1.
The Business Case for Talent Management

2.
Saving time, money and the hassle of employee
performance and salary reviews, talent management provides a
bundle of benefits for businesses.
E ncompassing everything from reviews to coaching, from
succession planning to record-keeping, talent management is an
excellent management strategy in and of itself.
Anecdotally, HR managers and staff believe that the reduction of
administrative time associated with performance reviews, which can
take months and even involve
additional hiring to handle the
paperwork, is the biggest return on
investment point for companies. Companies that focus on talent
With that in mind, the business case management enjoy a five-year
for talent management is expressly return on equity that ranges
clear: Companies that develop – and
put into action – talent management
between 20 and 38 percent,
strategies can boost both business according to a 2009 Ernst & Young
and their bottom line. global workforce survey.
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3.
Just What is Talent Management?
In a nutshell, talent management means focusing on finding the best people (as well as the
right person for the right job), then ensuring that those capable employees are engaged with your
company and aligned with your key business goals.
When you combine all of these elements together, the talent
management equation will add up to better business
performance.
Further, talent management is the combination of being
able to attract highly skilled
employees and develop and retain them for successful future business
efforts.
Talent management is a combination of communication
and technology, business transparency and feedback and
coaching from managers that can lead to happy,
productive, long-term employees as well as
impressive, long-term business results.
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4.
Businesses looking for a competitive advantage in
their industry can use talent management to find that edge, to get ahead
and to get results.
Just as the face and shape of the
workforce continues to evolve, so do
company efforts to retain and reinvigorate their
employees to ensure that they are getting the best out
of the people who come to work every day.
A talent management strategy and plan can prevent
the drags of turnover, unhappy and unproductive
employees, and wasted company time.
Talent management, then, is truly this
generation’s go-to business strategy to inspire and
educate employees and to simplify onerous human
resources tasks.
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5.
Who is the Buyer of Talent Management
Systems?
Who is generally the buyer of a talent management system?
In short, the answer is: the entire company!
From top to bottom, your entire company will contribute to and
benefit from a strategic talent management system.
More specifically, the purchaser of a talent management system can be your company’s HR Director,
CFO or CEO, depending on roles and responsibilities within your business. Likewise, you might want to
assemble a small team to evaluate talent management options, focus on implementation, and track
progress and goals after adding talent management to your company.
While talent management will benefit the entire
organization, it is a good idea to have at least one
point person for its implementation, usage and
updates within your company.
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6.
How Talent Management Systems Reduce
Costs
While companies tend to focus more on the costs of employee salary and benefits, there are some pretty
striking figures regarding other employee-related costs, especially for businesses considering
implementing talent management. Disengaged employees are naturally less productive and, shockingly,
cost the U.S. economy a whopping $300 billion each year, according to Gallup.
Did you know:
• Replacing just one employee can cost between 150 and 250 percent of that individual’s salary,
according to a study by the Institute for Research on Labor and Employment from the University of
California, Berkeley?
• Separation costs for that same employee will include the cost and time of exit interviews, various
administration functions, any severance pay and potential increases in unemployment
compensation?
• Employee absence costs include having other employees cover that open position, which may not
be in their area of expertise, loss of employee productivity and the potential costs of uncertainty
among your current workforce?
• Replacement costs for an employee include the cost of attracting new applicants with job
postings, the time and costs for job interviews and/or testing, potential moving/relocation
expenses and any administrative expenses associated with hiring that new person?
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7.
W ith an average annual employee turnover rate of more than 14 percent, according to the Bureau of
National Affairs, it becomes clear pretty quickly how expensive turnover can be for companies of all sizes.
Beyond that, a recent Gallup poll revealed that:
Companies with a lot of dis-satisfied workers had turnover rates that
were up to 51 percent higher than their peers with happier
employees.
Some simple math shows that talent
management systems can quickly
reduce overall costs while improving
productivity.
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8.
One of the best ways to cut HR costs is to eliminate or
automate administrative processes. Automating performance
reviews may be the most-loved feature of talent management
systems, which can also organize learning and development,
succession planning and salary surveys, among other HR
functions.
?
Ask your Human Resources department and
management team how much time they spend
each year on performance and salary reviews and
you can quickly determine how much time and
money can be saved with talent management.
