Tesco's Talent Management Approach

Introduction

Talent management is a strategy that organizations utilize to help them retain their current top-tiered and talented employees while at the same time recruiting other talented individuals. According to Sareen and Mishra (2016), the purpose of an organization utilizing effective talent management systems is to improve organizational performance. The process involves the effective hiring of the right cream of people, preparing new and current employees to fill up future positions in the firm, assessing and improving their performance while at the same time incentivizing them to stay in the firm (Kehinde 2012). Vaiman, Collings, and Scullion (2017) note that organizations have realized the value of talent management thus they are investing resources into the process to ensure that they get individuals who will fit into the company culture. A constant struggle that companies have had is the attainment and retention of quality and quantity talent that is needed to deliver on the organization’s strategic agenda (Vaiman, Collings and Scullion 2017). A study by PWC found that 70% of CEOs globally identified the lack and availability of talent and skills as a key issue limiting the growth prospects of their organization (PWC 2016). Therefore, this shows that talent management is a pertinent issue in an organization.The company whose talent management strategy shall be evaluated for the purposes of this study is Tesco. Tesco is one of the largest retailers in the UK with over 3,400 open stores hiring more than 300,000 employees (Tesco 2019). Given the size of the company’s operations, they need to recruit employees that will help them meet their strategic plans. As such, they try to reduce employee turnover, through effective talent management strategies. The firm’s current talent management strategy shall be evaluated, factors affecting the strategy shall be evaluated, and recommendations of how the firm can improve on its talent management strategy shall be made.

Tesco’s Current Talent Management Strategy

The fact that Tesco is one of UK’s if not one of the world’s, most successful retailers did not happen by chance. The organization has invested heavily in systems and policies that ensure the firm can recruit the best talent at the right time and for the right position while at the same time maintaining their current employees. According to Emerald Publishing Limited (2019), Tesco believes in hiring employees whom they trust at the “steering wheel.” That means when they hire individuals, they not only hire them so that they can fill a vacancy, but they hire individuals that they can trust to spearhead the organization’s mission, vision, and strategic goals. Therefore, the company has invested heavily in an effective talent management system that helps in reducing employee turnover while at the same time improving the cadre of employees that they hire to fill vacant positions.

As stated above, Tesco has more than 3,400 open stores which hire more than 300,000 employees. Due to that, the company needs to have proper recruitment strategies in place to ensure that vacancies do not remain unfilled for long. The company needs staff who can handle checkout, stock, supervise, work at distribution depots and many other job descriptions. The organization ensures that all the roles and job descriptions work in tandem to achieve the company’s business objectives. As such, they have to hire the right number of people, to fill in the right vacancies at the proper time. Positions within the company are created when the company opens up new stores or when they expand into new and international markets. In terms of recruitment, the company seeks to fill in many vacancies from within the company (The Times 2008). The company encourages its employees to work hard so that they can work their way up through the organization. When the company cannot find individuals within the organization who can fill in a particular vacancy, then they seek out individuals from outside the company who are qualified to fill the vacancy. Furthermore, when striving to fill the position from within the company a list of current employees who are looking to move up the organization or ones who are seeking promotion is generated from within the company (Business Case Studies 2019). The vacancy is advertised on the intranet for two weeks, and if there are no employees who are qualified for the position, then the company turns to external recruitment. In relation to external recruitment, the vacancies are advertised via the Tesco website, or they are placed on vacancy boards in stores (The Times 2008). Applications are made online, and the chosen applicants have an interview that is followed by attending an assessment centre to culminate the recruitment process. Additionally, the company sends out advertisements through television, radio and running advertisements on various platforms online. In relation to selection, the organization seeks to choose the most suitable individual from the applicants while at the same time ensuring that they adhere to the laws and regulations of the land. Candidates are first screened before they are selected and this helps to ensure that the candidates selected for the interviews are ones who best fit the requirements (The Times 2008). The screening process will involve evaluating a candidate’s documents to ensure that they have met the requirements for the job application. Afterwards, the client who best fits the job requirements and the one who will best integrate into the company’s culture is selected to fill the job. In terms of rewarding, the company has an annual appraisal scheme and the employees who have shown the greatest improvements are rewarded through bonuses and other incentives (Business Case Studies 2019). Managers and supervisors also play a role in the rewarding process since they are the ones who interact with the employees on a day to day basis. If a manager or supervisor notes that there are some employees that stand out, then they are prime candidates to receive a reward.

