Talent management: How to manage talent

Section three of the Personnel Today Management Resources one stop guide on talent management, covering: the evaluation game; coaching; people development and the corporate agenda; creating a reward and recognition system; and rating talent management at your organisation. Other sections .

Use this section to:

Identify how to develop individual talent

How to use personal coaching to support the development of talent

Create a coaching environment

Create a process of talent management

Identify how you manage talent within your own organisation

The evaluation game

The next three sections will look in detail at how you implement and evaluate a talent management process.

Use the charts, checklists and bullet points to check the current status of talent management in your organisation and to help you plan for the future.

Raising the bar

When reviewing your approach to talent management, you need to examine what already exists. Take what works in your organisation and build on it. Take the lid off your organisation and look inside. What do you see? What would make you unique and different? How can you build loyalty? Do you know what talent already exists?

Everyone is different

Everyone is different, and gaining an understanding of the differences is essential if you are to manage the talent within your organisation, and your external supplier relationships, effectively.

Recognising these differences is an important part of helping talent to develop. What is fascinating is recognising how subtle these differences are. No two people will have exactly the same combination of talents, which is why, in this context, we shouldn't make broad assumptions.

One way to help an individual gain personal insight is to encourage them to build an understanding of themselves. One phrase that sums this up is 'being comfortable with yourself'. This describes the inner confidence that comes from knowing your strengths and areas of development.

With this inner confidence comes an ability to accept challenges and to want to explore your personal boundaries and comfort zones.

Without this understanding, there is a danger that someone may not be able to respond positively to feedback from others. One key issue in articulating a desire to manage talent, or high potential, is a recognition of the need to develop all employees.

In McKinsey's The War for Talent, the authors discuss 'strengthening your talent pool by investing in A players, developing B players, and acting decisively on C players.'

Anyone who has ever experienced streaming at school will recognise the issues this can raise. What is perhaps more fundamental is a recognition of the need to encourage individual ownership of capability. In this way, an organisation can honestly invest in all its employees, by helping them to recognise where their talents lie.

We can build a picture of ourselves through a variety of means, but the diagram above is a key model from Personal Coaching by Kaye Thorne. It illustrates the type of analysis that we can undertake to gain a clearer picture of ourselves, and even more importantly, how others perceive us.

Usually, discussion about these issues occurs when someone is being made redundant and a redundancy counsellor may have encouraged an exiting employee to think about the implications of being made redundant, on their family, their lifestyle and their finances.

But if you want to develop a holistic approach to talent management, all these issues are important in helping the individuals take charge of their lives and to see their development in the broader context of their work and lifestyle choices.

When working with an individual employee, we can build on this picture by probing deeper into particular areas; encouraging them to undertake reputable psychometric tests, or to use personal profiling tools.

This can also help them to make links between the outcomes, and to see the implications of this information in the way they achieve their personal goals and how they work with others.

It can also help the individual concerned to realise this model of them is not static - lifetime learning will help them to develop new layers of knowledge and understanding.

What a more focused approach on talent management can do is help people identify their start point and then work with them to build a picture of themselves.

This can then form the basis of an integrated approach to learning, which can become as personal and unique as their own thumbprint. If you then support this learning with targeted and focused coaching support, the learning really does become a special experience.

Analysing development needs

In working with an individual, it is important you help them to recognise that who they are will impact on what they want to do and how they are able to achieve their goals.

By undertaking psychometric tests or profiling, you will help them gain an insight into who they are, but by encouraging them to recognise the impact and importance of the qualities listed in the outer ring of the model, you will enable them to view their own development in a wider, 'big picture' context.

Within the context of the model, it is important to recognise this is only the top level of an underpinning skill, knowledge and competence set. Once the key areas are analysed, you can work with the learner to identify key areas of development and consider each in turn.

The inner circle

This circle illustrates some of the areas where psychometric and profiling tests have been developed to measure preferences and an individual's underlying personality and characteristics. What is important is not necessarily the specific areas highlighted, but to identify a range of tools that will serve to give the individual feedback that helps them to identify who they are.

