Talent and Knowledge management

Unit-I: Talent Management

Talent Management: Meaning, importance, Evolution, Talent Management System, Talent

Reservoir – Components, Talent Management Grid, Talent Management Assessment Tools,
Process of Talent Management, Competence – Competency Assessment, Competency
Modeling – Steps in developing a valid competency model.

Definition
Talent management is the attraction, selection, and retention of employees, which involves a
combination of HR processes across the employee life cycle. It encompasses workforce
planning, employee engagement, learning and development, performance management,
recruiting, onboarding, succession and retention.

Importance of Talent Management

The basic purpose of talent management is to recruit, develop, and retain best talent in the
organization. The HR Department always endeavours to ensure that employees with the right
skills and qualities stay with the organization for a long time.
The most important functions of Talent Management are as follows −

 Establishing a high-performance workforce.

 Attracting individuals with high potential and retaining them through proper training
and refreshment.
 Increasing the productivity of the organization.
 Proper time management, as untrained and unskilled workforce lead to wastage of
time and commitment of errors, which is not cost-effective.
 Retain talented and high-performing employees.
 Ensuring growth and innovation in the organization.
 Developing skills and competencies in employees.

The evolution of talent management

Since the Second Industrial Revolution, talent management has been critical to business
success. This evolution can be viewed as four eras that are loosely aligned to how
organizations developed with environmental and economic changes.
Era 1: Establishing headquarters and office-based skills

The origins of talent management can be traced back to the Industrial Revolution when labor
moved into factories and administrative support became necessary. This resulted in the
creation of headquarters and a need for new skills.

Companies soon realized a lack of office-based skills and executive roles, prompting them to
acquire smaller businesses for their managers and executives. This led to the emergence of
talent management with a strong focus on filling vacant roles through external talent.

Era 2: Predictable leadership development

As external talent pools started depleting, the focus of talent management shifted
towards talent development. Organizations started implementing plans to build sustainable
talent pools for the future, reducing the reliance on external hires for senior positions.

The emphasis also shifted internally to forecasting talent and creating career paths for long-
term employees in line with this predictability. Talent acquisition was only focused on lower
levels leading to gaps at the senior and executive levels, as the talent landscape became more
unpredictable.

Era 3: The war for talent

In the 1980s, high levels of market competition and a short supply of talent led to
organizations competing for talent externally. Organizations became flatter and jobs became
broader, with employees taking control of their careers due to uncertainty about continued
employment.

The infamous 1997 McKinsey article on the “War for Talent” highlighted the need to
compete for knowledge-based talent. However, this focus on winning talent has
overshadowed the importance of accessibility to talent. It’s crucial to ensure a steady flow of
access to talent pools, even if they are not owned permanently (e.g., gig workers).

Era 4: Skills shortage and fire fighting

In the past decade, work, workforces, and workplaces have been disrupted, but talent
management has not kept up with these changes. Most organizations are stuck in a “war for
talent” mindset, even though the challenges they face have evolved. Instead of proactive
planning, talent management has become a reactionary response to skills shortages. Short-
term tactics are used instead of long-term planning, and talent pooling and succession
planning are only used to fill gaps. This fragmented approach leads to reactive measures and
firefighting to deal with economic and organizational pressures.

Talent Management system

Talent management system (TMS) is a human resource strategy to improve the business
worth and to make it possible for organizations to reach their goals. It is also an
organization’s commitment to recruit, retain and develop talented employees.
Recruitment

Before HR managers can develop talent, they need to get high-quality candidates in the door.
Recruitment can assist the talent acquisition process by helping HR managers to exploration,
source, communicate with and continuously involve potential job candidates.

Performance Management

In performance management, the manager discusses all strength, goals and area of
improvement of employees with him in details annually.

Compensation Management

Compensation management can optimize salary, bonus and other benefits of employees. A
key function of compensation management is to attract and retain talented employees.

