What is talent management?

Talent management is an umbrella term, encompassing all the different tools, tactics, processes, etc. involved in finding and hiring the best employees and ensuring they are happy and productive. Talent management provides a strategic framework for an organization to optimize the potential of its employees. By prioritizing the acquisition and development of top-quality talent, businesses can cultivate a workforce that not only meets current demands but also thrives in the face of future challenges.

Applied correctly, talent management can:

• Act as a foundation for productive teams
  Effective talent management ensures that the right individuals are placed in the right roles, fostering a harmonious and collaborative work environment. By assembling diverse skill sets and complementary strengths, teams can synergize their efforts and achieve higher levels of productivity and efficiency.
• Empower companies to stay competitive
  In today's rapidly evolving marketplace, organizations must adapt quickly to changing trends and technologies. Talent management enables businesses to proactively identify and acquire the necessary skills and expertise to stay at the forefront of their respective industries, ensuring continued relevance and competitiveness.
• Enhance employee performance
  Talent management encourages employee-centric practices, such as regular feedback, coaching, and development opportunities, to help employees maximize their potential. By nurturing their skills, knowledge, and abilities, talent management creates a culture of continuous improvement and high-performance, driving organizational success.
• Motivate growth
  Through talent management initiatives, employees are provided with clear career pathways and growth opportunities. Demonstrating a commitment to employee development and advancement, organizations motivate their workforce to invest their talents and energy in achieving shared goals, leading to increased job satisfaction and long-term loyalty.
• Promote innovation
  Talent management encourages a culture of innovation by recognizing and fostering creativity and autonomy. By empowering employees to contribute ideas, experiment, and take calculated risks, organizations can unleash a wealth of innovative solutions, driving growth and competitive advantage.
• Reduce employee turnover
  Investing in talent management helps create a positive and engaging work environment, increasing employee satisfaction and reducing turnover. Providing opportunities for growth, recognition, and improved work-life balance, organizations more consistently retain top performers while also mitigating the costs associated with recruitment and onboarding.
• Strengthen employer branding
  A healthy talent management strategy enhances an organization's reputation as a great employer. By prioritizing employee development, offering competitive compensation and benefits, and fostering a supportive culture, businesses can create a talent pipeline that fuels their future success.

Although related, talent management and talent acquisition are two distinct concepts that play complementary roles in building a skilled and engaged workforce. That said, these two variations differ in their focus and scope, despite both being integral to an organization's overall talent strategy.

Talent acquisition refers specifically to the process of recruiting and acquiring talent for an organization. It encompasses all the activities involved in sourcing, screening, interviewing, hiring, and onboarding candidates. The goal of talent acquisition is to identify and attract qualified individuals who possess the skills, experience, and potential required for specific roles within the organization. Talent acquisition ensures that the right individuals are brought into the organization, but its scope is primarily limited to the initial stages of the employee lifecycle, up until onboarding is complete.

On the other hand, talent management goes beyond talent acquisition and deals with engagement and development throughout the entire employee lifecycle—from hire to retire. Talent management focuses on maximizing the potential of employees and creating an environment where they can flourish.

The talent management process begins with strategic planning. This involves taking an in-depth look at the organization to identify its current needs, forecast what it will likely need in the future, and determine what skill sets will be required to address those needs. Planning involves talent gap forecasting, succession planning, job description creation, and roadmap building for attracting and developing the right employees to fill specific responsibilities.

With approved plans in place, it's now time to start attracting top talent. The stage focuses on recruitment, and involves employer branding, talent sourcing, and creating an effective recruitment strategy. Organizations may employ various methods to attract a diverse pool of qualified candidates. The goal is to communicate the organization's values, culture, and opportunities to attract individuals who align with the desired talent profile.

Once the right candidates have been located, the selecting and hiring stage begins. While the specific processes will be unique to the organization and the position being hired for, they tend to include some form of assessment of applicants' skills, qualifications, and cultural fit through interviews, reference checks, and other selection methods. The aim is to identify the most suitable candidates who possess the required competencies and potential to succeed in the organization.

Once employees are onboarded, the focus shifts to their development. This stage involves providing training programs, mentorship, coaching, and career development opportunities. Development initiatives aim to enhance employees' skills and knowledge, enabling them to contribute effectively to their roles and grow within the organization. Continuous learning and development programs ensure that employees remain equipped to meet evolving business needs.

