What is Talent Management and why is it important?

It is quite interesting to note; organizations are going a step further and taking the boardroom discussion about the ‘importance of talent management’ out in the open and practicing it. Organizations are waking up to the benefits of talent management. And are taking respective measures to not only clearly define ‘talent management’, but also emphasize its importance in the successful running of a business.

Initially considered as a part of Human Resource Management, Talent Management, is coming up as a separate entity in itself, which could steer your business either to success or failure. Depending, of course, on how efficient your talent management team is.

Talent management’ is not just another fancy word that has been coined by the Human Resource Department. There is a proper research and experience gone into it. After lots of experimentation's and discussions, the specialized function of managing talent was conceived.

Figuratively speaking, talent means people here. However, there is more to it. Let’s understand what is talent first.

‘Talent’ is defined as those individuals who strive to make a difference in organizational performance either through their immediate contribution or, through demonstrating the highest levels of potential.

By that definition ‘talent’ does not comprise just about any person working in an organization. In fact, talent is a highly motivated individual who knows how to blend his knowledge and skills, so as to achieve organizational goals. Now let’s look what is talent management-

Talent management is defined as a process, which systematically attracts, identifies, develop, engage, retain and deploy individuals who have shown are valuable to an organization either because of their ‘high potential’ for the future or because they are fulfilling critical roles of the business or operations.

So now you know, talent management is a systematic approach to ensure that top performing employees are not only positively engaged but are constantly motivated to give their best performance consistently. The entire process requires experts like ‘talent management consultants,’ who ensure organizations address and achieve their business goals effectively, in order to improve business performance in the long run.

Importance of Talent Management could be adjudged by the fact; poor talent management could adversely affect your business in numerous ways including -

1. Demotivated and disengaged employees

2. Increased turn-over cost

3. Low retention rates

4. High error rates

It is important that there are skilled personnel for managing talent in an organization. So it is not surprising that organizations are waking up to the advantages of investing in talent management.

So what are the advantages of Talent Management to an organization?

Here are eight reasons why your organization should invest in Talent Management, if it wants to achieve all its goals and be successful in the market.

1. Proper talent management helps in attracting the top talent to your organization

2. Talent management ensures each and every individual is motivated enough to perform to his/her best optimum.

3. Talent management ensures there is a continuous coverage of critical roles, and employees are aware of their KRAs.

4. The strong talent management ensures increased employee performance.

5. It encourages employee engagement keeping the employees highly motivated.

6. It helps in retaining the top talent.

7. Talent management also helps in improving business performance

8. With top talents being retained, there are less chances of error in the work, thus maintaining the client satisfaction.

In the end, I would like to add — Talent Management would help your organization to control its talent and ensure there is a steady growth in the talent base.

Originally published at http://quora.com.

Human Resource Professional. Passionate about Human Resources. Writing has always been a passion with strong interest in talent management & HR Industry.

Human Resource Professional. Passionate about Human Resources. Writing has always been a passion with strong interest in talent management & HR Industry.