The Impact of Talent Management on Organisational Performance

Human resource management has multiple roles and crucial functions to support organisations in achieving their business goals. Every decision that HR management makes must add value to the company’s bottomline. People are the most valuable resources of any business— without them then there’s no business to operate. Talent management is one department in HR management that handles the full scope of HR processes. Their main functions are:


  1. Identifying the vacant job position
  2. Attracting and hiring the right talents
  3. Developing and motivating employees
  4. Retaining employees


How do talent management’s functions impact the company’s bottomline? The goal is to increase organisational performance. Talent managers and their team have the responsibility to know and understand  the organisation’s business strategies and needs, not just specific vacant roles. This will help everyone gain insights on how the department can build a supportive HR strategy from hiring, training and retaining talents in order to achieve their goal. 


Happiness at work

Part of the talent management’s role is to facilitate employee experience. A positive and healthy workplace environment is one of the top reasons why employees stay. According to the UK’s 2021 Labour Force Survey, an estimated 822,000 employees suffered from work-related stress, depression and anxiety. Motivating employees doesn’t need to be difficult. But, talent management needs to put in  a lot of dedication and empathy to ensure that employees are happy at work. What are the characteristics of a positive work environment? 


  • Good work-life balance
  • Leaders and managers practices positive reinforcement
  • Encourages compassion, trust and respect
  • There is open and honest communication
  • Opportunities for career growth


How talent management impacts organisational performance

Talent management is significantly important to the growth of the business. With their well-defined functions and goals, they can help improve organisational performance and produce compelling results through the following areas: 


  • Productivity

    Employees feel a sense of purpose and find meaning in the work that they do when they are happy with the company and their colleagues. They become more efficient, which affects productivity in a positive way. There is a 12% increase in productivity when employees are happy.  In addition, employees who are highly engaged and enabled are 50% more likely to exceed performance targets.

  • Employee engagement

    Giving rewards and recognition to increase employee engagement has always been a part of HR’s strategy. However, it should not just be limited to it. Developing a clear onboarding process to create a great onboarding experience for talents makes a positive lasting impression. Global consulting firm Hay Group’s survey found out that 64% of applicants were discouraged with an unwelcoming office environment while 44% were turned off by unwelcoming staff on their first day at work.


  • Retention

High employee engagement improves retention levels. Talent management can attract applicants with a good salary and benefits package but they will likely leave if company culture, working environment and career progression fail to meet their expectations. An employee leaving the company can cost the business 33% of their annual salary. Moreover, hiring new talents costs an average of $4,000 according to Hyland. Reskilling and career advancement are some of the ways to keep talents and gain loyalty from them.


  • Profitability

    The result of a happy work environment with happy and confident employees makes the business more effective and profitable. Companies that embody a positive workplace can outperform their competition by 20%. Employers must realise that employee engagement is very important when it comes to their ROI. 


CXC is a global HR outsourcing organisation with 30 years of experience in workforce management. Our innovative and cost-effective solutions help companies gain a competitive advantage by improving efficiency while reducing risks

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