| Talent management is a process that emerged in the | | | | extensively utilized. |
| 1990s and continues to be adopted, as more | | | | The term "talent management" means different things |
| companies come to realize that their employees' | | | | to different organizations. To some it is about the |
| talents and skills drive their business success. | | | | management of high-worth individuals or "the talented" |
| Companies that have put into practice talent | | | | whilst to others it is about how talent is managed |
| management have done so to solve an employee | | | | generally - i.e. on the assumption that all people have |
| retention problem. The issue with many companies | | | | talent which should be identified and liberated. From a |
| today is that their organizations put tremendous effort | | | | talent management standpoint, employee evaluations |
| into attracting employees to their company, but spend | | | | concern two major areas of measurement: |
| little time into retaining and developing talent. A talent | | | | performance and potential.[7] Current employee |
| management system must be worked into the | | | | performance within a specific job has always been a |
| business strategy and implemented in daily processes | | | | standard evaluation measurement tool of the |
| throughout the company as a whole. It cannot be left | | | | profitability of an employee. However, talent |
| solely to the human resources department to attract | | | | management also seeks to focus on an employee's |
| and retain employees, but rather must be practiced at | | | | potential, meaning an employee's future performance, if |
| all levels of the organization. The business strategy | | | | given the proper development of skills and increased |
| must include responsibilities for line managers to | | | | responsibility. |
| develop the skills of their immediate subordinates. | | | | The major aspects of talent management practiced |
| Divisions within the company should be openly sharing | | | | within an organization must consistently include:[8] |
| information with other departments in order for | | | | - performance management |
| employees to gain knowledge of the overall | | | | - leadership development |
| organizational objectives.[4] Companies that focus on | | | | - workforce planning/identifying talent gaps |
| developing their talent integrate plans and processes to | | | | - recruiting |
| track and manage their employee talent, including the | | | | This term "talent management" is usually associated |
| following: | | | | with competency-based human resource |
| - Sourcing, attracting, recruiting and onboarding qualified | | | | management practices. Talent management decisions |
| candidates with competitive backgrounds | | | | are often driven by a set of organizational core |
| - Managing and defining competitive salaries | | | | competencies as well as position-specific |
| - Training and development opportunities | | | | competencies. The competency set may include |
| - Performance management processes | | | | knowledge, skills, experience, and personal traits |
| - Retention programs | | | | (demonstrated through defined behaviors). Older |
| - Promotion and transitioning | | | | competency models might also contain attributes that |
| Talent management is also known as HCM (Human | | | | rarely predict success (e.g. education, tenure, and |
| Capital Management), HRIS (HR Information Systems) | | | | diversity factors that are illegal to consider in relation to |
| or HRMS (HR Management Systems), and HR | | | | job performance in many countries, and unethical within |
| Modules.[5] | | | | organizations). |
| Companies that engage in talent management (Human | | | | A talent marketplace is an employee training and |
| Capital Management) are strategic and deliberate in | | | | development strategy that is set in place within an |
| how they source, attract, select, train, develop, retain, | | | | organization. It is found to be most beneficial for |
| promote, and move employees through the | | | | companies where the most productive employees can |
| organization. Research done on the value of such | | | | pick and choose the projects and assignments that |
| systems implemented within companies consistently | | | | are most ideal for the specific employee. An ideal |
| uncovers benefits in these critical economic areas: | | | | setting is where productivity is employee centric and |
| revenue, customer satisfaction, quality, productivity, | | | | tasks are described as "judgment-based work," for |
| cost, cycle time, and market capitalization.[6] The | | | | example, in a law firm. The point of activating a talent |
| mindset of this more personal human resources | | | | marketplace within a department is to harness and link |
| approach seeks not only to hire the most qualified and | | | | individuals' particular skills (project management or |
| valuable employees but also to put a strong emphasis | | | | extensive knowledge in a particular field) with the task |
| on retention. Since the initial hiring process is so | | | | at hand. Examples of companies that implement the |
| expensive to a company, it is important to place the | | | | talent marketplace strategy are American Express |
| individual in a position where his skills are being | | | | and IBM. |