recruit effectively
• How to identify them from within
• How to cultivate and nurture them
• How to motivate and retain them
• How can they be best leveraged

The best Talent Management strategies would include:

• Setting Clear Expectations and Aligning Organizational Goals
• Going Beyond Regular Performance Appraisals
• Providing Professional Development Opportunities
• Measuring and Improving Talent Management with Analytics

Talent Management is an organization-wide, all-inclusive strategy for hiring, training, and retaining top-performing employees. In today’s competitive world, having a talent management system in place is indispensable. When the organization faces an economic downturn, an effective Talent Management system is what will help you weather through it.

The workplace processes and systems that must effectively work together to produce a talent management strategy that will provide results for an organization have been highlighted. Further, an ASTD/i4cp study identified factors that are present more of the time in organizations that have a successful talent management strategy operating.

The most intriguing idea that emerged in the review of talent management was the success of implementing talent management review meetings. By talking about talented employees and making their knowledge, skills, and potential known to other managers in different parts of the organization, the potential use and development of internal talent are magnified for both the organization and the talented employees.

Talent management includes the following activities and work processes:

• Develop clear job descriptions, so you know the skills, abilities, and experience needed from a new employee.
• Select appropriate employees who have superior potential and fit your organization’s culture, with an appropriate selection process.
• Negotiate requirements and accomplishment-based performance standards, outcomes, and measures within a performance development planning system.
• Provide effective employee onboarding and ongoing training and development opportunities that reflect both the employee’s and the organization’s needs.
• Provide on-going coaching, mentoring, and feedback, so the employee feels valued and important.
• Conduct quarterly performance development planning discussions that focus on the employee’s interests for career development.
• Design effective compensation and recognition systems that reward people for their contributions. Even if all of the rest of your employment processes are employee-oriented, people still work for money. Employers of choice aim to pay above market for talented employees.
• Provide promotional and career development opportunities for employees within a system that includes career paths, succession planning, and on-the-job training opportunities.
• Hold exit interviews to understand why a valued employee decided to leave the organization. If the reasons provide information about company systems that you can improve, make the changes that will better retain talented employees.

Conduct regular employee reviews to keep employee performance on the track

The value of a well-defined performance management process is three-fold.

First, a performance appraisal is an important opportunity for employees & managers to discuss goals & competencies, challenges and development needs if any. Getting regular feedback helps employees perform at their best.

Second, appraisals help managers and HR identify those who are not performing well and take corrective action for the same.

Finally, documenting the history of an employee’s performance helps managers and HR make critical decisions such as workforce restructuring and rightsizing, as and when needed.

Align individual and organizational goals and effectively track their progress

Aligning the goals of an individual with those of the organization is an important talent management best-practice. It is the responsibility of the companies to make sure that their employees are all focused on contributing to their success. You need to ensure that everyone is working on the right things such that the organization is pushed further ahead in the direction of its goals.  Leaders need to step in and take corrective measures as and when sufficient progress is not being made.

Quickly and effectively communicating any change in priorities or strategies is equally important. Changes that impact the goals of an organization need to be communicated to everyone whose individual goals are linked to those of the organization.

Provide ongoing feedback to maximize performance

Regular feedback helps everyone maximize their performance. Managers and employees can quickly take corrective actions when things start to go off track. Ongoing feedback makes performance appraisal faster and easier for everyone to complete. Having quarterly or semi-annual reviews is more effective than the formal, annual ones.

Identify and reward high performing employees

Know who your high potential and well-performing employees are. You may not always be able to reward them with salary hikes or bonuses but demonstrating the commitment of the organization towards such individuals will help in the long run. You could reward them with initiatives that will help them move up in their career, perhaps even prepare for a promotion. Acknowledging their performance and potential will help retain such employees.

Invest in performance-based development

Use your employees’ appraisals to identify gaps in their skills and offer the right kind of training that they need. The Learning and Development department should spot areas where employees individually have scored low and offer training to each accordingly. Similarly, they need to look at the overall scores and identify the critical competencies lacking in the employees. It is important that you also extract value from such training by measuring the change in employee performance as against the appraisal process.