Advantages and Disadvantages of Talent Management
With growing organizational structure and company size, there has been the development of different reticulate branches of human resource and talent-based departments. One such peculiar approach to modern-day structure is a dedicated talent management area. It encompasses a varied degree of roles and handling which are different to the core human resource field and is majorly focussed on attracting, retaining, engaging, and developing the workforce and the team in the organization.
Talent management teams or individuals perform various practices that help to build the employee-centric approach and lead the organization to better heights in terms of manpower potential and performance. Since the workforce is a major core of the performance and the input for growth, keeping them in the right order with an articulate growth trajectory is vital for the growth of the company. And this is where talent management comes into play. Their roles are becoming more mainstream in today’s world and we here take a look at the good and the bad side of the talent management aspect down below in our article. Read along.
Advantages of Talent Management
1. Improved Organizational Performance
Talent management team helps the organization in identifying and improving the skillset and knowledge of the employees through various approaches. They also help to leverage the manpower in hand with the right growth strategy to help create an aligned structure within the organization for enhanced organizational performance. The core idea of talent management is to create an effective strategy for the betterment of the skills and competencies of the employees in line with the goals and objectives of the company.
2. Improved Employee Retention
One of the major issues seen with the workforce is the constant attrition and the turnover of the staff these days. These things are more often in the startup where a proper effective way of employee retention approach is often lacking. This is where talent management can help the company improve its employee retention part. With an effective talent management approach, a company can carve better career development plans, a skill-building approach, and effective mentoring allowing the workforce to improve their morale and ultimately commit to a good cause sensing the growth opportunity in the company. They also help in identifying potential leaders and future managers within the team by evaluating and nurturing them from an early age.
3. Competitive Edge for the company
With such a dearth of skilled manpower and hard timing finding the right talent for the job, the right companies who want to progress need to identify the right talent and the skillset in the market. This often goes unnoticed in the talks of operation and revenues, but getting your hiring and talent acquisition correct is a very important task. Thankfully, the talent management team can help in that by making it easier for the organization to find a high caliber of talent and prospects for the job. They can also help in building a talent-rich organization by building an engaging and skilled team in line with the changing market conditions. The role of talent management in providing a competitive edge for the business and the growth of the company is often underrated.
4. Increased Employee Engagement
The talent management team helps in fostering a culture of continuous learning and development along with various engaging and interaction-building approaches within the organization. This helps in leveling up the job satisfaction and creating a happy working environment. Keeping the employees and workforce motivated and happy to work is critical for the organization’s growth and improvement. Talent management also helps in building team bonding events and activities on a timely basis alongside offering various upskilling and growth opportunities for employees to improve on.
5. Reducing Recruitment Costs
With talent management setup or team working in an organization, the overall recruitment cost for the company as a whole decreases by a larger number. The talent management team helps in effectively planning any succession for employee vacancy and future migration whilst also building the next stage of leaders within the company by identifying the right core group of people. It also helps plan the proper recruitment strategy to help reduce the burden and the overall cost of hiring.
Disadvantages of Talent Management
1. Difficulty in Implementation
The talent management concept as a whole is a complex topic and not many organizations and companies have the right team, time, resources, and capacity to run it to its full potential. It requires a specific individual or a team of individuals with a core focus on managing the talent. Such an aspect can be hard for hard for downsized human resource team that has to cater to tons of work and other intricacies to handle. This creates a strain on the workload and often brings about difficulty in the implementation of it.
2. Resistance to Change
The concept of a human resource department or team has been around for a long. However, the key ideology of talent management has been often scrutinized and been subject to various debacles. Many companies focus on other aspects of human resources and do not cater to the need for time for talent management. This is why there has been a reluctance or resistance to change for talent management ideas. That in itself raises a hard time and a drawback for this field.
3. Difficulty in balancing short-term and long-term goals
The duty calls and responsibilities of talent management vary between short-term and long-term goals. This in itself can be a hard thing to plan for in the right manner. Overemphasis on one aspect of it can lead to the detrimental effect on the other side. Most often or not, it’s also bound by the direction of the company and the talent management has to balance it out in that. For say, focusing on short-term goals can help realize immediate needs but will dampen long-term plans.
4. Lack of Numerical Metrics
Modern-day organizations run on stats and data. Each function or department and its coherent output are compared based on data to find its effective performance and its overall standing. That being said, there’s no such effective metric or measurement tool for the performance of talent management. This makes it hard for the calculation of the effectiveness and performance of the talent management team or personnel and as such companies can’t put a number to it in terms of contribution or costing analysis.
Talent management is a crucial part of the modern-day human resource and organizational structure. They help in building an emphasis on organizational performance, building a new set of leadership, creating effective employee engagement, and honing a cultural bridging between the employees. This helps in gearing the company into a focused direction to achieve the set goals. We aforementioned how important they are on a whole for the organisation alongside a few downsides of them too. We hope this helped provide clarity on both aspects of talent management.