Talent Risk an Issue of Concern
After a recent survey carried out by i4cp on the ability of HR to evaluate talents, a conclusion was drawn that for an organization to successfully accomplish they’re laid down objectives. The HR must keep growing in mind and possess these three skills:
- Possesses the skill set to match workforce data and business strategy to successfully detect areas of risk (59%)
- Must be able to carry out duties using the best talents (57%)
- Constructively enhance the impact of the talent into profit making for the organization (42%).
Talent risk is a matter of concern in present organizations. About 88% of top-notch organizations express their distress as regards to talent risk among their professional as well as technical experts as indicated by a survey carried out earlier.
The disturbing concerns for talent risk can be attributed to two principal explanations. First and foremost, businesses are beginning to accept the fact that we are in an era where the method of management and how the market operates is no longer inclined to the unpredictable changes occurring in the system.
Leaders are forced to re-evaluate the operational system of their companies as a result of these changes. This re-evaluation includes operational model, operating strategy, interaction with customers. For leaders to successfully diminish business risk, the issues of talent risk should be properly addressed because:
- People account for more than 50% of the business expense
- Talent risk have a great influence on the three major forces of business: time, money and quality
- It’s about gathering different data (the money story) to make better talent decisions
Secondly, an unmatched competition for talent is in the market today. The momentous number of individuals seeking full-time employment is at a remarkable level likewise the number of employment opportunities.
There is an outrageous demand for skilled talent whereas the number of talents with such skills is low, and here lies the problem. Since the numbers of highly skilled talent are few, they have the opportunities to decide for which organization to work for.
Issues related to talent risk is at an alarming rate hereby leading the National Association of Corporate Directors to implore board members to note that talent risk and strategy are linked, therefore consideration should be made and talent component should be implored in every strategic plan presented to the board. It has been discovered that only 45% of businesses maintain a structured process to address talent risk. A greater percentage of this process majorly addresses the issues of losing prioritized talents.
Talent risk management starts by setting up strategies to monitor such risk. Three major steps should be considered before seeking for a talent.
1. Identifying the critical and pivotal roles
- The critical role involves difficulty in acquiring skills and it’s a major contributor to the success of a business.
- The pivotal role involves flexibility in acquiring skills but also a necessity for the success of the business.
2. Analyzing the skill gaps for each critical and pivotal role
- What is the current supply for each skill?
- Will the demand for this skill in the future change?
- Does the organization lack the skills sought for?
3. Examining the talent risks and gaps that exist for each skill
- Who are the high performers for each skill? What is the secret to their performance? What measures can be taken to retain them?
- Which set of individuals perform better? What can be done to enhance their skills? In order to broaden their knowledge, what are the necessary resources needed?
- Who is still learning? What are the measures that can be carried out to hasten to learn?
After a talent mapping is conducted to detect the risk in the chain of talent supply, strategies development should be conducted so as to reduce the risk involved. Doing this means that a different and unique approach to talent acquisition, development of talents can be sustained. It is imperative to develop a measure to and set up strategies to best reduce or eliminate talent risk.