20 March 2017

Talent Management – quo vadis?

Talent Management is a wide term. Everyone does understand it a little bit different and also everyone thinks that he or she knows best what it is all about. It depends on the points of contact to this topic and how differently it is perceived. In today’s blog article we will get to the bottom of these circumstances. You will find dozens of good definitions what Talent Management is, e.g. on Managementstudyguide.com. We won’t go into detail about these definitions but we will explain what is our understanding when it comes to this term.

Definition Talent Management, Source: Gabler Wirtschaftslexikon (German)

The meaning of Talent Management

Under Talent Management we understand all actions that lead to the development of your organisation’s employees, so you can fill your key roles with the right personalities. Bu we also consider hiring and winning external people for these specific positions as part of it. Basically all HR processes like recruiting, agreement of objectives, performance management and succession planning have a decisive impact to a successful Talent Management within an organisation. That’s why in our opinion Talent Management is nowadays inconceivable for companies and organisations and needs to be approached professionally. Besides that it is really important to have a matching HR Software, which covers and supports your HR processes well. And it got much easier to find the right solution, because there are almost no borders any more. Which means that it doesn’t have to be the HR solution that is omnipresent. It’s worth it to have a look beyond your well-known horizon, because a lot has changed on the HR software market within the last 2-3 years.

Talent Matrix

The most famous model to create a successful internal Talent Management is the usage of a Talent Matrix, often also called 9 Box Grid or Potential-Performance Matrix. If applied appropriately and understood by the Line Managers, it is a recommended tool to find the right personalities for your key roles. But in conversations with Line Managers we can often hear that they don’t understand the whole idea behind it and this often falls back to the HR departments.

Sample 9 Box Talent Matrix, Source: Employee-Performance.com

That Line Managers have problems in applying such models isn’t only the case in the field of Talent Matrices. Often we can also hear that they struggle with the new performance management process and the newly implemented HR system in general. In most cases Line Managers say that either the new process got too complicated or they didn’t perceive the training as value adding and therefore lacking the overall big picture. Therefore the Human Resources departments have to take a closer look into this process and make sure that this is addressed during and after the implementation. From our experience it’s better to invest more time in training and explaining, even though it might be exhausting, but it will pay off if every Line Manager understands the process in the end. Further good reading how to apply a Talent Matrix you can find on the Blog Ready to Manage.

HR Software Providers in Talent Management

The 9 Box Grid Matrix isn’t only used to perceive an appraisal of employees of an organisation, but it’s also useful to find out, which HR Software Provider is strong in the field of Talent Management. This matrix gives Human Resources departments a first indication, how the Software is classified and is therefore helpful during the selection process.

HR Software Provider Comparison 9 Box Grid, Quelle: www.fosway.com/9-grid/

Very often one can find several of these rankings and compare the arguably best HR Software Providers with each other. Last year we already wrote about this topic in our blog article What is a good HR Cloud Provider. It is worth it to compare such rankings, especially if you want to implement HR Software for your Talent Management.

Only if you master Talent Management you will stay successful

Only the companies and organisations that have their Talent Management under control will be successful on the long-term. It is important to create your own process and based on it, selecting the right HR Software, that supports this process best. Thus it is always helpful to question your own HR processes and perhaps you can find new ways how to cope with the future. In our opinion, topics like team collaboration, flat hierarchies and continuous performance management will gain more importance in the future. That’s why we think new approaches and values will have a considerable impact on Talent Management in regard of the applied criteria for performance and teamwork.