Simply, it is always more expensive to replace talent in an organisation than hiring new ones. The cost of hiring a new employee and the time spent on onboarding and training can often be a few times higher than his or her salary. It also can consume the time and energy of the HR team and the management unnecessarily to find new recruits, as the hiring processes invariably are complex.
Talent management in the future could be more complex than ever before due to technological advancements where recruits are well-informed and knowledgeable. This knowledge derived through technology makes candidates more demanding. Hence, balanced talent management is a crucial component of business success, and companies must work hard on retaining talent in the long term.
As competition becomes more ferocious with every passing day, organisations must strive to retain top talent on the one hand and attract, hire and develop new employees, not merely as a human resource function but as a strategic necessity.
Talent management contains an integrated set of processes and strategies to recruit, develop, and deploy workers while motivating and encouraging the existing employees to remain in service. It includes identifying high-potential individuals, creating developmental opportunities, providing continuous feedback, and ensuring that the workforce is agile and ready to meet future demands.
The importance of talent management is growing rapidly in the current business environment. Automation and technologies are reshaping markets globally. New employment requirements emerge, and some employment needs become obsolete. Therefore, companies must reskill and upskill their workforce to remain successful in business.
Diverse mix
Meanwhile, the trend of generational shifts plays an exceedingly important role in acquiring talent. Managing a modern, tech-savvy workforce can be challenging for leaders, particularly when they belong to a diverse mix of Generation X, millennials and Gen Z generations. Each group brings unique values, work ethics, and expectations.
When managing talent, the thinking patterns and behaviour of these groups can vary substantially, and the leaders must detect possible misunderstandings and conflicts. Managing a multi-generational workforce is a complex challenge that requires specific strategies based on factors such as organisational culture, individual and team behaviour, and common goals.
Promoting cross-generational harmony, designing resourceful recognition and rewards systems, cultivating a culture of respect, integrating technology, and seeking feedback are also essential to a harmonious and productive work environment.
Talent management experts opine that a severe shortage of skilled manpower exists across the globe at present. Employers throughout the world, including Sri Lanka, declare that they confront a severe challenge in acquiring and retaining skilled workers.
This shortage leads to prolonged vacancies, increased time-to-hire and difficulties in finding suitable candidates for critical job roles and is known as one of the most pressing challenges for organisations. Seemingly this phenomenon will continue into the future, and companies with the right strategy will emerge victoriously.
The ability to attract the most appropriate staff for a specific job and hire them is a forefront task for companies. The traditional recruitment models are rapidly becoming obsolete. They use digital software, social media, and AI-driven platforms to identify candidates.
Institutions that remain adaptable, embrace emerging technologies, and align their workforce strategies with effective talent management will be well-positioned to thrive in business. By recognising the growing importance of skilled workers, leveraging AI and related technologies, and fostering diversity and flexibility, talent acquisition will continue to play a pivotal role in driving organisational success.
Identifying and nurturing future leaders ensures continuity and equips the organisation to handle uncertainty and change. Succession planning, therefore, becomes a vital element of talent management.
Talent management within an organisation comprises several steps that include planning, attracting, selecting, developing, retaining, and transitioning. The first step is planning, where the management figures out the need for recruitment for both new recruitment and replacements.
While the new recruitment is to fill new vacancies emerging through the business strategy, replacements are required to fill the vacuum created by resigned employees. Proper planning of talent management can result in substantial savings for the organisation.
The next step is reaching potential candidates through campaigns. Although employers can attract candidates through effective media involvement, selecting the right candidate can be difficult. The selection process often includes interviews, written tests, skill assessments, and other subjective steps. This perhaps is the most crucial and most tedious step for hiring managers, as they are compelled to select the best out of equals.
Onboarding process
When candidates are hired, the management must ensure that they go through an effective onboarding process to settle them in their respective roles. They must also be sent through induction programs, mentorship and peer training sessions until they are accustomed to the organisational culture and goals.
Retaining the employees when they are recruited is one of the most important tasks of the management. As mentioned, it is far more expensive to train new employees than to retain them. Companies focus heavily on various incentives and benefits, both financial and non-financial, to keep them in service for long periods.
Technology has an enormous influence on modern talent management. Modern AI-powered software automates screening, identifies and recommends best fits for the specific job, and even analyses cultural and social matches. Software can also provide deep insights into behaviour patterns and productivity analysis.
Also, to manage talent with optimum effectiveness, digital software can provide performance management tools that enable continuous feedback, tracking, and real-time performance indicators. AI can also facilitate collaboration across the world through remote platforms. The integration of these technologies allows organisations to make faster and more accurate decisions about their workforces.
As the realm of business management evolves into the future, several trends will emerge in managing talents. Skill-based talent acquisition will be a key trend where the focus will be on demonstrable skills and potential rather than the traditional qualifications-based considerations when hiring new employees.
This approach emphasises hiring based on candidates’ specific skills and competencies rather than traditional metrics such as educational background or previous job titles. Also, hybrid work models will come into play where the workforce operates both on-site and remotely, which can cut operational costs for organisations. Operating with freelance or contract workers also will be a key trend in future business.
Managing the skills and knowledge of a workforce is of paramount importance to a business, small or large. Talent management is a coordinated set of activities to acquire, develop, and retain outstanding people who will power the organisation towards a common goal.
It is a science and an art to ensure that the right people are equipped with enough skills and are placed in the right positions at appropriate times. This holistic approach includes the entire employee life cycle, beginning with recruitment and onboarding to ongoing training,
Talent management is no longer a support function; it is a strategic force of business success. As companies navigate the complexities of the future, their ability to attract, develop, and retain top talent will determine their competitive advantage.
