Slide 26.

Chapter 26
Talent Management

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.2

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.3

What is Talent?
According to McKinsey; talent is the sum of
a persons abilities,
his or her intrinsic gifts,
skills, knowledge, experience ,
intelligence,
judgment, attitude, character, drive,
his or her ability to learn and grow.

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.4

What is Talent?

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.5

Who are Talented People?

They regularly demonstrate exceptional ability and
achievement over a range of activities
They have transferable high competence
They are high impact people who can deal with
complexity (Robertson, Abbey 2003)

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.6

Why Organisations Need Talent Development?

To compete effectively in a complex and dynamic
environment to achieve sustainable growth
To develop leaders for tomorrow from within an
organization
To maximize employee performance as a unique
source of competitive advantage
To empower employees:
Cut down on high turnover rates
Reduce the cost of constantly hiring new people to
train

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.7

Component Parts of Talent Management

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.8

What is Talent Management?

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.9

Definition of Talent Management

The systematic attraction, identification,
development, engagement, retention and
deployment of those individuals who are of particular
value to the organisation, either in view of their high
potential for the future or because they are fulfilling
business/ operation-critical roles
(CIPD, 2009)

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.10

Definition of Talent Management

The implementation of integrated strategies or
systems designed to increase workplace productivity
by developing improved processes for attracting,
developing, retaining and utilising people with the
required skills and aptitudes to meet current and
future business needs
(US SHRM, 2006)

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.11

What is Talent Management?

The purpose of TM is to ensure that the right supply of talented
workforce is ready to realize the strategic goals of the
organization both today and in the future
Organizations efforts to attract, select, develop, and retain key
talented employees in key strategic positions.
Talent management includes a series of integrated systems of
recruiting,
performance management,
maximizing employee potential, managing their strengths
and developing
retaining people with desired skills and aptitude
Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.12

What is Talent Management?

TM introduced by Mc Kinsey consultants, late 1990s
TM is identified as the critical success factor in corporate
world
TM focuses on
differentiated performance: A, B, C players influencing
company performance and success
identifying key positions in the organization
!!! Surveys show that firms recognize the importance of talent
management but they lack the competence required to
manage it effectively

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.13

Talent Management Activities (1 of 4)

Recruitment and Retention

Marketing the organisation

The way the applicants view the organization
They share enough of values of that organization
to wish to join
Employee Proposition and Employer Brand

Identification and placement of talent

Role of assessment centres

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.14

Talent Management Activities (2 of 4)

Developing talent

Affects retention rate

Maximise the potential of individual employee
Education, stretch performance, continuing
professional development,
Formal training on leadership and management
Coaching and mentoring
Development programmes

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.15

Talent Management Activities (3 of 4)

Managing talent and supporting engagement

Need to link talent management to

performance management processes
Need for empowerment of individuals
Promotion and succession planning

Develop internally or buy externally

Valuing employees perspectives and meeting their
needs

Career support
Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.16

Talent Management Activities (4 of 4)

Evaluating talent

Use of systems and processes for tracking

talent and developing measures of
effectiveness of any talent management
initiatives

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.17

Strategic Talent Management

Approach needs to be embedded
Activities need to be integrated
Approach needs to support the strategic objectives
for the organisation
Approach needs to fit with organisational values

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.18

Barriers to Talent Management

CEO not taking the lead role

HR expected to direct the process
Lack of time for line managers
Talent management strategies not filtering down to
managers

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.19

Perspectives of Talent Management

A new term for HRM
Workforce planning
Focus is on talent rather than management

All organizational activities for attracting,

selecting, developing, and retaining the best
employees in the most strategic roles

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012

Slide 26.20

Summary
Talent management should not be seen as elitist
Talent management consists of multiple activities
such as activities recruitment and retention,
identification and placement of talent
Practices need to be embedded in the organisation
Talent management requires the committment of the
CEO and line managers
Talent management lacks a clear definition

Derek Torrington, Laura Hall, Stephen Taylor and Carol Atkinson, Human Resource Management, 8e Pearson Education Limited 2012