Talent management

There are many definitions of the term ‘talent’. We have developed a research-based definition for both ‘talent’ and ‘talent management’:

• Talent refers to individuals who can make a significant difference to organisational performance, either through their immediate contribution or by reaching their potential.
• Talent management is the systematic attraction, identification, development, engagement, retention, and deployment of those individuals who are valuable to an organisation, because of their potential or critical role. 

Organisations have different perspectives on their practical approach to talent management. Some focus on high-performing or high-potential individuals.  Others adopt a broader, inclusive approach covering all employees. This definition assumes that everyone has skills and strengths that can be developed and can benefit the organisation. Some take an approach that blends both perspectives: developing all employees, while prioritising a core group.

These definitions highlight that attracting talent alone is insufficient. Effective talent management requires ongoing development and retention, as part of a planned strategy.

The CIPD and Omni RMS 2024 Resourcing and talent planning report recommends:

• Taking a strategic approach to workforce planning.
• Removing barriers to work through inclusive recruitment. 
• Creating in-house talent development programmes to upskill employees in priority areas.

A strategic approach to managing talent will help organisations prepare for change. As automation and AI reshape roles, upskilling and re-skilling will become essential. 

A coherent talent management strategy directs investment in people and supports broader organisational objectives, including:

• creating meaningful work and growth opportunities
• building a high-performance culture
• promoting inclusion and diversity
• encouraging continuous learning
• strengthening the ‘employee value proposition’
• using people analytics for better decision making
• enhancing productivity.

An effective talent management strategy must align with organisational strategy if it is to deliver meaningful results. 

Workforce planning is the process of analysing the current workforce and future trends, determining future workforce needs and identifying the gap between the present and the future. Organisations can then create a workforce plan which will help them to prioritise talent management activities, such as:

• recruitment (talent acquisition)
• building talent 'pools'
• succession planning
• life-long learning
• leadership and career development
• performance management
• employee engagement
• employee retention.

CIPD members can find out more in our strategic workforce planning guide.

Involving the right people

There are a range of people involved in talent management, including managers, leaders, HR and those who are participating in talent development programmes. It’s important to include the right stakeholders in deploying a talent management strategy. Senior leaders and managers need to be actively involved in the whole process and make it a top priority.

Participants

Managers

Visible senior-level support for talent management is a must. Line managers are responsible for employees’ performance and for identifying and developing talent in their own areas. They should also be encouraged to see talent as organisation-wide rather than a local resource.

People teams

People professionals must guide and support the development of talent management approaches. Bringing their expertise, they can play a critical role in facilitating talent pools and programmes and in maintaining their momentum.

The ability to determine and select the most effective methods by which to identify, develop and retain talent is important. The talent management loop identifies six main areas of talent management: attraction, identification, development, engagement, retention and deployment. This can be a useful framework for setting out a talent management strategy. 

Attracting talent

An attractive employer brand and employee value proposition are important in attracting and recruiting new talent. Potential new recruits may be influenced by the public perception of an organisation, as well as its stated values. 

Identifying talent

This often refers to processes for identifying existing talent within the organisation. A robust performance management process is a way to identify talent early.

Succession planning helps organisations identify and prepare high potential employees for business critical roles or future roles.

Succession planning can include the development of internal ‘talent pools’ of individuals who could step into business-critical or new roles when they arise.  

Developing talent

Talent can be developed through appropriate learning and development (L&D) initiatives. Typical talent development activities includes coaching, mentoring, formal training, secondments and networking. Some organisations will run talent management programmes that provide exposure to real business issues and engagement with senior leaders. Talent development should align with learning and development initiatives. Find out more on learning and development strategies that align with business objectives.

Engaging talent

Employees who have good quality jobs, autonomy, clarity of expectations, and are well-managed, are usually happier, healthier and more fulfilled. They are also more likely to perform well. This mutual gains view of motivation and people management lies at the heart of employee engagement.

Retaining talent

Investing in development and engagement activities can help to reduce employee turnover and enhance retention. Reward (including pay and benefits) and recognition can also aid talent retention. Approaches to reward should offer a mix of rewards. It might include incentives and acknowledgement of an individual’s value to the organisation. More information is available in our factsheet on Reward.

Deploying talent

Deployment is using the workforce in the most effective and efficient way. Through workforce planning, organisations can identify skills gaps in their workforce, which can then inform learning and development plans. Talent can be deployed through job rotations, skill enhancement opportunities, formal learning, project work and secondments. 

