Ability teaches us how we do,
Motivation determines why we do,
And Talent decides how well we do.
Talent Management is a set of integrated organizational process designed to attract, manage, develop, motivate and retain key people. The goal of a talent management program / model, however is to create a highly responsive, high performance, sustainable organization that meets its business targets. Talent management is the systematic process of creating and sustaining individual competencies that will help the business deliver strategy. Talent management is a term that emerged in the 1990s to incorporate development in human resource management which placed more of an emphasis on the management of human resources or talent.
Talent Management means building the knowledge, skills, and abilities of others and helping them to develop an achieve their potential so that the organizations they work for can succeed and grow. A talent pool is a database of candidate profiles interested in working for your organization; they could be limited towards specific area of expertise, or focused on a board grouping of individuals who can perform a variety of job tasks. A talent manager develops the skills and knowledge one needs to be in an organization.
Organizations have now realized that people could be that crucial differentiating edge for them in the increasingly competitive marketplace. Talent management is the conscious and deliberate attempt to attract, engage, develop and retain people with the aptitude and ability to meet current and future organizational needs. Talent management has become imperative in the face of today’s business challenges in the banking sector. Banks are increasingly realizing that successful talent management is the key to high performance. Talent management can be defined as an integrated organizational process in HR which is required for motivating, developing, attracting, retaining and engaging employees.
Talent management is aimed at improving business performance through practices that make employees more productive. Talent management is a completely new Department which is required in all the various sectors to meet the advanced and unique style of work management. As we all know that the Indian banking plays a key role in the development of the Indian economy so with rapid changes taking place in the financial landscape, scheduled commercial banks in India needs a new generation of professional bankers who are more customer centric, technology savvy, more highly qualified, flexible and agile with behavioral skill sets that are now more comprehensive than previous era of the banking scenario.
The quality of human capital will increasingly become the cutting edge of competitiveness having competent staff to deliver high quality products and services. It is important to build customer confidence, goodwill, driving customer satisfaction, enhancing reputation, an ultimately releasing individual banks corporate vision and strategic goals. Therefore, banking institutions are interested to ensure competency and professionalism to serve their customers better through the introduction of talent management system.
Banking is like any other business and the staff have to carry out multifarious activities, When talent management was introduced in the banking system it was observed from the results that the employees are ready to improve their performance anyway with the positive attitude towards the customers where satisfaction of the customers and the performance of the employee is very important for the banking sector to groom and succeed.
Talent required in a place and the talent required for the best output in the same place should be integrated with strategic and business plans. As it is very complex and is therefore very difficult to handle, the sole purpose of the entire talent management process is to take the right person at the right place at the right time. It is a never ending process that starts with targeting people. The process regulates the entry and exit of talented people in an organization to sustain and stay ahead in business. Talent management cannot be ignored in the recent challenging scenario in the banking era. To understand the concept of the talent management better let us discuss the stages included in the talent management process.
Step by step talent management process:
- Identify organizational goals:
The first and the foremost step in the talent management process is to identify the organizational goals and sets strategies to achieve the same.
- Understand the requirement:
The second step in the talent management process is to understand the requirement of both the organization and the employees and meeting the set goals of the organization.
- Sourcing and attracting the talent:
It is rightly said that the workforce of any organization lays the foundation stone of the organization. So, the third step continues with the sourcing and attracting of the best talent available among the candidates.
- Recruiting and selecting the talent:
Commercial bank plays a catalyst role in the conversion of static credit into dynamic credit. As such the health of the economy is influenced by the performance of banking sector. To fulfill this next step of human resource in the banking sector is recruitment and selection.
- Training and development:
The next step in the ladder where talent management plays the most effective and vital role in the training and development which is an important component of every organization’s survival strategy.
- Employee retention:
In the era of global and dynamic technology a common set back that every organization faces is the retention of the employees. TMS helps in reducing the attrition rate in the organization.
