The Impacts of Talent Management

The Impacts of Talent Management

Succession Planning and Talent Management are processes that were historically only conducted for the top few percent of employees in an organisation. With the advent of new technology and methods, it is now possible to conduct these processes for the entire workforce. It has become possible to do so quickly and with benefits for the whole organisation, each line manager, the HR department and every employee. This paper outlines the methods, outcomes and benefits of this new approach, which is well adopted by leading organisations.

Definition of Talent Management Processes

In dealing with Succession planning and Talent management, our definition of Talent Management includes Succession Planning for every employee and also includes the following:

• The employees Career Aspirations, next role desired, direction of advancement, time frames.
• Rating of roles as to their criticality to the organisation.
• Rating as to the managers perception of the employees potential (A,B,C) against several behaviors.
• Managers view as to where they see the employee, Readiness for Promotion, Next role to be promoted to, Succession Plan - employee that could replace this employee (in the event of promotion or in the event of this employee leaving) and readiness of the next employee to take over the role.
• Flight Risk assessment (what is the probability this employee will leave the organisation in the next twelve months).

The outcome of this process is to enable:

• The manager to understand the Talent in his or her team.
• For the manager to be able to visualize his or her team as to the various factors that relate to the probability and consequence of an employee exiting the organisation.
• The employee to know that their aspirations and development have been considered.
• ‍The organisation to be able to understand where it’s talent is at.

Why Bother with Talent Management Process?

Employees typically constitute 60% of the organisation’s operating costs. In a business or organisation supply sense, employees are more difficult to source, have longer lead times for replacement, cost more than ever before and have a very high total replacement cost. Intellectual capital loss is often not considered as a direct cost but it will have an increasing impact on organisations as the world’s major economies transition from the industrial age to the services age (knowledge workers).

In most organisations however there is little consideration for the cost of replacement, training, induction, time taken for the employee to get up to speed (be 100% productive in their new role). Most organisations have little or no infrastructure, systems or procedures to deal with the costs of employee turnover.