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5 Steps to Crafting a Winning Talent Management Strategy

Posted by Noel • January 12, 2023 • 7 min read

Talent management is an integral part of any business as it helps to ensure that the right people are in the right positions to maximize the company’s potential. It is more than just a theory or a concept. It is a process of attracting, developing, and retaining the best employees and ensuring they perform at their highest potential. Company potential is directly related to the potential of its talent. With every hire, promotion, development course, and loss of talent, a company is changing its threshold for success. A talent management strategy should keep that threshold high by hiring and nurturing the best talent.

So why is now the time to invest in a talent management strategy?

If you already know that talent management is going to be one of your primary focuses this year, it is time to schedule a demo with the Trakstar team. We can help you understand where your talent needs are and provide solutions to make your talent management strategy better than ever before. Click here to schedule.

Introduction to Talent Management

If you’ve been put in charge of a talent management program, or your goals are directly tied to talent management, you know that it can be challenging to understand just what it includes. The short answer is that the talent management process includes a lot of things!

What is Talent Management?

Talent management is the process of recruiting, developing, and retaining the best employees for an organization. It encompasses all aspects of employee acquisition, talent development, and retention, including recruitment, onboarding, training, performance management, and succession planning. Talent management is vital for any business because it can help ensure that the right people are in the correct positions and performing at their highest potential. The best strategies help to increase productivity, reduce turnover, and increase employee engagement.

Why is Talent Management Important?

Talent management is important because your employees are your most significant investments. You don’t hire someone because you think they are mediocre. Managing and developing the people you bring into your company is a better use of your time and money than simply hiring someone new. According to a Glassdoor study, the average cost of hiring an employee is around $4,000. However, that rate can be exponentially higher for top and leadership roles. 

Additionally, a robust talent management strategy can create a competitive advantage for the business by having a team of talented and motivated employees committed to achieving the company’s goals.

Five Steps to Crafting a Winning Talent Management Strategy

Crafting a winning talent management strategy is an important part of any business. While we’ve broken down the creating a talent management strategy into five steps, these could easily break down even more into smaller steps that make the process more manageable. 

Step 1: Define Your Talent Strategy

The first step in crafting a winning talent management strategy is to define your overall talent strategy. Crafting your talent strategy involves identifying the skills, competencies, and experience needed for each position in the organization. This exercise will help ensure that you are recruiting and hiring the best possible candidates for the open jobs. Additionally, it will ensure that you retain the right people in the right positions to maximize the company’s potential. 

What if someone doesn’t fit into your strategy? You can identify ways to upskill or reskill them, build a mentorship program, hire to fill the skills gap, craft a performance improvement plan, or part ways with that employee.

Step 2: Identify Key Talent Management Areas

The next step in crafting a winning talent management strategy is identifying key talent management areas. This involves identifying the areas in which the company’s talent management efforts should be focused, including:

  • Recruitment
  • Onboarding
  • Training
  • Performance management
  • Retention
  • Succession planning

Doing this ensures that you are focusing your efforts on the areas that will have the most impact on the company’s success. As you identify these areas, it is a good idea to think about who is responsible for them. Will you need to make new hires? Can you promote internally? How will the overall structure of your organization change?

Step 3: Develop a Talent Acquisition Strategy

Once you have identified the key talent management areas, the next step is to develop a talent acquisition strategy. You’re probably already thinking about it, but now comes the time to put it all into words and actions. This may involve defining the criteria for recruiting the right people for the job. It could also include the qualifications, skills, and experience needed for each position, separate from who currently holds that position. Additionally, it could consist of things such as the types of job postings and recruiting channels that should be used, the regular cadence for performance appraisals, who should leave notes on performance, and when training and development are necessary.

Step 4: Implement Talent Development Strategies

Once you have identified all of the most important aspects of your talent development plan, the next step is to implement talent development strategies. 

This involves providing the right training and development opportunities to ensure that employees are performing at their highest potential. It could include things such as mentorship programs, job shadowing, and on-the-job training. Additionally, it could include providing employees with the opportunity to attend conferences, seminars, and workshops.

Step 5: Monitor and Measure Your Talent Management Strategy

The final step in crafting a winning talent management strategy is to monitor and measure the success of the strategy. This involves tracking the effectiveness of the talent management activities, such as recruitment, onboarding, training, performance management, retention, and succession planning. Additionally, it involves tracking the performance of the employees and the impact of the talent management efforts on the company’s overall performance.

You will also want to provide time for reflection. How are your changes impacting the overall organization? Are you looking at your people analytics to see what’s going on and if your efforts are working?

For example, Trakstar’s products have built-in data analytics dashboards called Insights. These dashboards help you see where problems may fall in your talent development and management. You’ll be able to see when things are improving for the better, spot problems, and create a story around the work you’re doing.

Talent Management Models

In addition to the five steps outlined above, several different talent management models can be used to help craft a winning talent management strategy. These models include:

  • The Performance Management Model focuses on setting goals and objectives, monitoring performance, and providing feedback and recognition.
  • The Succession Planning Model focuses on identifying and preparing future leaders and ensuring they are ready to take over when needed.
  • The Engagement Model focuses on creating an engaging and motivating environment for employees.
  • The Rewards Model provides employees with rewards and recognition for their hard work and contributions.

Each of these models can be tailored to meet the needs of the specific organization and can help to ensure that the talent management strategy is successful.

Want to Build A Better Talent Management Program?

Talent management is an essential part of any business as it helps to ensure that the right people are in the right positions to maximize the company’s potential. Crafting a winning talent management strategy is an important part of any organization, and there are five steps to crafting a winning talent management strategy. These steps include defining your talent strategy, identifying key talent management areas, developing a talent acquisition strategy, implementing talent development strategies, and monitoring and measuring your talent management strategy. Additionally, there are several different talent management models that can be used to help craft a winning talent management strategy. By following these steps and using the right talent management models, businesses can ensure that they are recruiting, developing, and retaining the best employees and that they are performing at their highest potential. 

Want the tools to build an effective talent management program? Schedule a demo of Trakstar Perform today to get started on crafting a winning talent management strategy.

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