We all know the importance of being able to identify, retain and develop talented people. This is a model that enables organisations to “nurture their own talent”, that promises numerous benefits and not insignificant cost savings. Tina Carrington, senior business psychologist at ETS plc, a UK HR consultancy and technology provider, asks why there are still organisations that over-rely on looking externally when hiring. Could this be just seen as an easier option?

Carrington emphasises the fact that it might seem rather unrealistic for a large organisation to advertise and recruit all its senior vacancies through internal recruitment. She does, however, say that if an organisation has the right processes in place, most could and should be able to fill a far larger proportion of such vacancies with internal candidates than they currently do.

 

Finding the right people

It is a fact that sometimes organisations really struggle to find suitable external candidates to fit their specific requirements. This can be for a number of reasons, one of which is talent shortages – particularly in more specialised sectors and job roles. And there are times when, even if the right candidate is found, he or she does not come cheap.

Carrington underlines the fact that recruiting talent is rather risky, as well as a costly business at the best of times. An organisation could find itself spending tens of thousands of pounds on recruiting and training an employee, who then leaves after a couple of months.

 

Looking inside rather than outside

There needs to be a clear business case for turning talent strategy “inside out”, which is needed in order to better identify and develop talent from within the business. The key lies in being proactive rather than reactive. Organisations should not wait for a vital senior manager to leave before giving some thought to a possible successor.

If it is done well, this change of approach enables an organisation to build a strong talent pipeline. Future top personnel will be more attuned with an organisation’s cultural values and be more in line with its business vision. With this in mind, the case for change is pretty compelling.

 

Identifying and developing talent

Regrettably, the talent challenge goes deeper than this for a number of organisations. A common problem is that many organisations are not even sure who their talent is. It is absolutely vital for every organisation to know exactly what talent “looks like”, especially in a particular industry, says Carrington. Consequently, the leaders of every organisation should think about what capabilities they need, what behaviour they should display and what values they embody.

Carrington suggests that every organisation should hold regular talent forums in order to identify key talent, flag retention risks and agree on development opportunities for individuals. This would also afford a good opportunity to discuss succession plans for critical roles.

By identifying the most talented individuals and where the organisation has talent gaps, a development programme can be used to address and begin closing such gaps. A 360o feedback is just one tool that can surely help to highlight gaps in key behaviour and capabilities amongst the talent population. This insight can be used to shape the content of development programmes for future leaders or those with high potential. Carrington further stresses the importance of ensuring that this is not a one-time process but one that is on-going.

Another area in which too many organisations are failing is that they are not offering appropriate development opportunities at different levels and/or grades. Carrington finds that numerous organisations identify talent well at junior levels but then lose sight of these individuals as they progress into middle management. One way of preventing this is by tailoring a development programme for these employees that will improve their current performance whilst also preparing them for senior management positions.

Mentoring is another highly useful tactic, although some executives might need convincing because it does involve taking time out of key people’s working day to offer guidance and advice to the next generation. However, it is a really powerful tool that helps talent reach its full potential.

It can be an equally beneficial experience for the mentor, as they too will learn how to interact with different levels and gain an insight into the challenges faced by more junior colleagues. This can prove a valuable developmental experience that increases the awareness of colleagues and improves their managerial skills. Furthermore, it could also be used as a retention tool for junior employees, especially at a time when organisations cannot afford to lose precious talent and spend more money on recruiting and retraining. 

 

There is no ‘one size fits all’

There is no right or wrong solution, or a ‘one size fits all’ approach when it comes to implementing a talent strategy. However, by implementing these suggestions and being able to look inside your organisation and at the various options available, rather than only at the outside, there are surely long-term benefits in cost saving, which will also ensure that you have an effective talent pipeline and succession plans in place.

 

Dulcie Brincat Peplow is a Researcher at the Foundation for Human Resources Development