The short answer given by the CIPD is: talent management referts to the systematic attraction, identification, development, engagement, retention, and deployment of individuals who are valuable to an organisation, because of their potential or the role they have.
Talent management is therefore an umbrella term for a lot of HR measures. It is a central component of human resources strategy and therefore not a “nice-to-have” but a real success factor. The many pieces of the puzzle that make up effective talent management can be divided into four thematic blocks.
1. Define key competencies and key positions
First, management and HR managers need to be clear about how the company’s strategy for the coming years will affect staffing requirements. Essentially, there are three questions to consider:
- Where does the company want to develop?
- What core competencies are needed for this – today and in the future?
- Which positions make the greatest contribution to the company’s success and are particularly critical?
Without this clarity, talent management remains arbitrary.
2. Identify talent within the company
The next step is to look inward: What competencies are already in place – and who has the potential to develop them in the coming years? Each company defines for itself what exactly constitutes “talent”. Typical approaches are:
- Every employee has at least one talent – an approach that is particularly common in small SMEs.
- Talent as a combination of current performance and future development potential.
- Talented individuals who hold key positions or have the potential to do so.
3. Identify and close gaps
It is now clear which skills will be needed in the future and to what extent they are currently available in the company. A comparison of the target and actual situations reveals specific skills gaps. The key question now is: Should these gaps be filled internally or externally – or both?
3.1. Close gaps through internal employee development
When it comes to personnel development, many managers in SMEs are initially put off by the perceived high costs. However, one of the most effective forms of development is virtually cost-neutral: on-the-job training – i.e. learning in the everyday work environment. Typical examples:
- Acquiring new skills through changed or expanded tasks
- Expanding one’s comfort zone through special tasks or new responsibilities
- Gaining initial management experience by leading projects
Mentoring or coaching – often by the direct manager – can be used to supplement this. Formal training courses remain important, however, especially when larger groups need to be prepared for new topics such as digitalisation. So-called learning journeys are being used more and more frequently: structured development programmes over a longer period of time, accompanied by managers and HR. Investments in leadership development in particular pay off. Studies by the Gallup Institute clearly show that dissatisfaction with one’s direct manager is one of the top reasons for resigning.
3.2. Close gaps through external recruitment
When it comes to recruiting, many companies quickly reach their limits. Simply posting a job advertisement is no longer enough. The shortage of skilled workers requires a much more active approach. Successful approaches include:
- Proactively approaching suitable candidates via social media and providing authentic insights into the company
- Building and maintaining an applicant community – including former interns, working students, alumni and unsolicited applicants
- Clear employer branding that highlights the company’s culture, mission and values
Recruiting has long been an ongoing task – not a one-off activity.
4. Retain talent in the long term
Employee retention begins much earlier than is often thought: even before the first day of work and in the weeks that follow. Structured onboarding lays the foundation here. In addition, employees need regular, development-oriented feedback and clear career prospects within the company. A genuine emotional bond develops when employees understand and support the company’s vision and strategy. Then work becomes a source of genuine identification. The following factors help to support this:
- Regular communication about company goals, progress and the contributions of individual teams
- Comprehensible, transparent decisions involving employees
- Promoting personal responsibility instead of micromanagement
Finally, two notes on the framework conditions
If this article has motivated you to further expand talent management in your company, please note the following two points:
- Understand talent management as a joint task for management, executives and HR. If there is a works council, involve it at an early stage.
- Plan realistically: both in terms of HR resources and a suitable budget. Purely on-the- job development measures are not sufficient in the long term.
As a guideline, well-positioned corporations invest around one per cent of their turnover in talent management. Don’t be discouraged if your budget is lower. The key is to approach the issue actively, in a structured manner and with clear priorities.
Inken Schneider – TALENT PUZZLE
HR consultant for small and medium-sized enterprises
kontakt@talent-puzzle.com
+49 151 67337785
TITLE PHOTO: Adobestock – Fizges
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