Posted at 04.10.2018
Strategic Skill Management is a Real human Resource process where the air is to get the right people for the right jobs at the right time to achieve the expected results of the business enterprise.
In a time whenever there are constant technical changes and the increased variety of challenges, skill management is becoming very hard for businesses and therefore companies are in a frequent desire to entice the new and retain the old ability.
Talent management can be defined as "the implementation of integrated strategies or systems made to increase workplace efficiency by developing increased processes for getting, developing, keeping and utilizing people who have the required skills and aptitude to meet current and future business needs. "
The main aim of skill management is to develop and maintain a pool of labor force which is skilled, dedicated, and committed.
Talent Management Strategy
Helps to find the right people for the careers.
It can be an important tool for a business in the constant changing market.
Reduces the attrition rate of employees.
It assists with aligning the human resources with the strategy of the business enterprise.
It clearly points out the jobs and tasks of the employees.
Helps in training, development and knowledge copy of the labor force.
It reduces the result caused credited to immediate attrition.
Discovers the abilities of the employees and puts them in the right job.
It assists with the retention of employees.
A small to medium size processing company with an employee of almost 180 people composed of of 8 people in the management team, 60 people in the administrative and sales personnel and 112 people in the development. The company is experiencing a high labour turnover over the company, with lots of key personnel moving to competitors.
This study will make an attempt to make the SME in a position to manage its talent better and decrease the attrition.
Demand for Man Capital
The constant demand for human being capital to get a competitive benefit has turned into a key drivers for ability management. Talent management strategies hence focus on attracting, selecting, participating, developing, and retaining employees.
The employees of the SME are definitely more attracted to the pay and benefits provided by the company and its competitors and therefore the attrition rate is becoming high. Increasingly more employees are moving to other businesses for better pays and benefits. Here the most notable concern of the management has become the retention of old ability and development of new skill.
The Changing economy and Globalization
The transition towards an understanding economy has evolved the valuation and perspective of companies. Expertise is known as a strategic advantage for the firms. As there are fast scientific advancements there's a constant gap between your skills set of the employees and their work account.
It is very important for the SME to find and wthhold the right people. The worker base of the SME referred here is very small and hence it is vital that each and every worker is right for the work.
Longer Life spans
The ageing of the labor force means that the elderly people are working longer just because with their experience and therefore are retained by the organizations even in their retirement life years.
For e. g. The Home Depot targets having older staff and almost 16% of its workforce is above 50 years.
For the SME this is a big downside because it will complicate the workforce planning and boosts obstacles related to succession planning. It could also bring about mental differences because of the generational gap between your employees.
New Technology and Increased Expectations
The technology is growing with a fast pace and the employees also have to keep up compared to that pace to be able to fulfill their employers and meet their goals.
Key Business Strategies
The key business strategies also drive skill management in a big way. For e g a vehicle company will have to recruit talent which includes great technical competence.
The SME has an extremely small employee bottom of only 180 and hence every single employee is vital and higher attrition rate would definitely be detrimental for the business enterprise.
For occasion if the SME has 20 customers accounts which are handled by the 8 folks of the managerial staff, if one of the mangers steps to the competition he reduces the efficiency of the business by 12. 5% and increases the workload of the other professionals.
Since the SME consists of a very small management team if folks from the management go directly to the competitor businesses the SME are affected. You will see incorrect decisions if an effective management team is not there. If there is high rate of attrition ain the sales and administrative personnel the sales would come down and there would be situation of mismanagement in the supervision.
If the labour attrition rate is high then the production of the SME would drop and hence it would affect the full total profitability of the firm.
In order to recruit new staff the SME would need to do a lot of expenses in recruiting, training etc and again the profitability of the company would be influenced.
The known reasons for high attrition rate in the stated SME can be because of:
Scarcity of skilled and unskilled labour
Low image of the job
Unfair working conditions
The SME needs to focus on the introduction of their staff in order to be competitive in the market.
SME's prefer an informal management and people tool development process as compared to larger companies.
SME's have become more global in nature but their HR techniques are not.
Measuring the potency of skill management in a Small and Medium Business is a obstacle.
Recruiting expertise is a huge challenge.
Recruitment: Regular recruitment of the right people with the right ability who are fit for the work.
Talent Mapping: Deciding the type of talent is required to fulfil the needs of the business. Identify the skill gaps and load them.
Workforce planning and development: Completing the gap between your present state and the near future state.
Performance Planning and Evaluation: Evaluate the performance of each staff and plan the future according to that.
Retention: Usage of retention strategies can be made in order to keep the expertise of the business with the company.
This would include the following:
Job Information - deciding what is required for the job
Performance Management - Goal setting, measurement of performance, evaluation
Talent management predicated on the outcome of results
Developement of every person in the SME by training classes, competency development etc.
Coaching and Mentoring
The above model was utilized by a creation company and it helped it to a huge extent in controlling the attrition rate and taking care of talent within the organization.
Concluding out of this research we can say that talent management is very important for any SME since it affects the success and efficiency of the SME in a confident manner.
In the SME ability management and HR techniques are not given much importance and generally it resides within the hands of some individuals who aren't specialised in HR.
Talent management is not given much of an importance in smaller companies as compared to that of the bigger ones.
It can be said that the smaller the company the low the quantity of talent management is required.
SME's shortage HR expertise as compared to larger firms however they also have an good thing about dealing with the expertise on case by circumstance basis. Formalised management and skill management techniques can result in inefficiency and unsuitability to the employees because of lack of flexibility.
Talent management is immediately related to efficiency, success, innovativeness and reduced amount of attrition rate for the SME.
Talent management helps managers to plan their labor force, stimulate them, and keep them.
It assists with creating a ecological advantage in the data based economy.
Managers of the SME should take up training regarding the expertise management strategy. The greater knowledge they have the better would be the HR routines in the organization. Talent management brings a good impact for both workplace and the employee.
Managers of the SME will have to improve their forecasting skills. They will have to forecast their manpower needs as a permanent process and develop and coach employees consequently.
Training and development of each and every employee case by case would help the professionals of the SME to know the necessity s of the employees and what steps to take for his or her development and retention.
Identify and implement motivation strategies.