Analysis of Talent Management at Direct Line Insurance Group

This report provides a comprehensive analysis of talent management strategies employed by Direct Line Insurance Group. It begins with an introduction to talent management and its significance within HRM, followed by an overview of Direct Line's current talent management practices. The report examines the company's business and HR strategies, recruitment methods, selection processes, performance and reward management, and training and development programs. A key focus is the gender pay gap reporting from 2017 to 2020, analyzing trends and the company's initiatives to address the gap. The report also explores the impact of environmental factors, such as government policies, economic conditions, and the COVID-19 pandemic, on HRM practices. Furthermore, the report offers recommendations to address identified gaps and enhance talent management effectiveness. The report concludes with an overview of podcast for better understanding of the topic.

Talent Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY .................................................................................................................................1
PART 1............................................................................................................................................1
TASK 1 Discuss the current talent management strategy of selected firm. ...................................1
Business and HR strategy ...........................................................................................................1
TASK 2............................................................................................................................................4
Gender pay gap reporting............................................................................................................4
TASK 3............................................................................................................................................5
Impact of environmental factor on human resource management practices ..............................5
PART 2 ...........................................................................................................................................6
Recommendation that will help in address the gap.....................................................................6
Solution for this problem based on current academic research and practice .............................7
Implementation of recommendation...........................................................................................8
Podcast........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Main objective of this report is to understand the concept of talent management. It is an
integral part of human resource management of an organisation. Talent management is an
effective approach use by an organisation for recruit or hire, develop and retain people with
require skills and ability which helps organisation in successfully achieving organisational goal.
According to SHRM (Society of human resource management) talent management is the
implementation of integrated strategies of system which helps an organisation in enhancing their
level of productivity at workplace through improving the process of attracting, developing,
retaining for long term, and efficiently utilizing people through required skills and aptitude,
which helps organisation in efficiently fulfilling their future needs (Abdollahbeigi, 2021). For
this report Direct line insurance group plc is taking into consideration. It is an British insurance
company which is founded by Peter Wood and Martin Long in 2012. Its headquarter is in
Bromley, England, United Kingdom. It was the first telephone only insurance company in the
UK. This report includes the talent management strategies, gender pay gap report. Other than this
it includes various environmental factors which impact on the HRM practices. It includes a
recommendations report and a podcast.
MAIN BODY
PART 1
TASK 1 Discuss the current talent management strategy of selected firm.
Talent management refers to an constant process which helps an organisation in attracting
and retaining high-quality employees and retain them for long term period through developing
their skills and motivate them to improve their performance (Alferaih, 2018). Which helps in
successfully achieving their organisational goal. In context of Direct Line insurance company,
various strategies of talent management are mention below:
Business and HR strategy
Business strategy refers to an set of actions and decisions which helps an organisation in
successfully achieving their desire goal (Ambrosius, 2018). A business strategy of a company is
describe as the long term business planning. This defines how different department of an
organisation allocate resources and take decisions for achieving higher growth. While HR
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strategy refers to the overall plan of an organisation for effectively managing its human resource
and align it with its business activities. In context of selected company, they adopt a strategy of
fair compensation, training and development, better organisational culture which helps
organisation in efficiently managing their human resource and attract and retain best talent in
company for long period of time.
Recruitment and recruitment channel
It refers to a process which is used by an organisation for identifying, attracting,
interviewing, selecting, hiring and on-boarding employee in organisation. In other words
recruitment means identifying the need of employees in organisation and filling it with the right
person. In context of selected company, they recruit employees form various available sources
which are discuss below:
 Internal source- In context of selected firm, internal recruitment means selecting
employees inside an organisation. For better talent management company use internal
source of recruitment such as promotion, transfer, employee referrals which helps
company in retain their best employees for long period of time and also fill vacant
position in company (Beamond and et. al. 2021).
 External source- It refers to the recruitment process in which company hire people from
outside the company. In context of selected firm they hire employee through campus
placement which provide highly skilled and new talent to company.
Methods of selection
Selection refers to a process of selected the right candidate for the right job from the
available pool of applicants. In context of selected company they use various selection methods
which are discuss below:
 Personal interview: It refers to the traditional tool to judge the ability of a person or
candidate. In this method interviewer and interviewee have a face to face contact. In
context of selected firm, this method helps HR manager to better understand the
behaviour and ability of a candidate (Ghaffari, Rafiei and Sahranavard, 2018).
 Telephonic interview: It refers to a selection method in which HR manager select
employee through conducting interview on the phone. Selected company use this method
when they have less numbers of applications for vacant job.