In relation to training and development, the company encourages employees and managers to work hand in hand to improve the process. The Times (2008) notes that at the beginning of an employee’s career they identify roles in which they would like to develop their careers within Tesco. After doing that, they set out targets, ambitions and training goals which they submit to their managers. For managers, they are required to identify technical skills, competencies, and behaviours that will be needed (The Times 2008). At the same time, managers are required to help employees develop training plans and targets that they would like to achieve at Tesco. Once the targets have been set down, training plans that will help employees achieve the goals and ambitions that they have set for themselves within the company are crafted. That does not mean that every employee has an individualized training and development program. The training and development programs are aligned with the overall goals of the company while at the same time seeking to help employees meet their goals and their ambitions. The overall goal of their training and development programs is to ensure that when vacancies open up within the company, the organization has a robust pool of internal employees that can fill in the vacancy. Tesco has a strong inclusion policy that bolsters the equality and diversity of its workforce. Tesco PLC (2018) notes that organization is committed to creating an inclusive environment in which individuals are welcome regardless of their race, gender, religion, nationality, culture, ethnicity, marriage, sexual orientation and political opinions and affiliations. As such, the company encourages people from all walks of life to apply for vacant positions when they open up. Moreover, since the organization has branches in other countries, its workforce is highly diverse, and it has people from all walks of life. The company has encouraged the formation of a number of unions. There is a Black Asian Minority Ethnic Network, Women in TescoNetwork, the Disability Network and the Out at Tesco (Lesbian, Gay, Bisexual, and Transgender and Intersex) Network (Tesco PLC 2018(. The purpose of these various unions within the company is to encourage equality and diversity. Additionally, the unions are in a position to air out grievances that they feel are affecting their particular group within the company.

Regulatory Factors Affecting Tesco’s Talent Management Strategy

There are a number of regulatory factors that affect Tesco. The key regulatory factor that affects not only Tesco but all multinational retail businesses in the UK is the EU Withdrawal Bill (The Telegraph 2018). Tesco has a number of branches in some European countries. The bill will affect their HR practices since advantages such as the free movement of people will be eliminated. Some workers moved from the UK to other European countries to work at Tesco. The company will need to ensure that those workers have work visas so that they can be allowed to work in those countries. The other regulatory factor that impacts Tesco and HRM practices, in general, are the labour shortages that are expected to happen once Brexit is finalized. Some employees that work at Tesco are of European origin. Once the deal is finalized, it will be harder for them to work in the UK and some of them will need to go back to their countries. This will cause a shortage of labour and a reduction in qualified personnel that can fill the vacancies left in the company (Twidell 2017). The other regulatory factor that affects Tesco is the Equality Law Act. The law states that it is unlawful for a company to discriminate against an individual on the basis of age, gender, religion and belief, and sexual orientation. As such, Tesco is required to hire individuals that come from all walks of life to ensure that they do not violate the Equality Law. In 2016, 17 Tesco workers took legal action against the company stating that they felt that they were discriminated on the basis of their age and their gender (Farooq 2019). Since then the company has endeavoured to structure their HRM practices in a manner that will encourage diversity, equality, and inclusion within the company.

Environmental Factors Affecting Tesco’s Talent Management Strategy

There are a number of environmental factors that impact Tesco’s HRM practices. One of the environmental factors that affect Tesco’s HRM practices is the effect of their competition on recruiting (Benjamin 2019). Tesco’s recruitment policies are geared towards employing the best people to fill in the vacancies in the organization. At the same time, their competitors are seeking to hire the same people to fill in the vacancies at their organizations. Therefore, Tesco has been forced to develop HRM practices that will lead to the best people being hired for the job. Additionally, the HRM practices developed within the company have been created to make Tesco the better choice when a candidate is presented with the choice between two companies. Moreover, the HRM practices have also been developed to incentivize current employees while at the same time reducing the employee turnover rate within the organization. The other environmental factor that has influenced the HRM practices within the company is that of labour supply and compensation (Benjamin 2019). As stated above, when the EU Withdrawal Bill is finalized labour shortage in all sectors including the industrial sector is expected to occur. The expected labour shortage guides the HRM practices in Tesco which at the same time has improved their compensation practices to incentivize current candidates to consider the organization as the best place for them to work. The key internal environmental factor that influences the HRM practices of the company is their commitment to promoting from within (The Times 2008). Before externally recruiting candidates to fill in vacancies the company sources for individuals within their own ranks. As such, the company has laid out HRM practices that encourage employees to seek to be promoted within the organization. Tesco has also invested heavily in the training and development of its employees. That ensures that when a vacancy opens up within the company, there are sufficient individuals within the company with the expertise to occupy the position. Moreover, internal recruitment is better than external recruitment since the employee is already exposed to company culture; thus, they do not need an adjustment period. Therefore, those are the environmental factors that guide the HRM practices within Tesco.