It is important the individual recognises this can only be a snapshot in time. The knowledge gained is enhanced and developed through feedback.

The outer circle

The areas identified here comprise one way you could encourage your learner to review some of the key aspects of their personal development.

Under each of these groups of questions there are a series of sub-questions followed by a means of building up the skills and competencies into a development plan.

Sometimes, when an individual surveys their life, they feel quite daunted by the total picture. This diagrammatic context illustrates how a talent management approach could support their personal development.

Some areas are more personal than others and individuals may need to work through some of these areas with a personal coach.

It may not be appropriate to discuss an individual's finances, or the long-term care solution for an elderly relative, or a deep issue in their personal relationship. What is important is that you enable your learner to recognise it is a factor they have to consider - if they put time aside to address the issue it will help them in other aspects of their life.

Role of the line manager

Increasingly, line managers are being encouraged to play a role in talent management.

Developing the 'macro-enabling' skills of facilitation, coaching and giving feedback could provide line managers with a set of core skills that can be used in a variety of situations.

If, as part of this development, they are also encouraged to practice questioning, listening and observing, they will feel better equipped to identify the real development needs of their team.

Finding the right solution could be a combination of using internal and external provision, online learning and their own coaching support as the learner puts it into practice. It also means they can regularly set goals and discuss the progress of the individuals within the team. Collaborating with others in achieving team goals can be a powerful motivator for talented individuals.

Creating a coaching environment

As highlighted in Sections 1 & 2, the corporate world is changing quite dramatically. Businesses are facing challenges on an unprecedented scale and the retention of key employees is a major challenge. Employees are looking for organisations that value their contribution.

One major way to help individuals fulfil their potential is to develop a coaching environment. This is not something that will be achieved overnight, but if you can engender a sense of sharing wisdom, you are more likely to create a real sense of personal development. This is very different from the process of 'managing', and could play a major role in the successful implementation of a talent management process.

A coach guides rather than manages - throughout history there have been instances of elders giving guidance. What if, instead of creating managers, we created guides? What if we gave respect to the wisdom of our experienced workers?

The very best supervisors and managers are those who share their wisdom and give guidance to new employees. The very worst managers are those who play it by the rules with no flexibility, or explanation.

The introduction of a coaching environment may have a very far-reaching impact.

Individuals need to think about their best learning experiences, to remember what inspired them and to think about how they can recreate special learning experiences and techniques.

Managers need to forget about being in control. Instead, they should help their team members to explore by asking open questions and being provocative.

Though individuals should never be taken outside their comfort zone without support, they can be encouraged to push their boundaries beyond their normal learning experiences.

Equally, trainers could also perform the role of a coach and may need to recognise that in the future, classroom training may become much more focused on the individual. As a result, small discussion groups or one-to-one coaching may occur more frequently than classroom sessions.

Creating a talent management process

The model illustrates how to create a process for talent management if we take each stage in turn:

Confirm overall brand and values

As discussed in Section two: Where does talent management fit in?, creating an employer or organisation brand is a critical part of how you attract, recruit and retain talented staff.

People want to work for a company that they respect. Questions all organisations should ask are: Are our employees acting as ambassadors for us? Are we talking positively to our families, partners and friends about our organisation?

Identifying talented individuals does not just mean focusing on people who apply for a job. It also means making recruitment companies and headhunters fully aware of your brand and expectations. It means thinking very carefully about the messages that are given about your brand in advertisements.

It also means sharing key messages about your business and relevant opportunities with the people that you meet.

You need to keep replenishing your talent pool. Ideally, you want people to come to you. Key entrepreneurial CEOs of small businesses are often passionate about what they are doing, and that passion is infectious. Think about what Richard Branson has done for Virgin, and Tim Smit for the Eden Project. They enthuse people to want to be part of their dream.

Create an environment in which people want to work

A recent trend in employee development is a recognition that retaining key employees will become increasingly important.

With reduced resources available, organisations may be competing for the same people. Graduates have excellent networks. On leaving university, they keep in touch with each other and compare offerings from different organisations.

