Talent Management Strategy: Performance and Retention

Introduction

The objective of this study is to determine which performance management process will be employed to measure employee talent, and to analyze the key concepts related to the talent pool and the talent review process. This study develops appropriate talent management objectives to measure functional expertise and assesses the key elements of global talent management as they apply to the organization. Finally, it recommends a process that optimizes a sustainable talent management strategy.

Senior managers claim that people serve to drive business value. In a recent survey, the Economist Intelligence Unit for Oracle reports that "senior executives at corporations worldwide judge the ability to attract and retain people as one of the most critical enablers of growth" (Economist Intelligence Unit, 2007, p. 4). Employee skills and knowledge ensure that workers remain in demand and provide value to their employers by enabling the organization to compete effectively. Talent development management is, more often than not, the responsibility of human resource professionals.

HR and Talent Management

The Economist Intelligence Unit reports that a senior financial executive of a large U.S. technology firm states that value is delivered by HR executives through assisting the company in customizing the careers of its most valuable workers. The process of "designing and continually updating an individual career path" results in the organization achieving a greater return on its investment in employees and retaining them longer. Talent management is reported to be making a transition from an administrative focus to one that is more strategic in nature.

Key Drivers of Performance and Recruitment

The Economist Intelligence Unit identifies employee engagement as a key driver of performance. By monitoring and measuring engagement, the human resources function is able to provide critical insight to managers on what works, what does not, and how performance can be improved. An integrated technology platform is reported to provide HR executives with more time to focus on strategic issues, enabling the company to "create 'one culture' and 'one set of processes'" (Economist Intelligence Unit, 2007, p. 6). HR technology assists in the execution of value-added tasks and supports organizational improvements in: (1) recruitment; (2) talent mapping; (3) workforce planning and development; and (4) performance planning and evaluation (Economist Intelligence Unit, 2007, p. 7).

Recruitment issues involve whether the organization is attracting the right candidates. It is necessary to gather and analyze results so that benchmarks can be generated. Randomized trials also assist the organization in "tracking the effectiveness of competing recruiting techniques" (Economist Intelligence Unit, 2007, p. 7). Talent mapping involves determining the mix of "talent and skills" that will support the organization's strategy. Where the required talent mix is not present, the organization must determine how it can be "developed or acquired" (p. 7).

Much of the HR function is directed toward moving the organization's human capital from its present state to a desired future state. These efforts can be documented and tracked through workforce planning, skills gap assessments, and the identification of high-potential personnel (Economist Intelligence Unit, 2007, p. 7).

Performance Planning and Work Environment

Performance planning and evaluation are important for engaging employees toward effective performance. HR systems "can help managers to develop feedback loops between performance expectations and actual performance over time," as well as evaluate the effectiveness of performance metrics and enable a range of review techniques. Integrated HR processes link employee performance with evaluation and compensation, connecting "the value people create to how people are valued" (Economist Intelligence Unit, 2007, p. 8).

Research indicates that a pleasant and comfortable work environment improves worker productivity and reduces turnover. Factors affecting work performance include both physical and environmental dimensions. Physical factors include the need for a workplace layout that facilitates efficient communication with "minimal disruption" (Profiles Research Institute, 2009, p. 3). The workplace should also be ergonomically correct to reduce fatigue, distractions, injury, and errors. Environmental factors include temperature, air quality, lighting conditions, excessive noise, and foot traffic.