In today’s post, our HR Business Partner Tom Sheehan shares the top mistakes your business needs to avoid when managing talent.
Talent management encompasses a broad spectrum of talent initiatives including workforce planning, recruiting, onboarding, performance management, development, succession planning, total rewards, and others. The goal of talent management is to create a high-performance, sustainable organization that meets its strategic and operational goals and objectives.
HR leaders play an active role in aligning the organization’s talent with its business objectives. Over the years I’ve seen six common talent management mistakes that reduce organizational performance.
1. Paying Below Market Value for Talent
When the demand for talent is high and the supply is low it can be very difficult to attract ‘A’ players. Often the candidate pool will be filled with those who are unhappy or already out of a job. When you pay below market value for talent, you tend to attract the wrong people, the ‘C’ or worse players. This will force you to make hiring decisions based on some of the most mediocre talent in the marketplace.
2. Maintaining a Long, Arduous Hiring Process
The purpose of a hiring and interviewing process is to identify the top potential prospects for a position. It should not be an endurance contest for the candidates. When the total hiring process lasts 2 months from start to finish, the organization will struggle to hire good talent. A good hiring process should last no longer than 3 – 4 weeks, any longer and good candidates will leave the process. Good talent will decide to stay where they are, they will find other opportunities to pursue and they will take other jobs. Make it a priority to keep your hiring process down to 3 – 4 weeks or less to insure you don’t lose the best talent.
3. Hiring Based on Interviewing Skills
Unfortunately, the majority of hiring today is based on the interviewing skills of the candidate and the personal chemistry developed during the interview process. The hiring manager often allows the personal chemistry with the candidate to influence and possibly drive the hiring decision. There are many individuals out there who are ‘professional interviewers.’ They can eloquently answer any question, explain why they got downsized and make it look like it was a promotion. Keep in mind, they are so good at interviewing for a reason, they have had lots of practice at it.
4. Lack of Defined Career Paths
When the goal is to hire top talent, it is imperative to map out the potential career path available, even if the path is dependent upon many variables. As long as the possibility exists, the position will hold a much higher chance of attracting the caliber of talent desired. This is not only important for hiring but also for keeping existing top performers from getting dissatisfied and happy with their career growth with your organization.
5. Not Interviewing When Empty Seats are Filled
It is often normal for organizations to stop all recruiting once their current open positions are filled. Not a good idea. With a low unemployment rate, there is a shortage of good talent. If you wait for the next opening to arise, you will slow future hiring to a crawl. Never stop interviewing for those positions which are most mission-critical or those with frequent turnover.
6. Tolerating Low Performers
GE made a practice each year of letting the bottom 5 -10% of the performers go in every division. The idea was to replace them with “A” players, thus continually creating an influx of strong new talent. It might feel good to have an organization where everyone is happy and there is no goal pressure. However, allowing poor performers to miss performance targets year after year has tremendous consequences. It conditions the company and the employees to accept and tolerate unacceptable performance and drowns the organization in a sea of mediocrity. Poor performance management and lack of employee accountability can degrade your talent level in a hurry.
Should you have any further questions regarding how to manage your talent, please call our Advice and Resolution team today at 919-878-9222 or 336-668-7746.