Financial Benefits of Talent Management  

The financial aspect of any organization is something that should be focused on. That is why in every move than an organization makes, it makes sure that it would not affect the financial status in a negative way. As much as possible, the effects should always be positive. One aspect that I can personally say as crucial in light of financial benefits is the process of talent management. Though not all organizations are aware of the importance of talent management because they think of it as something time and money consuming. Without them having to realize that in the long-run, talent management is so useful. These are different note-worthy ideas.

  1. A lot of organizations do not think of people management as an important aspect.
  2. A lot of workers may not adhere to the rules of works of business that are considered as capitalists.
  3. A lot of organizations are growing in terms of work, making their workers left behind in terms of capabilities, talents, and skills.
  4. Admit it or not, there will always be a number of workers who are not suited for the job that they working for.
  5. Workers may request or even demand changes in the way the organizations work, all for them to experience advantage at one point in time.
  6. Workers come and go. Loyalty is a rare find in the work industry nowadays since there would always be better opportunities waiting for the workers.

To sum up the notes, we could conclude three things existing in any organization. One is the lack of talented individuals to do the work, two is the fast and growing development of organizations, and the last one is the transferring of workers from one organization to another. All in all, these things leading to the adverse effect of an organization can be prevented, only if talent management could be employed.

The benefit could be summarized in one sentence, that is: the lesser the people going out of the organization, the fewer expenses will happen. In short, if you could hire people suited for the job, and they are willing to stay given the opportunities and privileges provided to them by the company, they will not easily transfer from one organization to another. Through this, the workers become better as the years go by and they will always be suited to whatever changes may occur. Unlike if the company hires new workers now and then, they will have to continuously invest with people with no assurance of them staying for long.

Remember that workers are also an investment. They are assets that you have to take good care of. So, talent management could handle that matter. Here are some of the facts about it.

  1. The more you hire new employees, the more your expenses will rise by about 30 to 60%.
  2. Training and seminars needed for the new ones would also entail additional shell-out of finances.
  3. The recruitment process paired with the difficulty of getting the right people to work not only financial resources but also time and effort.

All in all, the value of talent management is indeed insurmountable since people could be assured that things regarding hiring could be handled effectively and efficiently. Through this, there would be a higher chance for the organization to be established and secured regarding the financial aspect.

21 Comments

  1. One of the main problem of every organization now a days is employees retention. It cause a big impact in company’s financial aspect, from hiring, training, developing talents. Through the aide of Talent Management, it would give a big help to the company by saving cost: like advertising in hiring, cost of repeat training and developing more over it reduce turn over as well which that cost can be used to other projects or for employees benefits.

  2. Louie O. Canlas

    Financial benefit of talent management are very important in a company if they know the purpose of it in the long run. If they invest much on their employees and provided security in terms of growth and advancement on their jobs to effectively carried out their expected job directives. On the contrary, some company are afraid of investing money and time on their employees in the fear of that when they invested much and employees grew and developed competence they just prepare them for other company to bring the experience. However, if this happens to avoid this they have to build stronger bonds to employees that they are prepared for advancement in the long run for career ladder.
    Yes, I believe that effective Talent Acquisition contributes financially to the organization because they say that a company success depends on how they invest with their employees, once you invest on your people and they develop loyalty towards the company, the company will developed as well and will save the company’s money in the recruitment process.

  3. Ricky D. Jocson

    Yes. An effective talent acquisition contributes financially to the organization. Why? I agree on the statement that, the lesser the attrition rate of your company the minimum of expense you’ll incurred in Talent recruitment or acquisition. An organization must have an excellent strategy in managing their talents. Why use all your resources in sourcing out talents if you have already groomed and develop yours? Retention is not based only on how your employees performed or do the task but also it’s how you made them to give an excellent result. The most important on this role is on how you developed them after you selected them for a position or task. Our role does not only in hiring but readying them to become future leaders. On this regard, company will save much than to compete and offer high compensation and accepts demands of outside leaders. Acquiring leaders outside your organization is still risky, knowing that they come from other firms. Their are advantages and disadvantages on this, but the point is, we as leaders and or HR managers must bear in mind that how we handle our people reflects on our performance also. If you wanted to help your company especially on cost, train well and develop your people. If you wanted to help your people of having a stable job and become a future leaders, Train and Developed them. As a Manager or an HR Manager, and if you want to grow in your company? Grow your PEOPLE.

