6 Steps to Run a Talent Review That Actually Works

Talent review is the process through which organizations evaluate the performance and potential of employees. The talent review process assesses employees' skills, abilities, strengths, and weaknesses. This helps to discover available skills and skills that are needed in the future, according to the company's strategic vision. It also pinpoints the talent and skill gaps that need to be filled; 72% of CEOs in a BCG survey said filling talent gaps was the top business challenge their companies face.

This piece will provide insight into how to carry out an effective talent review and the best practices to observe when carrying out a talent review. It will also highlight the differences between talent and performance reviews.

How to Conduct an Effective Talent Review

Follow these steps to run an effective talent review:

Step 1 - Define Objectives

In carrying out a talent review, it is important to outline the specific goals you want to achieve in the process. These include:

• Identifying high-potential employees who will drive organizational growth.
• Assessing the readiness of employees for more significant roles and greater responsibilities, as part of succession planning. 
• Identifying the skills and competencies that are crucial to the organization at present and in the future, according to the organizational strategy. 
• Identifying the skill gaps and development needs in the organization and how to address such needs. According to a LinkedIn survey, 64% of learning and development professionals now prioritize reskilling their current workforce to fill skills gaps.

These objectives will help to align the talent review process with the company’s strategy.  They provide clarity on the role talent must play for the company to achieve set goals,  succeed in its target markets, and have a competitive advantage in its industry.

Step 2 - Gather Data

Data needed for a talent review include feedback from surveys on performance metrics such as:

• Leadership performance metrics: These metrics evaluate the leadership skills of employees even when they are still in the early part of their careers. These include adaptability, strategic thinking, ability to motivate, employee engagement skills, ethical leadership, innovativeness, and evaluation feedback.
• Work quality metrics: They assess how up-to-standard the work of an employee is. The quality of output is usually measured through the manager’s feedback, a 360-degree assessment, Net Promoter Score (NPS), Number of errors, and number of product defects. 
• Work quantity metrics: This measures the quantity or amount produced, depending on the job role and industry. Work quantity could be measured in terms of the number of items produced, the number of sales, the number of clients, etc. 
• Work efficiency metrics: This metric tries to measure employee output based on the balance of quality and quantity. It considers the input of resources such as time and money required to produce a certain output.

Other metrics include Revenue per employee, Human capital ROI, and Employee absenteeism rates.

Data gathering for the talent review process involves collecting feedback from various sources such as managers, supervisors, and subordinates. 

Tools and software to gather and organize data

There are tools and software that automate data gathering and measurement processes to make the process faster and more efficient, These tools include:

PerformYard

PerformYard‘s Performance Review Software automates employee reviews, allows goal setting, and collects feedback. It also helps to track progress and improve performance. The 360 Feedback Software tool gathers data on individual employees from various sources, and this points out strengths and weaknesses so that skills gaps can be addressed. The Continuous Feedback Software tool connects talent review with performance and the constant feedback encourages actions on performance improvement.

Lattice 

The talent review tool from Lattice conducts evaluations of the performance and potential of employees to help discover high-potential employees. It also points out strengths and weaknesses so that skill gaps can be addressed. 

Quantum Workplace

This talent review software allows transparency and collaboration in the talent review process thereby reducing bias. It evaluates talent and creates succession plans.

Step 3 - Identify Key Talent 

High-potential employees have the skills, potential, and drive to move up and succeed in leadership positions in the organization. They usually exceed expectations and go above and beyond to achieve set goals. They also inspire others, are adaptable, and value continuous learning. The following criteria can help to identify high-potential employees who eventually become leaders.

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Skills and Talent Assessments: High-potential employees can be identified through skill and talent assessments such as multi-measure tests that evaluate technical and soft skills, personality types, adaptability, and situational judgment abilities.

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Employee engagement evaluation: Highly engaged employees are often more innovative, and productive and contribute positively to their teams. Employee engagement evaluations can help you point out high-potential employees who have great leadership skills and are problem solvers.

