Talent management and its impact on employee engagement


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The purpose of this research is to find out how important is the relationship between the talent
management strategies and employee engagement. This paper is based on the academic literature
review of the popular research studies therefore it is a conceptual paper. The paper also includes
perception and opinion of Head of the Human Resource Department regarding the topic.

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Talent management and its impact on employee engagement

  1. 1. Talent Management and its impact on employee engagement Institute of Business Management Term report Human Resource Management – Shiraz Ahmed Spring 2014 By: Shoaib Lalani
  2. 2. Abstract The purpose of this research is to find out how important is the relationship between the talent management strategies and employee engagement. This paper is based on the academic literature review of the popular research studies therefore it is a conceptual paper. The paper also includes perception and opinion of Head of the Human Resource Department regarding the topic. Introduction In today’s challenging and competitive business environment, the edge that organizations gets over their competitors in benefits and profitability highly depends on their talent management strategies and policies. According to CIPD’s definition talent management is the systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organization. According to Talent Management Survey Report, around 53% of the organizations have specific talent management department in place. Of these, 76% companies consider talent management a top priority. Furthermore, 85% of HR professionals in these companies working directly in implementing talent management strategies with the management. The extent to which employee feels motivated in doing their job, level of commitment to organization and the extra discretionary effort that they put in their work is called as employee engagement. Employee engagement is very important for the organization. If employees love their work and the culture that organization have created, they will innovate, treat customer better and will continuously put an effort to improve the business. The Deloitte Global Human Capital Trend Research found out that 78% of business leaders think retention and engagement is an important issue. Literature Review – Talent Management Talent management is concerned with the recruitment, selection, identification, retention, management, and development of personnel who are considered of having the potential for high performance; Stockley (2007). According to Goffee and Jones (2007), talent is handful of employee whose knowledge, skills and ideas give them the potential to produce value from the resource they have available for them. Lewis and Heckman (2006) describe talent management in three critical steps. First, talent management is a collection of typical HR practices such as recruiting, selection, development and career and succession management. Second, talent management is more specifically focused on predicting the flow of human resources throughout the organization, based on factors such as supply and demand, workforce skills and growth. Lastly, talent is defined as the capability that individuals have, to make a significant impact on current and future performance of the company. Talent is used as an encompassing term to HR that organizations want to acquire, retain and develop in order to meet their business goals (Cheese et al., 2008). Talent management includes
  3. 3. complete set of process of recognizing and managing people for successful business strategy that organization uses (Ballesteros, 2010). Talent Management strategies and policies are very important for organization because it ensures that the organization is successfully acquiring and retaining the essential talent. “Talent management is integral to engaging employees in the organization”. The ability to effectively address both of these issues has become a primary determinant of organizational success and in some cases, even survival (Morton, 2005). Literature Review – Employee Engagement Engaged employees are strong organizational assets for sustained competitive advantage and a strategic asset. Employee engagement is the energy and passion that employees have for their organizations. Engaged employees take action to improve business results for their organizations (Hewitt and Associates; 2004). Engaged employee say positive things about their workplace, strive to go above and deliver beyond the extraordinary work. There are three levels of employee engagement in an organization; emotional, cognitive and physical engagement. According to Gallup survey (2010) conducted on 67,000 employee over 120 countries indicate that only 11% of employee feel engaged and this is very alarming statistic for organizations. Literature Review – Talent Management and Employee Engagement Better talent management policies have resulted in lower turnout and higher engaged employees in an organization as compared to those who do not focus on their talent management policies. Employee Engagement and Talent Management combined can make or break the bottom line (Lockwood, 2006). According to Morton (2005) in order to effectively recruit and retain scarce labor, organizations need to create and perpetually refine an employee value proposition. Organization internal environment and culture also plays an important role in engaging employees. (Dell and Hickey, 2002) Positive employer brands have been found to help employees internalize the organization's mission, vision and values. Morton (2005) Talent management is integral to engaging employees in the organization. A focused talent management practices not only increase employee engagement but also increase employee satisfaction. According to 2012 Human Resource Management’s Employee Job Satisfaction and Engagement Survey; “focusing talent management efforts in these areas may yield significant return on investment.” Effective Talent Management requires strong participatory Leadership, Organizational buy-in and Employee Engagement (Lockwood, 2006). Organization needs to put efforts in talent management framework in which employees and managers works together and establish measurable goals, competencies and their career development activities must be align with their corporate objectives.
  4. 4. Opinion Lizna Karim is a Senior Executive-Human Resource at Logicose. She has experience in Recruitment, Payroll, Job Analysis, Procurement and Office Management. She is currently doing her MBA in HR from Iqra University. Lizna, what do you think about the future of talent management and employee engagement? Now a day’s employee’s development, engagement, retention and deployment is playing very important role in an organization’s success. Therefore, talent management has becoming significantly important to an organization. Talent management helps in many factors like increased competition, recruitment and retention; need to address future leadership, skills shortages, changes in demographics and external labor market. Employee engagement is defined as the relationship between an organization and its employees. An engaged employee always takes positive action towards organization and always care about organization’s reputation. Do you believe that talent management strategies bring positive impact on employee engagement? Being an HR manager I have always been focused on talent management that is acquiring, hiring and retaining talented employees because if you get wrong people at the wrong people it would be disaster for everyone. I believe that talent management is very much linked with the employee engagement. If you get a right person for the right job then it is easy to engage him with the organization. However, if you hire a wrong person then whatever you do to retain and engage him it won’t work. Talent Management strategies directly affects the employee engagement and overall business performance. Right talent will not only bring value to your organization but it also creates value for the customer. Satisfied and engaged customers always stay connected to your organization and bring value to it. Conclusion Kossen (2002) found that employees rate having opportunities to learn and grow at work as one of the most important factors for employee satisfaction, retention & engagement. The effective and great organizations are those who engage and empower their employee, develop competencies and skills at level, encourage creativity and build a trust among the teams and organizations. In 1999, Waldrop conclude that the four top factors for Employee Engagement are exciting challenges and work, career development, relationships with great people, supportive management and great mentor.
  5. 5. Reference:  A study on “talent management as a strategy to influence employee engagement and its effect on the organizational outcome - International Journal of Business and Administration Research Review, Vol.2, Issue.4, Jan-March, 2014  An investigation of the relationship between work motivation (intrinsic & extrinsic) and employee engagement  http://www.emeraldinsight.com/journals.htm?articleid=1634387  http://www.shrm.org/research/articles/articles/documents/0606rquartpdf.pdf  http://www.ipublishing.co.in/ajmrvol1no1/sped12011/AJMRSP1008.pdf