Talent Management – internal development meets external demands!
Talent management and succession planning have been buzzwords since McKinsey’s field of research back in 1997. The definition of talent management is the process by which an organisation identifies, manages and develops its people both now and for the future. Whilst talent management focuses on individual needs and their potential, succession planning, in contrast, has a bias towards the organisation requirements. Putting it simply, succession planning is concerned with strategies that focus on an optimum mix of both internal and external recruitment.
It is often easy to think about talent management just applying to large corporates with large HR teams and mature business processes. However, the principles of talent management can also
be crucial to small and medium-sized businesses as they work out how to grow in the most cost-effective way. Increasingly I see organisations looking for talent outside of their businesses due to last minute recruitment and difficulties with skills shortages, particularly in managerial and professional positions. The same businesses are then often overlooking key talent who could be developed and considered for internal promotions. This can result in increased staff turnover, causing further gaps in critical positions. It’s a vicious circle that could easily be addressed with an effective talent and succession planning strategy.
Strategic skills for the future can be difficult to source – technology alone is driving the changing face of business before our eyes. According to Frey & Osborne (2013), the top ten in-demand jobs in 2010 didn’t exist in 2004. Consider this: An IT Manager of 20 years ago was concerned with technology and getting software in on time and to budget. These days, the same IT Manager is responsible to drive a balanced scorecard approach, stakeholder needs, customer service, finance and drive new technologies and trends. This increased complexity will require more broadly skilled managers to ensure the business remains a leader in its field. To recruit such talented and broadly skilled IT managers will cost money. To develop these competencies from within the organisation is a more sensible and time efficient process.
So how simple is it to implement this? Consider how vulnerable the organisation would be if critical positions were not filled or if key people were to leave. Are these people readily available within the business – could they be developed over time? Ask yourself this, how difficult is it to recruit such people and at what cost? The answer is quite clear – extremely! The need is there and the implementation does not need to be complex. Consider key stakeholders, demographics of those within the business, determine your critical roles and succession plans for these roles. Consider how to rate those people ready both now and in the future for such positions and how you will develop and coach them accordingly. Agree on an annual process where you will identify, review and measure such a scheme to ensure both talent and succession are developed. Overall, to remain future-focused and ahead of your competitors, focus on the development of knowledge, not just the people.
So what is the future of Talent Management? For those organisations who have an effective Talent Management process in place that focuses on developing staff and the utilisation of key talent in critical positions, the same structure can be applied beyond the organisation. Why not consider suppliers, temporary workforce, specialists and even customers in the talent management process!? Effective Talent Management should not only develop and move people but also encourage people to leave the organisation (and possibly return!).
For more information on introducing a talent management and succession strategy within your business, then please contact Victoria Chidgey at Atoll HR on Victoria@atollhr.co.uk
Victoria has worked for more than 25 years in the UK, Europe and Australia within multinational, private and public organisations to attract, recruit, develop and retain talent. Working in partnership with Senior Managers, she prides herself on developing secure business relationships that focus on business strategy and achieving bottom-line results. With a coaching and personable approach, Victoria is currently focusing on working with Small to Medium Enterprises to set up HR and People processes that assist their growth and success. She also guest lectures on Human Resource Management at Bath Spa University.
Connect with Victoria on LinkedIn