Retaining top talent is crucial for organizational success. This stage involves implementing strategies to engage valuable employees, and often includes performance management, feedback mechanisms, recognition programs, and creating a positive work environment. By providing growth opportunities, work-life balance, competitive compensation, and a supportive culture, organizations can increase employee satisfaction—reducing turnover and employee disengagement in the process.

The final stage of the talent management process is managing employee transitions (such as promotions, transfers, or departures). This includes succession planning, career transitions, and knowledge transfer processes. Effective transitioning ensures a smooth transfer of talent and knowledge, allowing the organization to maintain continuity and minimize disruption even when shuffling positions and responsibilities.

Most leaders would agree that talent management—in whatever form it takes—is essential for ensuring long-term success. That said, not all are aligned on what talent management strategies provide the best direction to get there. The following strategies have been proven effective for those wishing to attract, develop, and retain top talent, creating a thriving and engaged workforce ready to meet today's shifting challenges:

• Compensate and reward workers fairly
  Fair compensation and employee rewards are crucial for attracting and retaining talented employees. Offering competitive salaries, performance-based incentives, and benefits packages that align with industry standards and employee contributions enhances job satisfaction and motivates individuals to perform at their best. At the same time, performance-based rewards provide an added incentive for employees to go above and beyond.
• Create a culture of coaching and collaboration
  Employees are the business' most valuable resource, and that remains true when it comes to employee development. Fostering a culture of coaching, mentorship, and collaboration encourages knowledge-sharing between individuals and teams, allowing experience and insight to become a communal commodity. Providing regular coaching, collaboration, and mentorship opportunities, organizations empower employees to learn from each other, grow their skills, and achieve their full potential.
• Create detailed job descriptions
  Clear and detailed job descriptions ensure that expectations and responsibilities are well-defined long before the company begins investing in a hire. This helps attract candidates who possess the necessary skills and qualifications, resulting in better hiring outcomes and improved alignment between employee capabilities and job requirements.
• Ensure that employees are using their strengths
  Talent management involves identifying and leveraging employees' best qualities. By aligning individuals' skills and interests with their roles, organizations can optimize performance and job satisfaction. This approach enables employees to excel in their areas of expertise and contribute their most valuable work.
• Hire diverse talent
  Embracing diversity in talent acquisition promotes a more-inclusive perspective within the organization. Diverse teams are known to drive innovation, creativity, and problem-solving. By actively seeking candidates from diverse backgrounds, organizations can cultivate a rich work environment while also ensuring a range of experiences, viewpoints, and ideologies to better meet the needs of a diverse customer base.
• Make workplace culture a top priority
  A positive workplace culture is essential for talent management success. Organizations that prioritize a supportive, inclusive, and collaborative culture foster employee engagement and loyalty. This, in turn, attracts top talent and contributes to a positive employer brand.
• Provide advancement opportunities
  Talent management involves providing clear career pathways and growth opportunities for employees. By offering advancement opportunities, stretch assignments, and the chance to take on increased responsibilities, organizations can foster a sense of progression, more effectively retaining ambitious talent.
• Provide opportunities for continuous improvement
  Offering opportunities for professional development, upskilling, and training empowers employees to enhance their skills and stay well acquainted with industry trends as they develop. Continuous improvement initiatives demonstrate a commitment to employee growth and contribute to a culture of learning within the organization.
• Understand the skills that are being hired for
  A thorough understanding of the prerequisite skills and abilities for each role is crucial in talent management. By assessing these qualifications and building recruitment strategies that focus on finding hires who are already proficient, organizations align their recruitment and development efforts to ensure they invest in talent that has the foundation it needs to get the job done.

Employees are your most-valuable resource, and that means that there is a lot riding on your approach to talent management. Unfortunately, there are also a lot of tasks, responsibilities, and other elements that must be accounted for—and in too many cases, that means unrestricted tool spread. ServiceNow, the leader in IT management solutions, provides the answer.

ServiceNow HR Delivery brings ServiceNow Employee Workflows and a range of other tools and capabilities together on a single, centralized platform. Deliver digital workflows and seamless integrations. provide unified portals for easy employee access to HR apps and essential information. Automate complex employee journeys and transitions. And through it all, engage, inform, and connect with your people through the entire employee lifecycle, from recruitment through offboarding.

ServiceNow can revolutionize the way you manage your top talent. Click here to see how.