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Talent management

Talent management: what is it & why companies should invest in it

from  Unit4 Prosoft April 5, 2022 | 5 min read

A lot of people use the term "talent management" when they talk about human resource management. While the two are dependent on each other, they aren’t necessarily the same.

Talent management is a function that sits under the umbrella of HR management. It’s a long-term strategy that focuses on building, attracting and retaining a pool of highly skilled workers. The following are some reasons companies should spend money on this HR function:

Attracting top talent

As the name suggests, talent management helps you hire the best people to work for your company.  By creating a talent pipeline, it’s easier to secure top talent on the market and take your business to greater heights.

Your company’s reputation is essential in encouraging the best talents to join your team. When you have a strong employment brand or positive company image, you will easily attract the right kind of people. Potential candidates will come to you and finding candidates with the relevant skill sets becomes a piece of cake.

Improve employee performance

Talent management isn’t a one-step process that ends after bringing in new members to your company. This process involves a series of steps, including motivating your employees to reach their fullest potential.

One of the most effective talent management tactics is to incorporate feedback and rewards. Establish a culture where workers will feel involved and appreciated. It’s only when you care about your workers that you care about your customers, your company, and your staff care about your customers.

Acknowledge and reward employee  accomplishments to build their confidence and improve your leadership skills. If you realise that they’re eager to work more, set more demanding targets for them. After all, a good employee is always eager to take on new challenges.

Lastly, offer constructive criticism on their work. Here are a few ways to provide feedback without demoralising your employees:

  • Focus on the behaviour, not on the employee
  • Discuss the outcome and how it impacted the team
  • Work together to find the solution

Enhance employee retention

The price of employee turnover includes hiring costs, training costs, not to mention other indirect costs, such as decreased productivity, and absenteeism. By maintaining an in-house skilled resource pool, companies can cut down on these costs and boost employee retention rates.                                                      

According to a study conducted by Matthew Bidwell, a Wharton management professor, external hires get significantly lower performance evaluations than internal hires with the same job.

With a good talent management strategy,  your business  can  develop career opportunities and fill open positions internally. Not only does it help you keep your top talent, but it also creates a competitive environment that inspires your employees to attain new goals and work harder. 

Sustain employee engagement

Talent management touches on the factors that influence workers’ commitment and connection to an organisation. It supports the growth and development of workers, fosters loyalty, and drives productivity, among other benefits.

When there’s a fair system for development, employees will feel more engaged. The more employees feel involved in the company operations, the higher chances of retaining them and keeping them motivated. talent?

Conclusion

A company's investment in talent management can be extremely beneficial. However, implementing it takes careful preparation, time, and experience.

To summarise, talent management is a modern form of human resources that finds the top people for your business. With Unit4 Prosoft you can now provide not just a better space to work, but also a better method of working. With self-driving, adaptable, and intuitive solutions.

Unit4 Prosoft

Unit4 Prosoft have been serving customers in Asia for 30 years and is trusted by over 1,000 businesses across the APAC region in the manufacturing, healthcare, retail, construction, and professional services industries. Unit4 Prosoft HRMS has modules that support every aspect of your HRMS programs and allows you to manage people’s entire hire-to-retire cycle with a central control center and database. Your people get the flexibility and freedom to have what they need—how, when and where they need it.