If your company has had challenges retaining top talent, mishandled hiring and onboarding, we illustrate how to create a talent management strategy that is effective. It’s important to understand what talent management is to then find out how it can contribute to the success of your organization and how it can foster employee retention and growth.
What is a Talent Management Strategy and why is having one important?
A talent management strategy includes how the organization intends and plan on hiring, developing and retaining employees. The best strategies are based solely on data and customized to match the needs of the business. While there are different ways your organization an benefit from a talent management strategy, there are few that stand out, and more on them below.
Employee productivity ultimately increases.
Boost the performance of your employees but investing in them the way you invest in your business. Improved skills will ultimately increase the output from your team while performing their roles.
Ways that you can invest in your team include development programs may be outsourced or in-house, as certifications or mentorship among others. The bottom line is that companies that implement a culture for learning, growth and development see a 52% increase in employee output throughout the company, iterating how crucial people investment really is.
Approximately 70% of a business’s expenses are related to labor. Salary, benefits, and equipment are all obvious examples. The cost of training and replacing employees is also extremely high.
You lose 6 to 9 months of salary for every employee who leaves your company and having a high turnover rate means that you have to pay those costs repeatedly.
The employee experience can be improved by talent management strategies in order to reduce turnover. The major expense of your company can be reduced by reducing turnover with a good talent strategy.
With savings and a powerful workforce, your strategy is now easier to execute.
With any great talent strategy, align your people to your business strategy and the business objective. Investing in your teams, and creating an environment that fosters continuous growth and development is bound to achieving even the most impossible goals. Creating and building a workforce that is aligned with your business goals, objectives and strategy increases performance by 8 to 18%. It also creates a cycle of continuous growth and organic progression.
Your business gains market strength.
By hiring the right talent, your company revenue will likely increase by almost 33%. Great business aren’t built by their services or brand, they are driven by people, and it’s important to include that as part of your business strategy.
Many companies constantly lose their top performers. Not only is this inconvenient, it destroys a company’s ability to compete.
Improve your hiring process, and you can potentially get the right people. Work on development, and a sustainable culture in your talent management strategy, and your organization will keep the best people.
But what are the core components of a solid talent management strategy?
Five Basic Areas of a Talent Management Strategy
Plan, Identify, Hire, Retain, and Train.
Planning begins with how to be strategic with your workforce.
However, to ask questions related to your teams, you need to know the following:
- Business goals
- Current business strategy
- Desire company culture
Next, it’s important to ask some of the questions below about your the workforce you intend to hire and develop.
- How many people do you need to hire?
- Which roles or departments do you need them in?
- What skills or behaviors mean success in those roles?
- When do the positions need to be filled?
Identifying a talent management strategy considered effective requires assessing your current plan. Descriptive data like exit interviews are a method of data that allows you to observe and see a potential trend on where your current strategy is falling short. Other examples of data that can help assess your current strategy include:
- Employee interviews. They highlight ways that the employee experience can be improved.
- Retention/attrition rates. Are you employees always looking for a way out.
- Employee engagement surveys. They help identify the reason behind the attrition/turnover.
Not hiring with an effective plan or strategy can be costly. If you’re wondering just how costly, NorthWestern research has found it can cost almost 30% of the employee’s annual pay. When hiring it’s important to consider the following:
- Widen your talent pool. With today’s work climate, remote and hybrid roles can your organization a competitive edge.
- Assessment tools. These help select top talent for the role you’re looking to fill. They can also help hiring talent with unique value for teams.
Retaining employees should be a focus when building your talent management strategy. Create a culture of retention with some of the following strategies.
- Reward top talent to not only reduce attrition but to keep your team engaged.
- Create a positive company culture so that employees feel happier at work.
- Communicate the work your team is doing and how that is driving the company’s mission.
- Increase pay and benefits to improve the employee value proposition.
Development while last, is not least. Often overlooked, it’s one of the crucial parts to your talent management strategy. Training is one of the top three benefits to employees.
- Provide in housing training
- External certification programs
- Reimbursements for external classes
- Mentoring programs
Now that you know what a talent management strategy is, the importance and the five basic areas, learn how to implement a talent management strategy.
ABOUT NEWLAND ASSOCIATES
Having over 100 years of combined experience, we’re people experts, helping organizations with their talent management needs. Align management and business outcomes with predictive analytics, contact us to learn how.