The Impact of Integrated Talent Management

Research Bulletin | 2009BERSIN & ASSOCIATES
July 9, 2009 Volume 4, Issue 24
The Impact of Integrated
Talent Management
About the Author Introduction
True talent management requires integrating various talent processes - from recruiting to performance management to succession planning. An integrated talent management process resembles Figure 1. In a traditional HR organization, these processes are developed and managed individually. But when these processes share information and are viewed Karen O'Leonard, as a whole, business managers can make better decisions to achieve their Principal Analyst talent objectives. For example, when an engineering manager forecasts a gap in critical technical skills, he / she can look at sourcing, compensation and internal development as tools to build the capacity needed.
In addition, integrated processes enable new high-impact practices not previously possible, such as:
. Talent Pool and Succession Management - Segmenting critical-
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. Career Management - Giving individuals multiyear career roadmaps to improve retention and employee engagement; and,
. Pay for Performance - Providing incentive pay for certain positions based on short- or long-term business goals.
This is what we call "business-driven talent management." In this model, HR is not the "owner" of the talent management strategy but, rather, the craftsman and steward of the strategy - leadership must come from business executives and managers. Success ultimately depends on how well business leaders adopt and understand the talent management process.
Figure 3: The Vision of Integrated Talent ManagementFigure 1: The Vision of Integrated Talent Management
Sourcing 2 3 Performance& Recruiting Management
HR Systems1 & Metrics 4
Talent Strategy Learning && Planning DevelopmentCompetencyManagement
7 5
Compensation SuccessionPlanning6
LeadershipDevelopment
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Talent Management Matures
Although few organizations have reached the advanced stage of fully integrated talent processes, many companies have progressed in their efforts. Today, nearly 40 percent of companies say they are in the "novice" stage, in which they have just started to develop their talent management strategies (see Figure 2). Approximately the same number (41 percent) are now in the "intermediate" stage - a number that has grown over the past year. These companies are developing and implementing their strategies, and have some mature processes in place. In addition, five percent are in the "advanced" stage, with a clear talent management strategy, and mature and integrated processes in place today. Just 15 percent of companies report that they have not yet started on their talent management strategy, a figure which has dropped over the last year. So, while there is still a lot of room for growth, companies are making progress.
Figure 2: Talent Management Maturity (2008 to 2009)
Advanced: clear strategy with mature 5%and integrated processes 5%
Intermediate: developing strategy with 41%some mature processes 33%
Novice: starting to develop our 39%strategy 37%
We have no talent management 15%strategy 26%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%2009 2008
Source: Bersin & Associates, 2009.
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