Literature Review

The Literature Review section will be divided into various sections based on the recurrent themes in the literature.

History of Talent Management

Over the years there has been a consistent rise in the importance of talent management. McDonnel et al. (2017) note that the rise of Talent Management is attributed to the McKinsey Group which tabled the war for talent agenda. McKinsey expressed great concern about the supply of human talent which they considered to be the most important corporate resource. There was a big demand for human talent, but the supply was too little to meet the demand. Moreover, organizations were struggling with finding ways which they could use to retain the talent in their company and reduce employee turnover. Beyond retaining key staff, businesses were also struggling with finding means through which they could attract talent. Talent management seemed to the answer. Talents management was the means through which organizations could keep their current talented staff while at the same time attracting new talent to the organization. Human talent started being considered as a key pillar for the success of the organization. KPMG (2012) carried out a survey of 418 international executives, and they found that eight out of ten executives agreed that an effective talent management strategy is a key organizational pillar for the long-term success of the company. The issue of talent management is affected by the question of the supply of talent. According to McDonnel et al. (2017), the issue of supply of talent is due to the changing demographics in the workplace. The current workforce is ageing coupled with reducing birth rates in many developed countries. The reasons are compounded as globalization continues to expand and there is a rise in “knowledge workers” (Guthridge et al. 2008). Small businesses are also increasing in terms of internalization which means that the competition for talent is stiffer (McDonnel et al. 2017). Global mobility is at an unprecedented high which means that individuals can live their country and go to another country for better opportunities. The context of such factors is what has led to the continued growth of talent management and its importance increasing within organizations.

Importance of Talent Management

Since it has been established that the importance of talent management has been increasing over the years, it is important to expound on its importance. According to O’Bryan and Casey (2017), one of the key importance of talent management is that it leads to the development of leaders within the business. In the past leadership development occurred through the acquisition of skills that took a long time to master. The acquisition of skills is no longer sufficient due to the ever-changing business paradigm. O’Bryan and Casey (2017) note that the current changing paradigm no longer concentrates simply on skills acquisition but also on emotional development and mindset development. Goleman (1998) notes that the traditional values that were usually associated with leadership such as intelligence, determination, toughness, and vision are insufficient in the backdrop of the current business culture. For leaders to be truly effective in the current business environment they not only have to have the traditional values but they also need to have a high degree of emotional intelligence which included but is not limited to self-awareness, empathy, self-regulation, motivation and social skills (Goleman 1998). Given the shifting standards and requirements for leadership, talent management helps to fill the gap. Talent management allows for the development of leaders that fit the requirements of the modern organization. O’Bryan and Casey (2017) note that the key role that talent management plays in leadership management lies in relation to succession planning. As the name implies, succession planning is simply planning about which leader will take over after the current leader has vacated the offices. Talent management helps in ensuring that the organization has enough people who are qualified to take the mantle of leadership. Goldsmith (2009) notes that developing a successor is one of the most important things that a CEO can do for their legacy. While an external leader may bring objective insights that people within the company are not seeing, it is important to develop the leader from within the company. There are many professional and personal reasons why developing leaders from within the company is wise. The most obvious is that hiring an external leader is a big challenge since they will be expected to have a track record of success and experience in the required leadership positions (Goldsmith 2009). There are not many leaders out there with such a proven record of success; thus it will be a challenge to recruit externally. Internal recruitment is the prudent option, and it is only possible through talent management (O’Bryan and Casey 2017). The internally recruited leader is aware of the various idiosyncrasies within the organization, they are already aware of the company culture, and they already know the things that have worked in the past and the things that will not work. The internally recruited leader will have been fashioned through talent management, and they will have the requisite skills to lead the organization in the current business paradigm.

