The strategic value of talent management

A company's talent management strategy should form part of the overall HR strategy and, in the end, align with the company's overall business plan. For example, if the company is building a brand of confidence for the external customers, this confidence will have to be demonstrated by the leaders inside the business. Creating a leadership brand is, therefore, central in supporting the brand internally. This will help the leaders to focus not only on achieving financial targets, but also think of how to motivate and engage employees to achieve these financial goals.

Company culture forms an integral part of talent management and will attract the right talent for future success. For instance, if you work towards being an employer of choice, your employees are more likely to be loyal and, in the end, this will make your company a favourable option for the people you want to attract. A company's culture is not established overnight and links in strongly with the behaviours of the business leaders, the way decisions are taken, the processes and the day-to-day running of a business.

Anonymous employee surveys

In Sage VIP, we have found great value in conducting anonymous employee surveys. In the surveys, employees had the opportunity to tell us how they rate certain dimensions in the business, but more importantly indicate which dimensions will make them more loyal towards the company. This formed the foundation in our journey on becoming an employer of choice and we are fortunate to be in a position where talented graduates approach us and want to work for our company.

One of the main responsibilities for any manager is to ensure a strong talent pipeline. Managers have to identify critical skills and competencies required for current and future business goals. In addition to this, the manager also has to identify critical positions and determine which individuals will be capable of taking up these key positions in future.

An analysis of your current talent can be based on discussions with individuals, the output from assessment tools and evaluating the performance of employees over the last few years.

Determining an employee's potential

The following should be taken into consideration when determining an employee's potential:

• The ability easily to progress to higher and more complex levels;
  
• Displaying learning agility and is readily adaptable;
  
• The ability to perform cross-functional assignments and not be limited to geographical or functional discipline; and
  
• Personal aspiration and commitment to succeed.

The evaluation process is followed by developing people according to a structured plan, based on the gaps identified between the business plan and the current talent available. It is also referred to as a succession plan.

In any organisation, there will always be employees with a specific talent or critical "know-how", on which the company relies heavily. If these employees should exit the business, the impact is usually huge because the skill is not always easy to replace. Managers should aim to reduce the dependency on these critical workers as far as possible.

The succession plan will help to reduce the business risk and the company should have a supply of talent ready to fill this role or be capable of doing broader roles. Replacement plans should be reviewed annually and action plans followed up rigorously - particularly in areas where there are critical gaps.

A question regularly asked is, is whether an employee should know if they have been identified as "high potential?" It is important to encourage an open and honest approach with the employee at all times and to communicate with employees where they are in the talent pipeline and what it means to them.

Talent management is not just another HR process. It is important to the survival of any business and managers have a responsibility to ensure talent is managed, effectively and continuously.