Small businesses often struggle to attract and retain top talent due to the perception of candidates that there may be fewer opportunities for their development. However, many could already be employing talent whose potential is un-realised. Nigel Thomas, from SHL, provider of psychometric assessment and development solutions offers some insight into how small businesses can harness the potential of their employees by taking a talent audit approach.

Over the last two years there has been an increased focus on recruiting and retaining talent. Whereas larger organisations are able to invest more resources in the recruitment process, small businesses often lose out in the ‘war for talent’. The most significant blow to smaller firms is the financial impact of recruitment. Consider; the time and money spent on the recruitment process or the rising cost of employing a recruitment agency, in addition to the fact that it usually takes six months before a new recruit becomes effective. That is of course, assuming that the right decision was made on who to hire.

However, while smaller firms may lack the specialised departments of their larger counterparts, they also have a powerful advantage: they have the capability of engaging with their talent on a much more personal basis. As such, one question seems obvious – ‘Why don’t smaller firms start with the talent they have in-house?’ – The answer is that companies often don’t realise what capabilities are already in place but unused. The first step in winning ‘the war for talent’ is uncovering this untapped wealth of home grown talent by following a simple talent audit approach, which is especially suited for smaller businesses.

The word ‘audit’ is usually associated with understanding finances, not people, but an audit is exactly what is needed to effectively assess and manage talent within smaller organisations. Too many decisions about people are based on ‘gut feel’ when what is needed is an objective look at the potential of those within the organisation.

One of the most important actions that a smaller firm can take today to prepare for the challenges of tomorrow is to conduct an audit of their current talent. Not only does a talent audit provide invaluable information about the strengths and gaps in current talent, but it also allows organisations to be proactive in developing or obtaining the people that they will need to be successful in the future. As an added benefit, clear career development processes help to build loyalty with internal 'high potentials' who feel like their aspirations could be realised within their current organisation.

Employing a simple, yet strategic, talent audit of the existing people potential within the organisation could uncover skills that may need developing, but exist within those already in tune with the company’s brand values and culture. In addition to this, maximising the output of existing potential could cost businesses a third of the cost of recruiting new candidates. In this way smaller firms can retain their top performers without losing them to larger firms, while ensuring that any recruitment decisions are based on a sound understanding of what the company needs.

No matter the size of an organisation, the result will remain the same - the more resources you invest in an employee, the more they will invest in you. SHL is a world-leading provider of objective, scientific psychometric assessment and development solutions that helps companies around the globe to select, recruit and develop the best people. SHL has established the SHL Partner Network (SPN) to service the needs of small and medium sized organisations. In the UK there are more than 350 SHL partners who can offer assistance, consultancy and expertise in SHL tools to select and develop the best talent for your business.

Maximising talent – with the help of SHL’s community of trained experts, simple steps can be followed to enhance current practices and help prepare for the ongoing shortage of talent in smaller companies.

1. Write a talent map

The process begins with taking a closer look at your business’ people, making a note of those skills, abilities and behaviours (competencies) that you think are required from them to help deliver your long term business strategy. For example, do you have too many people with strong technical skills and not enough big thinkers? SHL finds this to be a critical first step to ensure that your ongoing talent management activities support corporate goals.

2. Critique current context

You can get a clear view of your talent reputation, by asking how fulfilled, engaged and motivated employees feel. This could be done through an employee survey and take an honest look at the answers – Does your organisation have work to do? Do employees at multiple levels feel confident that they have room grow their careers without looking at other firms? Is there scope for improvement? How many leaders of the future could there be within the organisation? Your processes for identifying and “fast-tracking” undiscovered talent in your organisation may also need to be reviewed.

3. Conduct a talent audit

Along with the results of the employee survey, use of SHL’s Occupational Personality Questionnaire (OPQ), Motivation Questionnaire (MQ), and ability tests can also help smaller organisations to obtain a measure of a person’s potential and their fit for future roles and responsibilities. Taken together, the assessment results can enable you to understand the talent in your organisation – at both the individual and group level – and match it to those required as per your talent map. SHL’s Partner Network, SPN, can provide consultancy in your area and field with the help of our qualified experts to analyse the output of these assessments.

4. Create a talent strategy

With the help of an SPN facilitator, schedule a day with your senior managers to review the talent audit results and create a talent strategy with real targets that all can commit to. The objective is not to solve the talent challenge for the whole organisation at once. Through the facilitated discussion, prioritise initiatives by identifying areas that address significant pain points and that have the most impact on strategy.

Finally, integrate talent management into quarterly business reviews and remember, when addressing talent in your organisation, above all else be bold. Act like your business depends upon talent - because it does.

About SHL Group Limited
SHL is a world-leading provider of objective, scientific psychometric assessment and development solutions. SHL takes the risk out of the selection, recruitment, promotion, succession planning and development of talented people at all levels

For more information please visit www.shl.com or call 0870 070 8000