  4. Renato Vingno

    HR Manager plays a vital role in the company. The HRMO of the company are responsible in the strategic planning, decisions making and implementation for the company improvement and employee’s development. Another duties and responsibilities are employee’s recruitment and acquisition. This is a challenge for HR professionals because of decisive or critical responsibilities, especially in the success or failure of the company.
    Recruitment is the first opportunity offering with the HR personnel of the company to the qualify and talented individual for the specific job available in the company. The HR personnel will always a firm decision in selecting the best applicant to fit for the company’s need.
    On the other hand, talent acquisition is more specific to the employee career development and retention to the company. This is to secure that the chosen applicant will be more efficient and productive in the company.
    Furthermore, the employee satisfaction and performance is always depending on the HR personnel techniques and ability to manage people. They always on the middle side between the employees and the management of the company. It is always a challenge as HR professional on how to improve their employees and perform better for the company.

  5. GENIE MAE D. PANZO

    Talent acquisition is responsible for identifying ,acquiring and hiring applicant to fill the vacant position. The process should be strategic and effective to have a good return of investment in a long run. Effective talent acquisition can help reduce the expenses and definitely can increase capital position. First talent acquisition is effective,organization already established good reputation or employer brand.The sourcing of applicant is easy and fast at the same time the time and effort will be minimize. Organization don’t need to invest in other job sites platform in order to attract applicants. Just like in our company, they do job posting through campus bulletin yet they have a pool of applicants. They cut the advertisement expenses because they know already established good branding and reputation. Applicants look for them,not the other way around. Being this effective, organization can reduce cost in advertising can able to invest the money in other operating services.Second is effective talent acquisition can be found on tenured employees. The good effect on financial aspect is that they don’t need to hire and invest to new employees. New employees needs training and career planning in order to compete the demands of work. The cost of training will be reduce on tenured employees compared to the new one. Indeed effective talent acquisition can bring changes to the organization financial position. Time and effort should be poured out to acquire the accurate talent. It should well plan and formulate effectively.

  6. april rose balongo

    Yes. I agree that effective Talent Acquisition contributes financially to the organization. Finding and acquiring the right talent suited for the position saves time, effort, organization’s finances and other resources. Talent acquisition must refrain from hiring mismatch and wrong applicant to minimize employees turn-over. We know that high employee turn-over rate means expenses in every organization and a great waste of time especially if it is a key position. As emphasize by the article “the lesser the people going out of the organization, the fewer expenses will happen”. Training’s, which is an investment provided by the organization to its employees to develop and improve their skills will lose its purpose. Effective Talent Acquisition gives the organization more positive and acceptable results from its acquired talent who knows how to function successfully. Employer should remember that employees are the heart and center of every organization and their biggest investment in the business.

  7. ASHER G. CRISTALES

    In the world of business profit and survival is essential and must be one of most important aspect to be considered. Competent handling of talent management can help you achieve this basic business concept to be able to come up with the right positioning of business direction to bring you to progress and achieve what is the mission and vision of the company. Recruitment is one of the major role to select among the aspirants who is fitted in the position aligned in the long term planning development of the company/agency. In recruitment, proper evaluation, background checking of educational attainment, experiences, relevant training, skills and wok attitude must be done before hiring. In order to determine the right person to the right job that is relevant to the mission and vision statement of the company. The article above mention the possible implication to the company/agency in terms of financial and expenditure issues that involves in the process. If you miss the right talent in is a big loss to the company, because the company/agency return of investment is ruin. This is the most challenging roles and responsibility of any HR practitioner to select the most fitted talent to be able to drive the company to the right direction that can only be achieve by thorough understanding the complexity of talent management.

