The success or failure of a company often depends on the strengths of its employees, who are the most expensive investment, the biggest risk but also the greatest opportunity. There is therefore a strong link between talent management and the performance of a company because a company that knows the strengths and weaknesses of its employees has a real advantage over its competitors. The business impact of talent management should not be overlooked.
What is "talent" and talent management?
"There is no strict definition of talent. It can be considered as knowledge, skills, relationships, mobility, values, the ability to adapt, social skills, initiative or motivation. Talent is not related to the highest positions in a company, it is neither acquired nor definitive. You have to find, internally, the right person for the right job."
Today, talent management has a huge business impact and is a key success factor for a company. According to a 2013 study, it is practiced in 65% of companies and for 35% of them, the implementation of this talent management policy went back more than five years; it is not a recent phenomenon. However, in the current economic context it takes on a new dimension and it becomes more than necessary to adopt it, look for new talents and consider the business impact of talent management.
But in reality, there are only two ways to obtain talent:
- Attract talent to the your company: this requires both adequate recruitment and a certain attractiveness, preferably greater than that of your competitors. This is where talent management comes into play
- Invest internally and capitalize on the hidden talents of current employees. This requires astute talent management.
Investing internally on talent management: an alternative to recruitment
Valuing the talents of one's own employees is a risky gamble that consists of capitalizing on their future skills, but which, on the other hand, can represent a real alternative to recruiting new employees. But for this, it is still necessary for companies to have a true knowledge of their talents! "Not recognizing and exploiting the best talent can be as damaging as ignoring a missing zero in the company's accounts." The business impact on your company could be huge with the right talent in the right position.
The company can therefore only afford this kind of bet if it meets certain prerequisites:
- The implementation of a method for detecting potential talent
- The means to train and guide them
Talent management also means investing in your talent: a success factor
Having an objective perception of the strengths, challenges and potential of your workforce is a success factor for a company. This allows, among other things:
- To accurately predict if people will succeed in a position
- Manage your talent more effectively so that you can adjust the workforce to meet the changing needs of the company and the availability of talent in the marketplace
- Carry out efficient internal and external recruitment; every recruitment mistake means a waste of time and money for the company
- Identify the most suitable people for a position and track their progress over time to define more effective development plans
- Streamline processes
The business impact of talent management is undeniably important because talents are a real asset and help to set companies apart from their competitors.