Talent Management

by Sep 6, 2022Human resource, Talentmanagement Guide

Talented employees with special qualifications and skills are in high demand on the labor market. The shortage of skilled workers in recent years has shown how important it is to retain, promote and find talent in the long term. Human resources management attributes therefore great importance to strategic talent management.

Table of content:

  1. Talent management definition
  2. Why is talent management important?
  3. Talent management model
  4. 5 talent management methods in the spotlight
  5. Two essential strategies in talent management
  6. Digital Talent Management Systems

Talent management definition

Talent management describes strategies, measures and methods used in companies to ensure that employees’ key positions or, more generally, qualifications are filled. Measures include planning, discovering, attracting, developing and retaining talent.

What a talent is, usually always corresponds to the definitions of organizations. Certain talents are often referred to as high potentials. High potentials are employees who, due to their special qualifications and personal characteristics, make a valuable contribution to the company’s value creation.

The following survey shows how differently talents can be defined and managed in organizations.

How talent management is implemented depends on the company conditions and the strategy selection. Among other things, factors such as industry, corporate structure or the employees’ areas of responsibility determine how talent management is structured.

Info: Difference between Talent Management vs. Skill Management Although the two terms have seemingly similar meanings, there are clear differences. Talent Management deals with a holistic process that discovers, nurtures and wins talent, while skill management is primarily concerned with discovering talent.

Why is talent management important?

The goal of talent management is to possess, retain and promote qualified employees for the organization, both in the present and in the future, in order to ensure needed skill resources and manage fitting successions.

For this purpose, it is necessary to clarify which qualifications employees need to have to succeed with organizational goals. Job profiles or definitions of roles as part of career planning are therefore part of the prerequisites of talent management.

Making any competence gaps measurable in the form of skill-gap analyses or through other key figures, is necessary for strategic talent management and its HR controlling.

Talent management model

A talent management system can be represented in the form of a cycle. This cycle can omit individual steps, but as a whole, it illustrates the interaction of different personnel development measures.

Source: skilltree

5 talent management methods in the spotlight

  • Succession.
    Key positions are filled, promoted and retained internally and externally. Defining key competencies and creating a skill-gap analysis is necessary. Read more about succession planning here.
  • Career planning
    Defining job profiles and career steps to enable employees to pursue a career within the company and to retain more successful employees. More information on career planning can be found here.
  • Skill Management
    Identifying skills, finding employees with specific competencies and identifying training interests and skills gaps is one of the key features of skills management. Read more here.
  • Employer Branding
    Strengthening the employer brand e.g. on social media or communicating special features of the corporate culture on the company website, these are only two of many possibilities to strengthen the employer brand.
  • Further development
    Internal as well as external further education and training ensures that the increase in competences does not diminish and that talents are promoted. You can find out more about the training planning here.

Two essential strategies in talent management

Essentially, a distinction can be made between two approaches to talent management strategy.

High potential talent management strategy

This strategy aims to identify, promote and retain almost exclusively talented employees. Talent development is therefore primarily limited to a small group of people. This group of people usually corresponds to executives and key specialists with special skills, who are in high demand on the labor market and are indispensable for the fulfillment of corporate goals. Personnel development measures are therefore primarily geared to the needs of this group of people and often neglect to promote and develop other employees.

Holistic talent management strategy

The holistic talent management strategy does not deal with a focused group of people like the high potential strategy, but with all employees equally. The focus of this strategy is on the talents of individual employees and their individual development. In this context, talent is understood to mean that employees achieve above-average performance in individual disciplines. These talents are then considered and utilized in various work projects. Employees are often personally involved in this talent management strategy (employee engagement), for example through surveys in employee appraisals. The holistic talent management approach is often applied in agile structured organizations.

Digital Talent Management Systems

Talent Management can be digitized in many HR processes and phases. It is important to find the right software for talent management. Since talent development can have different focuses as well as strategies depending on the organization, it is often a challenge to find the right talent management software.

