Talent management – is the annual appraisal due a performance review?
The role of talent management within organisations is under constant pressure. As the economy twists and turns and company objectives adapt to follow suit, businesses and their employees must be agile and collaborative in order for relevant new competencies and skills to be acquired. It is vital that employees remain at the centre of this shift as a shortage of suitable digital skills remains a key challenge for the UK job market, putting business growth at risk.
The future digital skills needs of the UK economy report estimated that 745,000 workers with digital skills would be needed to meet rising demand from employers between 2013 and 2017. However, the latest Confederation of British Industry quarterly trends survey found that the skills shortage is still a cause for concern. This means that digital and HR technology will need to play an integral role in addressing this going forward.
Tackling the talent shortage: providing regular feedback
One step towards alleviating the skills shortage is addressing the role of the annual appraisal. A cultural shift is taking place within modern organisations looking to adapt their talent management processes, which has resulted in a move away from the traditional yearly annual appraisal and towards an enhanced focus on continuous feedback. Annual appraisals for employees are not yet a thing of the past, but the frequency and formality of the process is adapting to suit the needs of the business.
The modern appraisal should be more involved than just reviewing an employee’s ability to perform the key responsibilities of a given role, which may not necessarily correlate with shifting business priorities. Rather, it should focus on setting short-term objectives, closely aligning employee targets with corporate goals in order to make the process beneficial for both the employee and the business. With company objectives constantly shifting, an agile approach to talent management will be key.
Company departments must become gradually more collaborative, and the IT department in particular will have an increasingly important role in the HR sphere. Businesses create a vast amount of data, and it is IT’s role to reconcile this information. The utilisation of technology can support the process of breaking this data down into valuable insights, which can then be used to enhance business decisions, for example, either upskilling employees, or re-distributing talent to departments that are in need of certain skills.
To find out more about how technology can help businesses manage talent in an agile and collaborative way, visit us at the HR Software Show.