Talent management has a funny reputation: It's a practice reserved for large organizations with thousands of employees.
Well, I'm here to tell you that this reputation is off the mark. Obviously, large organizations need to manage and develop their people, but it is just as important (and sometimes even more important) for smaller businesses!
Organizations of all sizes engage in talent management in some way or another, but the threshold for a headcount when it's time to formalize and strategize around it is lower than you think. Organizations as small as 200 people can benefit from building out formal talent management systems.
So, talent leaders in small and medium-sized businesses, here are some reasons why it's time for you to start taking talent management seriously!
Streamline and simplify what you're already doing
The reality is, your organization is almost certainly engaging in at least some forms of talent management. You're providing feedback to employees, providing learning and development opportunities, holding meetings about employee performance ...but a rock-solid talent management strategy helps to organize and formalize those things. By implementing a true talent management system, you can free up time, make your processes more reliable, and codify all the HR best practices your organization aspires to follow.
Talent management allows your small org to punch above its weight
Just because your organization is smaller, it doesn't mean that your competitors are small. Every edge is required in order to stay competitive. By doubling down on managing performance and developing high performers, it gives your business an edge when going up against the bigger, badder competitors who might have a resource advantage.
The performance of one has a greater impact
Here's a scenario for you - let's say one employee is underperforming or doesn't have all the skills required to do their job effectively. If they're one person in a company of 5000 employees, the impact will be much smaller than if they're one person in a company of 250 employees. The smaller the organization, the greater the relative impact of each individual contributor, so it's important to ensure that your people perform at their full potential, stay engaged with their work and grow with the organization (and stay around long-term).
Hiring costs more for small businesses
Get this. According to Bersin by Deloitte research, across the United States, the average cost per hire is $3,976, with cost per hire varying by organization size, ranging from $3,139 per new hire within larger companies to $5,380 per new hire within smaller companies. And that higher number for smaller companies presumably takes up a bigger chunk of the monetary pie as well.
Talent management systems help here in two regards. First, a good talent management program will keep people engaged and, presumably, they will stay with the organization longer. This means that businesses will have to eat turnover costs less frequently. Second, a talent management system complete with a recruiting solution will reduce the cost of acquiring new talent, so you'll see your cost per hire drop.
Solidify your organization's talent management system
So how can smaller organizations adopt the best of talent management? Find out how Saba Software can help your organization transform your talent management programs and create value for your people and your business with Saba TalentSpace!