Another issue is retaining the knowledge worker. In many organisations today, a relatively small number of people are developing specialist skills. If these people leave, there is a very high risk of part of the business going with them.

A Fast Company article by Brook Manville and Nathaniel Foote - Strategy as if Knowledge Mattered, April 1996 - emphasised the following: "The essence of successful knowledge-based strategies is a company's capacity to raise the aspirations of each employee. These are the people whose contributions and ongoing development becomes the lifeblood of performance gains."

Today's younger employees are much more mobile than previous generations. In some cases, organisations are offering financial incentives to join a company, such is the need to attract new talent.

Put people development high on the corporate agenda

In recent times, there was talk of 'breaking through the glass ceiling'. Perhaps equally important is breaking down the corporate boardroom door and helping the board recognise the importance of committing to people development.

As Goleman, Semler, Bennis and Biedermann and the McKinsey consultants have highlighted, commitment to people development needs to start at the top of an organisation. It is not just an issue for HR and training and development functions. Leadership behaviours set the tone and expectations for employees.

People are smart, and talented people are even smarter. They will be not be taken in by lip service to values. They want to see these values demonstrated daily.

Give clear guidance on expectations and goal setting

Very real issues, particularly for talented people, are time wasting, bureaucracy and trivia. Giving clear guidance on expectations and agreeing the specific details on deliverables means that individuals can really focus on what they need to do. Meetings can be shorter, objectives can be set and work can be completed within a shorter timeframe.

Train and develop line managers in coaching

More collaborative and forward-thinking organisations recognise that a motivated workforce does not need to be 'managed' in the traditional sense. What employees do need is guidance, coaching and the sharing of wisdom.

This was one of the five imperatives suggested in The War for Talent and was an area that Daniel Goleman highlighted in The New Leaders. Developing these coaching skills takes time and needs to be demonstrated through models of best practice that are spread throughout the organisation.

The implications for organisations and trainers is a fundamental shift from training to learning. There is a distinct difference in ownership. The individual needs to own and take responsibility for their own learning and there is huge importance in helping individuals realise their potential.

Flex and tech can help

Despite huge advances, many companies are relatively slow in getting the most from technology.

Workforces today are exploring different options and opportunities. Generally, people are taking work breaks to travel and are looking for more flexible working patterns.

One distinct advantage of technology is its ability to transmit messages rapidly around the world.

Globally, technological advances mean that organisations rarely sleep as they can work virtually. While Europe is asleep, some businesses use the countries of the Pacific Rim and pay less for services provided by workers who are inducted into the culture of the country they are representing. Virtual teamworking means that talent can be shared globally.

Technology can support flexible working and staff no longer need to be in an office. For many talented people, freedom to operate is important as their creativity is unlikely to be contained within office hours. Allowing them flexibilty and freedom will ensure their contributions are maximised. New legislation related to work-life balance (see Section eight: Legal issues ) will mean that organisations will have to adopt a more flexible approach.

Measurement and success factors - be open

One concern that talented people often speak of is how their contribution will be measured. Equally, ways of measurement are not always shared with individuals.

An organisation may be using one set of criteria, while an individual believes he/she is being measured against another. This is very much linked to the goal setting stage.

Unfortunately, many organisations still have annual appraisal systems that are not linked to the day-to-day activities of an individual. It is important to set clear objectives, to monitor them regularly, to ensure individuals receive feedback and have the opportunity to discuss his/her own view of their progress. In a coaching environment, this will happen more naturally.

Create a broad reward and recognition system

There is a natural link between this stage and the previous stage. Individuals do appreciate recognition for their achievements and being thanked for a particular action. Being given extra responsibility, and being made to feel part of something special are valued by employees. Financial rewards are important, but other forms of recognition also matter, as shown in the Roffey Park study (see Section two: Where does talent management fit in? ).

This indicated that recognition was the fourth most popular motivator and lack of recognition was one of the biggest demotivators.

The customer, the supplier, the stakeholder and the community.

