Unlike other resources, people appreciate in value the longer they work for you. They get more skills and experience, and create essential networks for your business. And when you combine this with hiring the right people in the first place, you optimize your talent for business performance. This explains why a focus on hiring and retaining key talent in the form of talent management has become a critical part of most organisations’ HR strategies. The demands placed on the talent management function today are greater than ever before: 93% of CEOs say “they recognize the need to make a change, or are already changing, their strategy for attracting and retaining talent,” according to PwC’s 17th Annual Global CEO Survey.
In order to facilitate this process many organisations have started to invest on a cloud based HR solution that can enhance the strategic decision making towards HR.
Complexity towards Talent Management
Talent management within an organisation is often given priority when it is time to fill vacant positions. Knowledge about the workforce is scrutinized and is limited to that time period. This situation can be detected as a result of the evolution of talent management into multiple dimensions such as compensation, recruitment and benefits. Each of these dimensions have its own set of transactional data that typically cannot be linked with other systems.
It is at this point where the challenge arises. Many complex driving forces can affect the overall company bottom line. Hence it is important that top level managers understand the impact that these multiple factors make on productivity and growth.
A common ideology that is being developed for the year 2018 is to focus on scientific decision making using inter connected data elements. According to a report on HR excellence by the Boston Consulting Group, it can be stated that data driven, analytical HR departments are more likely to plat a strategic role in their organisations.
How does HR solutions impact talent management?
- Hiring managers often conduct recruitment activities with the objective of filling positions as soon as possible focusing on time-to-fill metrics. This can lead to an undesirable result where candidates are overpaid and in return the organisation obtains poor performance.
- Analytical tools available in HR solutions ease the workload of managers during recruitment by providing infographics and dashboards to compare various dimensions of employee performance. Such analytics improve the strategic decision making process enabling effective decisions to be made within a short span of time reducing the complications and inefficiencies involved in a manual process.
- Employers are able to tweak things like referral and hiring bonuses, paying higher rates for hard-to-fill critical roles. This way, you aren’t just throwing money at the problem, but investing your resources in a smart way. Performance management tools such as appraisals and goal planning help to indicate goals in comparison to actual performance identifying any deviations that has taken place. With the use of these tools, managers have the ability to take necessary actions in a manner that complements the organisation as well as record them for future appraisals.
- Retention is a huge problem majority of organisations face. The typical approach to this is for the HR manager to deliver reports identifying rates and reasons for this turnover. Unfortunately this tells you very little regarding the situation and solutions to prevent it.
- A more strategic approach would be to analyze why people are leaving and use effective tools to retain these specific people. This is done by utilizing a HR database that runs a clustering algorithm to determine what is common about the people leaving and the people retained. This multidimensional analysis usually is not effective when conducted through a spreadsheet. As the result is directional it provides the opportunity to handle the employee face to face and get to know their requirements.
- HR is often in the struggle between the different demands of finance and line management. A strategic solution to this would be to identify the revenues as to how total rewards are increasing. By this priority towards recruitment can be given to areas that are crucial towards increasing total rewards within the company. Such a situation can pave the way for compromise between financial limitations and recruitment needs of the organisation.
Managing an effective talent management system at present highly depends on an effective HR solution to keep up with the modern trends, demands and pace.