According to Manpower’s 2015 Talent Shortage Survey, 48 percent of American employers acknowledge that talent shortages have a medium to high impact on their businesses. Curiously, however, 20 percent of these employers admit that they are not pursuing strategies to overcome talent shortages. A Reality Check In a climate in which highly qualified candidates are increasingly scarce, it is imperative for organizational leaders to concentrate their efforts on attracting, engaging, and retaining top talent if they wish to remain competitive. It is in this environment that talent management becomes, not just a handy skill to have, but a mission critical function. What Talent Management Is Talent management is the process by which an organization plans for talent needs, attracts the right people for the right jobs at the right time, onboards for immediate productivity, and retains top talent. At its most effective, it is a function, not only of HR, but also of organizational leaders in all departments. Why Talent Management is Important The article “Why Talent Management is Fundamental” notes a compelling reason for organizations to be concerned with talent management, stating: “Know-how, innovation and experience constitute the main advantages that organizations can have over their competitors. The most talented employees drive these advantages. Therefore talent management should focus on the organization’s talent: the most skilled and experienced individuals. Attracting, developing and retaining talent is fundamental to a company remaining ahead of its competition.” Building a strong pool of talent is perhaps more important than ever before. The hyper-connected, global nature of business today means that many organizations are competing over a larger playing field than ever before. Talent management includes assessing the skills your VC firm needs to implement its strategy, as well as a plan for recruiting and managing the talent that will handle that strategy. Understanding the talent needs of your organization and filling those needs will ultimately be one of the most important factors in your VC firm’s ability to reach its goals and objectives and remain profitable. Talent Management a Part of Every Leader’s Job Description CEOs, CFOs, and CHROs are all key players in effective talent management. Why is that the case? Simply put, talent issues within an organization have a direct effect on the viability of business strategy. Just as proper utilization of finance and technology advance the overall objectives of an organization, so too proper utilization of talent assets have an impact on overall business outcomes. Thus, it falls within the job description of every leader in your firm to help attract, develop, and retain talent to advance business interests. The article “Talent Management: A Critical Part of Every Leader’s Job” highlights the importance of leaders embracing a “talent mindset”. It states: “A talent mindset is a deep-seated belief that having better talent at all levels allows your company to outperform its competitors. It’s the recognition that better talent pulls all the other performance levers. These beliefs give leaders the determination to strengthen their talent pool and the courage to take bold actions to do so. Leaders with a talent mindset make talent management a top priority for themselves and their leadership teams. They understand that it can’t be delegated, so they commit a major part of their time and energy to strengthening their talent pool and helping others in the company strengthen theirs. They see talent management as a central and critical part of their own job as a leader.” The Takeaway A scarcity of top talent and a need for your organization to make effective use of every resource, including its talent assets, make strong talent management mission critical in today’s competitive and increasingly global marketplace. VC firms that leverage the power of their talent assets reap a competitive advantage in terms of innovation, experience, technical know-how, and ultimately, increased productivity and profitability. To take advantage of all the benefits of a robust talent management system, contact us today to discover our solutions for VC firms.