  8. Angel Mae Carlson

    Effective Talent Acquisition is the key to reducing high employee turnover. High employee turnover is not a good record for any company. This most likely means that employees don’t stay long in the company. Why? Well there are a lot of factors to consider but one thing is for sure, high employee turnover rates mean cost. Yes, continuously looking for replacements doesn’t just take time and effort but it also entails cost and investment. Where does this cost come from? It can be from boosting job applications on Facebook to the salary they received while working with the company. Especially for our company, for example since we deal with outsourcing of positions for clients abroad, if we hire a candidate we need to make sure they are dedicated because if the new hire resigns let’s say after a month the client will put effort again in training the replacement and at the same time it will cause a bad impression to the client. Later on, this might lead to pulling out of the client from the company due to dissatisfaction. Having an effective Talent Acquisition will help you reduce all these unnecessary costs occurred when looking fr replacements. More likely, the cost you’re spending for the replacement could have been the money invested in your tenured employees for the professional growth. Personally, I think money is better invested in the employees than used to pay for hiring of replacements. That’s how important effective talent acquisition is.

  9. Sarah D. Rodenas

    After reading the article, I’ve learned that as part of the implementation of talent management, managers should invest money for their talents. Managers should not think that investing money for the talents is very expensive for them because if talents were given enough training then they will be able to utilize their skills very well and then productivity will be evident from them. Thus, the company will be able to get more out of the productivity of the talents. It’s a give and take situation. The managers will invest for their talents and the talents will be able to give a good output or outcome from their works because they were already trained and their skills were developed. This is the financial benefit of talent management.

  10. Pearl Joy Ortiz

    Talent management commits to hire, develop and retain employees. It becomes costly for businesses if higher employment turnover occurs. As greater demand for talents globally, talent pool is shrinking. Lists of candidates becomes lesser. It will incur additional costs for companies to hire and train new individuals. Much difficult to handle if top ranking officers leave. Companies become less competitive in the global market.
    Talent management takes care of performance and compensation management where in, proper evaluation of employee’s performance for future promotions giving room for growth and making them stay for the company. An employee who felt valued will most likely to stay thus, costly recruitment/hiring process for new individuals will be avoided. Talent management reduces cost and time to hire, avoid mismatching of candidates, and improving quality of recruitment processes. Job ads and lengthy interviews can be costly. Hiring new employees has proven to be costly for employers, and greatly cost for executives and top level management. Training and learning acquisition as a matter of fact will incur additional cost for the company but it will give long term benefit of having wide talent pool. Having a strong workforce creates a positive culture and is often associated to revenue generating market value. Many recruiters today have been building highly qualified talent database for current and future demands in the organization.
    Every company’s desire is to grow. It is essential to ensure people management is being taken care of to avoid long term problems in the future.

  11. Mark Joseph N. Traje

    As mentioned, many know about Talent Management but only few understand its Financial Benefits.
    From the previous article it was discussed that Financial Management starts from Recruitment down to Retiring phase which means the more employees stays long to the organization the more effective Talent Management is and the lesser the expenses of an organization will be. This explains why there is a Financial Benefits to the Organization.
    In addition, to hire right individuals and to promote suited leaders would mean “savings” (in terms of monetary) to the organization and this will only happen if Talent Management if fully and effectively utilized.
    “People come and go” and “Loyalty is rare” both true and existing especially to the Industry I worked now. With the fast growing BPO Business here in the Philippines, competitions for Talents are tight and difficult. Employees tend to transfer from one company to another “Centre Hoppers”. This is because of options were present and most if not all organizations embrace that reality and never plan on how to retain their employees.
    Overall, many has given the chance to study about Talent Management but only few get to understand the Financial Benefits it will bring to an Organization.

  12. Jenny B. Barros

    The key of successful talent management is and always will be recruiting the right people for the job. High staff turnover cost the company money and is detrimental to an efficient operation and high productivity.
    In each company there are always staff that may be more suited to other positions there are at, so redeployment must always be an option to fill vacant positions and avoid high staff turnover. One of the key is to keep the staff motivated and properly compensated so they stay with the company. The other is to look at the competition and try to poach talent by offering them better career path than they have now. Finally growing company needs to secure, train and retain staff, specially key staff.

  13. Sometime we lost financial because we hire wrong person. Not only the financial but the time, because if we hire the wrong person we lost the productivity of the person we hire. If we hire the right one, they can work and produce good quality of works. That is why we need a talent management because they are the one who search for good talents. And we must have a good Job Description in order to have alignment for the needs of our company. We must disregard the personal endorsement of our bosses, because sometime they endorse the wrong person for that Job.

