Role of HR in Developing Talent at Work in the Banking Sector - Literature review Example

?Running head: ROLE OF HR IN DEVELOPING TALENT AT WORK IN THE BANKING SECTOR (UK AND US) Role of HR in Developing Talent at Work in the Banking Sector (UK and US) Insert Name Insert Grade Course Insert Tutor’s Name 10 October 2011 Role of HR in Developing Talent at Work in the Banking Sector (UK and US) 1) Introduction Human resource roles vary from recruiting, training, rewarding to developing employee’s talents. HR is an important department in any organization, as it is concerned about the employees (Armstrong, 2009, p.83). Therefore, it views employees’ talents as part of an organization’s competitive advantage (Mathis & Jackson, 2010, p.25). Nevertheless, the need for higher talent is on demand in the United States, as it is becoming extremely difficult for organizations to retain the best personnel, hence a clear picture of a rivalry for talent in the country (Chambers, 2007, p.1). Human resource managers include various tools in recognizing and developing talent in the organization. According to Berger & Berger (2010), the talent assessing tools may include 360- degree feedback; however, the appropriateness and effectiveness of tools used is what matters the most. In addition, coaching plays an important role in the development of an employee’s talent; it can be conducted by a manager or a fellow colleague. Moreover, Morgan & Jardin (2010, p.23) argue that, “it is vitally important to run talent management like a business in order to drive maximum return on investment in people.” The role of HR has been significant to the organization and an individual as well. In talent development and management, the human resources department ensures that appropriate measures are put in place to ensure that there is presence of the right personnel needed for an organization to succeed (Catalyst, N.d., p. 21). This paper’s aim is to focus on the human resources role in developing talent in the banking sector, mainly in the United States and the United Kingdom. 2) Human Resource Role The human resource role concerning talent development begins with the creation of that talent, hence nurturing and developing it. In this talent driven economy, talent- powered organizations are essential; indeed, such talents must be developed and further sustained (Cheese, Thomas, & Craig, 2007, p.46). Talent is normally referred to as a special gift, in this case involving experience, knowledge, & skills of an individual, (Shavininna, 2007, p.159). Therefore, each organization aims at acquiring, retaining, and sustaining such talent, with an aim of achieving organizational goals. According to Collins (2011, p.35), a global war for talent is evident, with global graduates seeking opportunities to develop their skills and experience in oversees countries. In addition, the United Nations data revealed that over 214 million people live away from their home countries. In countries like the United Kingdom and the United States, the arrival of highly skilled migrants contributes to higher education through fees. The talent war is aimed at accessing the best talent, with companies offering favorable working environment with an aim of attracting best talent. The banking sector of any country is a vital field; almost all banks in the United States and in the United Kingdom have incorporated human resources in their operations, especially as this department deals with a number of duties concerning the employees, such as training and development. One such bank is the Deutsche bank, which is based in various countries among them the United States, and attests to the human resource importance in its organization, whereby, the human resources contribute to developing and retaining the best talent (Deutsche Bank, 2011). In addition, Standard Chattered Bank in the United Kingdom has incorporated talent development programmes, whereby, attracting the best talent and further developing it is their main aim, as they believe in building their employees (Standard Chartered Bank, 2009). Success is determined when a company’s vision & values align with those of employees (Altman, 2008, p.76); hence, human resources’ role in the development of talent in the banking sector involves the following. a) Placing individual in skill-requiring positions Chambers et al. (2007, p.6) research reveals that the key to development is a bigger task that involves skills, as the authors insist that individuals learn by being placed in situations that require certain skills that they do not have. This is the role of the human resource manager, involving talent development via challenging an employee. Nevertheless, talent development also contributes to increased performance (Gold, Thorpe & Mumford, 2010, p.251). Moreover, HR faces the challenge of increasing an individual’s performance by focusing on the unique talents among individuals. Therefore, employees should be given the opportunity to learn, grow, strive, and reveal their potential. b) Putting in Place an Effective Feedback System Feedback in relation to developing talent is very important; feedback can be done via 360- degree feedback program especially after coaching the employees. This method is effective as a development tool, as it gives employees feedback regarding their job performance. With such feedback, an employee is able to improve on his/her skills, hence excelling in his/her job (Berke, Kossler, & Wakefield, 