Tips for Creating a Talent Management Strategy
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Implementing an effective talent management strategy may improve business performance, create a motivating work environment and increase employee retention rates. Talent management is a system employers use to identify, recruit and retain high-value candidates that align with their business values. In this article, we explain what a talent management strategy is, explore the importance of a talent management strategy, provide steps and tips for creating an effective talent management strategy and give examples of talent management strategies in action.
What is a talent management strategy?
Talent management refers to strategic methods of identifying, recruiting, developing, motivating and retaining high-value employees. Strategies of talent management are ongoing procedures to help recognize suitable candidates for a business, onboard new employees and enhance employees' professional skills.
Why is a talent management strategy essential to use in your business?
Acquiring a high-performing team is vital for a business to be strong, competitive and successful. Effective talent management strategies can grow your company's profits by improving the team's abilities while potentially decreasing employee turnover rates.
How to create a talent management strategy
While creating a talent management strategy, review the following steps:
Read more: Guide for Developing a Talent Strategy
1. Define business goals
Your talent management strategies may work best if they align with your company's goals and values. When you have clear business goals, it can be easier to create the job roles you may need.
2. Evaluate and adjust your job descriptions
If you are hiring employees with your new strategy in mind, it's useful to write straightforward and concise job descriptions and listings. While writing a job description, including specifics such as the job title, tasks, necessary skills, salary and benefits can persuade a high talent candidate to apply for a position. Defining expectations can help a business determine if a candidate is a good fit for the job role and can represent the company professionally.
3. Plan for challenges
Identifying potential challenges before they arise may help you avoid unnecessary obstacles. Part of this may include brainstorming potential solutions so you have options to refer to if you have to address an issue. Creating a visual map of business goals and tracking your progress can help you identify potential setbacks and allow you to adjust your plans and processes. It also can help you design new talent management strategies that align with the adjustments you might need to make.
4. Identify priorities and create objectives
After planning for and identifying future challenges, create objectives for your human resources team to use throughout the recruiting and retention processes. This may include new training and development opportunities for team members. You might also discover a need for an employee with particular skills, which could lead to investing in current employees through training opportunities.
5. Invest in your employees
Hiring and promoting employees from within can save money and give existing employees a new sense of purpose. Implementing an open communication policy may allow current employees to express their career goals, which can help you understand their needs and how they can grow in the company.
It's important to remember that the best growth opportunities for your employees may exist outside the workplace. Setting aside a budget to cover the cost of opportunities outside of work, such as e-learning courses, business conventions and networking events, may help your employees enhance their existing skills.
6. Measure your progress and make adjustments
To make sure you are on track to meet your goals with talent acquisition, review the current talent management strategies and evaluate the effectiveness of each strategy. One helpful method is reviewing employee performance and employee retention levels. High performance and low turnover rates may show that your talent management strategies are working. If you find that some strategies are not suited for your business, it may be helpful to consider some adjustments.
Tips for developing talent management strategy
While developing a talent management strategy, consider the following tips:
Create perks and incentives to increase productivity
Giving your high-performing employees something to look forward to or achieve can increase their motivation. Providing incentives like bonuses, praise or other rewards for challenging tasks may encourage employees to work harder. Special luncheons, a break room with free snacks and simple awards such as an employee of the month are perks that could also improve employee morale.
Have regular one-on-one meetings
Designate times to regularly meet with each employee. Following up with your employees may allow you to learn more about how they feel in their role and if they have other desires regarding their career. This also can be a time for you to provide feedback so your employees can consistently improve their work. Taking the time to acknowledge each employee may help them feel important to the business and motivate them to enhance their skills.
Think about company culture
While hiring new employees, think about your current company culture and how it contributes to the success of the business. Each employee may bring noteworthy characteristics that can shape a productive work environment and morale. Even if you find a candidate with the skills that fit your job description, you still may want to consider the other ways in which they can contribute to your company culture.
For example, if a candidate has skills or experience that you did not include in the job ad, but these skills and experiences would potentially enhance the work your team does, this additional information may be worth considering when evaluating their application.
Talent management strategy examples
To gain a better understanding of how talent management strategies work, take a look at the following examples:
Photography by Elliot
The company Photography by Elliot decides to hire another photography editor so they can send out photography projects to clients more quickly. The owner designs a talent management strategy that uses detailed job listings to find an ideal candidate. In the job listing, they emphasize that an ideal candidate can meet deadlines, has attention to detail and demonstrates time management skills. After reviewing applications, they find a suitable candidate for the role who also has excellent experience with customer service. This additional skill may help the company communicate professionally with clients during the editing process.
Yellow Bonnet Bakery Co.
Yellow Bonnet Bakery Co. wants to expand its menu and include coffee drinks. They decided to use a talent management strategy that invests in their current employees to build and develop their skills instead of looking for new talent. The company pays for all employees to attend a barista training class to help them learn how to properly make coffee drinks. After the training, the owner notices an increase in employee productivity, and the coffee sales increased their revenue by 20%.
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