Talent Management Vs Performance Management

A company's human resource department is responsible for properly managing the company's human resources, which are its personnel. The human resource department of a company is responsible for talent management. They are responsible to for recruiting, hiring, developing, and retaining employees. The objective of the human resource department, sometimes known as human resources (HR), is to ensure that the company's personnel are properly managed, paid, and trained. The department is also in charge of Compensation and Benefits. HR functions in compensation include evaluating the pay practices of competitors and establishing the compensation structure. The compensation department is also responsible for creating job descriptions in tandem with department managers, as well as working with talent management on successful planning. Training and Development is another job role of HR Department. Providing them with all the tools they need to succeed such as employee orientation, leadership training programs,  personal and professional development, and managerial training. (Management, 2022)

 1.    Talent Management VS Performance Management

Figure 1: Talent Management Vs Performance Management

1.1. Talent Management

An organization should be future-ready by constantly upskilling and reskilling the current workforce while recruiting the capable and talented employees. Talent Management is a function of HR which ensure an organization has the right supply of talent to achieve the organizational goals ( Gurung, 2022). Talent management is all about the strategic process of attracting, developing, and retaining talent within an organization. Talent management is workforce planning for talent retention and execution, keeping the organizational goals in mind. It aims to secure talent and retain it. 

The talent management process consists of finding the right people and helping them discover and apply their strengths so they can work and lead more effectively. Employers who do it well generally follow these steps:

Figure 2:  Process of Talent Management

1.1.1. Recruitment and Selection

It's crucial to know the distinction between recruiting and selection. The term "recruitment" refers to the process of locating and encouraging eligible candidates to apply for a current or anticipated vacancy. The process of recruiting people from among the selected candidates and placing them in positions within the firm is known as selection. Employees are critical to every organization's success. When a person is well-suited for their position, the entire organization benefits from their unrivalled performance. Organizations use recruitment and selection to find the best applicants for open jobs. As a result, knowing the difference between recruiting and selection is critical for a business to avoid any losses (Sprigg HR, 2021).

1.1.2. Training and Development

Employee training and development are educational activities within a firm that are designed to improve employees' knowledge and abilities while also offering information and guidance on how to do certain duties more effectively. Training is a reactive, short-term procedure for operators and processes, whereas development is a continual, proactive activity for executives. Employees' goals in training are to learn new abilities, whereas their goals in development are to grow as a person as a whole. The management takes the initiative in training in order to meet the current needs of employees. Individual initiative is made in growth with the goal of meeting the future demands of the employee (Drawinbox, 2021).

 1.1.3. Employee Engagement

Employee engagement is the level of connection employee feel toward the organization and the work that they do. Its emphasis the commitment and dedication of the employees towards the values and organizational goals. When the employee engagement is high in an organization it increases efficiency, productivity and profitability of the organization. Organization culture, workplace environment, communication, trust, job security plays a major role to make employees feel about their workplace (Morrison, 2021).

1.1.4. Employee Recognition

Employee recognition is a key element of any successful organization. It could be defined as an ongoing process of recognizing employees’ talent and capabilities which helps for an organization to achieve their organizational goals and values. Showing appreciation to the well experienced employees enhance their efficiency in work and motivate their workforce. Studies show that when employees are recognized for their accomplishment and contribution, they are more engaged, more productive and remain with their employers longer. Through recognizing and awarding employees, employer can boost morale, increase productivity and improve employee loyalty which reduce staff turnover (HR, 2023).

2.    Performance Management

Performance Management is renumeration, promotions, discipline and development of employees. Performance management should be flexible in order to update objectives in real time and guide day to day. Hence, there are 4 main elements of performance management (Vulpen, n.d.). They are,

2.1.  Setting Expectations

HR Managers should set expectations to ensure employees are efficiently making an effort towards the organizational goals and values. When setting expectations work should be planned around in an achievable manner and it should be communicated to all the employees in a way where all could understand.

2.2.  Continuously Monitoring Individual Performance

In order to obtain better results in this process it is highly required to do regular review and feedback to the employees. Managers should recognize weakness and strengths of employees creating a better channel of communication in the process.

2.3.  Recognizing Outstanding Performance

Recognizing outstanding performance is a vital part of HR. In each organization there should be a workplace culture which emphasis high achievers for their efforts and an appreciation or reward is given. When outstanding performance are been rewarded it motivates employees and finally it leads to increase the efficiency of employees and increase the profitability.

 2.4.  Developing Employees’ Ability to Self-Evaluate

 While performance management is done with the involvement of the HR Managers, employees should improve themselves into a level where they could do a self-evaluation by improving their own work processes, applying new skills on the job and imparting their own understanding onto peers.

Conclusion

Talent Management and Performance Management are two similar human resource strategies which are essential for an organization to remain competitive. Talent management ensures you’re continuously nurturing and building a pipeline of highly skilled employees, both by developing the skills of your existing workforce and strategically hiring new recruits based on forecasting activities. Performance management creates a universal language on proficiency and excellence at all levels of the organization, which ensures that change can be more easily managed from the ground up.

References

Drawinbox, 2021. Drawinbox. [Online]
Available at: https://explore.darwinbox.com/hr-glossary/training-and-development
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Management, W., 2022. Paycore. [Online]
Available at: https://www.paycor.com/resource-center/articles/the-5-main-roles-in-hr/
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Sprigg HR, 2021. Sprigg HR. [Online]
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Gurung, P., 2022. Great Learning. [Online]
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Anon., n.d. Acron LMS. [Online]
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HR, F., 2023. Employee Recognition: 10 Ideas to Increase Productivity and Talent Retention. [Online]
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Management, W., 2022. Paycore. [Online]
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[Accessed 2022 December 2022].

Morrison, C., 2021. Everyonesocial. [Online]
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[Accessed 12 April 2023].

Sprigg HR, 2021. Sprigg HR. [Online]
Available at: https://sprigghr.com/blog/hr-professionals/what-is-the-difference-between-recruitment-and-selection/
[Accessed 30 November 2021].

Vulpen, E. V., n.d. What Is Performance Management? The Complete Guide. [Online]
Available at: https://www.aihr.com/blog/what-is-performance-management/
[Accessed 2023 April 2023].