Performance management
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Performance management refer to a process used by an organisation for monitoring
employee work performance and ensure that a set of activities and final output will efficiently
and effectively meet the goal of an organisation. In context of Direct Line Insurance company,
they use various strategies for better performance management which are discuss below:
 Feedback- In context of selected firm, they regularly take feedbacks from their worker
related to work and any difficulty they face during work which helps company in better
performance management.
 Healthy interpersonal relationship- In context of selected company, using this strategy
company create a strong relationship with employees which helps company for
enhancing their performance and for better talent management (Gilmartin and et. al.
2020).
Reward management
Reward management is an activity of an organisation which formulate and
implementation of various strategies and policies with the aim of providing fair, equitable and
consistently rewards to employees. Main aim of reward management is to create and efficiently
operate reward structure for an organisation. In context of selected firm they mostly use Intrinsic
reward which is an non tangible reward but it provide higher job satisfaction to employees. It
includes impressive job title, career growth, personal achievement etc. Proper reward
management system of selected firm helps them in retaining their best talent for long period
(Kasahara, 2020).
Training and developments
It refers to a business tool which is used by HR manager of an organisation for improving
knowledge and skills of their employees. Which also motivates employees to do work with their
full efficiency and effectively achieve goal of organisation. In context of selected insurance
company, they adopt a strategy of induction training and job training for their new and ;potential
employees, which is discuss below:
 Induction training- This training method is used by manager of selected company for
their new employees so that they are familiarize with the culture of organisation and
better understand the policies and work structure of company.
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 Job training- In context of selected company, they regularly provide training to their
new and existing employees for increasing their skills and efficiency so that they can
successfully achieve organisation goal (Lumme, 2019).
Diversity and equity policy
Equality means ensuring that each and every employee has take equal opportunities and
does not face any discrimination because of their characteristics. While diversity defines the
difference between people or group of culture and creating a positive values on those
differentiation. In context of selected firm, their formulate and implement a effective equality
and diversity policy and ensure that their all employees feel equal in organisation (Muratbekova
and et. al. 2018).
TASK 2
Gender pay gap reporting
It refers to a situation where women are paid less as compare to men for doing the same
work. In other words it refers to the measurement of total gap in the overall earnings of men and
women. Mean gender pay gap is an average. Which is calculated by adding up the wages of all
male and female employees and divided it by the total numbers of employees. The former simply
differentiates between mean and median wages of the two genders. It arises because of
difference in various factors such as occupation, education and job experiences. It is also arises
because of differences in work tenures and the need of sabbaticals. In context of Direct Line
insurance company, data of gender pay gap since from 2017 to 2020 is given below (Direct line
group- people, 2019)
Gender Pay Gap
Year Mean Median
2020 17.20% 15.40%
2019 16.30% 13.70%
2018 17.10% 15.40%
2017 18.70% 14.70%
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From the above table it is analysed that the gender pay gap is reduce in those four years.
Mean gender pay gap is calculated by dividing total wages given to male and female workers
with total number of employee and median pay gap is calculated by listing all male and female
employees wages from highest to lowest and comparing the number that sits in the middle for
each gender (Direct line group publishes gender pay gap report, 2018). In 2017 the mean gender
pay is 18.70% and median gender pay is 14.70% and from the 2020 gender pay gap it is analysed
that mean pay gap is 17.20% which is reduce by 1.10% from 2017 and the median gap pay of
2020 is 15.40% which is raised by 0.70% . Other than this from above table it is analysed that in
2018 mean gender pay gap is 17.10% which is reduce by 1.60% from the year 2017 and median
pay gap is increased by 0.70% in 2018. while in 2019 mean gap pay is 16.30 which is reduce by
0.30% from the previous year and the median gap pay will also reduce in 2019 by 1.70% (Direct
line group report its gender pay gap, 2019). In 2020 it will again increase because of the reason
of COVIDE 19. Women resign from their job and do not want to do job at the time of COVIDE-
19. which will case again increase in gender gap pay for company but now company use
effective strategies so that they can efficiently reduce this gap. Various actions of selected
company for reducing gender gap pay are discuss below:
Recruitment- In context of selected firm, they offer flexible working hours to their
employers and also provide a facility of work from home because of which women do work at
staying at their home. This will helps organisation in reducing they gender pay gap which will
also create a good image of company.
Retention and progression- In context of selected firm, they adopt effective strategy and
properly use the concept of talent management which helps them in retain women employee in
company for long period of time. They use accelerating leadership style which helps in
effectively guiding and motivating women workers (Muratbekova and et. al. 2018).
