Module 3

TALENT MANAGEMENT: INCLUDING

PERFORMANCE MANAGEMENT AND HUMAN
RESOURCE OUTSOURCING

NANTIZA|MACABENTA|JAVIER
 Learning Content:
1 Definition and concepts of Talent Management

2 Talent Management Process Model

3 Talent Management Strategies

4 Performance Management Model

5 Human Resource Outsourcing

 TALENT
MANAGEMENT
WHO IS A TALENT?
A talent is a person who has the aptitude or skill to do
something well. In the business context, a talent would be
an employee who possesses the potential to drive
organizational growth.
 TALENT MANAGEMENT
Talent management is a constant process that involves attracting
and retaining high-quality employees, developing their skills, and
continuously motivating them to improve their performance. Talent
management is defined as the methodically organized, strategic
process of getting the right talent onboard and helping them grow to
their optimal capabilities keeping organizational objectives in mind.

The primary purpose of talent management is to create a

motivated workforce who will stay with your company in the long
run.
IMPORTANCE
OF TALENT 1 It helps businesses improve performance

MANAGEMENT 2 It allows companies to stay competitive

Talent management 3 It drives innovation

helps you maximize the
value of employees. 4 It helps form productive teams

5 It decreases turnover

6 It leads to strong employer branding

7 It motivates others to grow

TALENT MANAGEMENT PROCESS
The talent management process is how you organize the
management of your human resources. It is how you choose
employees, how you hire them, and how (or if) you train them,
motivate them, fire them, and so on.

Talent Management Process Model

The process of talent management could be considered to
begin with acknowledging the need for talent and leads to
filling that gap and ultimately growing and optimizing the skills,
traits, and expertise of employees.
Talent Management Process Model
 Talent Management Process Model

1. Planning: It involves identifying the human capital requirement,

formulating job descriptions for the necessary key roles to help
guide sourcing and selection and developing a workforce plan for
recruitment initiatives.

2. Attracting: It involves attracting a healthy flow of applicants from

usual external sources include job portals, social network, and
referrals. The talent pools that need to be tapped into must be
identified in advance to keep the process as smooth and efficient as
possible. This is where the kind of employer brand that the
organization has built for itself, because that decides the quality of
applications that come in.
 Talent Management Process Model
3. Selecting: This involves using a string of tests and checks to find
the right match for the job. Written tests, interviews, group
discussions and psychometric testing along with an in-depth
analysis of all available information on the candidate on public
access platforms help in gauging an all-rounded picture of the
person.
4. Developing: Helping employees to grow with the organization and
training them for the expertise needed to contribute to business
success such as an effective onboarding program, providing ample
opportunities for enhancing the skills, aptitude and proficiency while
also enabling growth through counseling, coaching, mentoring and
job-rotation schemes.
 Talent Management Process Model

5. Retaining: Most organizations retain their best talent through

promotions and increments, offering opportunities for growth,
encouraging involvement in special projects and decision-making,
training for more evolved roles and rewards and recognition
programs.

6. Transitioning: Focuses on a collective transformation and

evolution of the organization through the growth of individual
employees. This involves making each employee feel that they are a
part of a bigger whole. Providing retirement benefits, conducting
exit interviews and effective succession planning.
The 7 Steps of a Great Talent Management Process
(Talent Management Strategy)

These steps can serve as a strategy to find the most talented people
available and help them stay in the company.

1. Specify What Skills You Need

Determine what kinds of hires you need and what requirements

they should fill.
Consider if it would be possible to teach existing employees to
avoid the need to hire anyone new.
2. Attract the Right People 3. Onboard and Organize Work
Create targeted advertisements Help new employees feel
and post them on top job sites orientated by being ready for
Plan interviews and other means them as soon as they enter
to identify the best person for the the company.
job. Know what tasks you will set
Consider using personality them, have training sessions
assessments, references, and scheduled, and assign
tests that require candidates to current employees to support
perform in real-life situations. new workers settle in.
Hire your top choices.
4. Organize Learning and 5. Hold Performance Appraisals
Development
It is often easier to develop the Checking employee
skills of your current employees performance regularly to see if
than to hire new talent. workers could manage
If you do hire top talent, they additional responsibilities.
will likely want to learn It could save on hiring new
something in their new role. talent and may help an
Plan ways for workers to learn employee prepare for a
and grow, through conferences, promotion.
courses, and a learning
management system to create a
learning environment.
6. Strategize to Retain Your Best 7. Plan for Successions
Talent Nurture employees for
successions, such as for when a
Keep employees satisfied at senior member of staff retires.
work through promotions, Enable employees to perform to
benefits, motivating tactics, their best through continuous
ensuring job satisfaction, and learning opportunities, including
improving company culture. knowledge management.
If an employee decides to leave
the company, conduct an exit
interview to find out what went
wrong.
 Talent management helps you
Importance of Talent Management maximize the value of
employees.