  14. Analie Joy A. Soriaga

    Talent Management ‘s goals includes hiring a potential candidate, honing and developing them and eventually bringing them to the top positions and retaining them long term.
    Achieving these goals can greatly help the company not only in the day to day operation but more importantly helps save a lot financially.
    I totally agree with the article when it stated that “the lesser the people going out of the organization, the fewer expenses will happen. If employees are retained, there will be less retraining needed since employees improves as the years go by and the more they stay, the more chances that they will be potential for the higher positions.
    Finally, if employees come and go in an organization, the company needs to start from zero, starting from recruitment/hiring down to spending costs for training and more. The more the company hires to replace an employee who resigned, the higher the expense.

  15. Irianne Teriz G. Chainani

    Realization must always comes first before its too late. We must all understand that its not all about quantity, its also about the quality. Financial security is a must for every capitalist or an entity. When the talent management fails in the realm of managing people then there comes the economic instability of a certain institution and burden are being put through to the management, finance department and decision making sectors. So as talent managers we must be quick enough to discover new methods of achieving goals for the benefit of everyone.

  16. Rodolfh D. Doruelo

    Financial is the big issue in the company because it is all about money matters, most of the organization avoid much expense that’s why most of them in the organization practices tight budgeting. But in other aspects, they can’t prevent especially if your job is to hunt or to hire most valuable employees. Likewise, we cannot deny that the perception or notion of management is all about money matters when it comes in the private sector they think only what is possible to have an income generating organization. So what is the possible solution to make the financial expense less, for me this article can be of help to those organization who have too many expenses and there is another way to reduce the financial expenses, first be practical, retain those who are effective and efficient in work and give them good benefits so that they will give their best services in the organization. Likewise, retrench those who are not capable to work and are liabilities in the organization. This will give the management lesser financial problems, second don’t hire too many employees; if the work can be done with one or two employees much better and last select those employees who need to improve their talents and skills, depending on your observation and recommendation. Which you think can help the organization and also to the management. Financial status can give different aspects in the management, the lesser the operational expenses the more they will become happy but the higher your expenses well, the management will not be happy anymore. So as Hr we need to balance this so that the management will not be affected by financial problems.

  17. Frances Anne Amantillo

    In the organization that I am currently connected to, we are now in progress of learning the importance of talent management is. Due to the high increase of our turn over, we are now currently experiencing talent war and also high expenses. Indeed, a full understanding of what talent management is a big help to avoid these challenges. I agree with the financial benefits stated in this article; less expenses for the company that has a low turn over rate, high expenses that has a high turn over rate. Engaging in talent management can be costly. It is like a business would invest in some programs for the training and growth of the employees.

  18. Mizpah A. Villamor

    Money has always been one of the factors affecting management decisions in any given company. Be it an ordinary small scale proprietorship or multinational corporation. At times if decision makers in a company or business are not guided, money would be a major consideration which would lead to sacrificing other areas of the organization like, Talent Management.

    Often times in an organization, when it comes to finances versus people, people would fall into the least priority. I say this was the case in the company that I worked for in the past. The company was so profit oriented that it sacrificed managing people to help them develop and become assets of the company. If only the top management of that company had considered the non-monetary benefits of employing Talent Management principles, they would realize that the financial gains outweighs the expenses.

    Being a regional director that supervises a few individuals, I am grateful to know and be reminded through this topic that people are assets to the organization that I am part of. It is important to take care of them, train them, mentor them and allow them to grow and do their best. This will give more advantage compared to the possible costs of training them. I encountered a post in a social media wherein a finance officer is asking an HR manager why they would spend money on training their workers, and what if these workers would leave. The HR personnel answered the finance officer, “What if we don’t train them and they stayed?”

    While money and financial standing of the company are always factors to consider, employing Talent Management may prove to give the more financial advantage in the long run. Invest in training people who may return your investment in folds you haven’t imagine that can extend not only in the business side but perhaps beyond that in what we call real relationships.