Talent management leads to the development of employees. According to Olenski (2015), finding great human talent is a challenge, but the greater challenge lies in keeping those employees. Talent management helps in developing and keeping the employees by actively engaging them in various things within the company. Talent management will help employees feel valued because it shows that the company cares not only about the bottom line but also about them. Kigo and Gachunga (2016) note that talent management leads not only to the development of employees but also to their retention. Talent management helps in ensuring that the number of employees that the company had at the beginning is the same. Moreover, the key advantage of talent management is that it leads to the retention of employees. Lalitha (2012) notes that all other benefits withstanding, the greatest benefit that is offered by a proper talent management strategy is one of recruiting and retaining valuable employees. According to Isfahani and Boustani (2014), proper talent management strategies lead to the retention of employees because it helps in the cultivation of employee trust in the organization. Employees are more likely to stick in an organization that they feel they can trust. Talent management will help in proving that to employees since they will know that the organization will give them a platform on which they can grow their talents (Isfahani and Boustani 2014). Bhatnagar (2007) notes that employees will remain in a company is they feel that their work is exciting and challenging, that they can grow in their career, that they have great relationships with their fellow employees and with their leaders, when they are paid well and when they have supportive management. An effective and well-applied talent management strategy can lead to improvements in employee recruitment and retention rates which can be a source of competitive advantage for a company over its rivals.

Determinants of Talent Management

There are a number of methods that can be applied when it comes to talent management. The types of methods that can be applied are influenced by a number of factors. According to Wilska (2015), there are seven factors that determine the type of talent management strategy that a company can apply. The first factor is the corporate culture. The type of internal structure that the company has is a key determinant of the methods of talent management that they can apply (Wilska 2015). A company will seek to implement a talent management strategy that complements rather than contradicts its corporate culture. It will be easier to implement and follow through with a talent management strategy that works in tandem with the organization’s corporate culture. Additionally, talent management strategies will thrive in a corporate culture that encourages learning and puts a premium on the development of human capital (Wilska 2015). The second determinant is the managerial staff. In the end, it is the management which will decide the type of talent management strategy that will be applied (Wilska 2015). As a rule of thumb, the managerial staff should first be open to having and implementing a talent management strategy. It goes without saying that if the managerial staff is not open to applying a talent management strategy, then it will not succeed within the company. Moreover, the managerial staff plays a very important role in coaching the staff in the talent management program (Wilska 2015). Therefore, they need to have requisite skills if they are going to guide the staff in an optimal manner. The third determinant is the personnel department. Wilska (2015) observes that an effectively functioning personnel department is the foundational unit of an effective talent management program. Conversely, the personnel department is not strong; then the talent management program will not be as effective. The fourth determinant is talents. It goes without saying that a talent management system would not work without the existence of talents. Wilska (2015) notes that a company needs to have systems in place that are capable of diagnosing exceptional and prominent workers. The workers that stand out are the ones who will be concentrated upon the most. However, it is important that every worker in the company is exposed to some degree of talent management. The fifth determinant is a management system and leadership. Everything rises and falls with leadership, and so does a talent management system. Management system and leadership will play a role since the managers will be required to set many procedures in place that will allow for the effective implementation of a proper talent management strategy (Wilska 2015). It is the leaders and managers of the company who will have the most positive impact when it comes to the implementation of a talent management strategy. Additionally, at times a talented employee may need to be connected with a leader or manager within the company who will coach him and groom him directly. Such a scenario may happen in a situation where the leader is grooming the individual to take up the mantle of leadership when they leave or retire from the company. Various other scenarios may require a leader to take on a talented employee and coach them as a form of talent management strategy. The sixth determinant is a corporate image. The corporate image comes into play since the purpose of talent management strategy is not only to groom talented personnel within the company but also to attract talented personnel and make them feel that they want to work for the company (Isfahani and Boustani 2014). The kind of corporate image that the company wants to share and propagate should inform their talent management strategy (Wilska 2015). If the company seeks to be viewed as a corporation that gives employees an opportunity to grow in one way or another, they should adopt a talent management strategy that will reflect that corporate image. Basically, the company should choose a talent management strategy that aligns with their corporate image. The last and a key determinant is the budget. An organization can only choose and implement a talent management strategy that they have the budget to sustain (Wilska 2015). The company should be aware of how far they are willing to go to choose and implement a talent management strategy, and they should set aside the funds that are needed. All other determinants may be positive, but ultimately it is the budget that will determine the type and method of a talent management strategy that the company will be able to apply. Therefore, when an organization is choosing a talent management strategy, they should take the above determinants into consideration.

