Talent management strategy and succession planning within the financial service industry
Talent management, succession planning and retention issues are emerging as some of the most critical organisational challenges of the present and immediate future, driven largely by lack of proper planning, talent mapping, and development of highly talented individuals in organisations. This study investigates the common traits, definitions, benefits and outcomes associated with talent management in the context of the South African financial services industry. A quantitative research approach was used to explore talent management strategies and succession planning practices within the financial services industry, targeting the top four big banks, namely First National Bank (FNB), Nedbank, ABSA, and Standard Bank. The respondents were selected from a population of 300 permanent employees across the four big banks, of which 101 completed the Survey Monkey™ online questionnaire, which was used as the data collection tool for the study. Quantitative content analysis was used to draw valid inferences from the texts and context. Key themes were identified from the literature, which included: the definition of talent management, talent management outcomes, succession planning, talent management traits, and benefits of talent management. The analysis found that people perceive talent management as closing the skills gap, and that talent management starts with the sourcing and selection of candidates. Respondents were also found to consider talent management as a tool that provides them with skills and the ability to perform well. Career growth is one perception that was strongly associated with talent management, reflecting general employee interest in growth and career promotion. Retention is the single biggest factor associated with succession planning, implying that effective succession planning results in employees refusing job offers from competing organisations and remaining loyal. The responses also indicated that employees experience a good general sense of employee well-being.