Coming further in the process, to establish a sound foundation to the banking sector the next step of TMS is channelizing a proper system of the promotion. Promotion is advancement of an employee to a better job in terms of higher responsibility, more prestige, greater skill and increased rate of pay. Promotions are the major attractions in the banking career.
- Competency mapping:
One of the major steps of the TMS is competency mapping which helps in categorizing the potential and the hidden talent of the employees.
- Performance appraisal:
Moving ahead it is very important to evaluate the performance of employees periodically to find out their level of efficiency. So, it is a vital function of the TMS to develop some standard methods to make the employees understand how far they from the expected standards so that their performance can be improved. From the organizational point of view, performance appraisal is very important to improve the quality of work force. Therefore the processes of performance appraisal helps to evaluate and improve the performance of the employees so that they can give their best to achieve the goals of the banking sector as well as achieve better career satisfaction.
- Succession planning:
The future of a banking business can be scary, even when that business is successful. Sometimes, organizations that are doing well feel an even more overwhelming pressure to get the right plan in place and avoid any succession problems. TMS plays a major role to overcome from this scenario.
The banking organization with the introduction of talent management in their system represent their faith in their staffs by referring to them as “Talent”, establishing the belief that it will be their people that will help the organization to achieve their goals. Organization places a high premium on talent and has made talent management efforts, making sure that the welfare and personal development of their employees is at the forefront while taking business decisions. In order to follow a smooth an efficient talent management in the emerging banking system.
We should follow the following strategies:
The foundation of talent management is hiring the right people the best recruiting processes support those efforts by carefully defining job description using an applicant tracking system to help and manage the workforce of the interview process and carefully interviewing applicants to select the strongest candidate.
- Performance management
Once employees have been hired, it’s essential to have the right process in place to successfully manage them. HR technology and service solutions in areas such as time and attendance can help track productivity and performance regular review process help keep lines of communication open between management and staff, allowing works to get feedback and where they need to improve their performance.
- Career management
Managing your employee’s career path can help increase satisfaction while reducing costly turnovers, building on the information collected during annual reviews, companies can learn more about employee’s strength and interest with that in mind it’s possible to work with employees on long term career development plans. Whether you are dealing with someone on the management tract or someone interested in being a highly skilled individual contributor, career management is a critical component of talent management and employee satisfaction.
- Leadership development
Identifying a good leader within your organization is a vital part of the talent management process. Once these high performances, high potential individuals have been located. Business need to consider the best way to retain them over the long term. Often, this process requires a focus on training, stretch assignments and mentoring.
- Organizational strategy
Talent management activities rarely happen in isolation instead strategic recruiting and support of workforce development begins with a company level commitment,, your HR may play a leading role in making this happen from identifying talent management as a strategy clarity to determining how and where that focus will be applied. Focusing on talent management is a critical component of your broader workforce management strategy because recruiting, training, Retaining and promoting the right people are essential steps in reaching your staffing goals. While human Capital Management initiative, emphases talent management and much more understanding and executing the day to day activities of recruiting, leadership development, strategy creation find career management are essential for successful and smooth running of the banking system.
In order to win the war on talent management the banking sector needs to focus on the talent management strategy methods:
- Talent management metrics
The talent management metrics is helpful as it enables us to measure the progress with the aspiration of the organization by keeping a track of what we are doing how well we are doing it.
- The HR talent management model
The banking system sector needs to analyze that being a top employer requires substantial investment. This can be effective especially when you want to attract people from all kinds of background so the talent management model serves as a helpful tool as it enables the banking sector to map the specific activities that you want to focus on.
- Beat the competition
The banking system needs to understand that beating a competition can be achieved through better employer branding, retention, selection etc.
- Requirement of capabilities
The Indian banking system has to focus on enhancing the hidden talent of their employee and match them with the organizational goals.
- The key performance indicators
The final method is about tracking progress and ensuring the further improvement the key performance indicator enables us to judge and evaluate exact performance of the employees.