Methods of Talent Management

There are a number of methods that can be used in relation to talent management. The key thing that organizations should pay attention when they are selecting the talent management strategy that they want to implement is that it should maximize employee engagement as much as possible. According to Heathfield (2018), organizations must first develop a culture that supports talent management. When there is a culture that supports talents management, then employees will thrive within such a culture. An organizational structure that supports the development of employees is crucial for the method that will be selected as a means of talent management. A key method of talent management is coming up with individual development plans for the employees (Olenski 2015). It is important for the manager or the supervisor to sit down with the employee and come up with an individualized plan about the growth that they want to make within the company. Identifying the path that the individual wants to take while they work for the company will help the manager or the supervisor to know which work the individual should focus on as well as the work that will not align with their personal development goals. The other method that will aid in talent management is providing performance metrics for the employees (O’Bryan and Casey 2017). It is essential that specific, quantifiable metrics are set to help the employee understand the goal that they should be aiming for. When the metrics are met, they can be raised a bit higher which will help the employee feel a sense of accomplishment. As the bar rises higher the employee’s efficiency and their ability to work in a faster and more consistent manner will improve as time progresses. Moreover, setting the key performance metrics will give employees specific goals that they should aim for rather than vague goals which they will not know whether they have achieved or not. Also, measuring the progress will serve as a means of monitoring the efficiency of the talent management program. The other method of talent management that can be applied is providing an opportunity for the employee to work outside their job capacity. Olenski (2015) notes that current organizations have become too compartmentalized where employees can only function within their department or within the specific role for which they were hired. While compartmentalization does have its merits with the key one being job specificity, however, to truly cultivate an employee who can operate within the larger organization rather than in their own capacity only, then they need to be exposed to other facets of the organization. This is especially true when the employee(s) in question are being groomed for a leadership position. Even when they are not being groomed for a leadership position, employees should be given opportunities outside their job function since that will help in developing their talents within the organization. The other method which can be linked to that of providing an opportunity for the employee to work outside their work capacity is giving employees work that will challenge them (Mwangi et al. 2014). When employees are given challenging assignments, they will grow since the only thing that they can do is work hard to finish the given assignment. Giving the employee(s) challenging assignments will be a means through which their talents will be sharpened within the organization. A key method of talent management lies in remuneration (Wellins, Smith and Erker 2009). The key fact of the matter is that people will stay or be attracted to an organization that offers a competitive salary relative to their competitors. If and when the competitor offers a better and more competitive salary, employees will be inclined to move to the other organization. As such, it is important that organizations ensure that they remunerate their employees in a competitive manner.

Importance of HRM Practices to Overall Talent Management within a Business

Human Resource Management (HRM) Practices play an important role in developing and maintaining an effective talent management system within an organization. According to Mohaptra (2017), HRM plays an important role in talent management since it is the discipline that deals with managing human capital within an organization. Internationalization and globalization have increased the need for HRM in talent management. HRM practices will help in identifying the employees with the most potential within the company. Beyond identifying individuals within the company, HRM practices are responsible for attracting the right talent to the company. It is usually, the HR department which is in charge of hiring the right people for the job. As such, talented individuals can be identified from the moment that they apply or are recruited for the job. Additionally, the HR department is usually in charge of carrying out performance appraisals at the end of the year (Mohaptra 2017). While the performance appraisals will be for individual employees, it will be a means through which the talent management system can be measured. The improvement of individual employees based on the key performance metrics will be a measure of the efficacy of the talent management program. If the talent management program is found to be ineffective, then adjustments can be made to ensure that the program becomes more effective. Moreover, HRM practices are crucial for developing and establishing systems of performance development, employee development, and career succession planning. As such, it is important that HRM practices are taken into account when developing the overall talent management system within an organization.

