Organisations find greater value in formulating their own meaning of what talent is than accepting universal or prescribed definitions and there are considerable differences in how talent is defined across different industries and sectors. That said, it is helpful to start with a broad definition and, from our research, a working definition for both ‘talent’ and ‘talent management’is:
• Talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer-term by demonstrating the highest levels of potential.
• Talent management is the systematic attraction, identification, development, engagement/ retention and deployment of those individuals who are of particular value to an organisation, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles.
This definition underlines the importance of recognising that it is not enough to just attract individuals with high potential. Developing, managing and retaining those individuals as part of a planned strategy for talent is equally important, as is adopting systems to measure the return on this investment. More organisations are also now broadening their definitions, looking at the ‘talents’ of all their staff and working on ways to develop their strengths.
Features of a talent management strategy
Key features of a talent management strategy include the following elements.
Alignment to corporate strategy
Ensuring that the talent strategy is closely aligned with the corporate strategy must be a priority. In developing a talent strategy, both internal and external factors should be taken into account. Strategic analysis from the business perspective should feed into an HR forecast which can help shape an organisation’s tailored approach to talent management.
Inclusive versus exclusive approaches
Some organisations adopt an inclusive approach to talent management creating a ‘whole workforce’ approach to engagement and talent development, while others develop a more exclusive focus segmenting talent according to need.
Regardless of which approach organisations adopt, fairness and consistency must be applied in all talent management processes. Diversity considerations must also be built-into talent management processes to ensure that organisations are able to draw from the widest pools of talent possible.
Involving the right people
Careful consideration needs to be paid to involving the right stakeholders in the talent management strategy. Clearly, HR specialists have an important role to play in providing support and guidance in the design and development of approaches to talent management that will fit the needs of the organisation.
Visible senior-level support is a must and a talent panel is a useful means of ensuring the involvement of Directors and senior management, especially when it has representation across the organisation. Additionally, line manager support is important at every stage of the process. Line managers must take responsibility for managing performance, identifying and developing talent in their own areas but also need to be encouraged to see talent as a corporate rather than a local resource - see our factsheet on the HR role of line managers.
Participants on talent management schemes are also important stakeholders in the process and should be consulted and asked for feedback in shaping development processes. We have conducted research on what it feels like to be talent managed from the participant perspective and some interesting insights can be drawn for both organisations and more specifically talent managers.
Focusing on the talent management loop
It is also important to focus attention on the four areas of the talent management loop, that is: attracting, developing, managing and evaluating talent.
Attracting talent
The ability to attract external talent depends upon how potential applicants view the organisation, the industry or sector it operates in and whether they share the values of that organisation. The creation of an attractive employer brand is an important factor in attracting external talent. Where needed, lower financial rewards can be countered with alternative benefits and employer values such as social responsibility.
Developing talent
Talent development should be linked to other learning and development initiatives. Appropriate learning and development interventions are required at relevant stages in a career path for talented individuals to achieve their maximum potential. Developing talent needs informal as well as formal learning interventions. These interventions will include conventional development activities but there is also the opportunity to use creative alternatives such as talent coaching and mobility.
Managing talent
Active steps, plans and activities are needed to retain and engage talent required for the future health of the organisation. Investment in management, leadership and other development activities will positively impact on talent retention. Organisations should develop a performance culture where individuals take responsibility for the continuous improvement of business processes and their own skill development.
