Performance Management – Talent Management Pillars Part III
Of all the strategies and/or approaches in the human resources space, none are more impactful than that of talent management. As such, it continues to transcend all industries all over the world. Why? First and foremost, people are a company’s greatest asset. In the same vein, a company’s value is perpetually linked to the success of its people.
Additionally, study after study shows companies offering growth and development opportunities translates to high success in recruitment and retention. Talent management itself is a commitment from an organization to recruit, hire, retain, and develop employees.
Over the next few weeks, the HR Exchange Network will put a focus on talent management by explaining each tenement and the inherent challenges that accompany them in a series of articles. These tenements are often referred to as the pillars of talent management.
Pillars of Talent Management Explained
To better understand each pillar, a description of each is below.
- Recruitment – In order for a talent management strategy to exist, there must first be talent. Recruitment is Step 1 in creating the strategy. Here, companies and organizations work to attract talented people who can be converted in to employees.
- Learning and Development – This pillar includes everything from ongoing training to learning during the employee lifecycle. It allows for workers to fine-tune and further develop the critical skills needed to meet their performance goals and to help the company complete its strategic goals.
- Performance Management – Once hired, talent is expected to perform at a high standard. This process includes the way in which HR measures and improves performance. Common procedures include performance reviews, one-on-one meetings, and reward and recognition programs.
- Retention – As defined, retention is about keeping high performing talent with the company or organization as long as possible. This leads to increased productivity and successful completion of strategic goals.
When thinking about performance management, what comes to mind? For many it is performance reviews. The reality is human resources needs to outgrow this idea. Real performance management eliminates the need for such things.
Performance management is almost like retention. Once an employee starts employment, performance management also begins. The process happens throughout the employee lifecycle and gives leaders an opportunity to create advancement. Note: that advancement doesn’t always include promotions or moves, but can include skills or knowledge advancement.
A good performance management strategy includes:
- Clear job descriptions
- New employee orientation
- Performance Standards
- Ongoing learning and development
- Performance planning
- Potential for promotions and/or lateral moves
Diversity and Inclusion Dimensions
Another thing to consider as part of the organization’s performance management strategy is diversity and inclusion. It’s not always at the forefront of a manager’s mind when doing performance appraisals. Banner Health’s director of diversity and inclusion and HR Exchange Network advisory board member Jackie Hunter says it should be part of the process.
In fact, Hunter spoke at length about the topic during HR Exchange Network’s free-to-attend online event Talent Exchange Live.
She said HR and leaders must know their employees and their teams on multiple levels of diversity, i.e. multigenerational and cultural. Embracing this information leads to high performing individuals. Companies who are more gender diverse are 15 percent more likely to outperform those companies that aren’t. Those companies that are more ethnically diverse are 35 percent more likely to outperform those that aren’t.
All of this once achieved helps drive a key component of successful businesses: strong employee engagement. That, in turn, continues to drive performance. It’s a cycle that all companies and organizations need to understand and development. Understanding this cycle and using it correctly will help ensure that business needs are being met. Performance management will always be a part of the overall talent management strategy for this reason.
Find out everything there is to know about employee engagement here.
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