Why we want to “Future-Proof” our Organization —Is managing talent a way to do it?
Every business is vulnerable to threats like running out of cash or getting outcompeted, but too few entrepreneurs consider simply becoming irrelevant as technology and trends advance. Business environments are always evolving, with new technologies on the horizon and constantly changing consumer demands and preferences wreaking havoc on the best-laid plans. If you want your business to have the best possible chance to survive, you need to future-proof it.
To anticipate any future, we need to understand the forces that are shaping it. The term VUCA has been coined to refer to these 4 forces. VUCA is nicely illustrated by these simple diagrams.
- (U) Uncertainty: Lack of data
- (C)Complexity: Many interacting parts
- (A) Ambiguity: Uncertain outcomes
It is usually applied to access complex environments where tasks may vary and change fast as the environment around them. But what is it about?
Business strategy is about bringing knowledge (what we know) and predictability (what we anticipate) together. Both of which are becoming increasingly difficult to fully master because of the influence of VUCA.
Each of the VUCA forces has a different impact depending on what we (confidently) know and how much we can (accurately) predict.
Each scenario means a different approach strategy.
For instance, if we are in the middle of a volatile scenario we should have a very clear vision about what needs to be done, and the whole team has to be on board. Trust is key: saying what will be done, and doing as agreed.
If we find ​uncertainty​, we should create a shared understanding. Slowing down, assessing variables and reducing lack of information. Getting everyone involved and welcoming their participation.
When we are in a complex scenario, we need clarity to make the best decisions, recognizing all the information we might have and not over-simplifying solutions to problems. We have to acknowledge that there will be no single person who has all the knowledge, and we have to build an open and questioning environment.
And finally, when ambiguity is the dominant force, and we don’t know what the outcome will be, agility is our best option. Create a team that is willing to adapt to changes very quickly. How? Listen extra carefully, don’t over-commit to any specific course of action, be willing to be wrong, often.
How Talent Analytics can play a vital role and what are the challenges to overcome when managing talent data?
“People analytics” is a buzzword that has been floating around HR departments for more than a decade. While it’s true that more companies are turning to talent management data as opposed to relying solely on interviews and gut instincts, most of these organizations are still a long way from truly capitalizing on the power of analytical data.
Why managing talent is important?
Talent management is not just a simple human resource key term one will come across. It is also committed to hire, manage, develop, and retain the most talented and excellent employees in the industry. In fact, talent management plays an important role in the business strategy since it manages one of the important assets of the company — its people.
That is why companies should make the effort to effectively manage the employees to help them develop their skills and capabilities in order to retain them. Here are some reasons why companies should invest in talent management.
Attract top talent Having a strategic talent management gives organizations the opportunity to attract the most talented and skilled employees available. It creates an employer brand that could attract potential talents, and in turn, contributes to the improvement of the organizations’ business performance and results.
Employee motivation. Having a strategic talent management helps organizations keep their employees motivated which creates more reasons for them to stay in the company and do their tasks. In fact, 91 percent of employees shared that they wanted more than just money to feel engaged and motivated, as revealed by Chandler and Macleod’s survey.
Continuous coverage of critical roles. Talent management equips companies with the tasks that require critical skills to plan and address the important and highly specialized roles in the workforce to its employees. This means that the company will have a continuous flow of employees to fill critical roles to help companies run their operations smoothly and avoid extra workload for others, which could lead to exhaustion.
Increase employee performance. The use of talent management will make it easier for the companies to identify which employees will be best suited for the job that can lead to less performance management issues and grievances. It will also guarantee that the top talent within the company stays longer.
Engaged employees Talent management allows companies to make systematic and consistent decisions about the development of staff, which guarantees the employees’ skills and development. Furthermore, employees will feel more engaged when there is a fair procedure for the development, which helps in increasing the retention rates that helps companies in meeting their operational requirements.
Retain top talent. Well-structured on-boarding practices create higher levels of retention which saves the company on its recruitment and performance management cost in the long run.
Improve business performance. Talent management helps employees feel engaged, skilled, and motivated, allowing them to work in the direction of the company’s business goals, which in turn, increases client satisfaction and business performance.
Higher client satisfaction. A systematic approach to talent management means that there is an organizational integration and a consistent approach to management. When systems are more integrated, client satisfaction rates are usually higher, since they are dealing with fewer people and their needs are met more rapidly.
RISKS IF YOU DON’T MANAGE TALENT EFFECTIVELY?
Succession Planning — how many times do you see organisations lose a key leader/employee and have no “back up” plan? This is where succession planning falls into place. Succession planning allows your organisation to pro-actively deal with issues, as appose to being reactive, which can often be costly and lead to “panic” decision making.
Workforce Planning — similar to succession planning, workforce planning allows you to be pro-active about your organisations future state. Change is so prevalent within today’s world if you do not have an understanding of your long term requirements, then you may end up under resourced and unable to deliver your service to an optimum level — all of which have commercial impacts.
Attrition — it is important to remember that not all attrition is bad attrition… however, when you start to lose your high performing/high potential employees, then you need to rethink your approach to talent management. Losing these people can slow down business growth and restrict your organisation’s ability to reach optimum performance. Finally, attrition often hinders your attraction opportunities moving forward — word of mouth can often dent your brand image.
Challenges to overcome when managing talent data
1. Take Time to Properly Implement Talent Acquisition Strategies
There has been an explosion in the people analytics industry over the last few years. New talent acquisition tools and techniques seem to emerge virtually overnight. This might tempt you to jump in with two feet, but before you take a potentially costly and time-consuming leap, stop and make a plan. Building a talent acquisition strategy around hiring analytics is best done in smaller, more manageable steps. Stay focused on utilizing the most powerful talent assessment tools first and worry about integrating the rest later. This will provide you with more meaningful and accurate data.
2. Hire Candidates Based on All Available Data, Not Your Gut Instinct
Employers have long trusted their gut instincts to help them identify top talent candidates. The problem is that study after study has proven that this subjective hiring method is not efficient for predicting future employee performance. HR metrics gathered through talent acquisition software provide you with measurable, objective data that allows you to look at the bigger picture. These metrics offer an effective way to compare job applicants, predict future performance, and to identify those candidates that “fit” into your company’s culture.
3. Integrate Talent Management Data into the DNA of Your Organization
Too many organizations erroneously view their hiring practices as a stand-alone process within the departmental organization of the business. This narrow focus can prevent your company from ever utilizing the full potential of your talent acquisition strategy. The integration of talent management data should expand well beyond your hiring process and into the entire employee life cycle, including selection, development, and promotion. In short, people analytics should be woven carefully into the very DNA of your organization.
4. Fit All the Pieces of the Hiring Metrics Puzzle Together
All too often, organizations race to gather as much data from their human capital analytics possible and then let it sit there without ever using most of it. Collecting data just for the sake of having data won’t provide any value for your talent acquisition process. The benefit of carefully building a hiring process around data analytics is that it allows you to integrate each part of the process carefully together. It’s just like a puzzle. Just because you have all the right pieces doesn’t mean you can see the whole picture. It is only after you place each piece of your talent strategy correctly in its place that the puzzle becomes meaningful.
If we commit to recruit, hire, retain, and develop the most talented and superior employees available in the job market, we can minimize the effects of shocks and stress of future events.
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PeopleTree provides scalable, cost effective talent and career management software solutions to companies who...