Why is it important for Small Business Owners to Focus on Talent Management?

talent management

By Jumpstart:HR VIP Intern: Noémi Cselényi

 

Effective talent management is one of the most important strategic business leverages organizations can have in today’s very competitive and uncertain market (Cappelli, 2008, Lockwood, 2006). Organizations can optimize performance and reduce costs by having a talent management strategy. In the ideal case, companies have a plan based on the forecasts regarding economic and demographic changes (such as the retirement of the baby boomers, the global workforce, skill shortages etc.) so that they will be prepared to answer these challenges (Lockwood, 2006). Successful organizations have a detailed talent management plan aligned to their business strategy (Lockwood, 2006). They have to consider the most important needs in their specific case, such as identifying the most important and rare skills needed for the organization. Hiring a highly skilled employee or a leader from outside can be extremely costly, therefore organizations should better prepare for internal hiring by having formal employee development and succession planning programs.

Since small businesses have only a few employees, more depends on their individual performance: there might be only one employee in a small business in one position. This employee’s performance will therefore determine the organization’s whole performance in that function. Also, if an employee of central importance, for example the only one who has some specific knowledge leaves, that will highly impact the organization’s ability to continue to work successfully. One another concern for small businesses is that the change of even one person on the managerial level can highly affect organizational culture.

Because of the above reasons, small businesses have to make sure that they select the best candidates and retain them. However, it is important to note that best might not mean the best performer. Cultural fit is as much, if not more important considering the large effect it has on retention. A small business is even more vulnerable to costs generated by turnover. The best option would be to find candidates who are both high performers and high fit, but if it is not possible, small businesses should carefully consider the opportunity to choose a lower performer but high fit candidate, since he might be developed to become a high performer.

After a small business has the talent pool they need, they have to make sure that these employees are engaged, feel valued and perform well. This can be done by creating a desirable culture, understanding the needs and motivations of the employees, and answering these needs. The organization should offer development opportunities to their talent so that they feel valued. However, as all businesses, they have to consider the costs of development and the fact that in the current market, there is high employee mobility, so they might leave before the investment would return.

Great emphasis should be put on employee loyalty to avoid turnover. Employee loyalty can be increased by having a desirable culture, high fit employees, performance contingent rewards, recognitions and development opportunities. In the most ideal case, organizations should assess their own employees’ needs. Additionally, small organizations should consider involving their talent in the planning of their career development and future opportunities to increase their loyalty and retention (Making employees your biggest asset, 2012). As in the case of all companies, talent management should be of central importance, communicating that the organization as a whole highly values its talent and the individual contribution they make (Lockwood, 2006).

To schedule a talent management consultation with Jumpstart:HR, visit our contact page.

References

Cappelli, P. (2008, March). Talent Management for the Twenty-First Century. Harvard Business Review, 86(3), 74-81.

Lockwood, N. R. (2006). Talent Management: Driver for Organizational Success. 2006 SHRM Research Quarterly. Retrieved from:

http://www.shrm.org/research/articles/articles/documents/0606rquartpdf.pdf

Making Employees Your Biggest Asset: Winning talent management strategies for small businesses. (2012). Addeco. Retrieved from:

http://www.adeccousa.com/Documents/flipbook/2012-talent-management-strategies/index.html

 

 

About Noémi:

Noemi Headshot

Industrial and Organizational Psychology graduate student at NYU. Passionate about talent, global human capital challenges and high-tech. Born and raised in Budapest, Hungary, currently lives in New York City. Loves the multicultural city, travelling and dogs. Connect with her on LinkedIn.