TASK 3
Impact of environmental factor on human resource management practices
Environmental factors refers to those factors which influence business from outside and
business have no control over these factors. While human resource management is an practice of
an HR manager of a company which helps in effectively managing human resource of an
organisation. It increase employees efficiency and productivity by using its various approaches
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and helps organisation in effectively achieving their goal. In context of selected firm, various
practices of HRM are training and development, fair compensation, provide security, selective
hiring. Their are various external factors which influence the human resource management
practices of selected company are government policy, economy condition and COVIDE-19
because of change in government policy selected company face difficulties in formulation of
policies in business and they face problem in implementing HRM practices. Economic condition
of a country influence the HRM practices most because of it HR manager of selected company
face difficulties in hiring people. COVIDE-19 will influence all the business whether it is small
and large. In context of selected firm, because of COVIDE- 19 there employees are not ready to
come at company which will influence the productivity of company. Company try to solve this
problem by providing option of home working but it will create problem for HR manager to
mage their employees working from home and it will also increase expanses for company
(Pandita and Ray, 2018).
PART 2
Recommendation that will help in address the gap
This report is based on Direct Line insurance company which is an British insurance
company. From above discussion it is analysed that selected company face a problem of gender
gap in their organisation. Gender pay gap is arises because of a situation when women
employees are paid less then men employees for doing the same work. Government of UK
implement various rules and regulation related to equality which helps organisation in reducing
gender gap pay. Their are various reasons of gender pay gap such as knowledge, skills,
experience. It is analysed that women have less experience as compare to men. Other than this
another reason of gender pay gap is that women are less promoted at higher post and if they get
promote at higher post they will receive less pay as compare to men because of this reasons
women are demotivate towards doing work at company and this will also decrease their morality
because of this reason the gender pay gap is increased (Pocztowski, Pauli and Miś, 2020).
In context of selected firm, their gender pay gap is reduce but not much this show that
there is an inequality and difference in the pay of women and men. This difference will break
passion of women and demotivate them towards work. In context of selected firm, their total
mean pay gap in 2017 is 18.70% which is reduces by 1.10% in 2020 and it will be 17.20% while
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median pay gap is 14.70% in 2017 and will increased to 15.40. This will show that the women
revive less pay in 2017 but selected company try to reduce this gap by providing equal growth
opportunities and fair performance based compensation. The gender gap is not fully reduce but
company make effective full time and part job job strategies for women which helps in reducing
this gap. This pay gap between males and females will also influence the growth of an economy.
Solution for this problem based on current academic research and practice
In context of selected firm, various solutions which helps in reducing gender pay gap are
discuss below:
 Reviewing the employee earning- In context of selected company, they needs to
effectively analysed the total earning of men and women workers. Which helps company
in understanding that both are getting equal pay or not. If there is a difference in these
pay that a men get more pay as compare to any women worker then selected company
needs to motivate that female employee and increase her efficiency so that company can
match their earning with male employee by provide extra reward and benefits (Schneider,
2018).
 Equal earning opportunities- In context of selected firm, they needs to provide equal
growth and earning opportunities for both male and female employee. Equal
opportunities policies in organisation will motivates both males and female employee to
do work with their full efficiency and achieve higher wages. This available solution helps
company in reducing gender pay gap from their organisation (Vaiman and et. al. 2018).
 Hiring process- In context of direct line insurance company, they needs to adopt equal
hiring policy in their company for selecting employees for vacant post. Selected company
use both internal and external source for recruiting employees in their company. When
they select candidate from external sources than they need to provide equal chances for
both male and female candidate and when company hire employee from inside the
organisation for a vacant post than they need to provide equal chances to both male and
female employee to get promoted (Son and et. al. 2020).
 Provide support to mothers and families- In context of selected firm, reason behind
this pay gap is COVIDE-19 because of it no one is allowed to go outside from their home
because of this many women are not able to go at company. For this problem selected
company needs to adopt gender-neutral parental leave policy which make employee to
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take leave and work from home. This will also helps in retaining talented employees of
company.
Implementation of recommendation
Gender pay gap or gender wage gap is an average difference between the remuneration
for men and women who are doing same job. These gap create many problems for women as
they are demotivated and also lose their passion because of these gap in pay. It will also effect
the economy growth of a country and government make many equality legislation for providing
equal wages. Selected company implement various strategies which helps in removing this gap.
