What is the Difference Between Talent Management and a Talent Agency?

Talent management is the process of defining and implementing a strategy for all human capital needs of an organization. This involves identifying hiring needs, attracting and recruiting talent, as well as organizing the processes for retention, development, and off-boarding of employees in a company. The talent agency, on the other hand, is an “agent” or middleman for talent. A talent agency is a recruitment organization that connects hiring companies and job seekers.

Why is talent management important?

Many companies want to acquire great talent and build a strong workforce. But the strength of an organization is not its ability to acquire talent; what matters is its ability to manage talent–from recruitment to development to off-boarding. Talent management ensures that all employees in an organization undergo a process that is aligned with the company’s core values and strategy. More than just hiring the right talent, organizations need to train talent for productive work, develop employees for growth, and reward them for motivation. All of these steps work together to achieve an organization’s strategic goals.

When should you hire a talent agency?

For strategic and in-demand roles, many companies employ the assistance of a talent agency to gain access to a greater talent pool. Talent agencies have the resources, strategies, and connections available to acquire the best talent that your company needs. Recruitment can be a costly endeavor, especially when your needs are urgent and specific. With the expertise of a talent agency, you’ll get the manpower and resources to boost your hiring efforts. The decision on whether or not to hire a talent agency should be included in your talent management strategy. This includes an evaluation of your company’s ability to handle talent acquisition efforts in-house.

Winning the war for talent

A 2018 report from consulting firm Korn Ferry forecasts that by 2030, there will be “talent shortages of 85.2 million skilled workers, resulting in US$8.452 trillion in unrealized revenue across twenty of the world’s major economies.” Clearly, talent has a direct impact on company strategy. In an age where innovation is a necessity, companies need to invest in talent management.

Here are some talent management and talent agency tips:

• Talent management should be aligned with strategy. According to the Harvard Business Review, it can be a game-changer. Engaged high-performers can be recruited and then continuously trained properly to match their immediate and long-term objectives with the company’s long-term goals. For example, a sales force mandated to break into a new market to sell a new product can be instrumental to the company’s vision of expanding into emerging global industries.
• Hire a talent agency if recruitment is not your organization’s strength. A McKinsey report states that 82 percent of Fortune 500 executives don’t believe that their own companies can recruit great talent.
• If you hire a talent agency, build strong relationships within that recruitment organization and ensure that your goals and strategy are understood. Personnel Today recommends that you review the talent agency’s mission statement and thoroughly understand their values and screening processes.

For organizations seeking to make changes and upgrades in talent management, it would be important to review the entire company strategy and goals for the coming years. Identify and then develop the areas of weakness to align them with what your company needs. If recruitment is a priority, but difficult to perform in-house, consider talent agency options to boost your efforts.