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Roles and responsibilities: How employees perform in their roles and responsibilities in the organization is a good indicator of high potential. They usually excel in their roles because they go above and beyond to complete tasks assigned to them.

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Performance reviews: Performance reviews reveal employees who have demonstrated behaviors that align with organizational goals and performed excellently on the job. With performance review methods such as the 360-degree assessment, Management by Objectives, and other appraisal methods, you can garner valuable insights from the feedback of peers and managers.

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Data collected from reviews such as the ones above help to rank and create targeted plans that will address each high-potential employee’s specific development needs.

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Step 4 - Assess Performance and Potential 

Performance assessment evaluates employee work output and is one of the ways to discover high-potential employees. It is based on what the employee has done or is currently doing. Methods of performance assessment include:

• Management by Objectives
• Peer reviews
• Degree feedback e.g. 180-degree, 270-degree and 360-degree feedback

Potential assessment tries to evaluate the possibility of growth in an employee. This is to discover the ability of employees to take on higher and broader responsibilities in the future. The potential of employees can be measured by:

• Personality assessments
• Psychometric testing
• Feedback from managers, peers, and subordinates

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To conduct a fair assessment, both quantitative and qualitative metrics must be considered for a balanced outcome. Quantitative data comes from measurable factors in the job responsibilities e.g. number of sales and project completion rates, which can be counted or measured objectively.

Qualitative data are those from assessments that are intangible and are measured subjectively e.g. communication skills and innovativeness.

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Step 5 - Create Development Plans 

Employee development plans are put together to help each employee build skills and grow their career within the organization. Development plans are tailored to individual employee’s strengths and goals and can be outlined as follows:

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• Assess the employee’s current situation
• Discuss their short and long-term career goals 
• Identify skill gaps and areas they can improve to meet their goals
• Provide learning opportunities and resources such as training and understudy programs
• Create an action plan with action items, timelines, and milestones
• Implement and continuously monitor progress

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The setting of clear, actionable steps and timelines helps the employee know what to focus on per time, keeps them motivated, and prevents procrastination so that desired outcomes will be achieved according to the plan. 

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Step 6 - Follow Up and Monitor Progress 

Once implementation of the plan has commenced, it’s important to check in with the employee to give feedback and track progress. This helps accountability and challenges can be quickly identified and addressed. The plan should be flexible enough to accommodate necessary adjustments. It’s important to find out if the goals were achieved, what worked well, and areas of the plan that could be improved.

Why Talent Reviews Are Important

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Help Discover Top Performers

Talent reviews help organizations discover employees with outstanding skills and possess leadership potential. These high performers are valuable to the organization because they help to improve business outcomes through their innovative ideas, drive, adaptability, and creativity. The talent review helps to reveal those with traits such as empathy and emotional intelligence, superior skills, desire for continuous learning, leadership skills, and high motivation. When top performers are identified, the organization can invest in their development which helps their retention and supports their career growth.

Align Talent Development With Your Company Goals

Talent reviews help to point out development areas where employees can receive training so that they can achieve goals better, in alignment with company objectives. When skills align with the company’s strategic goals, work is more efficient and productive due to better knowledge and expertise. 

Reduce Talent Risks and Fill Leadership Gaps

Talent reviews help to identify employees who may want to hold leadership positions and they can get the training for the skills they need in such roles. Skills gaps discovered during talent reviews can be filled with development programs as part of the succession plan process. This reduces the risks associated with key positions becoming vacant.

Best Practices for Talent Reviews

Hold Regular Reviews

When talent reviews are done regularly, employee performance improves. This is because the feedback from the reviews, recognition of skills and contributions as well as guidance provided in development plans encourage and equip employees to perform better. The regular reviews also help to track the progress made by employees in their development journey and revisions can be made to development plans when necessary.

Involve Multiple Stakeholders

Stakeholders in the talent review process include:

• The Human Resources (HR) department, is responsible for facilitating the process. They collect and analyze data and provide admin support. 
• Line Managers: They provide needed information about their team members’ performance, potential and development needs.
• Peers: They provide feedback on work activities and behaviors that directly affect the team which the line manager may not be aware of. These include a broader view of an employee’s performance and skills gaps.