The goal of talent management is to establish an organization which is high performing and sustainable, which meets the strategic and operational goals and requirements of the company. Talent Management is in a way a business strategy which needs to be integrated with all the employee related processes of the business. Talent management is all about having the right person at the right place at the right time for the optimum time and at the right price. In order to achieve the maximum output the Indian banking system should follow the following talent management practices.
Talent management practices:
- Employer branding –The first practice of the talent management is employer branding which means that having a strong brand attracts even the best candidates.
- Employer reputation –Reputation is related to employee branding which is more affected by external media.
- Candidate experience –The experience of the candidate influences the employ brand.
- Selection – Spotting in selecting the best is a critical part of talent management.
- Referrals – Tarrant knows talent referral programs are affected as they help to pick up candidates
- On boarding– Getting people up to speed as quickly as possible helps to make them more productive.
- In boarding – When people are promoted internally they also need support to achieve maximum productivity.
- Engagement – Engaged employees are motivated, perform well and are likely to stay.
- Retention – Retention strategies help to keep the best people on board.
- Performance management – An essential part of managing talent is tracking and improving their performance.
The purpose of talent management in the banking system to identify, recruit and hold on to people who drive the success of your organization. It’s a top priority of the management of the banks to carry out the strategic process for forward-looking people. Banks who understand that their performance depends on their workforce. Performance and talent management becomes a key function of the modern HR department of that Bank. The management goes out to nurture and develop the talent that powers their growth and effectiveness. Talent doesn’t only mean individual high performers; it can also be people whose behavior and characteristics are particularly influential in motivating and empowering their colleagues. Collaboration and social skills can be as important as intellectual caliber or productivity. The Banks should focus on creating a working environment that responds to and rewards talented employees, so they will remain committed and loyal. They should invest in nurturing talent and supporting employees to sustain strong organizational performance and uplift future business growth of the Indian Banks.
Talent management is a big part of an HR planning process. This involves mapping out the employee needs for the organization based on strategic objectives. HR directors often sit on executive management teams to align recruiting and retention strategies with company goals and strategies. In the race for top talent, companies that use HR planning know what they need from employees and what workers expect in exchange for their abilities and performance, giving those businesses a talent management advantage. The Indian banking system should consider the following advantages of the Talent Management system and incorporate them in their smooth running of the business procedures which would result in attaining the maximum output of the organization and serving for the customer satisfaction in a better way which is the ultimate goal of the Indian banking. As TMS have the following advantages:
- Connecting and Sharing Data
The right TMS can integrate and align core HR processes. While much of the data collected through a HRMS is stored and can be difficult to reach and analyze, an integrated TMS shares data across the entire system allowing for easy access. This gives a clearer understanding of what that data means for your business and enables you to make informed, strategic business decisions.
- Strategic Hiring Process
Having a TMS can help you recruit those really talented candidates that everyone is after. By integrating tasks such as posting job descriptions, tracking applicants and making it easy to manage offers, a TMS streamlines your hiring process, allowing you time to focus on the candidates.
- Improved on boarding Experience
An organized and efficient approach to on boarding is achievable with a TMS. You can create employee profiles which hold all of the information and data collected during the recruitment and hiring processes. Automating the new hire paperwork can save both you and the new hire time which you can then use to focus on the new recruit.
- Retain Top Talent
Once you have the best employees, you need to keep them. With all of the employee information hosted on one platform and neatly organized into an online profile, you can track performance reviews, goals, skills and career aspirations to make sure your employees are happy and on the right track. Having a TMS in place to capture all of that data makes it easy to analyze and report on which employees need developing, monitoring or even promoting.
- Employee Development
A good integrated TMS should include options for employee learning and development. It enables employees to take courses, develop skills and in some cases pursue certifications relevant to their professional development. TMS solutions also collect data on what skills an employee has and allows the HR team to assign training which the employee can then access from their personal profile.
- Improved Employee Experience
As we know, employee turnover is something to be avoided at all costs. A TMS that integrates with payroll improves the employee experience by allowing access to pay slips, holiday requests and management of sick leave. Organizational charts can also be included, letting employees know the reporting and management structure of the company.
