Meaning and Importance of Talent Management

What is talent management?

Talent management is strategic staffing and training planning to get the best out of your employees. A concept born in the United States in the 1990s, there is no clear definition. In recent years, an increasing number of companies have introduced it as part of their human resources strategy in Japan as well.

Meaning of talent management words

“Talent management (TM for short)” is a personnel management method that centrally manages information such as employee abilities, skills, and experience points as part of management strategy, and utilizes it for recruitment, education, evaluation, placement, etc. is. “Talent” means “talent” or “ability” in English.

Meaning of implementing talent management

Talent management aims to back up a company’s management strategy by managing personnel so that the right person can achieve the maximum results in the right place. We regard human resources as assets, and through long-term training, we will increase the number of excellent employees in the company, and as a result, we will lead to the continuous growth of the company.

Can procure human resources

With the introduction of talent management, we can expect to secure the excellent human resources necessary to achieve the management goals of the company. Specific methods include hiring from outside the organization and finding and selecting human resources buried within the organization.

Can develop human resources

A major feature of talent management is the selection and development of human resources, which will be useful for the development of future leader candidates. For example, it is possible to create growth opportunities for a wide range of human resources by selecting non-leader human resources for important duties such as new businesses.

Prevention of turnover of human resources

Employee motivation is maintained by selecting and training human resources and providing a place where they can make the most of their abilities. This will prevent dissatisfaction with the workplace, such as “I can’t make the most of my abilities” and “I can’t build a career here,” and prevent employee turnover.

Realize the right person in the right place

By matching employees with positions where they can maximize their abilities and arranging the right people in the right places, you will be able to work with a sense of satisfaction. As a result, career development that suits each employee will be realized, and corporate growth can be expected to be realized.

2. Background to the importance of talent management

Behind the importance of talent management in recent years is the fact that the business environment of companies is changing drastically due to the times. There is an urgent need for each company to secure diverse human resources in order to respond to the decrease in workers due to the declining birthrate and aging population and the globalization due to the evolution of IT technology.

Changes in management strategy

As it is called the “VUCA era,” the environment surrounding companies is changing rapidly due to the rapid development of technology. In times of change, uncertainty, complexity, and ambiguity, it is extremely difficult to predict the future correctly and formulate management and personnel strategies. Since it is extremely difficult to systematically secure human resources from the outside, it is necessary to aim for corporate growth by managing the limited capabilities of in-house human resources and allocating the right people to the right places.

Labor market changes

In Japan, where there is a shortage of workers due to the declining birthrate and aging population, the battle for talented human resources is intensifying. Since it is extremely difficult to secure a labor force from the outside, it is an important issue for modern companies how to utilize in-house human resources to achieve results. In addition, what is required of companies to secure a labor force is the urgent development of a place where diverse human resources such as foreigners and the elderly can play an active role.

Diversification of values

Even in Japan, where the lifetime employment system has taken root, the awareness of workers has changed significantly due to the diversification of values. The awareness that “human resources are the cogwheel of an organization” has diminished, and more and more people are looking for a job with an emphasis on their job satisfaction and social significance. In addition, an increasing number of people are choosing a work style that suits their wishes from a variety of work styles in order to achieve a “work-life balance”.

3. 3. Talent management mistakes

There are many advantages to introducing talent management, but there are disadvantages such as not having the effect that you expected if you made a mistake in the introduction method. Here are some common mistakes you can make to succeed without losing sight of your goals.

The purpose is to implement talent management

In some cases, the implementation of talent management itself is aimed at. Talent management is just a means, and the purpose is to manage the talents (abilities) of human resources and achieve management goals. It is necessary to clearly set goals such as “increasing profits by ●%” before introducing them.

The purpose of the introduction is ambiguous

If the purpose of introducing talent management is unclear, it becomes unclear what kind of human resources data should be collected and it causes failure. It is important to clarify the purpose of the introduction, whether it is for the procurement of human resources, for the development of human resources and the placement of the right person in the right place, or for the retention of human resources.

The desired human resources image is ambiguous

If the image of human resources required by a company is not clearly defined at the time of hiring, a mismatch in hiring will occur, and hiring costs will be wasted. When procuring and developing human resources through talent management, it is advisable to clarify in advance the image of excellent human resources required by the company.

Collection and operation of personnel data does not go well

Data collection failures are common in the process of talent management.
If the purpose of data collection is unclear, it is often the case that the plan fails due to insufficient data collection. Even if the data can be collected, there may be a failure in the operation stage.

Failure to collect personnel data

If you try to collect perfect data from the beginning, not only will it take extra time and effort, but even if a mistake is discovered on the way, you will not be able to cope with it and you will fall into the plan. In addition, we cannot obtain the cooperation of employees unless we can clearly explain what we collect and how we will use the data we collect. If you can’t collect talent data, you’ll have to give up on talent management.

Personnel data cannot be used effectively

Even if data can be collected, there are cases where it fails because the data cannot be used effectively due to the lack of ability of the operator and the infrequent use. Even if you introduce a “talent management system” for managing and analyzing human resources data, the person in charge may not be able to use it if it is too complicated and difficult to use. Also, if the data is updated infrequently, it will not be possible to take measures according to the actual situation, leading to failure.

Unable to make effective use of personnel data

Even if talent management can be introduced and human resources data can be aggregated, analyzed, and visualized, if the personnel evaluation system is immature or the company’s approval cannot be obtained, it will not be utilized in the end and it will be wasteful. It can also be.

The personnel evaluation system is not functioning properly

In cases where the operation of the personnel evaluation system is black-boxed, even if the analysis results can be incorporated into personnel measures, employees may not be fully satisfied with the personnel evaluation and may not be motivated.

If your company’s personnel evaluation system is not working in the first place, it is a good idea to start by considering the introduction of an optimal personnel evaluation system.

I can’t get cooperation within the company

Even if you plan job rotation for human resource development, you may not be able to obtain the cooperation of the department manager, and your personnel development plan may end in failure. Be clear about how you train and evaluate your employees so they can gain their understanding and cooperation.
The key to successful talent management is to instill the policies of management strategy and personnel strategy in advance to the superiors of each department.

4. Choose a talent management system wisely

Since the 2010s, when the concept of talent management began to spread in Japan, many companies have developed talent management systems. The number of companies introducing the system is gradually increasing, and it is expected that the types of systems will continue to increase in response to growing needs. Here, let’s understand the points to wisely select the system suitable for your company for future system introduction.

Talent management system selection points

Employee talent information is generally managed by introducing a talent management system. However, it can fail if introduced easily. It is important to weigh multiple systems before deployment and select the one that is suitable for your company’s operations.

Choose a system that suits your purpose

In general, the talent management system can manage the following 6 items.
They are advised to select the most suitable system according to the purpose of your company’s personnel strategy and the actual situation of the personnel system. ..

Check operability and price

When selecting a talent management system, it is also important to consider whether it is easy to operate and easy for anyone to use and whether analysis data can be retrieved and visualized at any time.

Also, one of the important points to pay attention to is whether or not it can be customized flexibly, such as being able to change or add items. However, be aware that cost-effectiveness may be incurred if the enhancements incur additional costs.

Choose a proven and reliable system

Among the many talent management systems, whether or not you have a reliable track record is an important decision point. We recommend that you decide to introduce the system after thoroughly investigating the reputation of other companies, including security.