What is the Difference between Talent Management and Human Resource Management? Detailed Comparison
Talent management is important for all organizations. In fact, you will find most of the company HR saying talent management in human resource management is one of their top priorities.
The terms Talent Management and Human Resources are always used interchangeably. However, they have different functions. In this article, we are going to learn about the difference between Talent Management and Human Resource Management in detail.
But before we move on to the differences, let’s understand what talent management means.
What is Talent Management?
Talent management is the strategy of a company associated with attracting, recruiting, retaining, and developing people. It includes the practices of the organization to several crucial facets of human resources-
- Compensation planning
- Performance management
- Learning and development
- Succession planning
- Workforce planning
Talent management is building a workforce and maintaining it to achieve your business goals. So, you find talent management in human resource management. It focuses on the systematic planned effort to attract, retain, and motivate highly-skilled managers and employees. They do this by cultivating a stable workforce thriving in the value system of the organization while filling the gaps with new skills and perspectives.
The talent management team develops various strategies to reach this goal. They work to create a strong brand for the organization that attracts strong and skilled candidates. It includes more than working with the HR department to work on executive leadership to formulate a strategy aligning the hiring, recruitment, and talent development with the goals and directions of the organization.
What is Human Resource Management?
Human resource management is the administrative part that delivers core HR requirements and services to the organization. The responsibilities include the daily operation of the human resource department and the process dictating every employee in the organization on a daily basis.
Each employee in the organization has to deal with HR at some point. It might be the interview, onboarding, training, or some personal problems that might arise within the office. So, the human resource department plays a vital role in the success of the organization.
HR managers have supervisory responsibilities in the HR department. But they work with other departments to recognize the personal requirements to help them identify the right candidate for the work.
HR specialists in the HR departments might focus on administrative and executive actions, such as creating compensation packages for all employees, maintaining safety and compliance policies, administrative benefits, overseeing career training, and proper employee data management.
Based on the size of the organization, job titles might go beyond human resource specialists and human resources managers to reflect the responsibilities held by the members of the HR department.
Talent Management in Human Resource Management
Once you know the difference between human resources and talent management, you will know why organizations are defining titles within a company. It can establish clear goals and set up the team.
Here are some of the key differences between talent management and human resource.
All things related to the people in the company are human resource management. it includes everything, starting from the total people to be hired to how to retain them.
Talent management, on the other hand, is the process to nurture, develop, and retain talent in the company.
Operations are the core function of human resources. It handles managing benefits, pay structures, holiday calendars, policy creation, and disputes.
But talent management recognizes the potential in the employees and works on them to improve them through training, reviews, or coaching.
Human resource is a separate business process. However, talent management is a part of other business activities and processes in a company.
The HRM processes in an organization are taken care of by the HR department and the management doesn’t interfere in this. On the other hand, talent management requires managers, leaders, and employees to work together and identify their potential, mentor them, and recommend training. They also review the progress they make.
- Ultimate Aim
The ultimate aim of HRM is to hire talent and make the best out of it to achieve organizational goals. But talent management concentrates more on making the most of the aspects of making the most out of them.
Bringing Together Talent Management and Human Resources
Strategy can drive execution. This is the relation between human resource management and talent management. Strategy in talent management can briefly define the decisions and actions taken by core members of the HR team.
But you shouldn’t take talent management as an alternative to human management. They are two different approaches to a single process. You have the choice to do one over the other. Every business needs to do both. So, you can say talent management in human resource management is an important thing for any organization.
For leveraging employee talent for optimum success, the most important asset of the organization and talent has to be integrated into the responsibilities and approach of the HR department.
In case it fails to do so, it can cause employees to underperform. So, the organization will be unable to achieve its goals. Moreover, the talent you recruited might look for greener pastures.
Don’t forget, if a company fails to identify and encourage its employees, other companies surely will.
What sounds simple at the surface is pretty complicated. Starting from recruiting to employee training is a part of talent management. Moreover, not having a blueprint of the success of talent management makes matters worse. So, the strategy that will work for a small diner might not be suitable for an IT firm.
Talent Management is Here to Stay
In human resources, people generally find trends thrown at them as the next big thing. However, it only gets replaced by the next big thing some years later. This is not the case with talent management in human resource management. It is the holistic people strategy that dictates an organization’s success. It will only make the impact felt in grappling times. In case you haven’t yet sat down with the stakeholders to formulate a combination of process strategy, structure, and technology to be successful with talent management, it is the right time to start.