Talent Management: Strategies, Frameworks, and Groupings for Future-Ready Organizations

Most organizations today are still grappling over the definition and goals of Talent Management, let alone the best way of implementing it. Generally, organizations feel the need to develop talent to build a robust organizational capability for future challenges. The decision on how to segment / classify talent is unique to each organization as it depends on culture, nature of business, diversity within the organization in terms of skills employed and future plans (How different is the future from the present). Defining Talent Management for a particular organization is the Human Resource Professionals consider the business drivers which will determine its purpose and hence its definition.

The focus of talent management efforts in an organization revolves around the business risks that are aimed at mitigating business risks and therefore which jobs and people are relevant to those risks.

While it is often the preference of management to treat all employees as, ‘Talent’ to be developed, it is nonetheless important to identify key groups which are critical to the organization or in the future. Smooth functioning of an organization depends on having a clear structure of responsibility and governance. It's crucial that senior managers, line managers, and HR professionals are committed to using these processes and have the skills and understanding to do so effectively. It is crucial that the organizations must talent that is capable of running and maintaining effective processes that are setup. As a part of the management, it is important to know the changes that we expect to see in the organization. This is where measuring of business impact becomes important. It just helps us in doing things like, helping the employees grow in their roles or develop them to fit in new roles.

In many organizations the definition of talent management and its processes is inclusive in nature, and it applies to all employees, under the premise that ‘everyone has talent’. Through this approach organizations target personal development for all employees by nurturing them in a culture of learning. This approach shows employee engagement with structured appraisals and reviews that leads to employee development plans. This plan can also be backed up with mentor support.

In a more exclusive approach companies also manage high potential talent. High potential here means those with potential for jobs at the top of the organization. A very select group of executive population is selected for Accelerated Skill Development in senior management role. Highflyers are identified amongst the core team. These individuals are groomed to fill future senior positions, ultimately to become a key member of the top management. Talent management aims at mitigating risk by developing leaders who not only have technical expertise to deliver projects and grow in line with the company’s strategic direction.

Organizations also place importance on establishing career direction i.e., relating to individual interests and ambitions. The company also deploys and mobilizes talent across different verticals to offer different career experiences and using its talent pool to fill key roles.

?A popular set of groupings is: ‘Core’, These are employees who are essential to the daily operations of the organization. They possess the skills and knowledge required for the core functions of the business. ‘Critical’, Critical employees are those whose skills and contributions go beyond the core functions. They may be specialists, experts, or leaders who play a crucial role in driving the organization forward. ?and ‘Scarce’, Scarce employees are those with unique and hard-to-find skills that are crucial for the organization's success. These individuals may be difficult to replace due to their specialized knowledge or experience. This provides a working basis on which to plan attraction, development and retention strategies are developed.

Another popular set of groupings is derived from the ‘9box approach’. This approach uses three levels of performance and 3 levels of potential, to classify each employee. The 9-Box approach involves assessing employees based on their performance and potential. It creates a matrix with three levels of performance on one axis (usually low, medium, high) and three levels of potential on the other axis (typically low, medium, high). The intersection of the two axes creates nine boxes, each representing a different category of employee. Groupings maybe different by organizational level, depending on what suits, the nature of the organization.

Talent pools are then defined according to the groupings agreed upon. Talent pools should be broader rather than narrower, to allow for career development and skills evolution. The decisions on segmentation/ classification need to be made in discussion by the executive team, and then a careful communication strategy must be developed to ensure transparency to all employees. Organizations use the 9-Box approach to guide talent management decisions, such as succession planning, development programs, and performance evaluations. It helps identify individuals who may need additional support, those ready for promotion, and those who may benefit from further development opportunities.

These frameworks provide a structured way for organizations to evaluate and categorize their workforce, enabling more strategic decision-making in talent attraction, development, and retention.