Importance Of Talent Management And Effective Talent Planning For Human Resource Management

Human Resource Management and Talent Management

Human resource is one of the most prestigious and responsible departments for managing employees and measuring their talents.  Human resource management needs to maintain a set of responsibilities that can create learning atmosphere and opportunistic career management for the associated employees. Talent management is one of those responsibilities that the human resource management needs to maintain in terms of motivating workforce and help them accomplishing their personal and professional goals. Each employee seeks their career growth within an organization that creates a sense of reliability and long term loyalty. Talent management process is extensively researched by the business marketers since few decades. The study will develop enriched knowledge by exploring the conceptual and theoretical background of talent management. The obtained idea from the findings will help in analyzing the subject matter in a detailed way. This very specific study has provided detailed overview about the importance of making career development plan for receiving good performance from the employees.

Brexiters opined that the decision of leaving EU results an immediate cost saving. The country would not have to pay any contribution in EU budget. In addition, EU being a single market no tariffs is imposed on imports and exports. Britain also got benefits from the single market policy. Totolici (2015) opined that after the decision of leaving EU Britain had to face challenges in maintaining their international business successfully. The incident has left negative impact on the labour market. Large number of organizations failed to maintain business sustainability. The process of new recruitment and selection got saturated. In addition, the organization was completely unable to provide remuneration to the existing employees properly. The entire labour market at the time was highly affected due to the incident of Brexit. In addition, the rate of employee turnover from the organization rose immensely. The human resource managers failed to recruit new employees within business process due to this recession. On the other hand, the incident of Brexit has increased the scope of domestic business as well which is a major positive effect. Employability opportunity for the regional labours got increased.

As per overall scenario of current labour market the rate of unemployment is increasing day by day due to rapid growth of population and high rate of education. The decline of job vacancies is ultimately raising the market of competition. Bratton and Gold (2017) stated that participants in order to get an opportunity within the business organization have to be immensely competent and skilful from every perspective. There are three specific spheres where employees have to be very much competent in order to survive within business industry. Pandey and Sharma (2014) opined that the three specific areas include technological skill, communication skill and time management skill. However, the organization like TESCO while recruiting employees the business experts have to plan an effective workforce planning based on which the human resource managers can recruit the best employees as per their organizational compatibility desires.  At the same time, the employee wage rate in the current business scenario is also very high due to the rapid growth of globalization in the business industry. Organizations in order to retain employees have to make sufficient of remuneration structure for satisfying their needs and demands.  

Effects of Brexit on the Labor Market

There are several major ways of tightening labour market conditions. Scott (2014) stated that employers while recruiting the employees intend to invest more money and labour to recruit new employees due to large number of applications from the applicants. While recruiting new employees the human resource managers are providing sufficient salary package to pay their skills. At the same time, organizations before appointing an employee in the business field are targeting to provide them proper training and development session so that they can deliver the right services to the customers. In addition, one of the most effective ways of tightening employees within business field is to recruit current employees within the services. Jindal and Shaikh (2015) opined that current employees are having huge experiences in reading customers needs and desires. In this kind of situation, the business experts of organizations like ASDA focus on retaining current employees by providing more benefits and facilities at the workplace so that the employees do not get interested in switching over the company.

Loosening the labour market condition implies that employers have large pool of potential in hiring right people for the right post. In this situation, the recruiters become very much specific and choosy in hiring an individual employee as the number of application rate is high.  

Employers would have to invest large amount of money for making effective talent planning initiatives (Onyango, Njanja and Zakayo 2014). The investments that the employers need to take in several spheres. The areas of investment include giving proper training to the new employees, providing their necessary benefits at the workplace, giving them satisfactory remuneration in order to hire the employees.

As emphasized by Wahyuningtyas (2015), industry sets their target and criteria while hiring the employees. For an example, a beverage company like CocaCola would like to hire those employees within services who are very much competent and skilful in making product variety. In addition, as per the recruitment and selection criteria this specific industry has decided to focus on three major areas while appointing employees. These areas include communication skill of an employees, academic background and technological competency.

Government plays the most significant role in the infrastructure development and talent management planning of an organization. The organization like ALDI can afford sufficient amount of money for managing talents within their organization based on the sponsored money provided by government (Liu and Pearson 2014). For an example, if the business authority fails to make a good rapport with the government employers would be unable to provide a proper infrastructure to develop the talent management.

Tightening and Loosening of Labor Market Conditions

Trade union generally negotiates with the employers regarding the benefits and facilities that the organization tends to give to existing employees (Egerová et al. 2014). The primary roles and responsibilities that the trade union has to follow include:

• Making partnership and participation with the employers regarding the facilities and benefits provided to workers
• Increasing the rate of productivity for enhancing business profitability
• Suggesting the areas of development for employee retention
• Making good rapport with the employees in resolving any kind of issue facing at the workplace

In order to make effective talent management program the business experts have to be very much dependent on employer, the industry, the government and trade unions.