2008, p.71). However, for this method to be effective it should be monitored and well evaluated; nevertheless, a manager can opt for another effective feedback system. For talent development to excel, feedback is vital, especially to employees, as it identifies what they are doing well, hence building on these skills. Receiving feedback can contribute to self-awareness, hence motivating an individual, and thus leading to job satisfaction (Fleener, Taylor, & Chappellow, 2008, p.1). Nevertheless, most human resource managers use the 360-degree feedback system as a tool towards developing an employee’s talent. c) Understanding the Scope of the Organization’s Retention Program Majority of companies are competing for the top talents, hence, the need to acquire, develop, and maintain talent in their organization is important. Therefore, human resources department should ensure that the retention program in the bank is effective and in place. Once the employee’s talent is developed, the management should be able to retain such talent. According to Ringo et al, (2008, p.7), the banking sector in the united states is believed to recruit employees in a consistent manner and hence develop employees’ talent and further use their retention programs to retain them. Just as it is the duty of human resources to recruit employees, they are also liable for their development and their retention. Ironically, most companies that focus on developing their employees are prone to poaching. Nevertheless, when many employees are poached by another organization, there must be a poor retention system. As many banks begin to rise, mostly private ones, these banks come up with up-to-date mechanisms and programmes that are aimed at attracting employees and retaining them. Such a scenario attracts employees working for government banks, and since they are experienced, the private banks are at an advantage. However, they must work hard in order to develop and retain their employees to avoid poaching. d) Taking action on the poor performers Different companies deal differently with poor performers; the low productivity contributes to an organization’s declining performance. Therefore, the right mindset is required in such a situation, the managers can either decide on continuing to training the employees or letting them go. According to Phillips & Edwards (2008, p.20), when a new talent is on-board, it is the duty of the HR to develop and retain this talent; however, any miscues could jeopardize an employee’s commitment. According to Saddler & Hunter (2011, p.101), attracting the right talent at first is very important, as it enables the human resources to develop a logic programme that will enhance such talent. Therefore, it is worth noting that poor performers drag the company behind, thus, the HR department should ensure that effective programmes are put in place to deal with under-performance. 3) Importance of HR role of talent development to the banking sector Almost all banks have incorporated human resources in their operations, as some banks attest to the importance of human resources. According to Kaye (1981, p.36), human resources adopt development programmes with an aim of motivating employees, hence retaining them. Employees seek for organizations that are capable of blending their objectives with the organization’s goals, a place where they can grow their career. Barclays bank originates from the United Kingdom with several branches globally, and it has a development & follow-up plan designed to create development opportunities for its employees (Barclays 2011). Evaluating talent development means that a follow-up has to be made. Evaluation in this process is important, as it enables managers to be responsible for the talent development activities. In addition, it gives the results of the effectiveness of the talent development activities, hence improving on the ineffective activities (Rothwell & Kazanas, 2003, p.469). 4) Conclusion Talent development is a very important component in an organization; therefore, employees must be retained after developing their talents, otherwise, the organization’s hard work will be at the benefit of another company if the employees are poached. Human resources department has also proved to be vital in the banking sector as most banks in the United States and the United Kingdom incorporate human resources when dealing with employees. Talent development involves employees, and the employees are said to be the backbone of an organization, hence, they are important to an organization. Therefore, it is important for HR department to ensure that it recruits the right talent, develop, and retain the best talent. Reference List Altman, A 2008, ‘Management talent,’ engineering & technology journal. Retrieved from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=12&hid=107&sid=2cc864e1-6a76-480e-aab1-179913b7c1f9%40sessionmgr4 Armstrong, M 2009, Armstrong's Handbook of Human Resource Management Practice, Kogan Page Publishers, London. Barclays bank Website, 2011, viewed 11 October 2011, http://group.barclays.com/Home. Berger, L & Berger, D 2010, The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People, Edition 2, McGraw-Hill publisher, NY. Berke, D, Kossler, M & Wakefield, M 2008, Developing Leadership Talent, Essential Tools Resource, Pfeiffer essential resources for training and HR professionals, John Wiley & Sons Publisher, NJ. 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