Talent Management and Succession Planning - taking a strategic approach

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In a fast changing, highly competitive business environment organisations are looking to people, rather than products or processes, as a source of differentiation. According to Dawn Robinson, Head of Learning and Development at Sage plc, "It is now recognised that human resources play a core strategic role, and they need to be managed to reflect this." Those businesses that can attract, develop, and retain talented people are, according to advocates of talent management, better able to create real and long lasting competitive advantage. There is however, increasing competition amongst employers for the best people, the so called 'war for talent'. 

"People are looking for much more from employers," explains Dawn, "a few years ago all that mattered was salary, package and location, but other aspects are becoming important."

As the population ages fewer young replacements are joining the workforce, and people of all ages are looking to create a lifestyle and career path that suits them. Employers need to offer more than just a job, they must provide a career path that enables people to develop the skills and capabilities they will need in the future.

This is where talent management comes in. It takes HR to the next level, where it becomes a strategic decision science, supporting the goals of the business.  And it is catching on, fast. A recent CIPD survey found while nearly 75% of respondents didn't have a 'well developed plan' for talent management, most are in the process of developing one.

Talent management is sometimes characterised as being about 'high flyers'. This should, however, more properly be thought of as succession planning which is concerned with the identification of future leaders. At Sage both activities come under the heading of talent management. "A proper strategy is not only about looking at people for key roles. You simply can't separate the two activities, which is why we have created a robust career development review process that encompasses everyone." explains Dawn.

A talent management strategy can also help when things get tough. "In the current climate, where organisations unfortunately have to make redundancies," observes Dawn, "the better understanding you have of your human resources, the better decisions you can make, both for business and the individual."

While Sage, like many other organisations, is focused on developing talent from within, it also needs to attract new people to the business. "We are competing with other organisations for the brightest and best people, and even in the current economic climate these people have choices. We need to make ourselves attractive as an employer," explains Dawn.

Employers increasingly need to create an employee focused offer that will attract the right candidates. A well defined talent management strategy can play a key part. "People want to know that they have an interesting career ahead of them, not just a job" says Dawn. "We've begun to concentrate far more on our brand and culture, rather than just the package," Dawn continues. "We have recognised that people are motivated and engaged more by the entirety of what an employer has to offer," she concludes.

But finding the right people also requires a strategic approach. "We need to warm people up, and promote Sage as an excellent employer so that when a role emerges, we know who to contact and they already know about us." explains Dawn. She has also been looking at 'top grading'. Put simply, it means not compromising when making hiring decisions, but waiting for people that meet specific criteria proven to indicate future success. "Top grading has been shown to work in some of the world's most successful companies" explains Dawn, "we look at how other successful organisations manage talent," Dawn concludes, "and we are working to be amongst the best."

Talent management is a strategic approach to managing the most important resource any organisation has. A successful strategy comprises a whole range of activities. "It's all about showing that you care about people's career progression," believes Dawn, "We have created a variety of development programmes to meet the needs of people in the business." 

And it's is not something that can be done piecemeal by individual managers, "Everyone must buy into the process, and feel that it is relevant to them and their career," says Dawn. "We've still got a long way to go at Sage," concludes Dawn, "but we are making enormous progress."

 To find out more about talent management and the Sage approach, visit www.snowdropkcs.co.uk/talentmanagement