The principles and tools that the human resource managers should follow for talent planning are as follows:

• Human resource managers should show their equal respect and dignity to the employees of different geographical and cultural backgrounds. Employees are from diverse cultural backgrounds appointed within business process(Vassilopoulou et al. 2016). While providing talent management skills the HR managers should not show their biased attitudes towards any employee.
• HR managers while deciding talent planning session have to invest large amount of money for enhancing employee skills and areas of competency
• Employees need to provide a training sphere properly for enhancing the professional skills and competency of the employees.

Career plan	Implementation
Step 1: Primary Career Interest	Employees’ current job role/ designation
Step 2: Long-term professional goals	To hold the ultimate designated post
Step 3: Short term goal	To perform well as per decision making, time management, communication skill
Step 4: Activities to reach the goal	Career development activities Ø To become the best employee as per quality and services Ø To provide the best behavioral approaches Ø To maintain good team rapport
Step 5: Describe tasks in your current job that are contributing to long-term goals	Working on projects as per clients needs and demands
Step 6: Additional skills	Decision making skills Communication skills Time management skills

Table 2: Potential succession and career plans for those employee

(Source: As created by the author)

While evaluating the case scenario it is observed that organizations are unable to draw customers’ attention due to the lack of product diversity. As opined by Barkhuizen (2014), consumers are not intending to pay their attention in purchasing fizzy drinks from organizations. However, in this kind of situation, the employees need to give their best effort in providing diversified products to the customers for expanding entire business process. From the perspective of this specific organization, the primary limitations that are identified among the employees of these organizations due to which talent management is needed are as follows:

• Lack of technological skills and competencies among the employees
• Lack of work-life balance due to over burden of pressure
• Unable to maintain various job roles simultaneously
• Lack of providing on job training for updating the professional skills and talents of the employees

Talent planning with required resources

In order to make employee retention the employers have decided to form effective talent planning program for motivating employees towards services

Areas of talent planning	Activities	Resources required	Duration
Provide technological skills and competencies among the employees	Effective training would be given by hiring an efficient IT expert	Technology, internet and electricity	45 minutes
Maintain work-life balance amidst over burden of pressure	Employees would be provided flexible time for maintaining work hour	The employers would like to develop some organizational policies for maintaining flexibility of work hour. The policy will include “early leave”, “late arrival”, “flexible log in” and flexible log out”.	45 minutes
Maintain various job roles at the same time	Employees would be appointed within the practical field where they would have to deliver customer services within proper time by maintaining superior quality of products.	Technology, internet and electricity	45 minutes
Provide on job training for updating the professional skills and talents	Employees would be referred to a training hall for enhancing their professional competency	Technology, internet and electricity	45 minutes

Table 1: Talent planning by highlighting downsizing of the organization

(Source: As created by the author

In order to develop job description and person specification plan successfully organization needs to focus on meeting some of the major requirements which are as follows:

• The employer of organizations needs to invest sufficient amount of money for developing the career progression plan and training session
• The human resource managers need to communicate with each employee effectively for making them alert about career progression plan
• The human resource managers need to collect decision from other managerial group before implementing career development plan

As per General Data Protection Regulation of UK, data protection act, 2018 implies that organization should maintain data security. The confidential data submitted by the applicant should not be leaked out without taking permission of the concerned person. People from different age group should get equal respect and dignity.  Both senior and junior employees should be treated equally. UK Equality act of 2010 ensures that employees should not be discriminated as per their age but as per skills and competency level. In addition, as per this act, vacancy should be preserved for physically disable or challenged people. They should not be neglected from being recruited within an organization due to their physical challenges. Pregnancy and maternity discrimination is considered under the category of UK Equality act. This act can be implemented when the employer shows reluctance in appointing pregnant women. By implementing this act women having pregnancy should get health facilities from the organization after recruitment. Organizations by following these legal factors should not show their biased attitude towards race, colour and nationality ethnicity. People having skills and competency level should be recruited within the services.   

Tools for Talent Planning

2.6 Assess the strengths and weaknesses of different methods of recruitment and selection

Different method of recruitment and selection method includes:

• Psychometric testing
• Ability and aptitude tests
• Personality profiling
• Presentations

Smith (2015) opined that the strengths and weaknesses of these recruitment and selection tests are as follows. Psychometric testing is very much systematic and it proves the technological competency of the employees at the same time. But if the technology fails to work the entire process of recruitment and selection would be stopped. Aptitude test identifies the overall knowledge and understanding of an employee about the current affairs and other sphere of knowledge. But, it cannot identify the communication skill of an employee. Personality test and presentation can judge the way of interaction of an employee and style of expression. But this test cannot identify the academic quality of employees.