Have Transparent Communication 

Communication is an essential part of the talent review process. The HR department communicates the details of the talent review process with managers and employees. These details include the objectives of the review, data collection methods, timelines, and progress updates.  Clear communication and transparency about the review process help to build trust and encourage accurate feedback.

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Common Challenges of Talent Reviews 

Bias in Assessment

Unconscious bias is a social stereotype about certain groups of people that an individual can form outside their conscious awareness. It can have a significant influence on attitudes and behaviors, especially towards other people. It can also influence important decisions in the workplace, including the feedback given during talent reviews, which may be unfair to the person being reviewed. Some of the ways to reduce unconscious bias in talent reviews are:

• By providing unconscious bias training for managers 
• Using more objective criteria than subjective
• Using multiple reviewers

Lack of Clear Criteria 

The results of a talent review can be inaccurate if the assessment criteria are unclear. It is therefore important to have properly defined terms and metrics to be used in the assessment, with appropriate rating scales. Clearly defined criteria ensure fairness, consistency, and transparency in the review process. 

Resistance to Feedback

When employees are provided with feedback from the talent review, there may be resistance due to the fear of negative consequences, criticism,  and disagreement with evaluation criteria. It is therefore important for the HR department to encourage openness to feedback. This can be done by ensuring that the feedback is actionable for employees. There should also be opportunities and channels to discuss feedback and a supportive culture to help employees navigate development programs.

Talent Reviews vs Performance Reviews 

Talent reviews differ from performance reviews in the following ways:

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Talent reviews

Identify skills and competencies of employees

They are forward-looking and help to identify high-potential individuals for development and placement in higher roles in the future of the organization.

This is a broader assessment that looks at the employee’s potential, growth prospects, and suitability for higher roles. It assesses criteria like performance, potential, leadership, adaptability, collaboration, and innovation.

They place a strong emphasis on potential and development.

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Performance Reviews

Assess the work performance of employees

They measure the past job performance of employees and the goals they achieved.

Provide feedback on job-specific tasks and responsibilities to create an improvement plan and set goals for future performance.

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Conclusion

Talent reviews are beneficial to organizations as they help to identify high-potential employees, provide a good foundation for succession planning, and help in employee retention. While implementing talent reviews, processes such as performance reviews, employee engagement reviews, and degree feedback all come into play as part of the process. Learn more about PerformYard and schedule a demo to see how our tools can benefit your talent review processes.

Frequently Asked Questions 

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What is a talent review?

A talent review identifies the skills and competencies of employees in the organization. It is usually aimed at knowing high-potential individuals who can take up key positions in the future, as part of the organization’s succession plan. 

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What are the key components of a talent review?

• Pre-implementation: HR consults with the leadership team and subsequently communicates with employees on the talent review process. This is when awareness is created and all stakeholders get relevant information about the process.
• Data gathering and analysis: Data is collected from sources such as performance reviews, surveys, psychometric tests, peer reviews, Degree feedback, etc, and analyzed. 
• Utilizing assessment tools: These tools automate several processes including data collection and analysis, and conduct psychometric, personality, and emotional intelligence tests. The tools make the process more efficient and faster.
• Talent review meetings: This will feature discussions on data collected, high potentials identified, skills gaps, and recommended development programs.
• Creating development plans: Development plans are designed to address skills gaps and prepare high potentials for higher roles and responsibilities.

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How often should talent reviews be conducted?

This depends on several factors such as organizational size, industry dynamics, and talent management goals of the organization. It is recommended that talent reviews should be done at least once a year, considering the time and data required to conclude the process.

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How can we ensure fairness in the talent review process?

• Set clear objectives for the process and communicate with all stakeholders.
• Evaluation criteria should be well-defined and consistent throughout the organization.
• Use both quantitative and qualitative metrics to get a comprehensive view of employee performance and potential.
• Use data from diverse perspectives to get the full insight into employee performance, aptitude, and potential.
• Ensure confidentiality and data privacy throughout the process.