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9.
The Real Benefit of Talent Management is
Improved Business Performance
S udy after study shows that engaged, high caliber employees will lead your
t
company better business performance. For instance:
• Engaged employees produce more, display higher morale and have far fewer sick days than
disengaged employees (2.69 vs. 6.19 sick days per year);
• When you can quickly and easily see what everyone is working on, your executive team can
make resourcing decisions based on alignment with corporate goals. Likewise, executives report
reduced inefficiency and positive responses to management data that allows them to determine
what employees are working on and ensure that everyone is in alignment with corporate goals;
• The executive team can also focus on your company’s top priorities and ensure the entire company is
working on the most important business tasks;
• Open lines of communication, a real benefit of talent management systems, will lead to greater
business innovation;
• When you put responsibility (with a combination of self-service and transparency) in the hands of your
employees, they will respond positively and offer great service.
• You will benefit from identifying your top performers, something many businesses can’t readily
identify. Talent management provides the ability to see that data and coach and manage employees
accordingly.
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10.
?
When you think about your ideal workforce,
doesn’t it include engaged employees who will
actively contribute to your company’s success?
How about open, clear internal communication?
And decisions made with your business’ top
goals in mind?
If you answered, “yes,” “yes” and “yes,” talent management can
point you in the right direction on all of these and more.
A culture that rewards talent will attract more talent … don’t you
want the best possible team?
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11.
What Should We Expect to Pay for Talent
Management?
Depending on the size and scope of your business, your talent management
needs and costs will vary.
When it comes to costs, the main elements are the cost of talent management software,
implementation and internal administrative costs.
Most business owners will be pleased to learn
$
that talent management generally costs far less
than they would estimate.
For instance, Kapta Systems proven talent management system is built with
small businesses in mind and gives access to lots of features with a small
price tag. The SaaS-based, low-cost talent management system is
recognized for “no hassles, no surprises” and provides an easy-to-use and
easy-to-implement interface.
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12.
Other ways to save money on your talent management tools?
Consider SaaS-based systems, lower internal IT support costs, eliminating the costs of investing in
hardware, simple implementation and month-to-month contracts as opposed to long-term contracts that
lock customers in.
Talent management isn’t just about paying more in
bonuses and raises to your top performers –
it’s about giving them a platform to manage their
career development and allowing them to actively
contribute to the success of your organization.
In fact, you likely won’t need to use your entire
employee compensation budget to attract great
people; you simply need to provide them with
an opportunity to do their best work and
receive recognition for it.
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13.
What Will Happen if We Don’t Invest in
Talent Management?
Talent management is truly an investment that will pay off year after
year and employee after employee.
If your company chooses not to invest in talent management, turnover will increase as employees grow
frustrated by lack of quality feedback and eventually leave – taking with them all the time, money and
energy you had previously put into that individual. Further, if your company does not provide a platform for
talent and career management, employees will simply find it somewhere else – whether it’s with another
company or an online platform such as LinkedIn or Monster.com. Finally, you should assume that your
competitors are investing in talent management strategies and tools to recruit and retain their top talent.
In today’s cut-throat economy and competitive employment market, the question might be: Can you afford
NOT to invest in your talent?
It won’t take much time, research or thought for you to answer “no” and consider your best options for
talent management within your company.
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14.
The Growing Case for Adopting Talent
Management
Talent management keeps companies on-trend and able to focus more time and energy
on business growth and development – where they want to spend their time and energy.
Whether your company needs help defining goals, managing HR processes, providing evaluations,
communicating with employees or re-engaging those employees in your business efforts, you have already
made the case for talent management in your company.
Talent management will help you find the right
Saving time, money, hassle, stress
employees for the right positions, inspire those
employees to give their best to your company, offer and more, talent management gives
accurate, timely and useful reviews and raises, companies the ability to organize all
and communicate regularly. It will not only manage of their employee performance
your talent, it will engage the lifeblood of your evaluations, salary reviews, employee
company. It is both simple and effective. goals, manager feedback and
Let talent management help your business, your coaching, internal communication, exit
employees and your overall success. Getting strategies and more – all online and in
started today can help you make a fast and one convenient place.
powerful difference tomorrow with your employees
and within your business.
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