The following, 4 criteria for the right talent management software.

  • Does my talent management strategy fit the software?
    Whether high potential, holistic, or any other talent management strategy, a strategy approach must be chosen before acquiring HR software that will be used for talent development. Often, that choice of talent management strategy is shaped by the existing or planned corporate culture.
  • Which processes or phases of talent management can I already map?
    As shown in the talent management model, there are different phases and processes that can be gone through. Often, some of them are already covered in HR development before a new HR system is purchased. Therefore, it is important to go through all phases of talent management and document which processes are already supported to find the appropriate complement.
  • What interfaces are needed?
    Since talent management is a process put together individually by the company and may require different personnel development measures, it is necessary to think about which data should be linked and where any interfaces are required.
  • How can the administrative burden be reduced?
    Developing talent also means fostering interpersonal relationships. After all, only employees who are satisfied with their work situation and prospects will remain loyal to the company. Interpersonal relationships, including those between HR managers and employees, are necessary to improve or adapt work situations and perspectives. In order to have time for this, it is necessary to keep the administrative effort of systems to a minimum. In order to have time for this, it is necessary to keep the administrative effort of systems to a minimum.

Talent management can be that easy.
Check out how smart and easy it is with Skilltree .

Über den Autor

Simon Löwy

Simon Löwy

Simon is co-founder of Skilltree. He writes in this blog on topics such as new work, human resource management and personnel development.

Basics of competence management

In this chapter, you will learn the basics of competence management. How is competence management defined? Why should competence management be practised? Where can it be applied? And how is it demarcated as part of human resource management? We will address these...

Key positions

In every company, there are so-called key positions essential for the company's successful functioning. These positions describe strategically relevant personnel positions for companies. One of these key positions is the single point of knowledge.Table of content:...

Professional Skill Management Systems

When organisations are ready to start with skills management, there are possibilities to create an overview by using an Excel template. Professional skill management systems are a more sustainable approach. They are more flexible, contain more information and are more...

Tips for implementation

In this chapter, you'll learn practical tips for implementing competency management. We will address these questions in the next three articles. In this chapter, you will find helpful tips which should be considered in competence management or skill management. In...

Practical implementation of competence management

This chapter is about the practical implementation of competence management. Hacks on topics related to skill management and skill matrices will be shown. Furthermore, various skill management systems are explained and topics on further education and training are...

Certificate management

If a company has certified processes, e.g. management systems such as ISO 9001 (quality management), then it also needs a management of those certificates. In order not to have to resort to analog methods, such as collecting printed certificates in folders,...

Active sourcing in the company

Active sourcing is a modern method of recruiting in which companies actively approach potential applicants instead of waiting for incoming applications. This can be done by using social networks, career websites, or directly addressing potential candidates.Content...

Employer Branding

Employer branding is a concept that assists businesses in enhancing their employer brand and making it more appealing to potential employees. To attract and retain the greatest talent, it is important to define and communicate your employer brand to the outside world....

Skill management in human resource development

Skill management is a sub-area of human resource development. Many human resource development tasks cannot be realised without skills management. This article describes the role of skills management in human resource development.Human resource development definition...

chabaDoo as an example of a good LMS

The edu-tech startup chabaDoo, has developed a fun and flexible solution to efficiently structure and deliver learning content digitally. In this blog, features of chabaDoo are summarized and the solution is presented.How does chabaDoo work? Learning units are...
success icon

Your download has started!

Why have an Excel matrix when you can have a whole tree?
Try Skilltree for free and start growing your skills.

14 days free | No credit card required

success icon

Dein Download ist gestarted!

Warum eine Excel Matrix wenn man gleich einen ganzen Baum haben kann?
Probiere Skilltree
gratis aus und wachse mit all deinen Fähigkeiten.

14 Tage kostenlos | Keine Kreditkarte erforderlich