The consensus among human capital experts is that there are two major problems facing talent managers today: the lack of global talent from which to choose and the inability of organizations to retain top talent once hired.
These obstacles underscore the importance of using all tools at your disposal for effective talent management. Is your current talent management system working well for your company? How can you determine whether it is time to scrap an inadequate system in favor of one that meets today’s human capital challenges successfully?
1. Bad Hires
According to a study by CareerBuilder, more than half of employers in each of the ten largest world economies said that a bad hire, defined as someone who turned out not to be a good fit for the job or did not perform it well, has negatively impacted their business, pointing to a significant loss in revenue or productivity or challenges with employee morale and client relations.
Of those US companies admitting to making a bad hire, 27 percent reported that a single bad hire costs more than $50,000. Matt Ferguson, CEO of CareerBuilder notes: “Making a wrong decision regarding a hire can have several adverse consequences across an organization. When you add up missed sales opportunities, strained client and employee relations, potential legal issues and resources to hire and train candidates, the cost can be considerable.”
Has your organization lost revenue this year because of bad hires? If so, it may be time to take a look at your talent management system to see if it is contributing to the problem.
2. Inefficient Hiring Processes
As the global talent pool becomes increasingly limited, competition for top tier talent will intensify. Those organizations that keep an eye on the ball with a strong talent management system will be positioned competitively to identify and attract top talent.
Inefficient hiring processes, on the other hand, will take your organization out of the game. A talent management system that is not agile simply cannot compete. Your system should facilitate real-time response to talent needs, and enable you to forecast future needs as well.
It should include robust applicant tracking software, combined with in-depth insights into your talent pipeline. It should also provide an environment of collaboration, so that everyone involved in the hiring process across your entire enterprise can both contribute to and benefit from insights at every level.
Is your talent management system providing these benefits to your organization? If not, it is time to re-evaluate your needs and make a change.
3. Poor Onboarding Processes
Employee turnover has been listed as a top concern for talent managers today. The simple truth is that employee turnover often has its roots in poor onboarding processes. Starting new hires off on the right foot enables them to become fully integrated into your company culture and lessens the likelihood that they will jump ship in the future.
If your talent management system is not supporting your onboarding process completely, you are missing out on one of the key elements of successful employee retention. It may be time for a change.
4. Recruiting Team Frustration
Another solid measurement of how well your talent management system is working is the demeanor of your recruiting team. A strong talent management system provides your team with the support it needs to operate efficiently and productively.
How much time are your recruiters spending on repetitive tasks which could be easily automated with the right talent management system? How many times have you heard your recruiters voice concern about their ability to attract and retain the best candidates? Is your team working at maximum levels and still not achieving the results you need to see in the area of talent management?
If so, perhaps the problem is not in your team, but rather in the tools with which they are required to work. It may be time to invest in better talent management software.
5. Poor Organizational Growth and Lack of Innovation
According to the report “Talent Pipeline Draining Growth: Connecting Human Capital to the Growth Agenda“, 43 percent of the CEOs, CFOs and human resource directors surveyed said their companies have missed financial goals because of inadequacies in human capital management. Almost the same number, 40 percent, indicated that shortcomings such as insufficient systems, processes or management information have hindered their ability to innovate.
Is your organization falling victim to a lack of innovation and a stagnating talent pool? If so, it is time to take a realistic look at your talent management system to evaluate what role it plays in terms of stifling innovation and creating an environment which contributes to loss of morale and revenues.
The Bottom Line
The time for action is now. If your current talent management system is showing signs of ineffectiveness in attracting and retaining top talent, remember that delay is costly in terms of human capital as well as financial capital. Don’t wait. Contact us today to discuss your organizational goals and how ThriveTRM can help you achieve them.