Talent Management
Acquiring Talent - Approaches to Talent Acquisition
Effective recruitment and hiring is needed to acquire talent and remain competitive.
There are 2 ways of acquiring Talent - 1. Internally and 2. Externally
Would you be able to define talent management if someone asked you what it was?
And would you be able to explain why it should be a top priority for organizations?
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To individuals who want to develop their talent management skills ...
Advantages of Acquiring Talent INTERNALLY
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Demonstrate commitment
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Use existing knowledge
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Improves leadership retention
Disadvantages of Acquiring Talent INTERNALLY
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Requires setting up an effective development program
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Can be time-consuming and expensive
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Risks becoming too internally focused
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May fall behind competitors over time
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Risk losing talent to competitors
Advantages of Acquiring Talent EXTERNALLY
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Way of acquiring talent quickly.
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Can strengthen leadership team.
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Sends a message about important leadership behaviors
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Helps company remain competitive
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Forces employees to be competitive.
Disadvantages of Acquiring Talent EXTERNALLY
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Costly: May require higher salary
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Disruptive: Settling in process
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Risky: Unknowns about new employees
How to Select the Right Approach?
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The best approach depends on your company's situation and talent needs.
Factors outside your organization can also determine best approach.
Develop internally
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Large, functionally-oriented company.
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Long product development cycles.
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Predictable needs for talent.
Acquire externally
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Talent needs difficult to forecast.
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Lack scale and depth to develop competencies internally
Consider the four following main factors when determining whether you should acquire talent internally or externally.
1. Length of time you need the talent
If you know your organization is going to need specific talent over the long term, it's generally worth investing in developing that talent internally. This will result in more dedicated employees who are likely to stay with the organization. If the talent is needed only over the short term, it's better to acquire it externally.
2. Existence of a hierarchy of skills and jobs in your organization
If there's an existing ladder of skills and jobs that will enable employees to learn through development, it's appropriate to hire talent internally. If these skills don't already exist, it's better to look for talent externally.
3. Culture status
Bringing new people into an organization can affect its culture, because the new people bring new ideas and ways of doing things with them. So acquiring talent externally may be appropriate if you want to re-invigorate or change your company's culture. If you want to maintain your company's culture or if it's a particularly strong culture to which outsiders may have difficulty adjusting, it may be preferable to develop required talent internally.
4. Future predictions
If future predictions about a company's direction are uncertain – and it's therefore uncertain how long particular talent will be required – it's generally best to acquire that talent externally. If predictions are more certain, it may be worth investing in developing talent internally.