Sparrow and Makram (2015) emphasized that the primary reasons due to which employee turnover rate increases at the workplace include lack of motivation in terms of monetary satisfaction, lack of motivation in terms of facilities and benefits, lack of effective work environment, and lack of proper communication. Organization like organization fails to provide necessary remuneration package to the employees for fulfilling the expectation level. As a result, employees tend to show their reluctant attitude in providing their best performances. On the other hand, while working within the organization employees need to have flexible work environment. As stated by Smith (2015), employees from different geographical backgrounds and cultural attitudes should be treated with equal respect and dignity. Apart from that the employees need to have an agile work environment based on which they can share their views and thoughts at the workplace without any kind of hesitation.

Therefore, monetary and non-monetary benefits and facilities leave a major positive impact in motivating employees in providing their best efforts towards services. However, in order to reduce the rate of employee turnover the organization has to focus on implementing effective employee retention plan. The plans are as follows:

• Human resource managers should implement rewards and recognition policies at the workplace. Rewards and recognition can be both monetary and non-monetary. If the human resource managers are unable to provide monetary benefits to the employees they can arrange appreciation and recognition rewards based on which employees would get satisfied towards the services(Bothma 2014). At the same time, promotion is a form of employee motivation that enables to maintain policy at the workplace. Organizations should follow the similar method.
• Organizational managers need to maintain effective communication with the employees based on which employees would like to share their challenges regarding workplace(Nai and Lenka 2017). An effective interpersonal communication would help the employees in providing good services.
• While providing necessary facilities and benefits the organization can provide flexible work hour so that employees can maintain work life balance. Kamil, Hashim and Hamid (2016) opined that business managers should not impose their own decision on the employees. Employees should be treated with equal respect and dignity(Ozuem, Lancaster and Sharma 2016). Before changing business policy or strategy the managers need to communicate with the employees with proper justification. As a result, employees would like to maintain their courageous attitude on the work floor.   

The specific areas based on which the organization can attract the top skills and talents to appoint within their services are as follows:

• Good remuneration and increment structure
• Flexible work hour
• Effective workplace facilities and benefits
• Friendly work environment
• Providing health benefits and facilities

In order to attract the attention of top skills and talents the human resource managers have to concentrate on two major areas (Vnou?ková, Urbancová and Smolová 2015). The areas include money and facility. Attractive remuneration package can always impress the attention of efficient employees. At the same time, the organizations should be flexible in terms of work culture as well. The employers need to make participative decision making before forming business strategies and policies. At the same time, the organization should never impose their decision on the employees. Rudhumb and Maphosa (2015) opined that maintaining effective communication with the employees would help them to motivate towards good performances. In addition, reliable employees always help for health benefits and facilities. Therefore, the organization while recruiting employees would ensure health and safety facility. In case of facing any kind of challenges at the workplace the employees need to get proper assistance from the employers for health insurance.  

Limitations for Employee Retention

At the time of workforce uncertainty technology can be the major devices for becoming human substitute. Sundarapandiyan (2016) opined that at the time of human resource uncertainties the human resource managers would have to bear cost for launching sufficient number of technological resources. As a result, both the employees and the employers would maintain a business flow in meeting customers’ needs and demands.

In addition, at the time of workforce uncertainties the human resource managers have to conduct a meeting by involving board of directors and other managerial departments. While conducting the meeting human resource managers have to invest an accommodation cost for providing them foods and facilities at the time of meeting. Certain amount of cost should be invested at the time of recruitment and selection as well. Badawy, Alaadin and Magdy (2016) stated that human resource managers at the time of workforce uncertainties should hire proficient employees who are successfully able to handle the advancement of technology. In this situation, recruitment cost should be invested for hiring top skilled employees. New employees should not be directly appointed to the practical field. An effective training is needed to make them experienced. Therefore, training cost is mandatory for enhancing professional skills of newly appointed employees.

• Advice on legal requirements applicable for dismissals

Employee termination or dismissal is occurred when the employee is performing poorly, misconduct some policies of organizations, putting another worker in danger, refusing to follow lawful instructions and not adhering to the policies and procedures of the company. However, the employer must provide:

• A fair chance to perform the standards of the organization
• A suitable reason for their dismissal
• Providing the employees a fair reason to respond on their dismissal

It is evaluated by the Fair Work Commission, whether or not the dismissal of the employee is valid or not.’ However, the organization should implement the ‘three-strikes policy’ for providing chances to the employee that they are the main defaulter of the company and these employee should be given far chance to improve their performance. In such cases, the company needs to mentor their performance and provide them training.

The company can dismiss the employee immediately without any warming if they committed serious misconduct like assault, theft, fraud and murder.

