Is Talent Management an Effective HR Approach?

Decent Essays

Talent Management is broadly defined as the process of ‘recruiting, managing, assessing, developing and maintaining’ a workforce (Khatri and Gupta et al., 2010). It is a practice that is directly related to the preservation and safeguarding of a company’s competitive advantage, a competitive advantage that is provided by an almost inimitable and increasingly scarce resource, talented people (Collings and Mellahi, 2009). In 1982 the Brookings Institution found that 62 per cent of average company value was credited to physical assets (equipment and facilities) and only 38 per cent to intangible assets (patents, intellectual property, brand, and, most of all, people), by 2003, these percentages had changed dramatically, with 80 per cent of value attributable to intangible assets and 20 per cent to tangible assets (Wellins, Smith, Erker, 2012). These figures provide compelling evidence for the significance of talent management and its ability to drive company performance. Talent management and its implementation has a growing fan base amongst HR professionals (ADP, 2010). Over the last five years there has been an emergent correlation between the use of talent management and greater share holder returns (Wellins, Smith, Erker, 2012). Organisations are all too aware of the need for talent in what is a ‘hyper- competitive and increasingly complex global economy’ (Wellins, Smith, Erker, 2012). People are often considered an organisation’s most valuable asset and resource, as such,

Get Access