1. It helps businesses improve performance

2. It allows companies to stay competitive

3. It drives innovation

4. It helps form productive teams

5. It decreases turnover

6. It leads to strong employer branding

7. It motivates others to grow

TALENT MANAGEMENT
STRATEGY
 Talent Management Strategy

A talent management strategy is based on the talent

management model. It should match your organization’s
goals and clearly define what type of talent you need. You
organize the talent management process based on the
talent management strategy.
TYPES OF STRATEGIES: STRATEGY #1: Hire Only Top Employee.

ADVANTAGES DISADVANTAGES
It’s expensive and will cost you
You immediately receive top even more if you end up needing to
talent. hire someone else.
It could be more difficult to retain
The employees will perform
top talent.
well and probably reach high
The hiring process may take longer,
performance faster. as you’ll probably want to select
You can grow your company from a wider pool of candidates.
faster. It can be challenging to manage
You are more prepared for team of top talent.
challenges and risks. Having too many top performers on
a team can lead to competition and
result in underperformance.
TYPES OF STRATEGIES: STRATEGY #2: Hire Promising Specialists and
Develop Them.

ADVANTAGES DISADVANTAGES
You can find talent faster. This Your company may grow
may be necessary if you are in slower.
urgent need for talent and have Compared to top talent, these
insufficient time to search for top hires lack of knowledge. This can
employees. lead to lower performance.
You will likely save money on You may need to hire another
salaries. specialist if the employee cannot
The employee has the potential to handle the role.
become a skilled and loyal It requires a larger investment in
professional. development.
You can hire two, or even three, The strategy may fail entirely,
promising specialists for the same and you’ll need to revert to
amount as for one top performer. option 1.
TYPES OF STRATEGIES: STRATEGY #3: Combine Strategies 1 and 2.

ADVANTAGES DISADVANTAGES
It gives you the best of both
worlds.
It also allows you to take If you have specific
advantage of a combination of requirements (such as you
new hires and existing talent. are in urgent need of
Having top talent and potentially growth or if you are on a
good specialists (e.g. young
employees) will help the
tight budget), sticking to a
specialists grow faster and single strategy may be
motivate them. more appropriate.
It leads to knowledge transfer —
top talent can teach other
employees.
 Conclusion
You need a strategy that is tailored to your business
alone. Only like this will you obtain and retain top talent
and gain a competitive advantage over other businesses in
your industry.
PERFORMANCE
MANAGEMENT
What is Performance Management Process?

The performance management process is intended to

create an ongoing dialogue between the supervisor and
employee. The Division of Human Resources and
Organizational Effectiveness recognizes the PCER (Plan,
Coach, Evaluate, and Reward) model for facilitating the
performance management process.
Performance Management Model

The performance management

cycle is a model that allows
management and employees to
better achieve organizational
goals through a structured
process of employee
development.
 Performance Management Model

PLAN: Performance Management begins when the

supervisor reviews the employee's position restriction,
communicates competencies, creates goals, and discusses
them with the employee.

COACH: The supervisor provides coaching and feedback

throughout the year to help their employees successfully
reach their goals.
Performance Management Model

EVALUATE: During the evaluation process, the

supervisor may rely on multiple resources, such as the
employee self-evaluation, performance notes created
during the year, accolades, and customer feedback to
assess the employee's performance.

REWARD: The supervisor recognizes and rewards

performance at year-end and during the year as
merited.
HUMAN RESOURCE
OUTSOURCING
What is Human Resource Outsourcing?