• Provide the employee dismissal payment

The organization should pay employee with dismissal payment based on untaken annual leave, pro-rata long service leave and any outstanding wages owing wherever applicable.

• Following of notice obligations

The employer of the organization needs to provide notice to the employee regarding their dismissal. Both full-time and part-time employees should be provided with prior notice of termination. If the concerned organization provides an enterprise agreement, which specify a period of notice, the employer need to roved the same to the terminated employee.  

• Advice on legal requirements applicable for retirements
• The managers meeting need to be established

In order to satisfy Internal Revenue Code, organization should produce a quality plan which comprised of the retirement benefits or retirement-type subsidy, medical and financial assistance. Internal Revenue Service (2018) opined that the plan must also define the minimum age for being retired from the organization. The plan should also consider Actual Contribution Percentage (ACP) test.

• The name of the old people, who are eligible to retire are sorted

The meeting for evaluating the eligible person for the retirement list is then developed. The board members need to check the details carefully so that nor employee can raise any question that they are ask to retire forcefully. Thus, every decision need to be taken carefully.

• The employee should be communicated

The employee selected in the list of retired people should be communicated through detailed documented file. The document comprised of the details of their years of services and cost-of-living adjustments along with the details of other benefits.

• The employee should be provided with training

There are some cases, when the employee intends to work for the company or have the desire to join other organization. Lain (2016) opined that organization needs to provide training to the listed people for the retirement, so that the employee can proposer in their future job or they can start their own business. The company should also develop a post retirement recruitment policy especially for the employee, who are outperformer and known the organization system well. The offer should also be provided in decision with the board of directors and based on their evaluation the salary structure is also designed.

• Advice on legal requirements applicable for redundancies

The process of decreasing the number of workforce happens when the job is no longer needed within the organization. Mihai (2017) emphasized that the main reason for redundancy is that the business has changed its job functionalities, changes the machineries and shifting their plant from one place to the other. However, an employer cannot dismiss these employees randomly and they have to follow some of the necessary processes in order to make an employee redundant.

• The employees cannot be unfairly selected for the redundancy

1. In such cases, Organizations need to brief the managers about the change of implementing new product that is health drinks and the status of all the employees whether or not they are performing well.
2. The Company then has to talk to the employee so that they can find best alternative for the employees, increase the morale of the employees and make the employee aware of the problem that they have raised.

• The employees are provided with statutory redundancy payment and a notice period

The company needs to issue a notice of dismissal, which is as same as the notice given while terminating an employee. In such cases, the notice starts on the next full day after the employee receives the notice (Advisory, Conciliation and Arbitration Service 2018). The statutory period of notice is of 1 week for all the employees and the employee need to be given their full weekly payment. The age limit should also be paid which is:

• 5 week’s pay of the employee is under 22 and has worked for an entire year (Advisory, Conciliation and Arbitration Service 2018)
• 1 week’s pay of the employee is over 22 but under 41 and has worked for an entire year (Advisory, Conciliation and Arbitration Service 2018)
• 5 week’s pay of the employee is older than 41 and has worked for an entire year (Advisory, Conciliation and Arbitration Service 2018)
• The redundant employee need to provide alternative job opportunity

There might be some employees, who might want to work in the organization and they should be provided with best alternatives. This can be done through training based on which the redundant employee can adopt necessary approaches that provide an employee to perform the new job roles and responsibilities with proficiency. Organizations need to follow some of the necessary steps regarding this aspect:

• If employee agrees to find other jobs, they can join to new roles and they are not considered redundant
• If employeeagrees to a trial but found no jobs, they are treated being dismissed when their contract come to an end

If employee denies the alternative job unreasonably, they are no longer eligible for receiving redundancy payment.   

Conclusion:

The study has provided detailed overview about the importance of making talent planning program within organization for maintaining employee retention. Talent management is one of those responsibilities that the human resource management needs to maintain in terms of motivating workforce and help them accomplishing their personal and professional goals. Participants in order to get an opportunity within the business organization have to be immensely competent and skilful from every perspective. It is observed that organizations in order to retain employees have to make sufficient of remuneration structure for satisfying their needs and demands. In addition, as per the recruitment and selection criteria this specific industry has decided to focus on three major areas while appointing employees. These areas include communication skill of an employees, academic background and technological competency.

In order to attract the attention of top skills and talents the human resource managers have to concentrate on two major areas. The areas include money and facility. In order to make employee retention the employers have decided to form effective talent planning program for motivating employees towards services.  It can be concluded however that, Human resource managers should show their equal respect and dignity to the employees of different geographical and cultural backgrounds. Employees are from diverse cultural backgrounds appointed within business process. The employer of various organizations needs to invest sufficient amount of money for developing the career progression plan and training session. Automatically, the challenges faced by the organization can be overcome with effective talent management planning and career development session.

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