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Free Talent Management tutorial, Human resources plays many roles in a company. The department manages employee relations, talent acquisition, payroll, onboarding, and much more. One more duty of HR is talent management. This is key to keeping your organization moving ever closer to its goals. Discover: What Is Talent Management? The importance of Talent Management Talent Management Model Talent Management Strategy Building Your Talent Management Strategy The Talent Management Process The 7 Steps of a Great Talent Management Process What Is Talent Management? Talent management is a constant process that involves attracting and retaining high-quality employees, developing their skills, and continuously motivating them to improve their performance. The primary purpose of talent management is to create a motivated workforce who will stay with your company in the long run. The exact way to achieve this will differ from company to company. Talent management in HR Talent management naturally encompasses many of the responsibilities of HR. All the same, it is not enough to expect that just because you have an HR department, you are managing talent. You need to have a talent management strategy in place designed just for your company to gain optimal results. The importance of Talent Management The simple answer is because it capitalizes on employees — arguably, the most important asset of your company. Talent management helps you maximize the value of employees. The importance of Talent Management Source: www.mckinsey.com As you can see from the graph above, there is widespread agreement that talent management is effective (or even very effective) at attracting and retaining talent as well as improving overall performance. There are a few main reasons why this is the case. 1. It helps businesses improve performance With top specialists in your organization, you can reach any goal. Image displays relationship between talent management practices and outcomes: rapid talent allocation, positive employee experience, strategic HR team and their effect on effective talent management. Source: www.mckinsey.com Talent management is most effective of all when it combines three key components: rapid talent allocation, positive employee experience, and a strategic HR team. 2. It allows companies to stay competitive By hiring and developing talented employees, your organization becomes stronger and better prepared to face changes and risks. 3. It drives innovation New technologies are always hitting the scene, whatever your industry. Talented employees are able to find ways to harness the capabilities of new tools and solve problems or come up with original ideas. 4. It helps form productive teams The appropriate talent management strategy will allow you to form a more productive team. This is far more useful than just having a bunch of creative and talented people in your organization. 5. It decreases turnover When employees feel valued at a company, when they know they will have plenty of opportunities to grow in the business, they are less likely to seek work elsewhere. 6. It leads to strong employer branding Talent management brands your company as an employer. This helps you to attract the best candidates for future hires. 7. It motivates others to grow Having inspiring talent on your team will motivate other employees and help them grow.