Is the European Model of HRM Better than the American Model? Some Perspectives
What is it that Makes the European Model of HRM so Attractive? Much has been written and said about the European model of HRM or Human Resource Management. From the generous pay and bonuses, to the 36 hour working week wherein even extra time is compensated, to the handsome leave and vacation rules, and what […]
Role of Team Leaders and Supervisors in Employee Retention
Employee retention includes various steps taken to satisfy the employees so that they stay with the organization for a longer duration. Strong measures must be taken to retain the high potential employees who have spent a good amount of time in the organization and know it in and out. It is essential to retain the […]
Talent Management and Succession Planning
In one our write ups we mentioned the problem of succession planning in organizations. The basis was the SHRM survey of 2003 that found out that 60% of organizations have no succession planning at all. We discuss the phenomenon in detail here. What is succession planning and when did it emerge as a problem? What […]
The Midlife Crisis of the Middle Manager! What it is and What can be Done to Address the Problem
What Is Midlife Crisis, Whom Does It Affect, and what are the Manifestations of It? Midlife is especially challenging for anyone and more so for those in their careers when they get stuck in a job that has lost meaning. Indeed, the term midlife crisis is very popular to describe the feelings of listlessness and […]
Employee Multitasking – An Overview
Let us go through the following case study. John of Organization A was not only good in marketing organization’s products but also maintaining records, maintaining relationship with clients and so on. Peter on the other hand of Organization B could only sell products and nothing more than that. Organization A did not suffer much when […]
Organizations which wish to attract the best of talents and retain employees across all levels must have an integrated approach to talent management.
According to latest survey findings from Accenture High Performance Report, about 85% senior executives view talent management as a major competitive differentiator for attracting and retaining skilled workforce and developing the highly talented leaders. Many Indian organizations have realized that it is the quality of people which they employ, retain and develop will ensure their business profitability and provide them a competitive advantage.
Talent management is concerned with delivering business success by understanding what an organization actually means by talent and how it can achieve the long term organizational goals. It aims at ensuring that the organizations value natural talents and understand the obstructions to an effective performance.
Talent management solution integrates the needs of the management, executives and employees into one system and unifies information across all the major HR processes like performance management, recruitment and selection, learning and development, succession planning and career development.
According to a survey report of May 2006 from the Economist Intelligence Unit (EIU) and Development Dimensions International (DDI), maximum CEO’s from across different industries globally spend their major chunk of time in recruiting, performance management, talent management, succession planning, mentoring and retention.
Talent management strategies are holistic in nature and aim at supporting such practices which improve the communication of goals and performance expectations across different levels in an organization. These strategies can be categorized into the following heads:
According to a report from CIPD’s 2006 learning and development survey, managing talent is not a very easy job and various factors influence the talent management strategies and policies of an organization.
The report equally highlights that about 74% of the respondents did not have a properly conceived plan for management of talent. Some of the major strategic challenges to talent management are:
However, for many organizations talent management is a major strategic issue and they view it as a critical factor for providing them with a competitive advantage in the competitive war for talent.
Effective management of talent requires a thorough diagnosis of the employee attitudes and also the organizational culture.
The tools which help in attracting and retaining the best of talent in an organization are pay, benefits, learning and development and a proper work environment which can be group centric or individual and the benefits can be tangible or intangible.
Pay: This is the most determining factor for retaining the talent pool in an organization which should be kept competitive.
IT and ITES majors like Wipro and Infosys implement variable pay for retaining the employees and extracting the best performance from them.
Flexible benefits are another effective tool for encouraging high performers for example Eicher Group which allows its employees to design their own compensation package which suits with their needs.
Benefits: Benefits which provide social and futuristic security to the employees can serve as a major tool for retaining the best talent pool in an organization.
For example, Infosys provides a group insurance scheme to its 13,000 employees in Bangalore and is also one of the first Indian software companies for introducing Employee Stock Option Plans (ESOP). Similarly, many other Indian organizations design and develop innovative benefit packages for retaining their talent.
Learning and Development: It enables the retention of the most competent and ambitious employees in the organization and at the same time provide a competitive advantage by building the intellectual base in an organization. For example, Wipro provides ample learning opportunities to its employees for developing their leadership potential. Wipro has designed a Life Cycle Stage Development programme, which selects the employees with the leadership potential and trains them in accordance with their level in the organization.
Organizational Culture: A healthy work environment boosts the morale and spirit of the employee and strengthens the bond of relationship between the management and the employees.
Work culture is influenced by the organizational communication system, feedback mechanism and the effective implementation of recognition and rewards. Many Indian organizations have taken innovative initiatives for maximizing employee satisfaction and improving the overall organizational productivity.
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Competency Management Approach for Setting Superior Performance Benchmarks
February 12, 2025
