HR, here’s how to master talent management in 2024: Gartner

As we’ve entered into 2024, organizations are adapting to economic challenges, continued layoffs, and the emergence of generative AI, all of which is having a noticeable impact on how organizations retain the best talent.

According to a 2020 Gartner leadership survey, 82% of talent management leaders acknowledge the urgent need for improvement, particularly in attracting and retaining talent – it is clear that a critical shift is underway.

In response, forward-thinking companies are appointing Heads of Talent Management to reshape recruitment.

HR and talent leaders are facing some of the most difficult challenges organizations have seen for some time, with the compounding impact of financial constraints, the emergence of new technologies and a widening digital skills gap.

However, the underlying principles of talent management remain the same, and the key lies in embracing an adaptive, integrated strategy which focuses on engaging, retaining, and motivating employees effectively.

Businesses must address these respective challenges to thrive now, and into the future of work.

Addressing talent expectations in a competitive job market

While competition amongst candidates has intensified, the talent landscape has also become increasingly difficult as organizations struggle to find people with the right skills to do the job.

Consequently, one of the most important considerations for talent management strategies is recognizing that employees are not merely workers but individuals with unique aspirations and skills.

Attracting candidates is one challenge, but retaining the best talent is another, and leaders will need to focus on improving the employee experience and creating a well-defined Employee Value Proposition (EVP).

For example, pay transparency has emerged as a key employee expectation, yet only 40% of employees say their organizations are transparent about their pay practices, revealing a large disconnect between organizations and their employees.

Additionally, as Gen Z continues to enter the workforce, they also bring new expectations with them, most notably the expectation of rapid career advancement.

Organizations are struggling to meet unrealistic employee expectations of career growth and are meeting employees’ assumptions with alternatives, such as development opportunities and growth “experiences” in place of desired promotions.

This risks disappointing employees, who then become frustrated by the lack of career growth and disengage.

As a result, less than one in three employees agree that their organization is transparent about how quickly they can expect to grow in their career.

Leading organizations manage employee expectations by helping employees discover what is important to them personally and professionally by being open and transparent about the timeline and requirements for advancement, and by effectively managing the churn when some decide to leave.

Leading organizations thereby help their employees feel supported in their careers, which leads to greater engagement and intent to stay with their current employer.

The role of innovative HR tech

Another important consideration for talent management leaders is the advancement of technology in the workplace.

HR leaders play a pivotal role in evaluating the return on investment for new technologies, including generative AI, and navigating the impact on an organization’s workforce.

While the past focus for HR technology was to integrate processes using human capital management (HCM) platforms, leaders today will also use new technologies to improve employee experience and efficiency.

Importantly, in 2024, HR functions are ramping up investments in generative AI, positioning talent management processes as the experimental ground for innovation, with 81% of HR leaders noting they have explored or implemented AI solutions to improve process efficiency within their organization.

Large Language Models (LLMs) like ChatGPT are being explored to automate tasks such as creating job postings and drafting performance reviews. However, careful selection and implementation of technology are crucial for successful recruitment and retention.

Leveraging technology is not just a preference but a strategic imperative for successful talent management.

Transformative technology innovations, particularly generative AI, are reshaping how work is done and experienced.

Addressing continued employee burnout

Despite organizations’ best efforts to prioritize mental health, burnout rates remain high. According to Gartner, 44% of employees report feeling emotionally drained at work.

Organizations must do more than offer wellbeing resources, which help treat symptoms of burnout, and additionally work to uncover the root causes.

Burnout can often be attributed to overwhelmed teams, rigid processes, and trapped resources. To address these causes, talent management leaders must start by offering better support to their managers.

More often than not, managers are responsible for ensuring the well-being of their direct reports without having anyone look out for the managers themselves.

HR leaders must ensure that any initiative being offered to employees, for instance, meeting-free days, must also be offered to managers.

Heads of talent management must also look at the work itself is being designed to prevent future burnout.

They should work with their teams to identify problem areas – such as outdated work processes – that can be eliminated and make everyone’s job easier.

After identifying what needs fixing, they should equip managers with the tools necessary to help their teams reprioritize and stop doing unnecessary and unproductive work.

How to embrace all definitions of talent

For HR leaders in 2024, a pivotal shift involves expanding the definition of talent to foster inclusivity across diverse categories of employment.

Organizations are recognizing the integral role played by gig workers, contracted employees, and various other employment statuses in driving overall success.

This evolution encompasses a holistic evaluation of compensation and benefits, ensuring that every employee group receives due consideration.

The emphasis extends beyond traditional focal points, highlighting the significance of not only high potential employees, but also acknowledging the value of all workers, irrespective of their contractual terms or employment status.

It’s a call to redefine talent management strategies by affirming the importance of every contributor and debunking the exclusive emphasis on high performers and full-time employees.

This inclusive approach not only aligns with the principles of fairness and equality, but paves the way for a more resilient and a diverse workforce that can navigate the challenges of the modern professional landscape.

Skills must be top of mind

Business priorities and skills requirements are constantly changing, and this has made it increasingly difficult for organizations to deliver on their talent management strategies.

Many heads of talent management are considering a shift to skills-based talent management, focusing on skills proficiency rather than traditional qualifications.

This approach allows for greater flexibility in deploying talent and prevents critical skills from getting trapped in one area of the business.

Skills-based models focus not on the task, region, or business unit but instead on skills proficiency.

If an employee is proficient in a certain skill, they can work on projects throughout the organization where that skill is needed versus staying siloed in their area of the business.

This type of model encourages talent management to rethink how they staff projects or backfill positions as they know they should consider employees who have the right skills for the role, regardless of their current title.

A skills-based model can help organizations target critical talent segments when recruiting and expand their talent pools based on skills proficiency.

Moving forward

This year, organizations must take a proactive and adaptive approach to talent management.

It’s time to focus on addressing employee expectations, leveraging innovations in HR technology, mitigating burnout.

Plus figuring out how to shift to skills-based talent management to navigate the evolving landscape successfully.