Effective Talent Management

There is no doubt that more and more organisations are implementing talent management strategies and frameworks. However whilst talent management is fast becoming a strategic priority for many organisations, Collings & Mellahi (2009) suggest that the topic of talent management lacks a consistent definition and is still largely undefined. Literature reviews reveal that one reason for this is that the empirical question of “what is talent?” has been left unanswered.

The term talent has undergone considerable change over the years. It was originally used in the ancient world to denote a unit of money, before adopting a meaning of inclination or desire in the 13^th century, and natural ability or aptitude in the 14^th century (Tansley 2011, as cited in Meyers, Woerkom, & Dries, 2013). Today’s dictionary definition of talent is “someone who has a natural ability to be good at something, especially: without being taught” (Cambridge Dictionaries Online, 2014).  This definition implies that talent is innate rather than acquired. This holds important implications for the application of talent management in practice. For example, it influences whether we should focus more on the identification/selection of talent or the development of talent.

Talent management is defined as “an integrated, dynamic process, which enables organisations to define, acquire, develop, and retain the talent that it needs to meet its strategic objectives” (Bersin, 2008).

Integrated talent management implies we take a more holistic approach; starting with the identification of key positions and capabilities required which contribute to an organisations sustainable competitive advantage (Collings & Mellahi, 2009). Equipped with this information we are better able to gather talent intelligence to help determine capability gaps, identify individual potential, and any areas for development.  Talent intelligence and performance tools capable of gathering this type of information include: well validated psychometric assessments, 360° surveys, engagement surveys, post appointment and exit interviews etc. Strategic and integrated talent management is not only essential in the current market, but provides an opportunity to be pro-active rather than reactive in addressing your critical talent needs.

We suggest that key components of an effective talent management process would include:

1. A clear understanding of the organisations current and future strategies.
2. Knowledge of key positions and the associated knowledge, skills, and abilities required (job analysis and test validation projects can assist here).
3. Objective metrics that identify gaps between the current and required talent to drive business success.
4. A plan designed to close these gaps with targeted actions such as talent acquisition and talent development.
5. Integration with HR systems and processes across the employee lifecycle.

What is clear is that talent management is becoming more and more important as organisations fight for the top talent in a tight job market. Key to success will be identifying what ‘talent’ looks like for your organisation and working to ensure they are fostered through the entire employment lifecycle.

 

Meyers, M. C., van Woerkom, M., & Dries, N. (2013). Talent—Innate or acquired? Theoretical considerations and their implications for talent management. Human Resource Management Review, 23(4), 305-321.

Collings, D. G., & Mellahi, K. (2009). Strategic talent management: A review and research agenda. Human Resource Management Review, 19(4), 304-313.

Bersin Associates. (2008). Talent Management Factbook.

Why do people leave, and what can we do about it?

Why do people leave, and what can we do about it?

We all know that high turnover can be a major issue – it is both expensive and time consuming for an organisation to be continually replacing staff and training new employees. In 2013 it was estimated that in New Zealand the average employee turnover rate sat between 11% and 20%, while in 2012 it was estimated to sit at 17.7%. So, how can organisations reduce turnover and the associated expense?  This is not by any means a simple question to answer, and generally leads to the bigger question of why people leave organisations.

The number of variables that go into why an individual chooses to leave their job and/or organisation is huge. They may have been unhappy with their pay, it may have been an issue with their manager, it could be an issue with the job itself, they may want better training opportunities, and the list goes on. Due to the variety of factors involved in turnover, it makes sense to ask staff why they’re leaving, and then use that information to implement changes that are directly targeted at why people move on. This is where the exit interview comes in.

There are some great examples out there of organisations who were spending millions of dollars on turnover per year, who have then implemented a strategic approach to utilising exit interview data and have managed to significantly reduce turnover and the associated costs. On the other hand, there are also many examples of organisations conducting exit interviews and seeing no benefits. So how can your organisation achieve reduced turnover with exit interviewing?

Not all exit interviews are going to give you useful data, and, you will only get useful data out of the exit interview process if you know how to use it. Firstly, exit interviews need to be designed well. Questions should cover the most common reasons that people leave, and provide clear, actionable data. Exit interviews should not be too long, and they should provide opportunity for free comments as well as quantitative ratings.

They should also be easy to complete and analyse.  Online exit interviews have been found to lead to significantly larger participation rates compared to paper and pencil, and also facilitate effective and efficient use of the data. In the click of a button exiting employees can be sent an online exit interview, which can then be filled in at their own convenience or alternatively in a phone call with HR or an outside consultant. The data can then be reported on at an individual, group, and organisational level at any frequency, providing useful information and trends about why people leave the organisation. Such an approach is also cost and time effective, while giving you clear direction on how to keep people for longer.

Why wouldn’t you want to take a strategic approach to exit interviews?

For information about OPRA’s exit interview offering please see www.exitinterviewer.com