Coste del proyecto

Integration of talent management and its implications are the overriding theme in conversations among industry executives. It has become the new currency in human resources and is regarded as one of the fastest growing and most significant trends in HR technology (Coy, 2012). Talent management, like any other business solution considered “strategic”, should house all its critical data elements in a single system (Sumtotal Systems Inc, 2009). However, until a few years ago, integrated systems were non-existent. The HR department was structured to operate in silos with disconnected functions. Today, technology has enabled many HR activities to be streamlined and has provided effective, reliable and accurate means of access to data. Garr (2012) state that globalization of the workplace increases the need for connectivity between HR processes.

Sumtotal Systems Inc (2009) advise that in migrating to a fully integrated approach, the organization needs to create aligned processes, standardized competency models, job profiles, and complementary training programs so that all stakeholders are ready to use the integrated system. A complete coordinated talent management and development system that incorporates all elements involved in acquiring, assessing and developing talent enables organizations to take better control over their investment on talent. Garr (2012) state that integrated talent management provides organizations with a clear understanding of their talent, enabling them

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to make adjustments to its current approach and giving them the necessary information to plan for the future.

Integrated talent management entails connecting the various processes of attracting, managing, developing, motivating and retaining key people through a common interface and data platform and cross-process reporting and analytics. It is an innovative and holistic approach to talent management that enables organizations to respond effectively and flexibly to changes in the business environment (Garr, 2012). Integration involves understanding how the components of talent management come together. Ashton and Morton (2005) state that integrating and aligning talent ensures that strategies for managing talent are aligned to organization’s business goals and that all other functions relating to human capital management are integrated to create a talent mind-set.

Integration and alignment according to Stahl et al. (2012), involves instilling a mind-set in which TM is an ongoing process, and when implemented properly, it can assist organizations to develop an image that attracts and retains the best talent and bring to speed the productivity of new employees. Korn Ferry (2017) mention that a strong integrated talent management system includes processes for differentiating talent across several key capabilities. Coy, (2012) adds that the success of talent management does not reside within a single function or process; what is needed is a whole-system perspective. Accordingly, Dana Engorova (2013) states that various initiatives of talent management and HR activities, processes and systems need to be

interconnected and are most effective if they are fully integrated.

Garr (2012) point out that although integration takes time and resources in the end it pays off in its impact on the business. They make the point that as companies’ progress up the integration maturity ladder, employee turnover decreases, and as they move further up they become more effective at developing leaders, creating a talent pipeline of ready successors and establishing high employee engagement. Empirical research by the Association for Training and Development revealed that high performing organizations tend to integrate talent management components more than low performing organizations (Coy, 2012). Bersin & Associates also found a strong correlation between organizational performance and companies with mature integrated talent management systems. A survey of HR leaders by Softscape, (2010) revealed that organizations with fully integrated human resources and talent processes, systems and data tend to outperform organizations with less integration by 41% across a variety of HR business metrics. These organizations, as Garr (2012) notes, become adept at employee

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development, career planning and hiring great talent. Ngozwana and Rugimbana (2011) also note that integrated talent management optimizes an organization’s financial investment and the skills of its people. Moreover, it ensures that decisions about recruitment, motivation, development are taken with the best information. Softscape (2010) identifies the following benefits of integration:

• _{Improved internal talent mobility} • Lessened voluntary turnover

• Improved alignment of workforce to the overall business strategy • _{Increased workforce productivity}

• Faster on-boarding

Although talent integration has significant benefits for organizations, the reality is that most organizations still do not have integrated systems. HR functions in many organizations are fragmented. Garr (2012) note that talent integration is not an easy task and cannot be achieved overnight. They observe that about 60% of organization have two or more separate talent systems in addition to HRMS or employee data storage. Studies by Hewitt (2008, in Bwowe, 2015) revealed that, while executives attached great value to talent management, there was little or no alignment with business strategy, there were inconsistencies in execution, and integrated talent management efforts continued to fall apart. Their research revealed that only 21% of companies consistently integrated talent practices across the organization. The Project Management Institute (2014) also reported that talent deficiencies significantly hampered 40% of strategy implementation efforts.

Ringo et al. (2008, in Bwowe, 2015) argues that implementing and executing an integrated talent management system requires integration of metrics and analytics in all aspects of TM, providing mechanisms to support collaboration, accountability and placement strategies, and providing employees with better development opportunities. Accordingly, improving HR processes, data integration and technology to improve collaboration and cross-functional reporting and eliminate silos offers great benefits for business. Effective talent management solutions requires both comprehensive functionality and tight integration across functions.

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Figure 3-3 Talent integration maturity levels. Source: Bersin 2015.

Figure 3.3 shows the levels in talent integration. As indicated in the preceding section, Level 1 represents silo HR functions. HR departments originally undertook a collection of disconnected talent processes with no talent strategy in place to direct the organization’s talent management activities. This made it difficult for organizations to make holistic decisions regarding talent. Level 2 represents organizations which have made piecemeal attempts to integrate their systems through proactive management of talent relationships and a clear talent strategy to direct their talent management efforts. Level 3 represents organizations that have designated talent specialists to oversee talent issues who are responsible for systems integration and coordination and for ensuring that talent management goals were achieved. These organizations operate with a clear talent strategy based on careful analysis of their workforce. They are characterised by a strong culture of learning and inclusivity and succession planning. Level 4 represents a fully integrated talent management system aided by cutting edge technology. These organizations operate with a clear and well-communicated strategy and are characterized by a strong culture of diversity and inclusion. HR departments with a fully

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integrated system are able to provide accurate holistic data on human capital issues. The statistics show that many organizations remain at the low maturity levels and are not realizing the business benefits of mature integrated systems. Comparison of global, Asian and South American markets indicates that most are struggling to achieve full integration of talent systems (Deloitte, 2014).