Learning & Development

Learning & development are the important points of any talent management system,
according to these two points’ essential training given to the employees for the progress of
their career development.
TMS has changed the life of human resource management by sharing their load, this is a
software that keeps the record of each employee of an organization. A talent management
system helps in managing the following things:

Performance Management

Performance management is a procedure which allows managers and to employees to work

together to plan, to monitor and review an employee's work objectives and complete
influence on the organization.
Goal Management

Goal management allows the management to define department’s, employee’s and

company’s goal and objectives. It is more than assigning goals and reviewing employee
performance.

Compensation Management

It is a general policy applied in combination with specialized software, it is designed to help

an organization, maximize the revenues on available talent.

Talent Acquisition / Recruiting

Talent acquisition is a process of searching and obtaining skilled human labour for
organizational demand and to meet any labour requirement.

Career Development

Career development is a process of managing learning, work, and leisure. In this process,
different aspects could be managed and reviewed which may affect our career development
in both positive and negative points.

Succession Planning

A process for the identification and development of new leaders who could replace the old
ones after their retirement or resignation.
TMS developed by SolutionDot keep the track record of an employee’s performance from its
joining date. It helps the human resource department in the evaluation of employee’s
performance from start to end. This performance record includes employee’s tasks details,
task completion time, and improvement with the passage of time. TMS plays a vital role in
employee’s increment, annual bonus, and other rewards. TMS helps the organization on the
identification of good resources. With the help of this talent management system organization
get a chance to discover the key players of the organization, they can motivate them in
different ways. On the other hand, the organization comes to know about the other employees
whose skill are needed to be polished and require proper training for the purpose of
improvement.

Talent Management System (TMS)

Talent Management System is the best technology in the field of HR and for the roles of HR
professionals. HR stands for Human Resource, a department under an organization charged
with exploring, finding, filtering, recruiting, providing internships to job applicants, and
administering benefits.

Talent Management Systems, commonly termed TMS by HR professionals, is a set of

software applications that helps charge the management system of recruiting talent,
qualifying candidates, and retaining human capital within an organization. This article will
provide a descriptive idea of how TMS works within an organization.
What is Talent Management System (TMS)?

A talent management system, or TMS, is an integrated software suite that helps manage and
supervise core talent systems. It includes recruitment, job applicant onboarding, performance
administration, learning and professional development, payment management, and
masterminding succession plans.

These techniques, and the technical faculties that support the organization's HRs, are
generally delivered through these software modules. So, businesses can trigger what they
require for their development and add extra functionality as they grow.

As we know, every organization has a department that manages job recruitment and retention
of employees. Dr. Anthony Barker and his team first introduced the Talent Management
System (TMS) to maintain track of talent within an organization. An organization classifies
talent as valuable members of personnel and future employment prospects who have applied
for open job posts.

Today, prominent and mid-sized businesses use the best TMS that helps maintain records of
data at many different points in the personnel life cycle.

If an applicant plans on working in the developing field of TMS, they will need to understand
how to navigate through a TMS system and use the whole system as they scope out, qualify
and recruit talent.
 The 7 Key Components of Talent Management

1. Strategic HR Planning

As with any initiative, talent management requires a plan to be successful. Start out with a
strategic plan that aligns with business and department goals.

Your plan should answer questions like:

 Who do you need to hire in order to reach business goals?

 What skills and experience will your qualified candidates need to have?

 What are the goals they need to achieve in their roles?

 What kind of training will employees need?

 How will your company measure employee performance?

 What happens when employees quit or are terminated?

Talent management entails thinking through every stage of the employee journey and
predicting — and preparing for — what comes next.
 2. Onboarding

New hires may be employees on paper, but don’t assume they have a strong connection to
your company just because they signed the offer letter. On boarding is one of the most
consequential components of talent management and the employee life cycle. As Harvard
Business Review puts it, onboarding “can make or break a new hire’s experience.” It’s your
company’s chance to make new employees feel welcome and prepared, so they’re more
likely to stay — and to be great employees.

Here are a few software tools your HR team can use to advance employee retention
strategies:

 Stay interviews reveal why longtime employees are happy at your company.
 Employee engagement surveys give you insight into how your workforce is feeling about a
range of topics, including DEIB efforts and general engagement.
 Recognition programs help motivate employees and make them feel appreciated.

