CORE FACTORS IN TALENT STRATEGY DEVELOPMENT

 

An organization’s resource and talent strategy refer to the detailed approach by which the firm acquires, develops and retains the appropriate talent to achieve the firm’s ultimate goals and objectives. This strategy is influenced by internal and external factors of the organization’s operations. An effective talent strategy is vital to an organization as it ensures the alignment of its workforce with business objectives, driving both short-term performance and long-term growth. Organizations can build a competitive advantage in an ever-evolving market by strategically identifying, attracting, developing, and retaining the right talent. It fosters innovation, enhances productivity, and cultivates a resilient workforce capable of adapting to change.

A robust talent strategy also supports employee engagement and satisfaction, reducing turnover and the costs associated with frequent rehiring. Furthermore, it helps organizations respond effectively to external pressures such as industry trends, technological advancements, and shifting labour market dynamics, ensuring sustainability and success in achieving their mission. The two areas that affect the resourcing and talent strategy are internal and external factors. Here is a dive into what these factors are:

Internal Factors

Internal factors that influence an organization's talent strategy are within its control and directly shape how it attracts, develops, and retains talent. The strategic goals and vision of the organization play a crucial role in determining the required skills and expertise, with specific industries prioritizing different competencies. Company culture and values further dictate recruitment approaches, emphasizing traits that align with the organization’s ethos, whether through internal promotions or external hiring. Additionally, budgetary considerations impact salary offerings, training investments, and the size of the talent pool available to the organization.

The existing workforce demographics and skill gaps are key in assessing talent needs, guiding decisions around upskilling, training, or recruitment. Leadership style also plays a pivotal role, as growth-oriented leaders may prioritize aggressive hiring, while cost-conscious management may focus on enhancing the capabilities of existing employees. The technology and tools available for recruitment, training, and employee engagement shape how efficiently the talent strategy is executed, ensuring alignment with organizational objectives.

Policies and practices, such as those around diversity, inclusion, and flexibility, influence how an organization sources and retains talent. Employee engagement and retention rates are also critical indicators; high turnover or low engagement often highlight flaws in the current talent strategy and necessitate adjustments in recruitment, development, or employee support practices. By addressing these internal factors strategically, organizations can build a resilient and effective talent management framework

External Factors

External factors, which are usually beyond an organization's direct control, significantly influence its talent strategy. Market and economic conditions play a vital role, as downturns may restrict hiring while booming markets intensify competition for top talent. Industry trends, such as advancements in AI or sustainability initiatives, drive the demand for specialized skills, while labor market dynamics, including unemployment rates and talent mobility, affect the availability of skilled workers and recruitment strategies. Additionally, the regulatory environment, shaped by labor laws and compliance requirements, imposes constraints and influences hiring practices.

Technological advancements and competitor actions also impact talent strategies. Emerging technologies necessitate the development of new skills, compelling organizations to adapt through reskilling or recruitment. Meanwhile, competitor strategies in talent-scarce markets can pressure organizations to revise their approaches to sourcing and retaining employees. Socio-cultural shifts, such as increased emphasis on work-life balance, remote work, and diversity, further shape how organizations attract and retain talent, ensuring they remain competitive and relevant in changing societal contexts.

Globalization, demographic changes, and an organization’s brand and reputation are also critical factors. Access to global talent pools offers new opportunities for sourcing niche skills but introduces challenges, such as managing cross-cultural teams. Demographic shifts, like aging populations or the expectations of younger workers, influence long-term strategies for workforce planning. Lastly, an employer's brand and reputation in areas like ethics and work culture directly impact its ability to attract and retain top talent, highlighting the importance of maintaining a positive public image.

These factors require that industry experts are consulted and together with senior management members of the organization, an all-encompassing resourcing and talent strategy is designed, tested and implemented to propel the growth of the firm. A great strategy requires sufficient time to develop so its features are well thought through.

 

PAUL ANANG AMASAH

THE COLLEGE BUSINESS CONSULT

29^TH NOVEMBER, 2024

THE COLLEGEBC@GMAIL.COM