For a CEO, one of the most difficult and important tasks is to hire truly great executives. I learned it hard way that there is no substitute for experience in hiring when I was a first-timer as an entrepreneur. I learned my mistakes only after hiring a lot of people and finally, I could hire my best executive.
What is the importance of talent management?
Talent management has become extremely important as there is a growing recognition that it can help to drive the performance of corporate. Though it may seem difficult to quantify the exact impact of talent management, hiring a strong executive team can ensure success for the companies, particularly startups.
I strongly feel that talent management remains a source of competitive advantage of a company as a talented executive can plan and execute the strategies better. A talented executive can create a positive work environment that can foster very good employee morale. Good talent management can lead to better productivity and also faster growth of revenue.
Why hiring top talent is a CEO's priority?
The management of the pool of talent of a company has become too important to leave with the Human Resource team alone. Now, it has become the top responsibility of the Chief Executive Officer. The CEOs of successful companies are getting more responsible for and more involved in the management of talent.
Now, as per my experience, the CEOs of highly successful companies spend more than 20% of their time on managing the talent. It does not mean that CEOs neglect the company's important activities and link talent management above all other activities. CEOs play a very important supporting role in managing the talent strategy of a company.
Why talent management is difficult?
The activity of hiring executives means meeting different expectations, a different set of skills and commitment of time. It is a very important task to accomplish success for the growth of a company. There are good reasons to find it difficult to hire good executives for a company.
I think the most obvious reason is that the hired executive may cause an immense impact on the prospects of the company. Secondly, the executive can have better skills than the CEO that can make it difficult to accurately assess a deserving candidate. Finally, a CEO can have a bias towards hiring and may recruit during an emergency that may lead to a selection of people having a strong recommendation.
How can successful talent management be carried out by CEOs?
Good talent management requires a comprehensive development program and it is not about a piecemeal program. It includes the identification of the leadership potential, evaluation of performance, targeted activities for development and job experience. Many CEOs undertake the role of mentors for the executives as can be the best way to leave a strong legacy. In my opinion, talent management should get linked with the overall strategic planning and deliver the quality and quantity of leaders that the company may require for future growth. Smart companies publicly recognize and reward deserving candidates with awards and promotions to foster an environment where talent can flourish.
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