- Increase Employee and Manager Engagement
The engagement in your bank can be increased by implementing a TMS. The employee profile empowers employees and managers to interact with the employee’s professional career progression. An integrated TMS solution encourages them to invest in the organization and align their daily work with the business goals while also focusing on their personal goals.
- Right Person in the right Job
Through a proper TMS banks can analyze employee’s skills and strengths. The skill or competency mapping allows you to take stock of skill inventories lying with the organization. This is especially important both from the perspective of the organization as well as the employee because the right person is deployed in the right position and employee productivity are increased. Also since there is a better alignment between an individual’s interests and his job profile the job satisfaction is increased.
- Retaining the top talent
Despite changes in the global economy, attrition remains a major concern of organizations. TMS helps in retaining top talent which is important for leadership and growth in the banking sector. Organisations that fail to retain their top talent are at the risk of losing out to competitors. The focus is now on charting employee retention programs and strategies to recruit, develop, retain and engage quality people. Employee growth in a career has to be taken care of, while succession planning is being performed those who are on the radar need to be kept in loop so that they know their performance is being rewarded.
- Better Hiring
The quality of an organization is the quality of workforce it possesses. The best way to have talent at the top is have talent at the bottom. No wonder then TMS programs and trainings, hiring assessments have become an integral aspect of HR processes nowadays.
- Understanding Employees Better
Employee assessments give deep insights to the management about their employees. Their development needs, career aspirations, strengths and weaknesses, abilities, likes and dislikes. With the introduction of the TMS It is easier therefore to determine what motivates whom and this helps a lot Job enrichment process.
- Better professional development decisions
When an organization gets to know who its high potential is, it becomes easier to invest in their professional development. Since development calls for investment decisions towards learning, training and development of the individual either for growth, succession planning, performance management etc, an organization remains bothered where to make this investment and talent management just make this easier for them.
- Succession Planning:
It is a given fact that you can’t stop employees from leaving the organization. Their replacement needs to be found. Similarly, when employees are promoted or transferred, new vacancies are created. In both scenarios, talent management can help HR in succession planning and determine how vacant positions can be filled timely without impact productivity and cost.
- Training and Development:
Talent management also helps HR to focus on where you need to introduce new training and development programs. HR can plan employee skill development courses, certifications and all other professional enhancement activities.
Communication is the lifeline of any organization. If there are any communication issues, then it can damage the organization’s functioning. One of the benefits of talent management includes promoting prompt and two-way communication between management and employees. When communication is effective, it also creates a positive impact on the company culture.
Talent management is a human resources system used to hire, manage, train and compensate top talent. Such programs include strategic planning to align HR needs with the goals and vision of the organization, and ensure that top performers are recruited, developed and retained. It can be quite hard to manage all those actual tasks and this when most of them look out for talent management system while many believe that it helps you streamline all those human resources processes there are various disadvantages to the same as well.
While proactive planning is Valuable, talent management does have some challenges to overcome which serves as the disadvantages of TMS.
The time, resources and financial costs to operate a talent management program can be high. This is a burden for small banks that doesn’t necessarily have the resources to implement such a system. Talent management programs also involve the use of software solutions to map out talent needs at all levels or departments, which can be expensive. The TMS system can incur more cost to the organization, especially if it’s a start-up. The implementation of talent management program could be expensive in terms of time, resources and financial costs which can increase the overall costs when hiring from other locations.
- Worker Conflicts:
Several workplace realities impede the impact of talent management. Many functions of the banking system are outsourced on part-time and temporary workers. Keeping them motivated while trying to focus on the long-term tenure of full-time, permanent employees is difficult. If your turnover relies on workers who you don’t need or expect to be around for long, it may not be worth the effort to install a formal talent management program.
Banks of all sizes struggle to come up with effective recruiting strategies that don’t discriminate by age, and offering rewards for workers at varying ages that may have different motivations can be difficult. Lack of understanding can at times lead to loss of trust.
