Performance management human resources Before we can discuss how important talent management is to a company we first need to define talent management. There are many definitions out there, but it can be explained briefly as developing, nurturing and retaining people with the abilities and aptitude to meet business goals. Managing talent is not something that a company falls into - it's a deliberate undertaking that can be advantageous to the company and each of the individuals within the organization. To begin the process, Human Resources must strategically analyze the current process and integrate the following: Recruitment - presenting the company so that the right people will be attracted and desire employment. Retention - initial a reward and support program for existing employees. Employee Development - constant learning and development. Leadership Development - development programs for employees with high potential. Performance Management System - feedback and measurements that nurture and support employee performance. Workforce Planning - keeping up with changing workforce; include older workforce and plan for future skills shortages. Business Culture - presenting a positive way of performing. Companies can benefit from developing and retaining the workforce they have and individuals can benefit from a company that encourages and develops them to meet their aspirations. A Performance Management System is vital to achieving the goals of both the company and the individuals. The specific needs are different for each company but the common elements include - Employee Development - focus on personal development and plans for formal and informal training. Salary Review - compensation can be linked to performance and review should be in the process. Personal Performance - related to tasks, responsibilities that can all be linked to compensation review. Business Performance - Individuals/Teams - track business goals as related to groups and teams within an organization. Organizations can save hundreds of thousands of dollars by not only retaining the talent that are already working for the company, but increasing performance of the same individuals by working with them and initiating a performance management system. If the employee feels valued and on a career path where they will personally benefit - production tends to increase and the employee is far less likely to seek employment elsewhere. Initiating a talent management plan can also be used to attract the types of employees that you want to join your organization. This process will enable you to learn what types of people work best in the organization; where improvements can be made and how to make adjustments as business and culture change. Performance Management System and Talent Management plan can work hand in hand to improve the overall environment of the organization. http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms for performance appraisal.