Effective Talent Management Enhances Organizational Performance by 1.5x

A new research snapshot from McLean & Company, one of the world’s leading HR research and advisory firms, emphasizes that effective talent management (TM) better enables organizations to align talent practices with strategic organizational goals. The firm also outlines in the resource a four-step talent management framework development process for HR leaders seeking to affirm HR as a strategic organizational partner and enabler of transformation along their TM journeys. The number one priority for HR in 2025 is developing leaders, marking the first time in five years that recruitment hasn’t been at the top of the list.

However, to effectively develop leaders and internal talent, organizations must have effective talent management programs and practices in place. In response to the need for talent management support, global HR research and advisory firm McLean & Company has recently published a new research snapshot, “Develop a Talent Management Framework.” The snapshot is an efficient, easily consumable summary of the firm’s full TM framework research and serves to highlight critical research findings, benefits of effective talent management, and the firm’s four-step process for TM framework development.

According to McLean & Company, talent management includes programs and processes that support the evaluation, performance, growth, and mobility of employees within the organization. The firm’s resource also highlights that a talent management framework uses strategic-level inputs, including the broader HR strategy, to create a curated framework of talent programs with intentional connections between them. Organizations with a documented TM strategy are 1.5 times more likely to have high overall organizational performance.

Determine the Talent Management Objective

One of the first steps in developing an effective talent management framework is to determine the talent management objective. This is done by identifying key stakeholders and reviewing strategic documents to uncover talent management requirements. Creating a shared purpose for the framework that addresses talent needs is critical to ensure that different talent management programs are aligned. Grace Ewles, director of HR Research & Advisory Services at McLean & Company, emphasizes the importance of defining the shared objectives across programs to assure that cross-functional collaboration within talent management continues beyond the creation of the framework.

HR leaders need to consider the desired outcomes, potential differing needs across employee segments and demographics, and the benefits of creating intentional linkages between talent management programs. By taking these elements into account, HR can create a strong foundation for the talent management framework that supports the organization’s strategic goals. It’s essential that these initial steps are thorough to ensure the subsequent processes build on a solid base aimed at achieving long-term efficiency and effectiveness.

Assess the Talent Management Framework

The second step involves assessing the talent management framework to evaluate the effectiveness of current talent management programs. This requires a meticulous review to ascertain which programs need to be adjusted, maintained, or introduced. By evaluating the effectiveness of existing talent management programs, organizations can identify gaps and areas where improvements are necessary. This step also includes assessing the effort required for these changes to measure the impact on the organization.

This assessment is foundational since it allows HR leaders to understand the current state of their talent management initiatives and the resources that will be necessary to enhance them. Dedication to a comprehensive review ensures that the programs implemented are not only effective but also aligned with the strategic goals. Without this understanding, any subsequent changes may lack direction and fail to produce the desired results in optimizing talent management processes within the organization.

Aspects such as the effectiveness of talent evaluation processes, performance metrics, growth opportunities, and employee mobility must be scrutinized. HR leaders need to dive deep into data, gather feedback from various departments, and analyze performance indicators to ensure an accurate evaluation. Once these assessments are completed, it allows for devising specific strategies aimed at enhancing or introducing new programs that cater to the evolving needs of the organization and its employees.

Identify Connections in the Talent Management Framework

Identifying connections within the talent management framework is the next critical step, as it involves mapping critical milestones and assessing linkages between existing programs. This step is about creating a cohesive and integrated talent management ecosystem where various programs and processes are interconnected. Such interconnections ensure that efforts across different talent initiatives are not siloed but rather work in synergy to achieve the broader organizational goals.

By mapping these connections, HR can establish clear pathways for employee development, from onboarding to leadership roles. Prioritizing these linkages and creating a roadmap to address changes to the framework ensures that each step in the talent management process builds on the previous ones. This integrated approach helps in maintaining consistency and coherence across various programs while accommodating the diverse needs of the workforce.

Assessing linkages involves understanding how existing programs support each other and identifying any gaps that might hinder seamless talent development. HR leaders need to work closely with other departments to ensure that the integrated framework reflects the organization’s strategic vision and operational realities. By doing so, they can identify critical milestones, such as key promotion points or skill development stages, and ensure that all pathways are aligned to guide employees through a coherent and supportive career progression pathway.

Prepare for Implementation

The last step involves preparing for the implementation of the talent management framework. This step is crucial in ensuring that all planned changes, adjustments, and new programs are rolled out effectively across the organization. HR leaders must develop a detailed implementation plan, assigning clear responsibilities and timelines for each action item.

This preparation phase includes finalizing the framework, setting up monitoring mechanisms, and ensuring that all stakeholders are onboard and ready for the changes. Consistent communication and training may be necessary to help everyone understand the new processes and their roles within the updated talent management framework.

By carefully planning for implementation, HR leaders can drive the success of talent management initiatives, ensuring they contribute to the overall performance and strategic goals of the organization. This structured approach allows for smoother transitions, minimizing disruptions and optimizing the positive impacts of effective talent management.

Explore more