Do you know the difference between Human Resource Management and Talent Management in an organization?
They both deal with employees but they are not exactly the same functions. The basic difference lies in the goals and objectives.
Also Read: HRCI Professional in Human Resources (PHR)
Human Resource Management is all about effectively attracting, hiring and then retaining the employees who for the company are its resources. HR is not a new function in an organization and has been around for many years. However, Talent Management is a relatively new niche inside the branch of HR. An effective Talent Management of an organization aims to reinvent talent in an employee to something bigger and better. Talent management aims to recognize the talents in employees, nurture it and manage it effectively. In simpler terms you can say that talent management targets to bring out the best in an employee, something that they themselves did not know existed or were aware of, but did not know how to utilize that specific talent.
Some major differences between the two similar yet unique business functions are:
- HR is a separate function in all organizations however Talent Management is a niche of HR and also linked with the other business functions of a company.
- HR is a more operational and administrative business function that deals in routine salary, benefits, policies and holiday calendars, etc. However, Talent Management is a strategic function that first requires the manager to identify a specific potential/talent in the employee and work with him/her on a personal level through feedback, training, coaching and mentoring to enhance and bring forward that talent. In easy words, HR is relatively simpler such as tracking attendance and Talent Management is more complex and detailed as it focuses on professional development.
- The main aim of HR is to identify and effectively hire that talent into the organization. However, Talent Management works with the employees already employed and brings out the best in them.
- As mentioned before HR is a completely different and separate business function and operates independently without any involvement from other managements. However, Talent Management albeit a branch of HR is linked closely to all other business functions in an organization. Talent Management requires all the managers, leaders and employees to work together and recognize talent or potential in an employee and effectively harbor it for the betterment of everyone. Most often the front line manager is the one who identifies talent in the employee due to close working with him and eventually, all business functions get involved with his/her talent development.
- HR has a different goal that it strives to fulfill, such as productivity and motivation of its employees and hence, a successful business. Talent Management focuses on nurturing hidden or apparent talents in an employee so that they can build a better career path for themselves. This may or may not benefit the company in the long term but it is hoped that the employee will be motivated to work at the same company that encouraged and cultivated his/her talent.
All said and explained, both business functions are equally important in today’s businesses. HR has been around for a long time and is essential in determining employee salary, benefits, holidays, training, and safety procedures. A respectable and well-working HR department is a huge motivating factor for new employees as they are assured that all their concerns will be answered and not go ignored. Also, this way, the organization will move forward along with its employees for success.
Talent management is now gaining momentum and importance and it is a critical business function. If the company does not identify and encourage its own employee talent, another company will and that company will reap the long term benefits.