4. Learning and Career Development

As we mentioned, the practice of reskilling or upskilling employees is higher on HR’s

priority list this year, complete with a catchy new name — “quiet hiring.” Faced with skills
gaps and a lack of qualified candidates, companies are instead teaching those skills to the
employees they already have. Some are hiring independent contractors into full-time
positions or shifting employees to new departments.
Learning and development are not limited to on-the-job training or quick courses. It also
means building career paths for roles, offering continuing education benefits, and working
with employees to find opportunities specific to their strengths. Employee development
statistics show that it boosts engagement, retention, and even up to 24% higher annual
company profits.

5. Performance ManagementYour talent management processes aren’t complete without

performance management. This component of talent management is indispensable —
employees need to know how success is defined and how they’re doing at work in order to
reach their goals.

Among their myriad benefits, performance management systems help:

 Clarify what employees are expected to accomplish

 Establish a regular cadence for giving employee feedback

 Highlight high performers and address performance issues

 Set fair, standardized criteria for performance

 Provide evidence to support actions like termination, performance improvement plans,

promotions, and raises.
 6. Role Transitions

It’s only natural that your employees transition out of their roles eventually, whether they
resign, retire, switch roles, or are promoted or terminated. But what happens to team
productivity when turnover — whether predictable or unpredictable — happens? Are your
teams prepared to handle these interruptions without impacting productivity, or do goals
consistently fall off track when someone leaves?

Your HR team can create plans for different turnover and role transition situations:

 Headcount planning — especially ClearCompany’s Effective Headcount Approach —

eliminates uncertainty and helps teams stay on track with their goals, even when turnover
happens.
 Succession planning is a business strategy for replacing employees in critical leadership
roles. Your company should have a number of succession plans for different situations,
including long-term and emergency plans.

 Onboarding programs aren’t just for brand-new employees; they’re also for current
employees who are transitioning into a different role.

7. Talent Management System

End-to-end talent management systems are becoming increasingly essential as demands on

HR teams grow. These software solutions give HR a central location for managing the
employee life cycle, including all of the components we mentioned here. A full-
spectrum talent management solution gives HR access to valuable tools and crucial insight
while creating digital employee journals chronicling their entire tenure.

Talent management 9-Box Grid

Being a key part of the performance management process, the grid requires HR and talent
managers to put their heads together and assign employees to relevant boxes on the grid,
basis their assessed levels of performance and potential. The conversation must be
comprehensive, though the process itself is iterative – insights from assessing one employee
could well shift the assessment of the other. Competitor actions or organizational objectives
could also alter perspectives on how valuable current aptitude areas will be in the future.
Here is what the 9-box grid looks like:

How do you Create the 9-Box Grid?

The process requires diligence, and comprises three steps:

 Assess performance: There are three categories of performance – low, moderate, and
high – into which employees are placed in a performance appraisal. A simple
classification would be someone not matching job requirements and targets fully,
matching both partially and fully, respectively.
 Assess potential: Another aspect addressed in the performance review, classifies
employees into low potentials working at full potential and not expected to improve;
moderate potentials with the potential to improve expertise or performance; and high
potentials eligible for promotion immediately or very soon.
 Combine the two: The final step, plots performance and potential on a 3x3 grid,
resulting in the 9-box grid.
Are you Low or High on Performance and Potential?
What gives the 9-box grid its power is its effectiveness and simplicity. It requires clear,
transparent communication but provides excellent results when this is in place and other
aspects of the performance review are properly assessed. The most valuable position to be in
is the top right – the highest rank in both performance and potential. Conversely, the bottom
right – the lowest performance and potential – is the least desirable.
Below are the key attributes of employees placed in each of the nine boxes:

Creating a 9-box grid kicks off much-needed constructive dialogue, further spurring
discussion, development, and teamwork. Figuring out where each employee fits in the grid
helps in succession planning and understanding where each employee must be in future
organizational changes. Those in the upper right have bright prospects for succession; those
in the bottom left may need reassignment or may find themselves on their way out.
The 9-Box Grid Shows where to make Investments.
The idea of the nine boxes is to indicate where HR needs to focus its succession planning
efforts through investments in future leaders.
 The individuals categorized under ‘Future leader’ should be ready for top leadership
roles within a timeline of six months to a year.
 Those tagged ‘Growth employee’, ‘Core employee’, and ‘High-impact performer’
require a longer planning horizon but can surely be groomed to eventually move to the
‘Future leader’ category.
This makes great sense from a strategic perspective and in planning resource allocation. A
business would want to invest in employees who provide the largest return and aid in creating
the biggest competitive advantage. Investing instead in a bad hire would take away scarce
resources from top performers.
What are the Upsides of the 9-Box Grid?
The grid has several benefits to offer when it comes to the recruitment and selection process.
The key upsides are:

 Easy to use: simple to create and iterate

 Encourages dialogue: serves as a framework for talent management discussions and
offers transparency on the state of talent
 Offers consistency in evaluation: allows consistent and fair analysis
 Gives a fresh perspective: offers an objective assessment of performance and potential
 Exposes gaps: indicates the need for more extensive training initiatives
 Helps in planning: offers value through better succession planning and career
development for employees
There are Aspects to be Cautious about.
Assessing potential is no easy task, making it hard to accurately position employees in the
grid and execute succession plans accordingly. Here are other areas of caution:
  Validity of measuring potential: this is considered closely related to performance, as a
low potential is not highly likely to be a strong performer.
 Employee labeling: categorization could bring in labels hard to unstick.
 Subjective perspectives: decisions when managing people are likely to be subjective as
they are grounded in different backgrounds.
 High performance vs managerial success: the two are not always connected – not all
individual contributors will be great in management roles.
Talent management assessment tools?

A talent assessment is a test used to determine a person’s skills, competencies, and

aptitude. They’re most commonly used during hiring to evaluate candidates, but they
can also be used to gauge employees’ learning and development needs.

These tests are useful for every type of company, but they’re particularly useful for
tackling talent acquisition trends, like hiring remote employees and assessing behavioral
competencies.

A talent assessment can take many forms. For example, it can be:

 A structured interview
 A set of skills or personality tests
 A work sample
 A job trial or a simulation

In most instances, candidates take tests online via dedicated talent assessment
tools.Companies can use these tools to share the results with prospective employees, but in
practice, this part of the process usually remains hidden to optimize the hiring process and to
minimize costs.

Talent management assessment tools are designed to evaluate and manage the skills, abilities,
and potential of employees within an organization. They help organizations make informed
decisions about hiring, development, and career progression. Here are some key types of
talent management assessment tools:

1. Psychometric Tests:
o Cognitive Ability Tests: Measure general intelligence and problem-solving
abilities.
o Personality Assessments: Evaluate traits such as openness,
conscientiousness, extraversion, agreeableness, and emotional stability.
o Emotional Intelligence (EI) Tests: Assess the ability to recognize,
understand, and manage emotions.
2. Skills Assessments:
o Technical Skills Tests: Evaluate specific job-related skills and competencies.
o Skill Gap Analysis: Identify discrepancies between current skills and those
required for future roles or projects.
3. 360-Degree Feedback:
 o Collects performance feedback from multiple sources, including peers,
subordinates, and supervisors, to provide a well-rounded view of an
employee’s abilities and areas for improvement.
4. Behavioral Assessments:
o Situational Judgment Tests (SJTs): Present hypothetical scenarios to assess
how candidates would respond in various situations.
o Behavioral Interviews: Use structured questions to understand past behavior
and predict future performance.
5. Performance Appraisals:
o Systematic evaluation of employee performance based on predefined criteria,
often including self-assessments, manager evaluations, and goal achievement
reviews.
6. Career Development Assessments:
o Career Anchors: Identify individual career values and motivations to guide
career development.
o Career Pathing Tools: Map out potential career progression within the
organization.
7. Talent Analytics:
o Use data and statistical methods to analyze employee performance, potential,
and engagement levels to make data-driven decisions.
8. Competency Models:
o Define the skills, behaviors, and attributes required for success in specific
roles or at different levels within the organization.
9. Leadership Assessments:
o Evaluate leadership potential and capabilities through various methods,
including simulation exercises and leadership style inventories.
10. Succession Planning Tools:
o Help identify and develop internal candidates for key positions, ensuring a
smooth transition and continuity.