They offer flexible working hours and work from home facility to their women employees so
that women re also motivated towards work in company. They adopt various strategies for
reducing this gap such as employee earning, equal earning opportunities, hiring process and so
on. Other than this from above analysis on this problem it is recommended that selected
company needs to adopt equal earning opportunities strategy in their organisation. Which
provide equal chances to both men and female to do efficient work and earn equal pay. This
strategy helps company in motivation their women employee and reduce their gender pay gap
which create a positive image of company in market and also helps company in retain their
employees for long period of time (Taylor, 2018).
Podcast
From above discussion it is analysed that selected company face a problem of gender pay
gap. It refers to the difference between the salary and wages of male and female employee.
Direct line insurance company gender pay gap is 18.70% in 2017 and get reduce by 1.10% in
2020 at it will be 17.20% but it will increase as compare to previous year as in 2019 their gender
pay gap is 16.30% which will rise by 0.90% in 2020. This is occur because of COVIDE-19.
Selected company adopt various strategies for solving this problem such as they use equal
earning opportunity, employee earning, hiring process and supporting women. All theses
strategies helps selected company in reducing this gender pay gap. In context of selected firm,
their management regularly review earning of both male and female employees and try to fill the
gap by providing reward or some other benefits. Other than this selected company effectively use
the recruitment and selection policy in which they motivate female candidates for applying for
job and pay extra wages from their previous job. All these strategies also help organisation in
retain their employees whether it was a male or female for long period of time.
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CONCLUSION
From above discussion it is concluded that talent management play an important role in
any organisation. As it helps in attracting skilled and talented employees also retain company
experienced employees for long period of time. Which will increase the efficiency and
productivity of an organisation. From this report it is analysed that gender pay gap will influence
the growth of company and also effect the growth of a country. This show the difference
between wages provided to women as compare to male employee. Higher gender pay gap will
effect the image of company. It is analysed that by adopting equal earning opportunities, hiring
process, support women and family and so on a company can reduce this gap.
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REFERENCES
Books and journals
Abdollahbeigi, B., 2021. EXPLORING KEY FACTORS THAT INFLUENCE TALENT
MANAGEMENT. Lulu Press, Inc.
Alferaih, A., 2018. Advances in Talent Management Research: A Review of Extant
Literature. Emerging Markets from a Multidisciplinary Perspective. pp.359-379.
Ambrosius, J., 2018. Strategic talent management in emerging markets and its impact on
employee retention: Evidence from Brazilian MNCs. Thunderbird International
Business Revie. 60(1). pp.53-68.
Beamond, M.T., and et. al. 2021. Emerging Economies and Talent Management: Core
Challenges Facing Key Actors in Strategy Translation. In Business Practices, Growth
and Economic Policy in Emerging Markets (pp. 115-134).
Ghaffari, H., Rafiei, M. and Sahranavard, S., 2018. Factors Affecting Talent Management with a
Focus on Internal Reward: A Case Study of Barfab Company. The Journal of
Productivity Management. 12(1 (44)). pp.97-121.
Gilmartin, M., and et. al. 2020. Diversity in NHS clinical leadership: Is better talent management
the route to gender balance?. BMJ Leader, pp.leader-2019.
Kasahara, T., 2021. How Do Japanese MNCs Identify Talent? The Neglected Role of Regional
Headquarters in Global Talent Management. In Management for Sustainable and
Inclusive Development in a Transforming Asia (pp. 139-162). Springer, Singapore.
Lumme-Tuomala, R., 2019. The meaning of competence, commitment, and contribution in talent
definition. In Managing talent (pp. 53-74). Palgrave Macmillan, Cham.
Muratbekova‐Touron, M., and et. al. 2018. The phenomenon of young talent management in
Russia—A context‐embedded analysis. Human Resource Management. 57(2). pp.437-
455.
Pandita, D. and Ray, S., 2018. Talent management and employee engagement–a meta-analysis of
their impact on talent retention. Industrial and Commercial Training.
Pocztowski, A., Pauli, U. and Miś, A., 2020. Talent Management in Small and Medium
Enterprises: Context, Practices and Outcomes. Routledge.
Schneider, B., 2018. Being competitive in the talent management space. Industrial and
Organizational Psychology. 11(2). pp.231-236.
Son, J., and et. al. 2020. Double-edged effect of talent management on organizational
performance: the moderating role of HRM investments. The international journal of
human resource management. 31(17). pp.2188-2216.
Taylor, S., 2018. Resourcing and talent management. Kogan Page Publishers.
Vaiman, V., and et. al. 2018. Macro talent management in emerging and emergent markets: A
global perspective. Routledge.
Online
Direct line group- people, 2019. Online available through
<https://www.directlinegroup.co.uk/en/sustainability/people.html>
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