Why is Talent Management Important?
Small businesses face an uphill battle when it comes to acquiring talent. They don’t have the budgets of large companies, making it difficult to lure talented employees their way. That results in unfilled positions that can hurt sales and hinder growth. Without a plan, it’s almost impossible to compete with deep-pocketed competitors for the necessary talent.
“Small businesses don’t have the luxury of being able to hire ahead of a need or have ten people that can play the role as some large businesses are able to,” said Field. “Having a high performer can create ten times the value compared to an average performer.”
That’s particularly true at the management level. Ratanjee said 70% of how engaged an employee is falls on their manager.
“Small businesses have to do more with less, but they can’t stinge on hiring the right talent, specifically manager talent,” said Ratanjee.
Recruitment efforts also benefit twofold from talent management. It helps identify the right candidates and gives job candidates a reason to want to join your organization. An employee may take a lower salary if they know there are opportunities to move up within the company. Opportunities to develop skills and advance often trump higher compensation.
Talent management is also necessary to retain employees once you get them through the door. If you don’t have a plan in place to keep them engaged and growing, they’re more likely to jump ship to a rival.
“Talent development is not a discretionary expense,” said Ratanjee. “It’s extremely important to keep focusing on the right talent, development, and training.”
Your return on investment for talent acquisition improves when you have a strategy in place. Small business owners don’t have a lot of cash to throw around hiring and training the wrong candidate. If you hire individuals who have a better chance of thriving in your business environment, you’ll save money in the long run. Not to mention boost sales if the employee turns out to be a standout.
Key takeaway: Creating a talent management strategy is important to successfully recruit and retain top talent. It can also improve your ROI.