These tools can be used individually or in combination to provide a comprehensive

understanding of employee capabilities and support effective talent management strategies.

Talent Management Process

The Talent Management Process is an organized and strategic system that companies utilize
to efficiently acquire, learn, keep, and make use of their human capital for business
purposes. It refers to a set of integrated practices and initiatives that perfect the entire
employee lifecycle. Here’s an explanation of the key components of the Talent
Management Process:
1. Planning
 Explanation: Planning is the process of goal setting, determining strategies, and
identifying the actions required to implement those goals. Planning in talent
management entails linking human resources strategies with organizational objectives,
determining workforce requirements, and mapping out a direction for sourcing talents.
 Importance: Strategy ensures that talent initiatives serve a specific purpose, are
properly coordinated, and effectively contribute to the achievement of organizational
success.
2. Attracting
 Explanation: Employer attraction is a set of activities related to the identification and
enticement of qualified individuals who might want to join an organization. This
involves employer branding, hiring campaigns, and creating a reputation to attract
prospective candidates.
 Importance: Effective attraction results in an applicant base that comprises candidates
suitable for the job, giving variety to skills and expertise.
3. Selecting
 Explanation: The process of talent selection involves putting into practice the
recruitment and selection strategies aimed at hiring employees with appropriate
qualifications. This involves interviews, assessments, and evaluations that are designed
to pair the candidates with organizational requirements.
 Importance: Ensuring an effective selection process ensures that the organization is
presented with individuals who have the skills and characteristics that are necessary to
be successful.
4. Developing
 Explanation: Talent development includes encouraging the skills and competencies of
employees through training, education, and career path programs grown from within. It
seeks to improve individual and collective skills.
 Importance: Continuous development keeps employees driven, flexible, and able to
meet organizational objectives.
5. Retaining
 Explanation: The notion of retaining talent is replete with strategies for engaging,
satisfying, and keeping employees loyal to the organization. It consists of elements such
as competitive compensation, work-life balance, and career development opportunities.
 Importance: Keeping the top talent reduces attrition, maintains institutional memory,
and creates a pleasant as well as productive workplace.
6. Transitioning
 Explanation: Transition is the process of managing different roles, duties, or career
paths within an organization. It involves promotions, lateral changes, or
accommodations for organizational shifts.
 Importance: Such smooth transitions promote continuous employee development,
prevent disruption, and make sure people are properly prepared for new possibilities
they would be challenged with.

Competency assessment
It plays a critical role in identifying potential leaders and high-potential employees for
succession planning. By evaluating leadership and strategic competencies, HR can nurture
talent and prepare future leaders to take on key roles.

Competency Assessment Examples

To better understand how competency assessment works in practice, let's explore some
specific examples of competency assessments commonly used in HR:
Example 1: Communication Skills Assessment
Objective: To evaluate an employee's communication skills, both verbal and written, to
determine their effectiveness in conveying information and ideas.
Assessment Method: Conduct a combination of self-assessment and 360-degree feedback.
The employee rates their communication skills based on predefined competency levels, and
peers, managers, and subordinates provide feedback on the employee's communication
effectiveness.
Outcomes: The assessment reveals the employee's strengths in communication, such as
active listening and clarity in written communication. It also identifies areas for
improvement, such as assertiveness and adapting communication styles to different
audiences. Based on the assessment results, targeted communication training and coaching
can be provided.
Example 2: Leadership Competencies Assessment
Objective: To assess leadership competencies in potential candidates for managerial
positions to identify the most suitable candidates for promotion.
Assessment Method: Conduct behavioral interviews, situational judgment tests, and
assessment center exercises. The assessment focuses on key leadership competencies, such as
strategic thinking, decision-making, and team-building.
Outcomes: The assessment identifies candidates who demonstrate strong leadership potential
and have the necessary competencies to lead teams effectively. This information guides HR
in selecting the best candidates for managerial roles and supports succession planning efforts.
Example 3: Technical Skills Assessment
Objective: To assess technical competencies required for specific job roles, such as software
development or engineering positions.
Assessment Method: Administer practical tests, simulations, and skill-based exercises.
Measure performance against predefined technical competency criteria.
Outcomes: The assessment provides insights into employees' technical proficiency, helping
HR identify skill gaps and areas that require additional training or upskilling. This enables the
organization to build a technically proficient workforce.
Example 4: Customer Service Competencies Assessment
Objective: To evaluate customer service competencies of frontline employees in retail or
service-oriented industries.
Assessment Method: Use mystery shopper exercises and customer feedback surveys to
assess employee interactions with customers. Measure competencies such as empathy,
problem-solving, and responsiveness.
Outcomes: The assessment helps identify employees who excel in customer service, leading
to recognition and rewards. It also pinpoints areas for improvement, guiding HR in designing
customer service training programs.
Example 5: Change Management Competencies Assessment
Objective: To assess an employee's ability to navigate and manage change effectively within
the organization.
Assessment Method: Conduct behavioral interviews and role-playing scenarios that simulate
change situations. Evaluate competencies such as adaptability, resilience, and communication
during change initiatives.
Outcomes: The assessment provides valuable insights into an employee's readiness to
embrace change and lead others through transitions. HR can provide targeted support and
resources to build change management capabilities.
These competency assessment examples demonstrate how organizations can tailor
assessments to specific job roles, competencies, and organizational goals. By using a
combination of assessment methods, you gain a comprehensive understanding of employee
skills and potential for growth, enabling them to make informed talent management
decisions.

