The secrets of outstanding talent management

Most likely it sounds familiar to you what a CEO of a well-known software company told me the other day at a fundraising event: “The only factor that really constrains our company´s growth is our ability – or should I better say inability – to hire and develop a superior workforce.”

Whenever speaking with executives and managers about their main business topics and major challenges, they would very quickly mention that talent-related issues were among their most pressing concerns. One which keeps them even awake at night. During day-time, however, when those executives are absorbed by meetings, by chasing month-end and quarter-end figures, and by trying to please an army of internal and external stakeholders they often tend to forget what´s at the very heart of lasting business success: Identifying exceptionally talented people, developing them, and retaining them. In one sentence: Talent management matters more than ever!

What is talent management?

Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organizations to reach their goals. Everything done to recruit, retain, develop, reward and make people perform forms a part of talent management as well as strategic workforce planning.

Let´s see how to build an exceptional talent management strategy. One which takes the objectives and culture of the company into consideration and at the same time is employee-focused.

Key elements of a successful talent management approach

Business Strategy Fit – Successful talent management approaches need to be tightly linked with the overall business strategy as well as with the company´s mission and values. Talent management should assess the skills the organization needs to implement its strategy, to attain and keep a unique market position, and the plan for recruiting and managing that critical talent.

HR as a Core Function – How much is your organization investing in HR? How much as a percentage of sales do you spend on training & development? Do you have a large enough HR team to spot top talent in a super fluid labor market, to develop and train them, to increase their engagement and commitment? Do your HR professionals have enough resources to develop themselves? Are they working closely enough with their internal business partners, do you have rotational assignments for them, are you bringing non-HR people into the function?

Non-HR Managers to breathe and live HR – For top organizations every manager is a HR leader. When it comes to recruiting and to people development they don´t rely only on the HR department. Every manager is crucial and plays a key role. They participate at recruitment events, they search LinkedIN and other business network sites for top talents, they activate and comb through their own networks, they act as internal mentors or internal coaches, they actively attend candidate interview loops, they challenge their HR business partners to come up with new and better ideas, etc.

Performance Development Planning – It´s at the heart of any performance management system process. It enables team members and management to identify and specify both the employee´s personal goals and the business goals that matter most. To reflect today´s complex and very dynamic business environment, goal setting should follow the “SMART Plus“ rule, i.e. applying the traditional SMART formula (Specific, Measurable, Achievable, Relevant, Time-based) plusregularly reviewing and adjusting the goals. An automated talent management system must need to make this simple (not “simplistic”) and practical. The accomplishment of agreed and set goals are the reference point for both remuneration and career path planning. They should be discussed in performance appraisal meetings.

Performance Appraisals – They should be conducted periodically, at least every six months. Better quarterly, and most importantly, not being complex in order to assess the employee´s performance and progress in an efficient and effective manner. An appraisal should be based on a running record throughout the year. You might also want to include 360 degree feedback to extend and deepen it. If planned and executed properly, then the spirit of these meetings is open-minded, positive, and rewarding for both the employee and the manager.

Training & Development – The starting point are the company´s goals on the one side and the employees´ performance appraisals on the other side. Crucial skills and competencies gaps which are relevant for the organization´s success should be identified. For those targeted learning activities are needed. To define the true value of any training it is very important to measure the change in the employee´s performance that results from a learning activity. Providing meaningful and relevant training and learning opportunities to employees is key to engaging and empowering people.

Careeer & Succession Management – There should be some form of a career development planning process and system in place. Possible career paths within the department and across the organization need to be outined. A modern approach also involves the sharing of information about talented employees with other departments, etc. There should be a central data base which matches current and future business requirements with individuals´skills, performances, and goals. In addition, your organization needs to be prepared to replace critical roles and competencies at all times. Therefore you better follow holistic and long-term succession plans throughout your company.

Generate Employee Push – Leading organizations expect from their team members that they develop their own career understanding and that they are able and willing to design and push forward their own career. Of course, this can only work, if the company´s culture is prepared for such a transparent approach. For example by encouraging team members to change their position every two to three years, making all positions open to internal candidates, etc.

Reward Performers – You need to know which team members can, want, and actually do perform. It´s crucial to reward them adequately with salary increases, important projects, enlarged responsibilities, rotational assigments, or expressing your organizational commitment and appreciation in other forms. You have to do it at an ongoing basis and in a very sincere way if you do not want to risk losing top talents and top performers.

Talent has always been important. However, in an increasingly complex, global, and knowledge-based world, it´s more relevant than ever for the short- and long-term success of any company.

When it comes to talent development you and your organization should better go beyond the usual call of duty, since successful professionals are also relentless talent development managers.

This article is published in collaboration with LinkedIn. Publication does not imply endorsement of views by the World Economic Forum.

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Author: Andreas von der Heydt is the Head of Kindle Content at Amazon in Germany.

Image: Employees talk at offices in downtown Madrid. REUTERS/Susana Vera.