Without a comprehensive talent management strategy, it can be difficult for companies to efficiently and effectively attract, engage, and retain their employees efficiently. The result? An impaired ability to grow and innovate, a massively strained budget, and a stressed-out workforce. 

It doesn’t have to be that way, though. Fortunately, when you break down the talent management process into its core functions and key steps, it becomes much easier to envision—and successfully execute—effective strategies. Keep reading for a quick overview of talent management’s role and objectives, as well as an introduction to the core functions of talent management.

What Is Talent Management, and Why Is Managing Talent Important?

Simply put, talent management refers to a set of best practices related to attracting, engaging, and retaining the best available talent. As such, an organization’s approach to talent management plays an important role in its ability not just to function effectively, but to thrive and grow as well.

What Are the Objectives of Talent Management in HR Management?

From effectively recruiting talent to monitoring performance and improving the employee experience, talent management is a broad HR management (HRM) concept that helps companies achieve a wide range of objectives. Some of the most common—and impactful—objectives of talent management include the ability to…

  • Identify and attract top talent

  • Maximize organizational performance

  • Boost the organization's brand and reputation

  • Grow, enhance, and diversify employees’ skills

  • Create a strong workplace culture that promotes learning and growth

  • Inspire and promote innovation and agility

  • Improve succession management and planning

  • Develop loyalty among employees, reducing turnover

 

Effective talent management is about more than just efforts to identify and recruit high-quality candidates. It also creates a broad framework and workplace culture that celebrates employee development, innovation, and growth. 

What Are the Most Important Components of a Talent Management Strategy?

For some organizations, creating and implementing a successful talent management strategy can feel overwhelming. It’s not that company leaders fail to understand the importance of talent management—they may just not know where to start. Or, they might think that because they have the talent they need today (and the future’s so uncertain), they don’t need to evaluate their capacity for attracting and retaining talent.

 

Fortunately, companies don’t have to reinvent the proverbial wheel by building their own talent management process model from scratch. Instead, it often makes sense to use an existing framework as a template. For example, McKinsey’s recommended framework includes five core functions:

1. Finding and Hiring the Right People

Companies that are adept at identifying and hiring high-performing talent enjoy a considerable competitive advantage, as these employees are up to 8 times more productive than the average worker. This underscores the importance of developing talent management strategies that are agile and well-rounded, so they can quickly fill vacant positions and work toward key objectives.

2. Learning and Growing

Today’s employees are increasingly hungry for meaningful learning and development opportunities. They want to not only be set up for success within their role, but also to develop new skills that can help them work toward their own goals. Ultimately, providing these opportunities and establishing a culture of learning and development gives companies a unique competitive advantage when securing the best available talent.

3. Managing and Rewarding Performance

Monitoring, managing, and rewarding employee performance is an important component of any talent management strategy. These activities play important roles in keeping employees engaged, motivated, and empowered. The best organizations understand why talent performance management is important, and implement best practices like setting clear objectives, providing frequent coaching sessions, and celebrating success.

4. Tailoring the Employee Experience

Especially within the most competitive industries and organization’s capacity for effective recruitment, hiring, and retention strategies can give them a substantial advantage over the competition. Another important differentiating factor for high-level talent is a company’s reputation for providing an exceptional employee experience—one that empowers them for success. The more you understand what matters to employees, the better positioned you’ll be to create a truly positive experience.

5. Optimizing Workforce Planning and Strategy

Effective talent management requires a simultaneous, balanced focus on an organization’s present, as well as its future. As McKinsey warns, “What might seem like an irritating talent gap today could prove a fatal competitive liability in the not-too-distant future.” 

 

Today, the ability to maintain a flexible mindset about traditional and emerging strategies for sourcing and retaining talent provides a real competitive advantage. Working with a partner like Lorien is a great way to evaluate your needs and implement effective talent management strategies. 

Let’s Talk Talent

The best talent management strategies don’t just work today—instead, they are flexible and customized enough to meet your organization’s evolving needs. The team at Lorien is ready to help you create the most well-rounded strategies that align best with what you’re looking to achieve. 

 

Whether you’re interested in securing highly-skilled permanent employees, or filling positions on a project- or contingency-based approach, we can certainly help. Reach out today to learn more about how we can enhance your company’s ability to attract, engage, and retain the talent it needs.