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Lecture Outline
Chapter 9: Talent Management
CHAPTER OBJECTIVES
After completing this chapter, you should be able to do the following:
❖ Understand the origin of talent management and how it fits within human resources
planning (HRP), human capital management, strategic HRM, and corporate strategy
❖ Discuss the evidence for the importance of TM in general and, specifically, in terms of the
talent management lifecycle
❖ Discuss the common attributes of talented individuals
INTRODUCTION
➢ Talent management (TM) is not just a title for the HR professional who is the manager of new
hiring at a company. The field of TM brings with it a new perspective that unifies recruiting,
hiring, training, promoting, and retaining talented individuals who can contribute to the
overall growth and competitive advantage of a company. Historically, the management of a
company’s talent was primarily focused on hiring individuals who had good experience along
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Defining Talent Management
➢ Talent management has been defined in a number of ways. TM generally refers to the process
of hiring, socializing, developing, and retaining employees while, at the same time, attracting
highly skilled individuals from the labor market.
➢ A specific definition is provided by Lockwood (2006): “Talent management is the
Importance of Talent Management
➢ Poll conducted by the Society for Human Resource Management (SHRM) and titled
“Challenges Facing Organizations and HR in the Next Ten Years”
➢ Findings: Nearly half the respondents (47%) said that obtaining human capital and optimizing
on human capital investments was the top investment challenge for businesses over the next
The Talent Management Lifecycle
➢ The lifecycle can be created by (1) expanding too quickly into new markets or geographies,
(2) the changing needs of the employees, and (3) the ongoing retirement of the baby boomers.
➢ Acquiring and growing a talented human capital workforce that adapts to the new challenges
occasioned by changes in the marketplace is key to the talent management lifecycle and,
subsequently, to finding the leadership capabilities necessary to compete in the global
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economy.
➢ But lack of leadership in companies today is not just tied to lack of experience or training. It
also comes from (1) expanding too quickly into new markets or geographies, (2) the changing
needs of the employees, and (3) the ongoing retirement of the baby boomers.
Attributes for Talent
➢ Although a complete list of the characteristics that make for success is impossible, the
following appear to be the common attributes of talented individuals:
▪ Ability to communicate with others using multiple media
Job Analysis and Human Resources Planning: Part of TM
The Role of Job Analysis
➢ Talent management comprises more than recruiting and so will be built on a program of
human resource planning (HRP).
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Human Resource Planning (HRP)
➢ HRP begins with the identification of the strategic goals of the company and of how an HRP
program can assist in achieving the effective use of the human capital of the company.
➢ Changes in organizational strategy and business objectives will focus attention on the use of
the HRP program to estimate three factors related to an organization’s employees:
▪ Number of employees needed for growth or decline
Workforce Management/Human Resources Planning With an HRIS
● Workforce planning systems (WPS) are available from a number of vendors. Their
capabilities can be found in a variety of enterprise applications and stand-alone tools.
● The primary purpose of a WPS is to get the right people with the right skill sets in the
right place at the right time to meet customer demand. A good example of a WPS is
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Long- and Short-Term Strategic Importance of Talent Management
➢ In the long term, organizations need to invest now in employee talent to sustain a competitive
advantage over time.
➢ When the economy goes sour, investment in human capital may be suspended. Short-term
Talent Management and Corporate Strategy
➢ The fundamental requirement to connect business and corporate strategy to HRP and talent
management is based on the capability to be able to adapt to changes in the global economy.
➢ The central question is, “How can HR make a substantial contribution to executing a firm’s
Anticipating Change and Creating an Adaptable Workforce
➢ Since change is given as a constant within any business, then companies need a workforce
that can adapt to changes.
➢ A study done by IBM (2008) found that three key capabilities were found to influence a
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employees. Talent can be nurtured from within an organization by training. When the
necessary skills are still not available from a workforce adaptable to change, then an
organization must look to hire from the outside.
➢ Just as the marketplace for doing business is in constant change, so too are the HRM
programs to develop talent within an organization and create an adaptable workforce.
Talent Management and Corporate Culture
➢ Choosing the right knowledge, skills, and abilities (KSA) to require of job applicants is
important for an organization looking to hiring talented individuals. But what are the
organizational factors that a prospective applicant seeks when choosing an employer? There
seems to be one attribute of an organization that is considered important and valued by almost
TALENT MANAGEMENT AND INFORMATION SYSTEMS
The Link Between Talent Management and Human Resource Information Systems
➢ Measuring the return on investment (ROI) for human capital, as described in Chapter 7, has to
be reflected in the HR balanced scorecard program to justify its acquisition and use. Talent
management (TM) is just one of many components involving the investment in human
capital.
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➢ No matter how an HRIS is used to support talent management or other functional business
areas, accurate and timely data are the key to successful program operations. An organization
needs not only to collect data about potential job applicants but also to know the skills of the
current employee resource pool.
➢ If the organization does not have the capability to develop the necessary HR business
programs and processes, this is probably the time to use outside HRIS consulting companies.
The key starting point for any consulting group is performing a business strategy assessment
for an organization, and the organization should not proceed with a vendor until this project is
finished. No information system will fix, enhance, or salvage a poorly defined business
strategy plan.
➢ The talent management functional areas offered by application software products include
➢ Information systems can be found in every aspect of talent management, from conducting job
analysis to focusing on the human capital demand and supply for current and future jobs,
attracting the right talent in a specific location, hiring based on desired attributes, and
retaining high-performing employees. Ultimately, the HR department of an organization
would use an HRIS to monitor and measure the overall contributions of talented employees
with other results on a balanced scorecard, and these results could affect the design of other
HRM programs.
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➢ Before planning new HR programs to resolve the gap between forecasted demand and supply
Recruiting Top Talent Using Social Networks
➢ Social networking using the Web has become popular with recruiters and potential applicants.
Print ads in newspapers are still being used but at a considerably lower rate than 10 years ago.
➢ Recruiters searching for top talent also must be aware of their own company’s website and
ask themselves if it has enough information for applicants to be interested in envisioning
working for the company. A company website needs to target not only potential customers but
also high-potential applicants.
1. Does the website make it difficult to find the link to career paths?
Using Information Systems to Set Goals and Evaluate Performance
➢ Tying measurable goals to company strategy is important. Studies have found that overall
employee productivity increases along with company morale when employee goals are
aligned with company strategy.
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Using Analytics for Talent Management
➢ Analytics, by themselves, cannot solve everything, but it is a very powerful tool to analyze
data and to provide the fuel for intelligent decision making—good information. In short,
Using Analytics for Talent Management
➢ Using workforce analytics to manage talent can involve asking many questions about an
individual person or a group of employees. A simple question about an individual
employee’s history is answered by using a query program against the employee data
Measuring the Success of Talent Management
➢ As baby boomers retire and leave the workforce, both the competition to attract and the
costs of acquiring new, highly talented individuals are only going to increase. Many
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➢ The key to performance management is to ensure there are measurable performance
criteria that an employee can realistically achieve over a period of time.
➢ Measuring performance results is critical in today’s workplace. This results-oriented
perspective is not just limited to the sales department, where results can be measured
against quota objectives. It now exists in all departments, from marketing, which measures