HR outsourcing is a contractual agreement between an

employer and an external third party provider whereby the
employer transfers the management of, and responsibility for,
certain HR functions to the external provider.
 Outsourcing
Outsourcing is a force behind the virtual organization
movement. Outsourcing is simply obtaining work previously
done by employees inside the company from sources
outside the company.
HR Outsourcing – Need
The following are some of the
needs of HR Outsourcing:

1. Enabling businesses to focus on core operations

2. Delivering cost savings – whether direct or indirect

3. Helping to create a stable, cost-effective operating platform

4. Transferring focus from internal processes to achievement of

business goals

5. Realizing investment in HR transformation and IT systems

6. Ensuring compliance with legal, regulatory and best practice

requirements, and vii. Transferring risk and liability for people
issues.
 Pros and Cons of HR Outsourcing
PROS CONS

Cost savings Increased risks

Increases efficiency Reduced contact
Assures compliance Limited
Focus on your core customizability
competencies
Get better hires from
a larger talent pool
HR Outsourcing –
3 Broad Types:

1. Application Service Provider (ASP)

2. Business Process Outsourcing (BPO)
3. Total HR Outsourcing
 HR Outsourcing – 3 Broad Types:

Type # 1. Application Service Provider:

A host of companies specialize in providing hardware and software
applications to support large organizations, including application
vendors like PeopleSoft, Oracle, etc. which have developed
application packages (PeopleSoft HRMS, Oracle HRMS), for
supporting human resource activities in an organization.

They install, customize and provide support for running these

applications. The major disadvantage with ASP is the costs
associated with application software. Secondly, the successful
implementation of the application software is doubtful.
 HR Outsourcing – 3 Broad Types:

Type # 2. Business Process Outsourcing:

The major difference between BPO and ASP is that in BPO, the
client is in direct contact with the employees through call centers or
support centers. MNCs generally opt for BPO as they operate in
many countries and employ a large number of people. While certain
firms wish to retain the power to control human resources, others
hand over the power to the service providers.
 HR Outsourcing – 3 Broad Types:

Type # 3. Total HR Outsourcing:

In this type of outsourcing, the entire HR function is run by the

service provider. There is no specific HR department in the
organization. The client organization only has senior HR
professionals who are also HR- strategists. A host of non-strategic
functions and employee contact is done by the service provider.
 Accordingly, the following processes can be
adopted for outsourcing a few of the HR services
from outside:
1. Hiring Services:

One of a company's most crucial decisions is the hiring

process, which requires special caution. It entails transferring
information to the organization through carriers, or employees. An
organization can save costs by using an outsourcer while still
receiving higher-quality services. The organisation no longer
needs to spend much time focusing on the people to be employed
because the agency hired will take care of that task since they
already have a database of available candidates.
2. Developmental Services:

An organization might engage an HR outsourcing provider to

support the growth and development of its staff members. A
corporation can assist its employees’ grow by exposing them to
the strategies used by other organizations, as many of them are
experimenting with new methods and technology to enhance
employee skill sets.
3. Performance Management:

There are three main levels at which performance is evaluated:

(i) the overall organizational level, (ii) the departmental level, and
(iii) the individual level. To assess the organization's performance
at all three levels, the parent firm may appoint an outside HR
organization. The outsourcer will provide a thorough and in-depth
report on the performance at both the departmental and overall
organizational levels.
An organization can learn from the practices of other
companies doing business in the same industry. The benefit of
such external sourcing of measurement format is that a company
can acquire the design of a successful company in the same
industry without spending much in its actual design.
4. Compensation and Benefit Management:

Compensation is an important part of the human resource

services which ensures supply of adequately skilled manpower to
the company and to its various positions. Unless the
compensation for various positions are adequate to remunerate
the qualification and experience that is required for the job, it may
fail to attract the right people for those positions and it will be
harder to retain such employees for long.
5. Reward and Incentive Management:

Rewards and incentives are used to encourage employees

to go beyond their call of duty. A good reward system not only
attracts the right kind of employees into the organization but also
encourages them to work in such a way that organizational
capabilities are maintained.
6. Specialized Consultancy Services:

Consultancy is a fast-growing service business in many

countries. There are specialized consultancy organizations which
collect, process, and sell such organizational process-oriented
information. With growing importance of process innovation and
risk in such innovations, the market for consultancy services is
certain to expand very fast.
7. Management of Employment Relations for Low-Level Jobs:

Apart from outsourcing of selective parts of human resource

management services, another type of HR outsourcing is
emerging as a new development where Company A allows
another Company B to manage its entire department or division.
Company B will bring its own employees in Company A premise
and supervise them while they are working there.
THANK YOU!