Four steps to effective talent management

Citation

Hirsh, W. (2014), "Four steps to effective talent management", Strategic HR Review, Vol. 13 No. 3. https://doi.org/10.1108/SHR-01-2014-0009

Four steps to effective talent management

Article Type: HR at work From: Strategic HR Review, Volume 13, Issue 3

Short case studies and research papers that demonstrate best practice in HR

Talent management is still a hot topic with HR people, but IES research shows it can alienate managers and employees if it is an artificial and jargon-laden HR process, out of step with the real needs of the business and individuals (Campbell and Hirsh, 2013). The latest case-based research from IES, based on interviews conducted in Autumn 2012 with over 20 organizations in a range of sectors, found that a somewhat mistaken notion of "best practice" often fails to make sense to managers and employees because it simply copies talent processes used in other organizations. Aiming for "best fit" may be much more effective, that is designing and implementing an approach that will meet the needs of the organization in its context.

In this article we look at what taking a "best fit" approach might involve – the kinds of choices we are making and the aspects of organizational context we need to consider.

A practical four-step framework

The IES research led to a practical "four-step" framework, as shown in Figure 1. It uses key questions to shape an organization’s approach. The four steps move through choices in how to define talent management; where in the workforce to focus effort; how processes will operate; and the practical actions which will result.

Figure 1 The IES four-step approach to talent management

Each of the four steps is accompanied by an extra box on the diagram which contains aspects of the business context that will influence the choices made at that step. So, for example, in deciding where to focus effort, the business context includes the specific risks arising from not being able to resource jobs effectively.

We will look now at each of the four steps in a bit more detail and practice the kind of thinking that will help you move towards a best fit approach.

How will you define "talent management"?

Definitions of talent management can range through "getting the right people in the right place at the right time" (the textbook definition of workforce planning); "helping each person develop their potential" (equivalent to workforce development); and "ensuring pipelines of people with the skills and potential to fill senior or critical roles" (territory occupied by succession planning and leadership development). Choosing between these significantly different views can be assisted by clarifying what is important to the business now or in the coming years.

For example, in many countries, expenditure on public service employees has been severely constrained in recent years. Key factors to consider include how to ensure that employees with key skills are not lost in voluntary severance programs and that the organization continues to grow the next generation of professionals and managers even when recruitment numbers are low and training budgets tight. These priorities need to shape the real essence of "talent management" in this context.

Which people and which jobs to focus on?

Talent management can include all employees, in which case it normally becomes a pro-active approach to employee development, often strongly linked with feedback as part of performance management and personal development planning. At the other extreme, it can be focused on identifying potential for the most senior leadership posts and developing "high potential" individuals as short or longer term successors. In a growing number of organizations, there may also be a focus on key groups of professionals (for example engineers in the construction sector) or smaller numbers of leading professionals (such as top scientists in pharmaceutical R&D). In some organizations there are "critical posts" which may not be very senior but are hard to recruit into, often small in number and vital to business operations. Shift managers in power stations or quality control testers in breweries are examples we came across.

Getting the focus for talent management right means considering the business risks of over-investing or under-investing in certain workforce groups and understanding the skills which employees will need to develop over time.

Several science and technology based organizations in the IES study identify technical or specialist potential as well as leadership potential. Individuals seen as having the ability to become leading specialists are given tailored development, for example working on innovative projects and engaging with external professional networks. Their roles often require high level influencing skills more than conventional management of large teams.

How will talent management processes work?

Any new processes required by talent management, for example identifying potential or targeted skill and career development, need to be really relevant to the purposes and workforce groups you have identified. A key factor to consider in process design is the capability of line managers to implement talent management and the presence of effective HR support, not just at the corporate center but more locally too.

A global NGO, for example, has adjusted its performance management process to encourage a more open ended discussion of career aspirations and medium term development alongside the existing emphasis on development in the current job. The leadership behavior framework was adjusted in the light of internal research to help managers identify potential by looking at behaviors that are becoming much more important in the business. A collaborative approach to developing talent management has helped leaders and HR people at a range of levels to gain understanding as the processes have been designed and practice the skills to identify and grow their own pools of successors.

Embedding new processes may take some time and will be influenced by business size, sector and culture. Deciding what the business is ready for and how fast to go are key judgments.

What practical actions will we take?

It is crucial to keep a firm line of sight to practical action and the outcomes you want to achieve. Some organizations have got so bogged down with complex assessments and the ubiquitous 9-box performance-potential grid that no-one ever gets as far as development.

If the early steps have produced some clear analysis of where things need to change then an action orientation is much easier. Asking how success will be measured is a useful spur to sharpening the focus on action.

Measures of success include stronger pools of identified successors; the appointment of those in talent pools when vacancies arise; low numbers of "regrettable losses"; increased diversity coming through the business; and employee surveys giving more positive feedback on career development. Tracking employees over time is identified as an area requiring more robust and consistent data.

These four steps can help you make talent management relevant and practical. That’s what business and individuals need it to be.

Wendy Hirsh and Victoria Campbell
Wendy Hirsh is based at the Institute for Employment Studies (IES), Brighton, UK. Victoria Campbell is based at Brighton, UK.

References

Campbell, V. and Hirsh, W. (2013), "Talent Management: A Four-Step Approach", IES Report 502, Institute for Employment Studies, Brighton. The full research report and free executive summary are available from the IES website: http://www.employment-studies.co.uk/pubs/report.php?id=502

About the authors

Wendy Hirsh is principal associate of the Institute for Employment Studies. She is a consultant as well as researcher with a special interest in succession, career development and talent management. Wendy Hirsh is the corresponding author and can be contacted at: mailto:wendy.hirsh@employment-studies.co.uk

Victoria Campbell is an HR professional with experience in the health sector. She conducted the IES research while on secondment as part of the HR Graduate Management Training Scheme with the NHS Leadership Academy.