  19. Ma. Joyzel Ubal

    I would agree 100% with the article above on the financial benefit of Talent Management, with the good points presented on the benefits of having a good talent management program. I would cite one experience that I had with a company with only a handful of employees working. In the first couple of years of its establishment, they hired a hundred or more probationary employees to do the job but eventually as time goes by, the projects somehow decreased and so these employees were let go since they were not permanent ones. The management was wise enough to hold on to a handful of brilliant young talents to work for them and these young talents were honed and trained to master all the projects/accounts that the company has and eventually kept the company running smoothly. That time, the employees that were retained were young as the company as their first employment after graduation, the monetary pay for them was enough and the incentives were way better since there were only a handful of them. It was a win-win situation for the employees and of course for the company and it went on for a few more years where they would only hire 2 or 3 new talents when new accounts would need the assistance of the company. However, as time goes on, these talented people were somehow neglected by the management. They were not given an increase in pay, benefits were not given like medical, bonuses and the monetary incentives were removed.
    The company did not realize that these young talented people are aging and priorities change as they age as well as their needs to sustain their lives are also increasing. And so eventually, one by one these talented people had no choice but to seek for greener pastures, as they say, and had to leave the company. Now, even though the company is still up and running, management are struggling to find people who are talented enough to manage and lead the new breed of “millennial” workforce that they hired for the new projects of the company. One great example of the many benefits of having a good Talent Management program in the company.

  20. There is no hard and fast rule in talent management. Tge oros and cons of every management is based on the philosophy and objectives set by the company.
    Financial benefits of talent management play a crucial role in the company, since the operations rely on its financial status. Organizations and industries are growing at a fast pace, faster than the rate at which talent is produced, which is good at first, but in the long run, it gives an ill effect to the budget of the company.
    In the government sector like DepEd, the school has its Wirk and Financial Plan (WFP),based on Annual Procurement Plan (APP), which is submitted to divisiobs, Commission onAudit, where the budget of the school for the entire year is reflected. Any supplies or goods not reflected in APPs line item, will not be approved, and the end user must make an authority to conduct, approved by the principal in order to release the budget.
    The schools budget coming from
    Department ofBudget, (DBM) is reflected on its Maintenance abd Other Operating Expenses (MOOE) which is an allocated funds for public schools that can be spent on activities abd necessities that supports learning programs and help maintain a safe and healthy environment in schools, computed based on the number of students and faculty as well as buildings to be used for tbe said academic year.
    In accordance with RA9485, schools are mandated by the kaw to have a transparency board, posting all schol expenditures usibg the allocated funds.
    In relation to this, since DepEd git its budget from the National Government, it is not a problem as to financial benefits of the employees as long as complete and transparent disbursement of funds is being followed
    Finally, aligning progression, interests and talents of employees with one another can make progression planning abd talent retention easier abd more effective. By allowing employees to wirk in the sector where their talents and interest lie, you will likely establish better employee retention and see morale and enjoyment of work increase.

  21. Rustom M. Padios

    Talent management is not only beneficial for business in terms of having the most competitive talent but also when it comes to the financial management aspect of the business. Talent Management itself is an expense but once effectively and efficiently done will help business minimize additional cost.

    The first financial benefit of Talent Management Program is the minimization of cost when it comes to recruitment. If a company has a good image, the expenses when it comes to advertisements will be lessen. Company spends a lot of their budget advertising vacancy in newspaper, internet, websites, and other mediums; these can be offset if they are attracted to the applicants. To put it simply, applicant will look for them which means lesser cost and lesser effort. Secondly, there will be return on investment if talent management program is effective. To provide training to employees is very common, but training alone without reaping the return is futile. This is where talent management will come in, training should be given to employees but the management needs to make sure that the training will benefit the business in the end. In short, cost-benefit analysis is very important. The third financial benefit of talent management is the cost incur when it comes to replacing employees who are leaving the company and the loss in income in the delay of operation. If employees are not managed properly, they will leave the business and the operation will suffer. Losses will be incurred and the burden of looking for a replacement will come in. But with the aide of Talent Management program, the business will be able to foresee this and will have a backup plan in case this problem will occur.

    Talent Management must be constantly done so that plans and goals are carried out effectively. More than the financial benefits it will give the business, the continuity and viability of operation is also considered. Hence, talent management is imperative in any business operations.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.