- HR and Management Conflicts:
A core drawback of talent management for small Banks is that the programs are often developed and coordinated by human resources professionals. Smaller Banks may not have full HR staffs. Instead, managers often hire, train, motivate and fire their own workers while also performing critical business duties. This means managers don’t have the time in many cases to implement talent management. Even Banks that do have HR professionals often get frustrated at the difficulty of getting managers to concentrate on talent management needs instead of focusing entirely on other business concerns which can cause conflicts between the human resources team and management. Not all banking sector are prepared for its implementation. Lack of support from line managers can impede the level of commitment from employees. A core drawback of talent management is, it can contribute in raising the conflicts between HR and management by not reaching to proper agreement or consensus, Which can cause frustration among HR professionals.
- Leadership Limitations:
Proper implementation would need the support of the top management. It is clear out that the leadership pipeline is often not full enough to carry out talent management. HR professionals often map out the leadership needs for the business and the skills required at each level. Small businesses may struggle to bring in and develop enough effective store managers or business unit leaders to complete with other small companies as well as larger competitors. To recruit more aggressively, including in other geographic areas, only adds to the costs of talent management. It can often conflict with the leadership limitations.
- Dissatisfaction among employees:
Hiring is mostly based on the interview skills and not on experience, which can cause dissatisfaction among employees if the salaries are below market value. Getting the needed support from every department can be challenging.
HRMS V/s TMS
The traditional HRMS which is used in recent banking system and enterprise resource planning (ERP) systems focus primarily on transaction processing and the administration of basic human resources processes such as personnel administration, payroll, and time management where as Talent management systems focus on providing strategic assistance to organizations in the accomplishment of long-term enterprise goals with respect to talent, or human capital. Talent management systems may also be referred to as or paired with an applicant tracking system (ATS) in either standalone application or as a suite of products.
An effective talent management system can play a very crucial role in managing the performance in the banking system by the following initiatives taken:
- Ensuring proper understanding of the objectives and facilitating effective communication throughout the organization.
- Developing a healthy relationship between an employer and the line manage are based on trust an empowerment.
- Ensuring each employee understands what is expected and equally ascertaining whether the employees possess the required skills and support to fulfill such of expectations.
- Ensuring employees understand the importance of their contributions to the organizational goal and objectives.
- Better and timely differentiation between good and poor performers.
- Enhancing the competencies of the employees an enabling the managers to gain insight about their subordinates.
- Facilitating organizational changes and paving ways for appropriate administrative actions.
Apart from this having a strong talent management culture also determines how organization rate their organizations as work places. In addition if employees are positive about the talent management practices of the organization, they are more likely to have confidence in the future of their organization. The resultant is a workforce that is more committed and engaged determined to outperform their competitors and ensure a leadership position in the market for their organization.
A requisite pool of qualified and talented employees can simplify the process of achieving the organizational goal and help focus on issues that really matters in the interest of the organization. Therefore, the overall purpose of talent management is to maintain a skilled and efficient workforce for the organization. In modern – day organizations, the importance of talent management is second to none. Unless an organization has the required talented workforce, it cannot succeed in attaining its goal even if it possesses other factors such as natural resources, infrastructure and technology. In fact, it is people who take an organization to its next level of success.
Talent management has become one of the most important buzzwords in corporate HR and training today. Organizations know that they must have the best talent in order to succeed in hypercompetitive and increasingly complex global economy. They must manage talent in a critical resource to achieve the best possible results in long run. The war for talents is becoming more and more widespread. The organizations who want to acquire competitive advantage should implement appropriate strategies which bridges the gap that develops talent in operations to meet global challenges.
New initiatives taken by some of the nationalized banks of India like Union Bank of India related to job family framework which facilitate and foster development of specialized skills in all functional areas and creating a new organizational structure extending job families to all employees of the bank as well as the need to link related processes such as learning and development and succession planning to job families have made the TMS system to be more effective and giving maximum output to its greatest extent.