Report for 2012 Shows Significant Drop in Veterans’ Unemployment

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Source: US Department of Labor Weekly Newsletter

The unemployment rate for Gulf War-era II veterans — those who served on active duty at any time after September 2001 — fell by 2.2 percentage points in 2012, according to a report from the Bureau of Labor Statistics released March 20. The jobless rate for all veterans fell from 8.3 percent in 2011 to 7 percent in 2012. “While this morning’s report shows that we are moving in the right direction on reducing unemployment among America’s veterans, much more needs to be done to ensure that no veteran struggles to find work after serving honorably to keep us safe and secure,” acting Secretary of Labor Seth D. Harris said. The report is compiled annually by BLS to provide year-over-year data on veterans’ employment, and includes a supplement to the August 2012 survey that expands the collected data to include information on topics such as service-connected disability and current or past Reserve of National Guard membership.

Read the BLS Report
Read the Statement by Acting Secretary Harris
Learn About Veterans Employment Service

Learn About Jumpstart:HR Career and Resume Services

Meet: The Resumator 3000 [HRTech, Start-Up and STEM Spotlight]


Meet "The Resumator 3000" - An advancement in resume writing for college students. Created by students at UMBC.

Meet “Resumator3000” – An advancement in resume writing for college students. Created by students at UMBC.

We’re starting a new section on the blog that brings focus to HRTech, Start-Ups and STEM. If you have a product, start-up or technology relating to the fields of HR and/or STEM that you would like us to cover, email me at jprice@jumpstart-hr.com and I’d be happy to check it out!

 

In our first installment, I wanted to share with you a cool project by the name of Resumator3000 that students are working on at University of Maryland, Baltimore County. Now, as a University of Maryland, College Park alum (Go Terps!) I’ll admit that my friends at UMBC and I were friendly rivals, but it’s a new day and I really wanted to expose this fascinating group! Here’s the scoop:
Joey V. Price: What is The Resumator 3000 (and how did it get it’s name)?

 

“Resumator3000 is the name of our Senior Project at the University of Maryland, Baltimore County. Our project is a culmination of the education that we’ve acquired during the four years of attending the Information Systems program here on campus. The big idea of our project is to assist students with the creation of resumes for submittal to companies prior to graduation. Through our research we identified a weakness in the resume process that our product seeks to bolster and with proper follow through on our design should enable students to acquire higher close rates on job opportunities.

 

The name came to mind from the idea of 1950’s sci-fi and futurism. One of our members has this idea that we haven’t quite achieved the promise of flying cars, space travel and direct information download to human brains. So, in order to make everything seem as though it’s futuristic, all of his products have some sort of -ator at the end. Not sure that’s actually going to help make the promise of technological future speed up; but it’s fun and really if you’re not having fun while developing why the heck go through all the work?”

 

 

JVP: What problem/s are you looking to solve with The Resumator 3000?

 

 

“The key aspect of resume writing that we seek to solve is the creation of a first resume for folks who don’t have a ton of history. What most students don’t realize is that they are performing many valuable tasks which provide skills that are marketable. However, they don’t take the time to capture these details or don’t know how to format their resume in which to showcase these types of talents. Our system will assist in this process of collecting data over time and providing a method in which to leverage it for the creation of their resume.”

 

JVP: Who is the intended user and why is it beneficial?

 

“The initial intended users are college students. However, we do foresee an opportunity to grow with our initial users as they develop their careers. Ideally, we’ll be with our students throughout their careers; providing a method to keep their resume current, fresh and marketable in an environment that is constantly shifting.
We feel our service is beneficial to the user because all we intend to do is focus on the resume and data that drives a resume. We are not trying to be a social network. If we become successful in creating resumes that are of high quality and allow our users to land the job they seek upon graduation; then we will have done our job.”

 

JVP: What’s been your biggest challenge in the implementation process (and how are you overcoming it)?

 

“Since we too are students in the process of learning. It’s been difficult to understand what implementing a real project truly entails. While taking classes the process is broken into small chunks with examples that aren’t always clear as to why you would want to use such a system. When you have a real project that you’re getting into the nuts and bolts of; it opens a whole new perspective on the Software Development Process (SDLC). Overall, the process is an amazing construct in which to develop a system. All of us learn something new every single day; some of which was never discussed in classes.

