Today’s organizational leadership maintains that there are three key components to a successful business. These three elements have the right strategy. The Operation is a place that will help in the execution of the strategy and most importantly have a good talent management strategy to maximize organizational success. Due to increased globalization and emergence of business complexities, developing good leadership has been cited as the most workforce challenge facing all business sectors public, private and the non-profit.
Research shows that there has been worrying high levels of board- level leadership in many organizations due to retirement and departure of leaders. This has resulted in the creation of a huge leadership gap which has prompted the organization to rely on acquiring expensive agency staff and leaders as well as training some in their organizations. This paper examines on the advantages and disadvantages of recruiting leadership talent externally as well developing it internally. It will also look at the effectiveness of leaders hired either internally or externally regarding performance. Lastly, it will highlight on the performance measures that can be used to gauge the development of leaders and recommendations for developing leaders in the future.
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Hiring talent is critical to an organizations’ success. Recruiting leadership talent externally is one of the methods used by organizations because of its many benefits. One trained external hires give organizations instant ability for new products, programs, and skills( Parthasarathy& Pingle, 2014).The organization, therefore, is able to gain a competitive advantage over other firms as the hired team has the necessary skills is stimulating success and growth. The success and growth are essential in every organization as it helps in building the brand of the company, sending a message to all people that it is making profits hence attracting investors and customers. If a firm has weak hiring talent internally, external hiring helps in assisting others in the organization grow hence promoting further skill development.
External leadership recruitment also has some of its disadvantages. First, outside hires leaders can sometimes weaken the organizational culture by bringing in countering culture to the employees (Parthasarathy& Pingle, 2014). This sometimes interferes with the organization mission and vision leading to its failure and downfall. Hiring external leaders may have adverse effects on the customers and the current employees in the organization especially when things do not go in the right direction. This may harm the business relationship contributing to the organization making losses in the case of customers.
Focusing on internal talent development rather than external hiring offers a range of advantages: First, there is a reduction in time spent to look for new hires to fill up the vacant positions. External hiring often consumes a lot of time as other legal procedures must be followed regarding signing the contract and the recruiting process itself. Additionally, internal hiring decreases turnover among the current employees (McEwan, 2002). Leaders with opportunities for career growth are more likely to stay in the organization as compared to externally hired. This helps in reducing direct and indirect costs associated with replacement. The disadvantage of internal talent development is that the prospective applicants are always small in numbers. As compared to external hiring this means that the organization will not get a broader pool of skilled and experienced individuals. Relying on internal talent development the organization may eventually find ways to advertise for other position to fill up vacant posts hence even increasing the cost.
Gauging the effectiveness and capabilities of a potential leader internal or externally is not always an easy task, but it is sometimes possible. One way of identifying a potential leader is through the recruitment process (McEwan, 2002).This process takes into consideration that the leader has meant the minimum threshold in the reassessment process. Longer assessments, in this case, are very essential in identifying the right talent. Potential leaders’ competencies are also evaluated during the performance management review. Managers in the appraisal process can assess the goals and development over the past years in their careers and rate the individual progress to date.
Major talent management functions plans play an essential role in developing future leaders. This includes identifying the right leaders through a well-formulated recruitment process. This ensures that there is a consistent flow of leadership talent into the company by recruiting the right people at first. According to VandenLangenberg(2013), identifying leadership gaps prepares an organization in readiness of the leaders they want. These differences involve determining the current and future leadership requirements and most importantly comparing those requirements with that of the organization team. This helps in the development of programs that are not only meant to develop the leaders but also in aligning with its strategy. Coaching and mentoring has the resurgence of grooming leadership as it provides new skills and empowerment.
Employees are important assets as the organization success depends on their performance and potential. One way of ensuring that their individual goals align with the organization are by increasing their engagement especially in the formulation of strategies. They can understand how they can relate the organization strategy with their goals. This, in turn, boosts their productivity increasing operating margins and profitability (KIGO, 2016). Establishing a more efficient and effective goal setting process ensures that there speedy completion of set goals as well as tracking any failures and improvements.
In conclusion, organizations need active and efficient leaders to be successful. Talent management practices are essential regarding hiring and maintaining leaders as they help in identifying and developing workforce from various levels that are meant to drive business performance.
References
Kigo, S. K. (2016). Effect of Talent Management Strategies on Employee Retention in the Insurance Industry. Strategic Journal of Business & Change Management , 3 (2).
McEwan, E. K. (2002). Seven steps to effective instructional leadership . Corwin Press.
Parthasarathy, M., & Pingle, S. (2014). Study of Talent Acquisition Practices–A Review on Global Perspective.
VandenLangenberg, E. (2013). Creating and Maintaining Engaging Career Development .
