The terms Human Resource Management, Talent Acquisition and Talent Management are often used interchangeably, despite being different functions. Our guide will help you distinguish between these HR roles and learn how they work together to attract, hire, develop and retain skilled employees.
Here are some frequently asked questions about HR, Talent Acquisition vs. Talent Management:
- What are the disciplines of Human Resource Management?
- How do you define talent?
- What is Talent Management?
- What is Talent Acquisition?
- Why is Talent Management important?
- Why is Talent Acquisition important?
- What does a Talent Management team do?
- What does a Talent Acquisition team do?
- Are HR and Talent Management two independent operations?
- What role does HR play in shaping a Talent Management strategy?
- How can I build a Talent Acquisition team?
- Who is in charge of Talent Management at a company?
- How do I apply a Talent Acquisition strategy?
- How do I apply a Talent Management strategy?
- What is the difference between Talent Management and Human Resource Management?
- What’s the difference between Talent Acquisition and Recruiting?
- What’s the difference between Talent Management and Talent Acquisition?
- What’s more important: Talent Management or Talent Acquisition?
Human Resource Management (or HRM) relates to how companies manage employees, from recruitment to retention. The main disciplines of Human Resource Management are:
- Talent Acquisition/Recruiting
- Total Rewards/Compensation and Benefits
- Talent Management/Performance Management
Depending on company size and goals, businesses may choose to focus on some or all of these disciplines. Human Resources departments can be structured so that small internal teams focus on one field (e.g. training and development) instead of all HR employees handling every aspect of HR.
The word “talent” is often used to label good job candidates. But its meaning is subjective, vague and imprecise. Instead of using talent as a qualification in your hiring process, focus on assessing measurable skills and values. Start by conducting a skills gap analysis to identify your hiring needs.
Once you perform an analysis, write a skills-based job description and create a structured interview process. Then, simulate real world job tasks with assignments during your interview. Follow these steps to hire the most skilled applicant for the job.
Talent Management is the ongoing process of developing and retaining employees throughout a company. Talent Management professionals:
- Coach high-potential employees
- Deliver employee training programs
- Build hiring and succession plans
- Mentor, reward and promote employees
Talent Acquisition is the process of attracting and hiring skilled employees to fulfill a company’s business needs. Talent Acquisition professionals:
- Build a strong employer brand to attract the right candidates
- Proactively build applicant pipelines to meet current and future business needs
- Maintain relationships with past candidates for future opportunities
- Strategically source potential hires from diverse backgrounds
Talent Management helps companies engage employees and prevent turnover. With successful Talent Management strategies, companies:
- Identify internal candidates to fill key positions
- Increase retention rates through employee career-pathing
- Boost morale to keep employees motivated
- Coach and develop employees to help them achieve their full potential
Talent Acquisition helps companies build workplaces with skilled employees who drive successful businesses. With good Talent Acquisition strategies, companies:
- Transform recruiting from an as-needed function to a proactive hiring function
- Create candidate pipelines for future staffing needs
- Recruit diverse employees by sourcing candidates from various backgrounds
- Hire people who have the agility to grow beyond their role
Talent Management teams develop new and current employees’ skills, making sure they align with their company’s organizational structure and overall goals. They:
- Onboard new hires by scheduling first-day tasks and check-ins
- Conduct skills gap analyses and schedule training programs
- Design their company’s organizational structure and define each position’s responsibilities
- Prepare succession plans for future hiring needs
Talent Acquisition teams identify, attract and hire high-potential people. They:
- Work with hiring managers and executives to forecast staffing needs
- Improve the recruitment process by conducting candidate experience surveys
- Host or participate in recruitment events to grow their network of potential hires
- Source potential candidates to fill their talent pipelines through social media and Boolean searches using Google or other methods.
Talent Management is a function within HR, and HR attracts, selects, onboards, trains and evaluates employees. Talent Management comes into play as teams grow, when it becomes crucial to decrease turnover rates, retain employees and engage them to achieve bigger goals.
Both HR and Talent Management teams work together to train and develop employees. The HR department designs and implements policies that facilitate employee training and internal promotions, so that the Talent Management team is able to create development plans for staff members.
Managing talent effectively means being able to identify training needs and build succession plans. HR compiles key data that helps inform Talent Management (e.g. performance reviews, employee relations and exit interviews.) Working together, Talent Management and HR teams help employees develop within their careers.
Structure your Talent Acquisition team based on your company’s size and needs. Team members should be familiar with recruiting practices and also have excellent networking skills to build relationships with potential candidates online and offline.
Your Talent Acquisition team could include:
- Talent Acquisition Managers / Recruiting Managers
- Talent Acquisition / Recruiting Specialists (senior and junior)
- Recruiting Coordinators
Everyone is. While HR roles are responsible for designing career paths and organizing training programs, a Talent Management strategy requires company-wide participation. Team leaders should identify high-potential employees and address their training needs. Also, upper management should promote a learning culture throughout the company. Then, it’s the Talent Management team’s job (consisting of HR Generalists and Training Coordinators) to develop employees.
Plan your Talent Acquisition strategy around your goals. Consider your organization’s long-term needs. If you want to attract people with fresh ideas and perspectives, consider building internship programs for recent college graduates and entry-level employees. If you want to recruit more diverse teams, use blind hiring techniques. Keep in mind that nurturing relationships with potential hires takes time. The people you attract and recruit play an important part in your company’s future, so start your sourcing by participating in relevant networking events and interacting with passive candidates online.
Talent Management is not based on one-time seminars or annual performance reviews. It is systematic employee development that requires company-wide participation. To apply Talent Management strategies successfully, you should:
- Analyze what employees need to know to get promoted or take on more responsibilities
- Conduct skills gap analyses to identify employee training needs
- Implement regular feedback sessions to recognize employees’ achievements
- Train managers on motivation techniques and performance evaluation methods to better engage employees
Talent Management is a distinct function of Human Resource Management. HRM’s objective is to hire the right people and manage them effectively through thoughtful policies and procedures. Talent Management focuses on ways to develop employees by mapping out career paths and training programs.
Both Talent Acquisition and Recruiting professionals aim to find and hire qualified employees. A recruiter’s job begins with a vacancy, and involves sourcing, screening and interviewing skilled candidates. A Talent Acquisition team, however, takes a more proactive approach. They improve the company’s employer brand and network to recruit potential candidates. They also build pipelines to reduce time-to-hire and increase quality of hire for open roles.
Related: How to be a great recruiter
First comes Talent Acquisition, then comes Talent Management. Talent Acquisition is about hiring candidates with the right skills and potential to evolve at your company. Talent Management is what follows after a candidate is hired. It involves training and developing current employees, keeping them satisfied and engaged and preparing them to take on more challenging responsibilities.
You can’t have one without the other. Talent Acquisition is the process of attracting and hiring qualified people. Talent Management is how you develop and retain these skilled hires. If you attract and hire good employees but don’t invest in their development, you won’t be able to retain them or unleash their potential. Alternatively, if you want to create a training culture and build successful career paths, you need to start by recruiting skilled hires who are eager to learn and grow. So, it’s best to use both Talent Management and Talent Acquisition techniques in your HR strategy to hire and develop your employees.
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