ABC Distribution: Strategic Talent Management Challenges and Solutions

This report analyzes the talent management challenges faced by ABC Distribution, a growing distribution company. The paper highlights issues such as staff rotation, lack of technological resources, and the impact of these factors on employee retention and overall organizational growth. It explores the importance of strategic talent management, including steps to define a strategic vision, reasons for staff turnover, and ways to retain existing talent. The report emphasizes the importance of clear communication, rewards systems, employee development programs, and opportunities for growth. Furthermore, it stresses the significance of technological resources in enhancing efficiency and communication. Recommendations are provided to the executive heads, addressing the need for improved communication, employee engagement, and the implementation of effective talent management tools and strategies to ensure long-term success and sustainable growth. The report aims to provide insights and practical solutions for ABC Distribution to build a successful talent management program and improve its overall organizational performance.

Running head: ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
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1ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
Executive Summary
This paper aims to identify the various problems that are prevalent in ABC Distribution and
how the presence of these factors hinders the implementation of a talent management
strategy. It provides an insight into the importance of technology and employee retention in
an organization. The conclusion is drawn stating the ways in which the management needs to
be addressed and the necessary steps that should be adopted for the formation of a successful
talent management program.

2ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
Contents
Introduction 3
Importance of talent management 3
Steps to define strategic vision of talent 4
Reasons for staff leaving a company 6
Effect of staff rotation on talent management process 7
Ways to retain existing talent 7
Tools of talent management 9
Importance of technological resources in a company 10
Recommendations 10
Ways to approach Executive heads 11
Essential Pre-requisites for successful talent management 11
Conclusion 12
References 13

3ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
Introduction
The ABC Distribution is a small distribution company, which is concerned with
conducting business nationally. The company has been experiencing success in terms of its
financial growth and the number of employees present in the company has grown from 20 to
90 over the time from 2012 to 2017. However, the succession planning and
internationalization process has posed to be a hindrance in the process of development of
talent management. This paper aims to study and analyze the need and importance of better
talent in the organization, understanding the key areas affecting the talent management
process and providing recommendations on the changes that need to take place in order to
bring in the necessary talent.
Importance of talent management
Talent management is the process of recruitment, management, development and
retention of employees, necessary for the long-term growth of an organization (Al Ariss et
al., 173-179). In case of ABC Distribution, the talent management process is of great
significance, as it would add to an increase in the productivity of the firm with an increase in
the processes of growth and innovation. The presence of a trained and skilled workforce
reduces the consumption of time and errors, making the production process cost effective.
Since the organization is involved in client meetings and sales processes, the presence of
motivated employees would help increase the levels of customer satisfaction.
Due to the nature of importance of talent management in the organization, the senior
management or the decision makers (executive managers/Directors), need to be informed and
aware of the deteriorating situation the organization currently is facing. The high rates of staff
rotation, lack of proper technological resources, and the succession planning and international

4ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
business expansion process- all have lead to alarming rates of employees leaving the
organization. The replacement of an employee directly involved in sales or interaction with
clients/consumers, establish good relationships with the customers and would affect the sales
process greatly on quitting the organization. The development of necessary talent would
provide a scope for producing skilled successors in key management positions. Thus, the
information should be conveyed in a manner to the management that addresses the present
status of the organization, the problems it is facing and the relevance of talent management
for increasing the sales.
Steps to define strategic vision of talent
The decision to introduce talent management in an organization has its own positive
and negative aspects and discontent may arise in employees who are not part of the program.
Therefore, for the role of a Human Resource manager, it is important to maintain a
transparency of communication, which would help in properly addressing the causes of
dissatisfaction among employees as well as informing the employees who are to be retained
by the organization.
In order to define a strategic vision of talent to the mid-levels of management, there
are certain steps that need to be adopted. They are as follows:-
 Understanding the company goals and objectives- All aspects regarding to the
market position, the potential consumers, competition analysis, strengths and
weaknesses of the organization need to be examined (Nankervis et al., "Human
resource management: strategy and practice.").
 Managing the internal talent- The internal talent can be managed through the
analysis of the skills, levels of competency, experiences and talents of the employees

5ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
working within the organization (Elegbe and Joel Alemibola, “Talent management in
the developing world: Adopting a global perspective.”).
 Employer branding- An organization that has a good reputation or goodwill is
susceptible to gain a favorable position in the market and attract a pool of quality
employees (Figurska, Irena, and Ewa Matuska, "Employer Branding As A Human
Resources Management Strategy.").
 Improving relationships with candidates- Maintaining a positive relationship with
candidates, regardless of the outcome of their selection process allows more and more
individuals to be interested in joining the organization.
Reasons for staff leaving a company
The reason staff may leave a company depends on a number of causes. Some of these
are as follows:-
 Lack of motivation- The lack of motivation in employees is mainly caused due to
lack of communication and proper flow of information in the organization. Lack of
motivation in employees gives rise to unproductive work and ultimately leads to the
employee resigning from the organization (Taylor, 19).
 Lack of proper future- If the financial position of the organization is in a threatening
position or the company has been losing out to its competition on a frequent basis,
employees feel threatened since it questions the long-term growth of the organization.
Apart from this, employees may also leave in order to look for better job positions.
 Lack of skills and training- The lack of proper skills and training may cause
inconvenience in work for an employee, leading to lack of motivation and interest in
performing the given job role.

6ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
 Inability to perform- The lack of proper skills and expertise may not allow an
employee to perform his job efficiently. It can also take place by assigning an
employee in a field that he knows very little or nothing about.
 Lack of loyalty- Loyalty is a rare quality possessed by individuals in recent times,
and is almost absent in the employer and employees in today’s time and both
individuals constantly looking for better means and opportunities.
 Changes in core management decisions- A change in the core management policy
or changes in the management may affect an employee’s decision to continue working
in an organization in the future.
 Stress- The rotation of staff to various departments within an organization increases
the amount of work significantly with an increase in the levels of stress in employees
and may cause the employee to quit.
Effect of staff rotation on talent management process
The staff rotation process is very time consuming and a lot of time is wasted in
motivating and persuading the employees for rotation of their job roles. Employees also need
time to settle down in their new job role and be familiar with the co-workers. It adds to an
increase in the levels of stress and anxiety of employees, since most employees wish to
perform within their comfort zone and in a familiar environment. In case the process is forced
on by the organization, it may lead to wastage of time training unfit and unwilling employees
to take up the job role. It is due to all of these reasons, that high levels of staff rotation make
it difficult to implement a talent management process in ABC Distribution.
Ways to retain existing talent
The retention of employees in ABC Distribution can be achieved via the following ways:-

7ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
 Good flow of communication- The presence of good flow of communication allows
the employees to be aware of the changes in company policy and objectives. Listening
to the ideas and opinions of employees regarding various decisions helps to make
them feel more important and increases motivation and active participation in work.
 Rewards system- Rewarding employees for their hard work and contribution towards
the organization make the employees feel more respected and worthwhile (Deery,
Margaret, and Leo Jago, 453-472). Employees who feel that their work is
underappreciated may look for potential jobs elsewhere.
 Conduct employee development programs- It helps in developing new skills in
employees and training them to be more efficient in the work performed by them.
Instead of managing employees, emphasis should be given on the quality of the task
performed and how it could be enhanced further (Douthitt, Shane, and Scott Mondore,
16.).
 Providing opportunities for growth- The internal environment needs to be scanned
frequently to provide higher positions of job role to deserving employees. The
interested employees may take up the promotion offer and this creates a sense of
loyalty and respect in the employees regarding the business organization (Oladapo,
19).
 Performance reviews- Performance reviews help evaluate the skills and work done
by an employee and it informs him about his strengths and the areas he needs to focus
more on. It helps the employees to know what the organization or the job demands
from them and develop the necessary skills or receive training accordingly
(Thunnissen et al., 326-336.).

8ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
Tools of talent management
Being a Human Resources specialist in talent management, a number tools can be
used to try and attract the right talent candidates for ABC Distribution. They are as follows:-
 Clearly defined objectives- An organization that has good communication flow
and informs its employees about the objectives that are to be achieved, it results in
the maximum utilization of the workforce. It also helps the employees to be clearly
aware of their position and job role in the organization (Cappelli, Peter and J. R.
Keller, 305-331.).
 Coaching- It helps in establishing healthy relationships with employees and
motivating and inspiring them to work hard towards achieving the organizational
goals. The executive trainers assess the employees and they develop new skills
(Sparrow et al., 177-212).
 Diversity of workforce- The diversification of workforce helps remove differences
in ethnicity, caste, culture, gender and age. It provides a wider scope of providing
customer service and catering to all sections of the crowd (Thunnissen and Marian,
326-336).
 Retention- Losing out experienced and skilled employees to competition or other
organizations is a great drawback for any business. Therefore, it is important to
retain employees and this can be achieved by the implementation of proper
compensation, safe and comfortable work environment and offering the employees a
chance to progress or advance (Chitsaz-Isfahani, Ali, and Hamid Reza Boustani,
114).
 Effective recruitment process- The recruitment of new employees to a
organization brings in new talent and fresh new ideas and thoughts, vital to the
workings of the organization. It also helps to focus more on the requirements of the

9ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
organization and the employees are selected in accordance with their skills and
training (Meyers et al., 305-321.).
Importance of technological resources in a company
The presence of technological resources is an important and essential part of any
business organization in recent times. ABC Distribution, makes use of outdated methods to
communicate with its clients and completely ignores the usage of any form of hardware or
software, be it smart-phones, tablets, social media and so on. This affects the efficiency of
business since the presence of technological resources serves as a great advantage to business
organizations (Benitez-Amado et al., 207-220). It helps to ease the communication process
making it less time consuming and cost effective. Apart from this, it also helps in maintaining
good communication flow between the organization and its employees as well as suppliers,
factory workers and others. The presence of technological resources helps to strengthen the
security of an organization by securing confidential files and reports on a digital database.
Lastly, it enables business organizations to conduct research on the present market conditions
and stay a step ahead of competition.
Recommendations
As a Human Resources Manager of ABC Distribution, the following
recommendations are to be provided to the executive heads regarding the importance and
implementation of technological resources. They are as follows:-
 The use of an online database to store confidential files, reports and executive
decisions which if leaked, may affect the operations of the organization.
 The presence of a website for ABC Distribution would help in communicating freely
with consumers and would add to the improved brand value of the organization.

10ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
 A common portal or application being used to communicate all decisions, objectives
and policies to all employees of the organization at once cutting down time and cost
and reducing the chances of confusion and miscommunication.
Ways to approach Executive heads
The task of approaching and convincing the executive heads of an organization is a
difficult one. However, the present status of ABC Distributions is alarming in nature and
needs to be addressed promptly failing to do which would affect the implementation of a
talent management strategy. This can done via the following ways:-
 Brief and to the point message.
 Creating a presentation or slide containing a summary of the issues to be addressed.
 Rehearse on the speech that needs to be delivered beforehand.
 Provide a detailed information of all the threats currently faced by the organization
and how it can be solved. All topics should be covered carefully without missing out
on important information.
Essential Pre-requisites for successful talent management
The implementation of a successful talent management process requires the presence
of a few essential prerequisites. They are as follows:-
 Clarify the company’s strategic vision- In other words; the employees should be
aware of the workings of the organization and the set of goals and objectives that are
to be achieved by the organization within a given time.
 Changes in internal environment- The constant changes in leadership affect the
decision making process and workings of an organization (Bryant, Phil C and David

11ABC DISTRIBUTION STRATEGIC TALENT MANAGEMENT
G. Allen, 171-175). Although ABC Distribution is expanding its business
internationally, it maintains a SME culture and functions through ‘silos’. These
factors needs to be considered and resolved before implementing a talent management
strategy.
 External factors- The presence of SME culture has affected the organization and its
operations since the organization is currently undergoing the process of expansion.
Since the business is undergoing international expansion, new laws, policies,
decisions, new market and competitors are the external factors that need consideration
before the implementation of a talent management strategy.
Conclusion
Thus the conclusion can be drawn that the implementation of a talent management
strategy serves as an important aspect for the growth and success of an organization.
However in the given case study, ABC Distributions is currently being affected by a number
of factors that do not permit the implementation of a talent management strategy and the
employee retention rates are alarmingly high. Therefore, these issues need to be addressed to
the executive heads and necessary steps taken to ensure the growth and survival of the
organization as well as bringing in a skilled and talented workforce.