The outcomes of talent management activities should always be reviewed to analyse return on investment. More information on this can be found in our talent management guide for people professionals.

There is also more information in our factsheets on people analytics and workforce reporting. Our Valuing your talent research programme provides a framework and further resources. These include a diagnostic tool to assess how organisations measure human capital. 

Ultimately, organisational success is the one of the strongest indicators of effective talent management.

Books and reports

Alder, M. and Dinnen, M. (2022) Digital talent: find, recruit and retain the people your business needs in a world of digital transformation. London: Kogan Page.

Collings, D.G., Mellahi, K. and Cascio, W.F. (eds.) (2019) The Oxford handbook of talent management. Oxford: OUP. 

Culshaw, T. (2022) Talent intelligence: using business and people data to drive organizational performance. London: Kogan Page. 

Frost, S. and Kalman, D. (2016) Inclusive talent management: how business can thrive in an age of diversity. London: Kogan Page.

Garg, A., Ahluwalia, K. and Levit, A. (2023) Deep talent: how to transform your organization and empower your employees through AI. London: Kogan Page.

Poczkowski, A., Mis, A. and Pauli, U. (2022) Talent management in small and medium enterprises: context, practices and outcomes. New York: Routledge.

Saling, K. (2024) Data-driven talent management: using analytics to improve employee experience. London: Kogan Page. 

Schlosser, F. and McPhee, D.M. (eds.) (2022) Global talent management during times of uncertainty. Bingley: Emerald Publishing.

Taylor, S. (2024) Resourcing and talent management: the theory and practice of recruiting and developing a workforce. 9th ed. London: CIPD Kogan Page.

Visit the CIPD and Kogan Page Bookshop to see all our priced publications currently in print.

Journal articles

Bonneton, D., Schworm, S.K., Festing, M. and Muratbekova-Touron, M. (2022) Do global talent management programs help to retain talent? A career-related framework. International journal of human resource management. Vol 33, No 2, pp203-238. 

Collings, D. (2018) Talent management: dispelling some myths. Human Resources. May, pp44-46.

Dries, N. and Kase, R. (2023) Do employees find inclusive talent management fairer? It depends. Contrasting self-interest and principle. Human resource management journal. Vol.33, No 3, July, pp702-727.

Kral, P., Richterova, M. and Kralova, V. (2022) Why does talent leave organizations? Talent retention of trainee program graduates. Proceedings of the European Conference on Management, Leadership and Governance. pp229-237.

Kravariti, F., Tasoulis, K., Scullion, H. and Alali, M.K. (2023) Talent management and performance in the public sector: the role of organisational and line managerial support for development. International journal of human resource management. Vol 34, No 9, May, pp1782-1807.

Kumar, S. (2022) The impact of talent management practices on employee turnover and retention intentions. Global business and organizational excellence. Vol 41, No 2, January/February, pp21-34. 

Murphy, A., Gaytan, J. and Endres, A. (2022) Effective talent management practices of small- and medium-sized businesses. International journal of applied management and technology. Vol 22, No 1, pp1-18.

Oppong, N.Y. (2023) The seven myths of global talent management: a reflection. Social sciences and humanities open. Vol 8, No 1, January.

Skuza, A., Woldu, H.B. and Alborz, S. (2022) Who is talent? Implications of talent definitions for talent management practice. Economics & Business Review. Vol 8, No 4, December, pp136-162.

Tusquellas, N., Palau, R. and Santiago, R. (2024) Analysis of the potential of artificial intelligence for professional development and talent management: a systematic literature review. International journal of information management data insights. Vol 4, No 2, November. Article 100288.

Ulrich, D., Church, A.H., Eichinger, B. and Pearman, R.R. (2023) Why talent management and succession bench building aren’t working today: at least not as well as they could! Workforce solutions review. Fourth quarter. pp33-37.

Wiblen, S. and Marler, J.H. (2021) Digitalised talent management and automated talent decisions: the implications for HR professionals. International journal of human resource management. Vol 32, No 12, pp2592-2621.

Winsor, J. and Paik, J.H. (2024) Do you need an external talent cloud? Harvard Business Review. Vol 102, No 1, January/February, pp108-117.

CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.

Members and People Management subscribers can see articles on the People Management website.