 

We’ll actually start the coding process during the middle of April. We have some assumptions that the coding challenges that await us will be great. Although we are planning to a great deal of time in which to iterate through several designs and coding methods. Yet, if there is one thing to take away from the whole process is that you can’t plan for every possible way to fail. We hit walls all the time and take great pains into finding solutions that we never even thought of during our planning phase.”

 

JVP: What advice would you give to HS students interested in STEM in college?

 

“For any High School student, regardless of being directly involved with the STEM fields, we would recommend taking a class or classes in Computer Programming. Just to be exposed to what goes on behind the pretty interfaces that are presented to users. One of the most eye opening experiences one can have is to begin to realize that what is in front of you while clicking away on your computer is that a human being has been thoughtful, purposeful even, in the design of software that allows us all to connect, communicate and carry out our daily lives in a digital society. It’s powerful and all High School students should have some ability to code at a basic level.

 

Also, just for the record, work hard and learn as much as you can before getting to college. You will be exposed to so much new information that if you haven’t taken the time to understand the fundamentals of English, Math, Scientific Method, Critical Thinking, Problem Solving (really the basics); you’re going to spend a lot of time having to learn stuff that your peers may have mastered. Spend as much time as you can learning what you’re being taught now so you don’t have to do it all over again when you get to college. Believe us when we say that you’re going to have a ton of great new friends to meet when you get to college; don’t focus on being popular or a clown. The world that we’re getting ready to go into is highly competitive, it’s probably going to be even more competitive when you graduate in 4-6 years from now. The employers want smart people with skills that contribute to the success of their companies. You need to acquire those skills.

 

We’d highly recommend that anyone who is interested in their future to watch the video on http://www.code.org and start to work towards a better future for themselves – today.”

 

Meet the Resumator3000 team:
The Resumator3000 Team: Front (l to r): Nicole and Bethany Back (l to r): Cameron, Sabeeh and Joseph

The Resumator3000 Team:
Front (l to r): Nicole and Bethany
Back (l to r): Cameron, Sabeeh and Joseph

 

Connect with the team:

 

STEM Careers – Think. Learn. Create.

By Joey V. Price, MS-HRMD, PHR

httpv://www.youtube.com/watch?v=mlhbFsUVerQ

What to Do if Your Job Offer Is Put on Hold

what to do if your job offer is put on hold

I was recently asked by eFinancialCareers.com “what should a person do if a job offer is put on hold?” Here is what I shared:

If a job offer is put on hold, I suggest the following:

  • Follow up with a note of thanks that emphasizes the value that you add to the organization. Sometimes it helps to show that the ROI of offering you a job is more beneficial to the employer than the cost savings of not offering the job at all.
  • Suggest a temp-to-perm or contractor role on a trial basis. This is your best way to get your foot in the door. TTP and Contractors offer a direct cost-savings vs a full-time employee because they are not paid benefits and do not count towards an employers mandatory employer tax burdens. While this may not be an ideal way to start off, it secures income and allows you to perform on the job rather than not having the job at all. Consider it like one of those 30-Day Money Back Guarantees that we see so much on TV these days. Their risk is minimize and you can really excel if you save the employer while they are in a pinch.
  • Continue pursuing other opportunities. Until you have a firm offer, you don’t have a job. It is in your best interest to continue to pursue other job opportunities because you never know – something better may come along and/or the current offer may fall through.

 

Just as a bonus…

Why job offers are put on hold:

  • Hiring Manager is still unsure that you are the best fit for the job (or they may still be unsure about what they want from the person in the role).
  • The company is considering re-aligning internally and want to give their experiment time to catch on or not.
  • You have a snag in your references or background check (if this is the case then I suggest looking for a new position especially if they uncover a lie or some other misleading information about what you have previously communicated to them).
  • The company wants to wait until a new fiscal season to ensure budget allows bringing someone on.
  • Hiring Manager would like to see more candidates.

Don’t let another great career opportunity go to your competitor, check out these career services provided by Jumpstart:HR:

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