‍A competency model

It is a guideline developed by a Human Resource department that sets out the specific skills,
knowledge and behavioral requirements that enable an employee to perform their job
successfully.
Developing a valid competency model involves several key steps to ensure it accurately
reflects the skills, behaviors, and attributes required for success in a specific role or
organization.

Steps in developing a valid competency model.

1. Define the Purpose and Scope

 Purpose: Determine why the competency model is being developed (e.g., for
recruitment, performance management, career development).
 Scope: Decide which roles or levels within the organization the model will cover
(e.g., specific departments, all levels of staff, or leadership roles).

2. Gather Information

 Job Analysis: Collect data on the roles for which you are developing the model. This
can be done through job descriptions, employee surveys, interviews with job
incumbents, and observations.
  Stakeholder Input: Engage with key stakeholders such as managers, employees, and
industry experts to understand the competencies that are important for success in the
role.

3. Identify Key Competencies

 Competency Categories: Determine the broad categories of competencies needed

(e.g., technical skills, behavioral traits, cognitive abilities).
 Competency Identification: Identify specific competencies within each category.
Competencies typically include knowledge, skills, abilities, and behaviors. Use data
from job analyses and stakeholder input to guide this process.

4. Develop Competency Definitions

 Clear Definitions: Define each competency clearly and specifically. Each definition
should describe what the competency is, why it is important, and how it can be
demonstrated.
 Behavioral Indicators: Identify specific behaviors or examples that demonstrate
proficiency in each competency. These indicators help to clarify what success looks
like and provide a basis for evaluation.

5. Validate the Model

 Expert Review: Have subject matter experts review the competency model to ensure
accuracy and relevance.
 Pilot Testing: Test the model with a sample of employees or roles to validate its
effectiveness. Gather feedback on its applicability and clarity.
 Refinement: Based on feedback and pilot results, make necessary adjustments to
improve the model’s validity and reliability.

6. Implement the Model

 Integration: Incorporate the competency model into relevant HR processes such as

recruitment, performance appraisals, and development programs.
 Training: Train managers and employees on how to use the competency model
effectively. Ensure they understand how it impacts their roles and responsibilities.

7. Monitor and Evaluate

 Ongoing Assessment: Regularly assess the model’s effectiveness and relevance.

Gather feedback from users to identify any issues or areas for improvement.
 Updates: Periodically review and update the model to ensure it remains aligned with
organizational changes, industry trends, and evolving job requirements.

8. Communicate and Embed

 Communication: Clearly communicate the purpose, benefits, and use of the

competency model to all relevant stakeholders.
 Embedding: Integrate the model into the organization's culture and daily practices to
ensure it is consistently applied and utilized.
By following these steps, you can develop a robust and effective competency model that
supports your organization’s talent management and development strategies.