Talent Management Investments - Focusing on What Matters Most through Talent Planning

Research Bulletin | 2009BERSIN & ASSOCIATES
June 8, 2009 Volume 4, Issue 19
Talent Management
Investments - Focusing on
What Matters Most through
Talent Planning
About the Author Introduction
Talent management has become one of the most pressing topics within HR organizations today - and it is no wonder, given the current economic environment and business imperatives. Under the cloud of recession, the majority of companies is under increasing pressure to cut costs and reduce the workforce. At the same time, the aging workforce Leighanne Levensaler, has opened up significant gaps in companies' leadership pipelines, Director of Talent Management Research putting corporate performance at risk. Further, organizations in several industries (such as healthcare, utilities and engineering) face a severe shortage of specialized skills, and thereby threaten their ability to execute on their business plans and strategies.
While the need for talent management strategies is escalating, companies struggle with on what to focus investments in a cost-constrained environment, and how to communicate the value and expected return.
In this research bulletin, we will outline the approach HR organizations must take to identify, cost-justify, develop and implement the highest-impact talent management strategy.BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE Defining "Talent"SUITE 417 Before we explore talent management strategies, it is important to OAKLAND, CA 94611(510) 654-8500 set on a definition of talent. For many companies, the definition of INFO@BERSIN.COM talent has been limited to the "top of the house" or leadership ranks. WWW.BERSIN.COM Companies with particularly strong succession management practices
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have expanded their definitions to include employees identified as KEY POINT having "high potential " or those included on succession slates. But Our definition of even with the expanded definitions, talent management strategies
"talent" includes key in these companies have historically been limited to leadership development and succession planning programs. people in pivotal or critical job roles, as Our definition of "talent" includes key people in pivotal or critical job well as employees roles, as well as employees who posses and are pursuing specialized and
who posses and are in-demand skills.
pursuing specialized Defining Talent Management and in-demand skills. Similarly to "talent," the term "talent management" means many things to many people. To some, it refers exclusively to recruiting and staffing; to others, it centers on managing employee performance or leadership development. Moreover, with the advent of talent management systems, talent management is also used as a euphemism for more efficient and aligned strategic HR processes.
While better HR is a good thing, we define talent management in a broader sense - "as a set of organizational processes designed to attract, develop, motivate and retain key people." The best talent management strategies are very business-focused and provide the business with answers to critical questions, such as the following.
. Which roles drive greatest value in our organization and do we know where we stand?
. Are we allocating limited resources for highest impact?
. How can we stay ahead of the competition while reducing headcount?
From an organizational perspective, talent management requires an even bigger focus today, moving beyond the realm of helping individual business units and functions. Now, the focus is on building BERSIN & ASSOCIATES, LLC "organizational capabilities," not just "individual capabilities." Talent 6114 LA SALLE AVENUESUITE 417OAKLAND, CA 94611  A "high-potential employee" is an employee who has been identified as having the (510) 654-8500 potential, ability and aspiration for successive leadership positions within the company. INFO@BERSIN.COM Often, these employees are provided with focused development as part of a succession plan and are referred to as "HiPos."WWW.BERSIN.COM
Talent Management Investments Leighanne Levensaler | Page BERSIN & ASSOCIATES © 2009BERSIN & ASSOCIATES © 2009Research Bulletin | 2009BERSIN & ASSOCIATES Research Bulletin | 2009BERSIN & ASSOCIATES
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