Successful companies are aware of the importance of developing talents. But in most talent performance management. Today, effective talent management is focusing on development. Emphasis is given to on-the-job learning, talent networking, project assignments, formal education and training to create real attitude and behavioural changes that is consistent to the needs and goals of the company.
In business there is a constant struggle to put the right people in critical positions at different levels and to keep up with the every changing requirements for the leadership pipeline. Companies now realize that placing more focus on building capabilities is as important as finding talent. It is no longer a battle for recruiting talent, but a battle to develop talent.
Why Companies are focusing on Talent Development
- There is a struggle to fill talent gaps. Even with the high rate of unemployment, businesses continue to work hard with sourcing the talent needed for key positions. They have a hard time searching for the right skills, that is why there are unfilled positions in the organization and it is hurting the company.
- A renewed focus on talent development – With technology and innovation constantly changing and developing, companies have to develop their talents to keep up with this changes and developments. The old methods of recruiting will still be there, but certain key leaders must be developed from within.
- When a company loses an employee there is an escalating turnover cost. The company loses twice or thrice the annual salary of that employee in terms of client relationships, intellectual capital, experience and productivity. That is beside the cost of recruiting a new employee.
- Talents are seeking for life-long development opportunities. Most people today live longer and are conscious of staying healthy. This means they will be with the company longer. They expect that their career development will be a life-long process.
- Younger employees are looking for employers who can provide them with jobs that are challenging jobs, meaningful and fulfilling work and flexible environments where they can be able to bring in fresh ideas. They are also looking for employers who know the sustainable and social value of their operation.
When the company is focused on talent development, planning workforce development will be more concerned with understanding what new skills have to be developed.