Title : Talent management & Retention Presented by Asst. Prof.

Sarika Patil Sandip Institute of Technology & Research Centre asik Ph: !"#!!#$. Cell: $%!&'$$!"(
)mail: sarika.patil*sitrc.org Abstract:
This paper is an attempt to give the relastic view about talent management and retention. The most valuable asset of a 21st -century institution, whether business or non business, will be its talent workers and their productivity. Talented workers are the key source of competitive advantage for the todays companies. Today, talented workers account for major chunk of the workforce in developed nations. Talented workers will do thinge spectacularly , if only they are managed well. Human resource manager have to understand their needs e!pectations and deliver the same. "nowledge workers are high on skill sets and capabilities that others are found wanting in. #o, the Human resource manager have to managed them effectively and effeciently and retained them for the future growth of the organi$ation. "nowledge workers are undoubtedly the soundest asset for an organi$ation. This asset can be appreciated or turned into a libility. %t all boil down to one simple thing & manage them properly. %n this paper the author tries to focus on the problems and prospects in managing the talented employees at the work place and how to retain them in the organi$ation. The author also would like to suggest the solutions to the problems faced by the H' manager in managing the talented employees.

)mployee retention is all about taking measures so as to encourage workforce to remain in the organi$ation for a ma!imum period of time. 'etention is more important than hiring knowledgeble employee as there is no dearth of opportunities for talented person in today,s world of intense competition.

Talent .anagement
Talent management is the systematic attraction, identification, development, engagement- retention and deployment of those individuals who are of particular value to an organisation, either in view of their .high potential/ for the future or because they are fulfilling business-operation-critical roles. Talent management describes the process through which employers of all kinds & firms, government, non-profits & anticipate their human capital needs and set about meeting them. 0etting the right people with the right skills into the right jobs, a common definition of talent management, is the basic people management challenge in organi$ations. *hile the focus of talent management tends to be on management and e!ecutive positions, the issues apply to all jobs that are hard to fill. Talent (anagement, often times referred to as Human +apital (anagement, is the process recruiting, managing, assessing, developing and maintaining an organi$ation/s most important resource-it/s people1 %n present talent-hungry marketplace, one of the greatest challenges that organi$ations are facing is to successfully attract, assess, train and retain talented employees. Talent (anagement is the endto-end process of planning, recruiting, developing, managing, and compensating employees throughout the organi$ation with the aim to find the right person for the right position. %n nutshell, it rests on the 2 pillars vi$. recruiting, performance management, learning management, and compensation management.The combination of these four wings obivisouly provide succors in any talent management solution which would help an organi$ation to choose the best bet, get more out of the employee appraisal process, manage learning to develop employee with strategically- critical competencies compensate them fairly. Talent management is essentially is a key business process which converts a set of inputs into desired outputs. %t is aimed to develop team capibilities through nurturing individual capacities. 3rocess of talent management4 The input output process of talent management can be briefed as4 +onversion of the organi$ation,s mission, vision to objectives and measuring the capabilities re5uired to fulfill these objectives. This can be done through alignment of person,s values with the organi$ation values . +areful consideration needs to be paid to involving the right stakeholders in the talent management strategy. +learly, H' specialists have an important role to play in providing support and guidance in the design and development of approaches to talent management that will fit the needs of the organisation. 6isible senior-level support is a must and a talent panel is a useful means of ensuring the involvement of 7irectors and senior management, especially when it has representation across the organisation. 8dditionally, line manager support is important at every stage of the process. 9ine managers must take

+ey, -ords:
Talent (anagement )mployee involvement competency *ork life balance Human +apital (anagement 'etention

Introduction:
Talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer-term by demonstrating the highest levels of potential. Talent in brief, is the sum total of abilities, skills knowledge. Talented employees possess knowledge innovative skills,creative positive aptitude. They are brave in taking risks with potential to assume leadership positions. Talent management refers to the skills of attracting highly skilled workers, integrating new workers, and developing and retaining current workers to meet current and future business objectives.%n present talent-hungry marketplace, one of the greatest challenges that organi$ations are facing is to successfully attract, assess, train and retain talented employees.