Methodology

The methodology that was used is a qualitative study using the case study method. Tesco is the retailer that is being used as a case study. The qualitative method was selected since the information of the independent project is inherently subjective. The method was selected since it was the most suitable to make sense of the information presented in the paper. The case study method was selected as a means of studying a specific facet of the selected organization. In this context, the specific facet that is being studied is Talent Management in Tesco.

Discussion

All the information in the literature review thus far has shown that talent management is important for modern organizations. McDonnel et al. (2017) noted that it is the McKinsey group which led to the rise in talent management being valued because of the document that they published in 1998. Regardless of whether the importance of talent management was influenced by that document, the fact of the matter remains that talent management is considered to be inextricable with organizational success. In a scenario where research on talent management would not have been carried out, the importance of talent management would still inevitably rise due to the changing demographics of the workforce. The current workforce is growing older by the passing year, and eventually, they will retire, and some will move to other organizations. It is up to organizations to fill the expected vacancies by hiring or promoting the right people for the right job. While the demand is high, the supply does not meet the demand. As such, it is up to businesses to apply proper talent management strategies to meet the demand for employees. The purpose of talent management is two-fold. First, to maintain the current employees and help in reducing employee turnover. Second, to attract more qualified personnel to the organization. A proper talent management system will inform the employees that the organizations are a place that they should aspire to work. Moreover, it is important for an organization to care about its human capital. It is the individuals in the company who will work to meet the required organizational goals and the key performance indicators. As such, it makes sense for the company to try and reduce employee turnover while at the same time attracting other talented individuals to work in the company. While it has become blatantly obvious that every organization needs a proper talent management strategy, there are a number of determinants that inform the type of talent management strategy that a company will choose and some of those determinants are reflected in Tesco’s current talent management strategy. A key determinant as detailed in the literature review section is organizational culture. For a talent management strategy to survive in an organization, the organizational culture must be one that encourages employee development. Tesco’s current talent management strategy reflects that the current organizational structure supports employee development. Tesco believes in hiring employees that they trust at the “steering wheel” (Emerald Publishing Limited 2019). That means that they concentrate on finding the right people for the right job. As such, the company has invested heavily in a proper talent management system to enable them to identify the right people for the job. As stated in the background section, the company has more than 3,400 open stores which hire more than 300,000 people. Thus, the company has to ensure that the vacancies are filled as fast as possible. One can see that the company culture encourages employee development because, at the beginning of an employee’s career with Tesco, they are asked to identify the roles in which they would like to develop while they work with Tesco (The Times 2008). After identifying the roles, they then set out their goals and ambitions which they submit to their managers. It is up to the managers to identify the technical skills, competencies and behaviours that will be needed as well as helping in developing training plans for the employees. However, that does not mean that every employee has an individualized plan, but there is an overall talent management strategy that aligns with the retailer’s overall strategy while at the same time helping the employees meet the goals that they have set for themselves.

