Managing your star performers effectively offers many benefits. With a talent management plan, you will:
While some turnover is unavoidable and sometimes desirable, turnover among your top performers is bad for business. Increasing employee retention requires a combination of measures to improve the process.
Employees will feel motivated to stay at a company when they are comfortable, well respected, fairly compensated, and (dependent on position and character) can see possibilities for growth and personal development. A talent management program can help with this process.
Talent management strategy and planning are among the hottest topics among business executives and are core components of today’s workforce approach. Engaging the workforce is one positive effect of investing in modern talent management.
However, talent management is more than just a performance appraisal tool or process. A modern or total talent management solution also addresses:
1. Alignment with business goals
A company needs to make sure its business is aligned around its strategy. In a recent study, Timothy Devinney, a professor of strategy at the University of Technology in Sydney, Australia, reported that only 29.3% of people can correctly pick the strategy statement of their own organization.
Given that 15.7% of people can randomly guess the correct strategy statement for any given organization, the number of people who actually know their organization’s strategy is certainly much lower than 29.3%. Skilled workers only become top performers when their goals are aligned with business objectives and their energy is directed at the right targets.
2. Employee performance
A business that uses performance appraisal and management software shows a reduction of low performers, while the percentage of high performers in the company increases. A talent management solution may also include functionality to plan and track employee training and development. Acquiring new skills can improve employee performance and boost employee engagement.