responsibility for managing performance, identifying and developing talent in their own areas but also need to be encouraged to see talent as a corporate rather than a local resource. 3articipants on talent management schemes are also important stakeholders in the process and should be consulted and asked for feedback in shaping development processes. The development path is identified through the help of individual, so that they can reali$e their full potential which is only through learning . This knowledge is then tapped to give an outstanding performance. 8ssessment of talent to determine the 5uality of capacities competencies present in an organi$ation. this is achieved through development of knowledge thought process which in turn leads to the growth of the individual who can accept different roles according to the changing environment. 8ctive steps, plans and activities are needed to retain and engage talent re5uired for the future health of the organisation. %nvestment in management, leadership and other development activities will positively impact on talent retention. :rganisations should develop a performance culture where individuals take responsibility for the continuous improvement of business processes and their own skill development.

position, competency for job, tential candidate.

identification of po-

<y empowering the employee means giving power to them to take their own decision. and involving them in the strategic decision give them opportunity to tackle their problems. 8ll this in turn creates suitable environment for transforming talent into performance. =ailures in talent management may be more recogni$able than the concept itself. Those failures mean mismatches between supply and demand4 Too many employees, leading to layoffs and restructurings on the one hand, and not enough talent, leading to talent crunches on the other. %n %ndia at present, it may be hard to imagine the problem of having too much talent, but the first downturn in the economy & or even in a section of the economy & will make that clear. These mismatches are among the fundamental problems that businesses and other large employers face. :ver the past generation, corporations in particular seem to have lurched from surpluses of talent to shortfalls to surpluses and back to shortfalls again. The challenge employer/s face is to track much more closely the demands for talent to avoid both shortfalls and oversupplies.

Retention4
Talent can no longer be trapped in bo/es in the organi0ational charts . 1ne may be stationed in India but could belong to a global destiny. Retention & a2ailability of trained manpo-er is the biggest challenge being faced by almost all industries. <usiness professional in general are finding it e!tremely difficult to retain people in this highly charged dynamic scenario get 5uality talent for critical position. "ey employee retention is critical to the long term health and success of your business. (anagers readily agree that retaining your best employees ensures customer satisfaction, product sales, satisfied co-workers and reporting staff, effective succession planning and deeply imbedded organi$ational knowledge and learning )mployee retention matters. :rgani$ational issues such as training time and investment> lost knowledge> mourning, insecure co-workers and a costly candidate search aside, failing to retain a key employee is costly. 6arious estimates suggest that losing a middle manager costs an organi$ation up to 1?? percent of his salary. The loss of a senior e!ecutive is even more costly. )mployee retention is one of the primary measures of the health of the organi$ation. 9osing critical staff members means other people in the departments are looking as well. 8 careful research study revealed that retention strategies failed mostly due to lack of understanding of what the incumbents want in an organi$ation the inability to address their variant needs. (any time candidate find mismatch between the responsibilities that they had e!pected what is actually offered by employer which is ultimately leads to job dissatisfaction )mployee retention is a business management term referring to efforts by employers to retain current employees in their

Developing Talent 4

*e need a new way of thinking about the talent management challenge. 8 new framework for talent management has to begin by being clear about the goal. Talent management is not an end in itself. %t is not about developing employees or creating succession plans. ;or is it about achieving specific benchmarks like a five percent turnover rate, having the most educated workforce, or any other tactical outcome. The goal of talent management is the much more general but important task of helping the organi$ation achieve its overall objectives. 8s is said, it takes talent to spot talent. 8 deaf will never be able to appreciate the beauty of a symphony and so a dumb can never mesmeri$e an audience with his oratory skill. Talent is doing the things easily which others find it e!tremely difficult. The trick to develop talent is to find a right match between the job re5uirement the skill set of the job aspirant. The main key is nothing but the continuous appreciation of creative productive skill constantly initiates measures to ac5uire, develop, nurture retain such human resource potential. 7evelopment of talent can be achieved through the following activities4

<y appreciating the talent of an individual, his capabilities for possible carrier growth succession planning. This helps in designing individual development plans which would in return beneficial for the future business needs. <y enhancing the capacities of potential employees in negotiating with his specific skill like problem solving, process designing, interviewing skills etc. <y talent ac5uisition which means the ac5uiring the talent by the organi$ation with regards to leadership

workforce. The purpose is to avoid employee turnover and associated costs4 hiring and training e!penses> productivity loss> lost customers> diminished business> and damaged morale among remaining members of the workforce. 'etention is particularly a problem in high stress occupations such as teaching, nursing and social carework.

tion, and just about any other work related decisions you can think of, employees want fair treatment.