Brand loyalty is created in many ways, but essentially it is based on the relationships that an organisation builds with its partners.

Corporate social responsibility is also becoming increasingly important. Awards such as the Sunday Times' Best Companies to Work For, Investors in People and the National Training Awards, all emphasise the importance of these relationships. As stated in Section two: Where does talent management fit in? , no business can afford to ignore its standing in the community or with its customers.

In our survey, we asked: What would make you go the extra mile for an organisation? There was a mixed bag of responses, including a recognition of the value such efforts brought to an organisation and appropriate reward. Equally important was a need to do something that was worthwhile.

This very much links to the writing of Bennis and Biedermann. In today's working environment, people want to feel their contribution really is recognised as making a difference. There is also a need to respect the individual's work-life balance and the preference for flexible working, which was highlighted in responses to some of the other questions.

We also asked: If you had equally attractive job offers from two organisations, what could make the difference, in terms of the way they handle their people, that might influence which you join?(see What would make you go the extra mile for an organisation?).

The responses to this question highlighted the need to align values, to have honesty, integrity, equality, fairness and flexibility. Their responses are perhaps best summarised by one respondent: "An environment which creates inspired, energised, empowered staff who are committed, as opposed to merely compliant or even working from fear."

One of the questions to ask yourself and your organisation is how close are you to this type of environment? The checklist on the right may help you to assess how you manage the talent within your organisation.

What would make you go the extra mile for an organisation?

Appreciation of my value, skills, abilities

Willingness to accept my life outside the organisation

Challenge with prospect of success

Belief in what we were doing and who we were doing it for

Knowing that going the extra mile would have a positive impact on the business

Appreciation of my contribution expressed face-to-face

Being rewarded in material terms - salary and other benefits

Knowing that what we were doing was important to the organisation and was being treated as a high priority

Supportive and flexible environment

Remuneration directly and visibly linked to performance

Leadership I believed in, a sense of mission, and financial incentives

Fairness in performance management

Development and growth

Consistency in behaviour of top leadership

If you had equally attractive job offers from two organisations, what could make the difference, in terms of the way they handle their people, that might influence your choice?

Values alignment

Flexibility

Honesty and integrity

How much they invest in people development

Importance given to development and promotion from within

Ethics and integrity

They treated all contributions from their people with equal importance and of equal value

A firm but fair method of performance management was in place

Teamworking at all levels in the organisation was in place with little evidence of hierarchy

Defined career path

Encouragement of free-thinking/completely open communication

An environment managed to create inspired, energised, empowered staff, who were committed as opposed to merely compliant or even working from fear

Development orientation - a belief that managers are there to serve employees, and honesty/authenticity in all dealings

Culture

People I work with

Leadership

Career opportunities

How well do you manage your talent?
Rate your process for talent management, and contrast your approach to those applied within our case study examples (see Section seven: Case studies).
1.	Have we developed a definable organisation brand?
2.	Do we actively demonstrate our values and brand in the way that we conduct our business?
3.	Does this apply equally in the way we handle our people?
4.	Are we committed to identifying and recognising talent at all levels in the organisation?
5.	Do we have an infrastructure that allows individuals freedom to innovate, generate ideas and receive feedback?
6.	Are we sure that our management structure is developing new talent and creating a coaching and learning culture?
7.	Have we created an environment that attracts potential employees to want to come and work for us?
8.	Do we welcome previous employees back?
9.	Do we recognise the need for some employees to go?
10.	Do we give honest, open and supportive feedback on performance?
11.	Have we created internal forums that allow for healthy debate and discussion?
12.	Do we undertake effective benchmarking with other organisations?
13.	Do we know our retention rates?
14.	Do we conduct exit interviews with all employees?
15.	Do we encourage all our employees at all levels to identify other potentially talented people to join our organisation?
16.	Do we actively share our experiences and demonstrate best practice to other organisations?
17.	Do we have a diverse and multi-talented workforce?
18.	Do we share our expectations of each other?
19.	Do we actively champion talent?
20.	Do we see talent management as one of the core pillars of our organisation development?