The managerial staff is also very important in developing and maintaining a proper talent management strategy. The managers at Tesco are involved in setting the key performance metrics for their employees and monitoring the effectiveness of the set metrics. The fact that managers are also involved in the talent management process is a testament to an organizational culture that cares about developing employees. The leadership and management system also plays a big role in formulating a talent management system. Tesco believes in filling vacancies from within the company before they recruit externally. As such, the company has invested in their people to ensure that in a scenario where a vacancy opens up within the business, there are people with the requisite skills to fill the vacancy. When a vacancy opens up, the company first advertises within which gives their current employees the first opportunity to apply to fill the vacancy. If and when the current pool of employees is not adequate to fill in the vacancy that is when the company will advertise externally. The main reason that the company will advertise internally is that an employee who works within the company is already aware of the company culture and the various idiosyncrasies that come with working for the company. Therefore, there is no need to educate an internal employee on the workings of the company. In the long run, it is cheaper to hire internally as opposed to hiring externally. Since Tesco gives precedence to hiring internally, they have to ensure that they develop their people and that is why they have invested in a proper talent management strategy to ensure that they have a robust and versatile group of employees to fill in the vacancy. As with many things in business, money is needed to formulate and actualize a proper talent management system. Therefore, it is important that a company ensures that they have set aside a proper budget for talent management. Needless to say, the amount of money allocated to the budget will depend on the size of the company as well as the size of their bank account. While the amount set aside for talent management has not been stated, one can deduce that Tesco must have a relatively considerable budget for talent management. The figure may not appear in the balance sheet as “talent management” but reviewing the balance sheet one can deduce the areas that revolve around talent management. A key area is remuneration and wages. People will be more inclined to work for a company that pays them well rather than one that does not pay them well. As such, Tesco has had to ensure that they pay their employees well so that they can reduce employee turnover while at the same time attracting more talented individuals to work in the company. Moreover, Tesco gives an end of year bonuses to some of its employees which encourage some of the employees to remain with the company. Their talent management budget will also be considerable given that they are located in other European countries. They have to ensure that they retain talent while attracting other talented individuals in other countries too. Additionally, a strong inclusion policy has been a great advantage for the company too. Research has shown that companies with a diverse workforce tend to make 35% more profit as compared to organizations that have a relatively homogenous workforce (Hunt, Layton and Prince 2015). There seems to be a linear relationship between racial and ethnic diversity and better financial performance. Tesco has a diverse workforce of people from different races, ethnicities, religions, and sexual orientations. The diversity and inclusivity policy is a boost to their talent management system because employees and other applicants see that it is an organization that accepts all kind of people regardless of their differences. Therefore, Tesco has invested heavily in their talent management systems, and they are reaping the fruits of their investment.

Recommendations

The purpose of a key talent management system is to ensure that the organization gets the best people, for the best job and at the right time. As such, it is important for the company to invest in a talent management system that will enable them to hire the best people. For the purposes of achieving that, the company will first need to set aside financial resources and human capital. (McKinsey & Company 2018). Tesco should allocate significant financial resources and human capital that will enable them to set up the best talent management system in the retail sector. The resources will be used to carry out research into what works and what does not work, and after a while, the company will be able to streamline a talent management system that will rival their competitors in the retail sector. Second, Tesco needs to improve their employee’s experiences. While it is important to present the company in the best light when recruiting from external sources, it should not be done at the expense of current employees. If the current employee feels that they are being neglected, then the employee turnover rate will increase, and that will have detrimental effects on organizational performance. To improve employee experiences, the company culture must adapt, and one of the ways in which the culture can improve is by focusing on employee development. Tesco must develop systems that grow their employees. Employees must not only work towards achieving company goals, but they should also feel that the goals align with their own goals. Additionally, employees should be properly remunerated. When the employees feel that they are paid a fair wage for the amount of work that they do, then they are more likely to stick with the company. Comparatively, employee experiences will be negative when they feel that they are paid little in comparison to the work that they do. It is important that Tesco properly remunerates its employees and come up with systems that will improve employee experiences positively. Additionally, the company should work on giving their employees better benefits such as access to insurance and retirement benefits. When employees have access to such benefits, they are more inclined to have a positive experience at work which will have an overall positive impact on the organization’s talent management system. The other recommendation is that the company should set up an effective HR team. At the core of a proper talent management strategy is HRM practices. A proper HR team with a wide and comprehensive understanding of Tesco’s culture, business priorities and organization strategy must be selected. The HR team must be diverse to ensure that different and diverse views are brought to the table. Moreover, a proper HR team is important since they are the ones that are involved in the talent management process from the recruitment to the selection of the right candidate for the job. An inept HR team will affect the whole process and compromise the talent management systems. Therefore, Tesco must select a proper HR team that will lead to the talent management process. Additionally, Tesco must encourage HRM practices and policies that contribute to a more diverse and equal workforce. McKinsey & Company (2018) note that a diverse company tends to have better organizational performance as compared to a less diverse company. A diverse company has individuals from different walks of life who have had different experiences which means that they are bound to see the same issue through different means. As such, it is important for the company to set up HRM practices that will encourage a more diverse workforce and that will improve the company’s talent management system. Furthermore, it is important that some top-level managers are involved in the talent management process. The involvement of some top-level Tesco managers will signal that the process is important and the top management cares about the process and the people.