Top tem employees complaint

3igher salaries: pay is the number one area in which employees seek change. @ou can foster a work environment in which employees feel comfortable asking for a raise. Internal pay e4uity: employees are concerned particularly with pay compression, the differential in pay between new and longer term employees. %n organi$ations, with the average annual pay increase for employees around 2A, employees perceive that newcomers are better paid & and, often, they are. 5enefits programs6 particularly health and dental insurance6 retirement6 and Paid Time 1ff 7 2aca, tion days: specifically, many employees feel that their health insurance costs too much, especially prescription drug programs, when employers pass part of their rising costs to employees. 12er,management: )mployees often defined by interviewees as4 BToo many chiefs, not enough %ndians.C *orkplaces that foster employee empowerment, employee enablement, and broader spans of control by managers, will see fewer complaints. 8 popular word, micromanaging, e!presses this sentiment, too. Pay increase guidelines for merit: )mployees believe the compensation system should place greater emphasis on merit and contribution. )mployees find pay systems in which all employees receive the same pay increase annually, demorali$ing. #uch pay systems hit the motivation and commitment of your best employees hardest as they may begin asking what/s in this for meD 8s you adopt a merit pay system, one component is education so that employees know what behaviors and contributions merit additional compensation. )mployees who did not must be informed by their manager about how their performance needs to change to merit a larger pay increase.

Communication and a2ailability: 9et/s face it. )mployees want face-to-face communication time with both their supervisors and e!ecutive management. This communication helps them feel recogni$ed and important. 8nd, yes, your time is full because you have a job, too. <ut, a manager/s main job is to support the success of all his or her reporting employees. That/s how the manager magnifies their own success. 9orkloads are too hea2y: 7epartments are understaffed and employees feel as if their workloads are too heavy and their time is spread too thinly. % see this complaint becoming worse as layoffs> the economy> your ability to find educated, skilled, e!perienced staff> and your business demands grow. To combat this, each company should help employees participate in continuous improvement activities. 8acility cleanliness: )mployees want a clean, organi$ed work environment in which they have the necessary e5uipment to perform well.

WHY PEOPLE LEAVE THEIR JOB

*ith the changing economic scenario, job seekers, right from ordinary workers to talented employees, everyone is leaving their organi$ation in search of better 5uality of work life. 3eople leave their jobs for a wide variety of reasons, including4

1. Enmet e!pectations

2. %nappropriate fit for the role

F. 9ack of fit with company culture

2. 9ack of sufficient opportunities for growth and advancement

G. %nade5uate recognition and appreciation

3uman Resources department response to em, ployees: The Human 'esource department needs to be more responsive to employee 5uestions and concerns. %n many companies, the H' department is perceived as the policy making, policing arm of management. %n fact, in forward thinking H' departments, responsiveness to employee needs is one of the cornerstones. 8a2oritism: )mployees want the perception that each employee is treated e5uivalently with other employees. %f there are policies, behavioral guidelines, methods for re5uesting time off, valued assignments, opportunities for development, fre5uent communica-

H. 3roblems with a manager or supervisor

I. 7issatisfaction with compensation

J. #tress

K. 9ack of work-life balance

1?. 9ack of confidence in the company and-or leadership

MA A!I ! EMPLOYEE RETE TIO :

The task of managing employees can be understood as a three stage process4 1. %dentify the cost of employee turnover 2. Enderstand why employees leave F. %mplement retention strategies

people join companies, but leave because of what their managers/ do or don/t do. %t is seen that managers who respect and value employees/ competency, pay attention to their aspirations, assure challenging work, value the 5uality of work life and provided chances for learning have loyal and engaged employees. Therefore, managers and team leaders play an active and vital role in employee retention. (anagers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. This can be done in a following way4 1. Creating a .oti2ating )n2ironment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. (otivation does not necessarily have to come through fun events such as parties, celebrations, team outings etc. They can also come through serious events e.g. arranging a talk by the 63 of Luality on career opportunities in the field of 5uality. )mployees who look forward to these events and are likely to remain more engaged. !. Standing up for the Team: Team leaders are closest to their team members. *hile they need to ensure smooth functioning of their teams by implementing management decisions, they also need to educate their managers about the realities on the ground. *hen agents see the team leader standing up for them, they will have one more reason to stay in the team.

Identify the cost of employee turno2er: The organi$ations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organi$ations. This will help in assessing the whether the retention rates are healthy in the company. #econdly, the cost of employee turnover can be calculated. 8ccording to a survey, on an average, attrition costs companies 1J months/ salary for each manager or professional who leaves, and H months/ pay for each hourly employee who leaves. This amounts to major organi$ational and financial stress, considering that one out of every three employees plans to leave his or her job in the ne!t two years. :nderstanding 9hy )mployees ;ea2e: *hy employees leave often pu$$les top management. )!it interviews are an ideal way of recording and analy$ing the factors that have led employees to leave the organi$ation. They allow an organi$ation to understand the reasons for leaving and underlying issues. However employees never provide appropriate response to the asked 5uestions. #o an impartial person should be appointed with whom the employees feel comfortable in e!pressing their opinions.

