Talent management is a critical component of human resources. But just like many other aspects of HR, talent management is changing. The effects of the COVID-19 pandemic, alongside widespread digitization, have upended the state of work and how businesses approach managing their people processes.
There’s a clear need to modernize the HR function to meet the needs of today’s employees, and failing to do so means falling behind. In the current global business environment, it is getting tougher to hire and retain top talent. With the recession weakening revenue streams and the great resignation causing employers to lose their top talent to their competitors, businesses are at a tipping point.
In such tough times, when the skills gap is widening, hybrid work setups have become a reality, and employees’ expectations are constantly changing, HR professionals look at their talent management strategies to stay sustainable in the long run.
Talent Management and It’s Evolution
The basic purpose of talent management is to implement a robust strategy to acquire, hire and retain key players for their workforce. But today’s HR landscape requires processes that look very different than even a few years ago.
Some of the factors influencing this necessary change include
Digital transformation: Continued reliance on digital solutions demands a shift from an on-paper talent management strategy to a more tech-friendly one.
Shifting employee expectations: Changes in the workforce landscape mean employees expect greater flexibility in their workday, better pay, and better opportunities for education and professional development.
Hybrid and remote work: A workforce that collaborates both in-person and virtually requires new and expanded processes for effective team communication and manager/direct report relationships.
Improved diversity, equity, and inclusion practices: Talent management methods of the past were often designed for a limited demographic. Modern talent strategies require greater flexibility to foster diversity and be more inclusive and equitable for a greater number of people.
The Significance of Talent Management
The global labor shortage is leaving companies in every industry scrambling to meet their basic organizational needs. Not only are skilled employees a challenge to find in the current market, but retention is posing an unprecedented problem with 47 million people quitting their jobs in 2021 — a record high.
These numbers paint a bleak, but realistic picture and the only way to get ahead of the labor crisis is by rethinking talent management. The companies gaining traction are listening to the needs of their workforce, analyzing the shifting needs of their organization and employee base, and creating a new, more effective and contemporary method. Without fundamental changes to HR processes, organizations run the risk of losing out on skilled workers and falling behind.
How to Evolve Talent Management Strategy
While the tried-and-true frameworks for talent management may not change, current systems and the way leaders think about talent management has to in order to keep in step with the new and emergent world of work.
The global talent shortage has organizations scrambling to find skilled employees to fill job openings. But with the right talent development initiatives, your company can cultivate this talent from the inside. If you offer skills development for employees, it’s important to also provide opportunities for them to use those new skills.
A modern talent management strategy is only effective if it integrates with your existing diversity, equity, and inclusion efforts. When evaluating your efforts, ensure that all of your talent management systems and processes are strategically aligned to overarching organizational objectives. Looking at talent management from this lens ensures that the skills workers are building are relevant to the needs of the company and that your efforts are driving measurable business outcomes.
Outdated talent management methods can take a heavy toll on an organization, exacerbating a litany of issues from recruitment to retention. Take the lead in helping your organization solve its labor crisis by refocusing on development and mobility, creating an environment where people feel valued and supported in growth.