Human resources are the personnel of a business or organization. Human resources represent a key asset of a business enterprise or some other type of organization like a nonprofit group or agency. In recent years, talent management has become an increasingly more significant element of a business’ investment in human resources. As is the case with many people, you understandably may wonder what is talent management?
Essential Definition of Talent Management
In basic terms, talent management is defined as the science of utilizing what commonly is known as strategic human resource planning. Talent management is used as a method of improving business value. It can also be vital in aiding a business or organization to reach milestones and ultimate goals and objectives.
The use of talent management in the human resources process is designed to accomplish four primary objectives. These are to attract, develop, motivate, and retain high-performing employees, according to AIHR Digital, a resource of the Academy to Innovate HR.
History of Talent Management
In order to best understand talent management and its application to business enterprise success, noting a bit about its history is important. Talent management was term developed in 1997 in the aftermath of a study undertake by a major management consulting firm in the United States. The following year, the concepts of managing talent were detailed in an academic paper.
Implementation of Talent Management
Three important considerations apply to the full, successful implementation of talent management within a particular business or organization. These are evaluations, competencies, and the talent marketplace.
Evaluations of existing employees utilizes to metrics. Employee performance and potential are the pair of evaluation measurements.
Employee performance has been a standard employee evaluation measurement. Talent management adds a focus on potential. Specifically, in evaluating an employee, a close consideration is made to that individual’s potential. In other words, the evaluation process focuses on a consideration of an employee’s future performance if that worker is provided proper skill development as well as increased responsibility.
When it comes to managing talent in the HR realm, attention is also paid to competencies. In a more traditional situation, competencies are important, but in a different way. Traditionally, when competencies are considered, the focus is on a specific position or role within a company or organization.
When talent management strategies are employed, the consideration of competencies is far broader. A deeper analysis of a person’s competencies is undertaken in light of the needs of the business or organization more broadly. The focus extends beyond a specific position but to jobs across a company or organization. Indeed, a consideration of competences can extend to the creation of a new position in a business or organization based on the competencies of a particular person.
Finally, within an entity utilizing talent management strategies, attention is always on the talent marketplace, even when a business of organization has no open positions. As is the case with an evaluation of an individual’s competences more broadly, keen attention on the talent marketplace enhances the odds that an entity will be able to more significantly enhance its HR.
The incorporation of talent management in the human resources strategies of businesses and organizations has become more widespread in the past five years. This trend is expected to continue. As a result, people interested in careers in human resources are wise to become well-versed in the concepts and practices associated with talent management.