Implement retention strategies4 :nce the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. 8n effective retention strategy will seek to ensure4 8ttraction and recruitment strategies enable selection of the .right/ candidate for each role-organi$ation ;ew employees/ initial organi$ation are positive e!periences of the

&. Pro2iding coaching: )veryone wants to be successful in his or her current job. However, not everyone knows how. Therefore, one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. (anagers often tend to escape this role by just coaching their employees. However, coaching is followed by monitoring performance and providing feedback on the same.

%. <elegation: (any team leaders and managers feel that they are the only people who can do a particular task or job. Therefore, they do not delegate their jobs as much as they should. 7elegation is a great way to develop competencies.

8ppropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organi$ation The organi$ation/s reward strategy reflects the employee drivers The leaving process is managed effectively

". )/tra Responsibility: 0iving e!tra responsibility to employees is another way to get them engaged with the company. However, just giving the e!tra responsibility does not help. The manager must spend good time teaching the employees of how to manage responsibilities given to them so that they don/t feel over burdened. '. 8ocus on future career: )mployees are always concerned about their future career. 8 manager should focus on showing employees his career ladder. %f an employee sees that his current job offers a path towards their future career aspirations, then they are likely to stay longer in the company. Therefore, managers should play the role of career counselors as well.

ROLE O" RETE TIO

MA A!ER

EMPLOYEE

*hen asked about why employees leave, low salary comes out to be a common e!cuse. However, research has shown that

#t$ategies %o$ managing Talent&

7esigning organi$ational strategies is very important as it forms a solid foundation to monitor necessary talent management imitativeness, which are4

properly utili$e their talent in a more constructive manner. 8 successful career program must have the backing of the top management. The program should reflect the goals culture of the organi$ation. +onclusion4 :ur workforce is our greatest assets, it is high time now that firms must truly come on board show them really mean it. They need to plan e!ecute talent management in order to survive competition. :rgani$ation should create an environment that fostered ample growth opportunities appreciation for work accomplished a friendly cooperative atmosphere that makes an employee feel connected in every respect to the organi$ation. 'etention plans are an ine!pensive way of enhancing workplace productivity engaging employees emotionally. Talented employee keeps the 5uality up business operations run smoothly along with cost saving in the longer run. Today talent management is means to reach the goal in helping organi$ations achieve their overall objectives of making profit gain sustainable advantage. 8nd to achieve that, a firm must overcome competition by using talent management as an agile edge of its armor.

=ob title4 Mobs of talented employees need to be titled as .partner/ )mpo-erment & Participation4 Talented employee must be allowed to take part in various committees, celebrations, conferences, negotiations etc. Career & Succession Planning4 #pecial ground for challenging competitive career need to be devised to plan for the talented employees. 7espite of all, some may prefer to leave the company, in such cases, companies should have proper succession planning as an alternative. Change & Creati2ity: %n order to enhance organi$ational efficiency, talented employee must be provided with the liberty for change, challenge creativity at the workplace. Recognition : The contribution from the talented employees should be recogni$ed appropriately. Culture and en2ironment: %t may seem obvious that employees will tend to stay with an organi$ation that makes them feel comfortableNwhere stress is minimi$ed and they feel valued and respected. However, too many companies still operate with a culture based on control and fear, rather than one that provides welldefined direction and values, and emphasi$es care for customers and employees alike. Professional gro-th: Today,s employees know that a successful career depends on constant learning and on picking up skills and e!perience that will make them more employable in the open market. That means that access to ongoing training and development is important to them, and a strong incentive to stay with a company. This is a fundamental parado! of employee retention4 <y preparing people to leave, a company can actually encourage them to stay. .eaningful -ork and o-nership: 3eople need to know they are making a difference and being effective in their jobs. )!pectations and responsibilities need to be clearly defined, so that employees can understand their roles, and see how their jobs are linked to the organi$ation,s overall success. )mployees must also be involved in determining how work is done, so that they have a sense of ownership and an opportunity to contribute to improvements in the company,s performance. 8reedom: =reedom with regard to nature of work , working hours, rules regulations, workplace, working methods styles must be offered to talented employees in order to help them flourish in their spheres. <esides ensuring the use of talents in appropriate channels, these strategies would enable the organi$ation to retain, develop

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