The other recommendation relates to different tactics that Tesco can employ to develop their employees. Managers and supervisors should work on giving constructive feedback to their employees. Feedback does not mean criticizing or disapproving of an individual. Rather, it means that the manager should give constructive feedback and tie it with recommendations of what the employee can do better in the future. Feedback will only be effective if it is delivered in a timely fashion and is tied to data and different key performance metrics as well as an individual development plan. The constructive feedback will help employees know the areas that they need to improve on and the areas that they have already improved, and that will help in developing employees. Additionally, it is important to remove barriers that will hinder talent management in the company. A key barrier that would need to be adjusted is the organizational structure. A rigid organizational structure will be a major hindrance to talent management. For talent management to be effective the work environment has to be dynamic and fluid and one that encourages learning and development. In some modern businesses, they have designed open workspaces that allow employees to interact more and to help each other. An open workspace may not work for Tesco given that is a retailer, but they should find means through which some rigid structures and barriers that would be a hindrance to talent management can be overcome. A suggested approach would be giving employees some degree of autonomy when it comes to decision making. The employees should be made aware that they do not need to report to the supervisor who will then report to the manager who will then report to the person above them and then wait for the decision to flow back down to the employee. Employees should be given some level of autonomy when it comes to decision making knowing that they will also be liable for the consequences of their decision making. Giving the employees free rein when making decisions will help in developing their leadership skills and help in improving their talent too. It is also paramount to give the employees a link to a professional network. Tesco should introduce new employees or even current employees to professionals who can serve as mentors or coaches and who will guide them in the course of their work environment. The connection will be a way for the employees to get additional support and advice on how to grow not only in a professional capacity but also in a personal nature. The last recommendation is that Tesco should be willing to invest in its employees. Investing in them means the company should invest in training programs and coaching in various forms. From the moment an employee walks through Tesco’s doors, they should be aware that they are investing in the individual and the level of investment will influence the level of returns that the company will receive. As such, it is important for the company to ensure that they are willing to invest in employees not only in relation to finances but also in relation to various training programs that will develop the employees in a more holistic manner.

Conclusion

There are many substitute products and services in the modern market. As such, it is important for businesses to seek any competitive advantage that they can gain over their rivals. Some companies differentiate themselves through pricing and offering niche products and others by offering slightly better services than their competitors. Talent management is another method through which organizations can gain a competitive advantage over their rivals. In the modern business environment, there is a high demand for talented individuals, but the supply is not meeting the demand. Therefore, businesses need to come with a way to attract more talented individuals and that is where talent management comes in. Talent management has a two-fold purpose: it helps a company maintain its current crop of talented individuals which helps in reducing employee turnover while at the same time, it attracts talented individuals to the company. A company that has invested heavily in talent management is Tesco. Tesco is one of the largest retailers in the UK with over 3,400 open stores hiring more than 300,000 employees. Given the size of the company, they have to ensure that they hire the right people for the right job. Tesco needs staff who can handle various positions within the company not only in the UK but in their other branches in various European countries. In terms of talent development, all employees are asked to state the different roles and challenges that they would like to achieve while they work for the company. After the goals have been set, the managers and supervisors set key performance metrics that will help the employee in meeting their professional development goals. The training programs are usually aligned with the company’s overall goals which are to offer great and premium services to their customers while making a profit at the same time. Additionally, the reason that the company focuses on talent management is that it gives precedence to internal recruitment before recruiting externally. When a vacancy opens up, the company advertises internally which gives employees that would like to apply for the position an opportunity to apply. If and when the employees are not sufficient, or they do not have the requisite skills or experience the company switches to external advertising. The company has also invested in diversity and inclusivity which has given a major boost to its recruitment program. There are a number of recommendations that can be made to help the company improve its talent management program. The company needs to set aside financial resources and human capital. The resources will be invested in formulating and applying for a proper talent management program. The company should also improve employee experiences, and that can be done by developing systems that help employees not only achieve company goals but also achieve their own personal goals. Moreover, employees should be properly remunerated. People are more likely to remain in a company that pays them well as opposed to a company that does not pay them well. The company should also set up an effective HR team that has a comprehensive understanding of Tesco’s culture, business priorities and organization strategy. Tesco should also diversify in the talent management strategies that they apply. They should not only invest in employees in a monetary sense but also invest in terms of training and development. Tesco has a proper talent management strategy, and with a number of adjustments, they will improve its effectiveness.

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