Large or Small: You Need a Talent Management System
Did you know that there are only 0.87 workers available for current, open positions? With numbers like these, it’s likely that the talent you already have in place would be the best place to find the right fit. It’s also an indicator of why it’s important to develop and keep the talent you have already, and has clear implications for how you’re managing talent today.
There’s a slow exodus from the one-size-fits-all systems, as many thought leaders have begun to recognize that these systems often neglect the employee lifecycle – from hiring to retiring – that talent management systems are designed to address. That’s not to say that a core HR system for payroll, benefits, workforce management and compliance aren’t important; it’s just that the talent management aspects are often neglected in these systems. They lack the depth of function and agility to keep up with the fast-changing workforce skills environment.
Below are five reasons to separate yourself from the crowd by implementing a talent management solution in your organization now:
- One of the biggest benefits of a talent management system is addressing core skills gaps that exist in the workplace. The World Economic Forum has indicated that by 2020, 42% of core skills will be stale and that it will take 101 days of learning just to keep current. An integrated talent management system is typically focused on creating a system and workflow of employee engagement that, in turn, addresses employee skills development.
- Core HR systems may take several years to fully implement and are often costly – both time and money. Conversely, a talent management system can be implemented more quickly and cost effectively, sometimes by less than 50% of the cost of core HR systems, providing a compelling cost to value story.
- The best narrative or business case will focus on retention – the costs you can quantify like the cost of turnover of high performers or high potentials and the impact on the organization from a sales and cost perspective.
- Much work has been done on the topic of employee engagement with the general consensus being that 85% of today’s workforce either aren’t engaged or are actively disengaged at work. The global economic consequence is approximately $7T in lost productivity according to Gallup. Yes, that’s Seven Trillion Dollars! Of the remedies found for poor engagement, opportunities for growth and development top the list.
- Employees also tend to share their experiences with others, which is another good reason to focus on retention. Glassdoor notes that while people will share a positive experience with three others, if it’s a bad experience they’ll share that with ten or more people.
You can’t expect employees to stay forever, but they will stay longer and be more productive if they’re happier even with a transfer within the company. Using talent management to create the right culture of engagement translates directly into a measurable financial impact. So rather than question the risk of investing in employees if those employees should leave, question instead the cost and risk associated with not providing employee engagement and learning opportunities.
It’s the investment in employees you can’t afford NOT to make.
Give us a call at 513-528-9700 or contact me by email at email@example.com to learn more.
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Jackie Messersmith is President and CEO of Talent Management LLC. Talent Management provides consulting services to small to mid-size businesses to put an employee engagement culture and talent strategy in place, and is the developer of Talent Snapshot®, an integrated, competency-based, online talent management solution. Jackie can be reached at 513-528-9700 or firstname.lastname@example.org.