Talent management refers to processes and systems linked to developing and retaining an effective workforce. The processes involve hiring, managing, developing, and retaining talented employees in an organization.
Qualified and talented employees will simplify the process of achieving the organizational goal. As a result, talent acquisition and talent management form an integral part of human resource development to create and maintain a supportive and professional organizational culture. As people take an organization to new heights of success, the functionalities of talent management will be to-
- Attract professionals with high potential
- Increase productivity
- Establish a high-performance workforce
- Ensure growth and innovation
- Develop skills and competencies
- Manage time and cost through upskilling, reskilling, or training
- Retain the best people in the competitive job market
So, with these functionalities, small- and medium-sized enterprises (SMEs) can achieve their goal in the short term with long term benefits. Let us understand why a talent management strategy should become part of SMEs’ business strategy.
Talent Management as a business strategy for SMEs
HR analytics depict that talent management activities ensure top talent while the organization gets most out of their workforce. Here are a few reasons depicting the necessity of talent management for SMEs and its benefits.
Attract top talent:
Strategic talent management enables organizations to attract the most talented employees from the pool surpassing geographical barriers. It creates a brand identity that will attract potential candidates and contributes to business performance and results.
Implementing strategic talent management enables organizations to motivate their employees to improve work performance and stay in the company for a longer duration. Employee motivation is essential to lessen grievances and keep the workforce engaged in their activities and bring a new level of change to take the organization to new heights.
Strategic talent management facilitates organizations to possess systematic and consistent decisions for staff development, learning and development programs, meet operational requirements, plan new development programs within the organization for expansion as employees feel engaged to work and come up with innovative ideas and strategies.
Increased client satisfaction:
Strategic talent management brings integration within the organization. As the departments and people get more integrated, customer satisfaction rates become higher. Happy work environment leads to happy employees leads to happy service which in turn leads to happy and repeat customers.
Happy customers drive business benefits.
An effective talent management program makes employees speak positive things about the organization with their colleagues, friends, and customers. It will encourage talent to share good thoughts on social channels, provide testimonials and ratings for employee review sites. This boosts the brand identity as it spreads positive vibes in and around the environment.
Increased employee job referrals
Happy employees tend to refer to their friends or ex-colleagues whenever there is a job opening. They provide honest assessments while recommending the job in their known circle. An opportunity to progress and develop enables to spread of positive things about the organization encouraging new talents to join in with less hiring efforts.
Though these benefits are appealing and needed for any organization, there are challenges to achieving these benefits.
Challenges of talent management for SMEs
Talent management programs are beneficial for organizations and employees as well. However, we find many challenges while implementing an effective talent management program. A few of the challenges are mentioned here.
For an SME, the initial costs may be difficult, but the investment is worth it as it provides better business development and a higher return on investment in the long term. It is essential to take a look at improving all processes from onboarding to offboarding and all in between.
HR analytics strategy:
To drive an effective ROI, it is necessary to monitor the development and success of the talent management program. In this data-driven era, it is essential to harness the power of data through the implementation of HR analytics strategy and track metrics for hiring, understand employee engagement, and staff retention rates.
It is the data world today. The talent management team must adopt the latest technologies like Artificial Intelligence, Big data, Blockchain, and other trending technologies that would create a positive impact on the recruiting process, employee engagement programs, and retaining efforts.
Talent management is directly related to productivity, profitability, and less attrition rate. SMEs have a smaller number of employees and employees who do important tasks play a key role in the project operation chain. A few employees’ performances determine the organization’s whole performance. Also, if that employee leaves the organization, it may impact the organization’s ability.
Therefore, it is critical to establish a talent acquisition and talent management programs, nurture talent, drive improvement, and make succession planning to ensure business continuity with success.
The selling points like quicker growth, horizontal growth, flexible working environments, and space for innovation will turn an SME to a large enterprise in no time through an adept talent management program.