Internal marketing and talent management have been a trend in companies for the recent decades. They are the fast gaining a top priority for organizations across the world and become the key of retention. Thus, researchers were interested in this development. The outcome in the organization such as engagement score, level of engagement over time, various levels of talent segments and department along with customers’ value about the organization were concerned in many research.
Talent Management and Internal Marketing
Definitions for Talent Management
According to Lewis and Heckman, there are three definitions for talent management. First, they define talent management as recruiting, selection, development and career and succession management in the human resources department practices. Throughout this process, technology should play an important role to aid the development of the organisation. (Julia and Hughes, 2008)
The second perspective for talent management is more or less the same as labour force planning. It manages the flow of workforce in the organization, based on the skills, supply and demand, and growth and attrition. (Julia and Hughes, 2008)
The third concept focuses on the talent of an employee (skill and knowledge). Employee’s talent was often underestimated. Thus, employer must know how to align the right people to the right job based on strategic business objective. They must rectified and develop some skills that are relevant to the job. Their employee should reward employees with high potential or performance. (Julia and Hughes, 2008)
Definitions for Internal Marketing
Christopher stated that internal marketing is important as it focused on the needs of the customers. “Fundamental aims of internal marketing are to develop internal and external customer awareness and remove functional barriers to organizational effectiveness.” (Varey and Lewis, 1999) Thus, it shows that company will face problems such as employees’ poor performance arising from inferior service offering and higher costs commitment, due to lack of their participation.
Internal marketing is a manner of communication management with clear tactic based on both studies and evaluation and personal skills development and responsibility. Human has unlimited needs and wants and they are not easily satisfied. Thus, the employee must satisfy their internal customer in order to satisfy the outer customers. (Varey and Lewis, 1999)
It also defines as productivity through participation requiring leadership, processes and commitment from all. Internal marketing is able to prevent declining management standards as well as providing clear organisation and personal direction. (Varey and Lewis, 1999) For example, a cosmetic company set a regulation that all employees must use product that are produce by them. This is to make sure that all employees know the trend of company and experience more about the product in order to promote to others.
Similarities and Differences of Talent Management and Internal marketing
Both talent management and internal marketing considered as holistic approach to human resource. Their function is to develop, retain and motivate employee. These two techniques help to reduce the gap such as communication and provide a closer relationship between employee and employer. Moreover, they are expensive then implying in the organisation.
When an organisation is applying talent management, employers treat employees as an asset because they believe employees are the source of income to the company. When employees are satisfied to the job because their talent is fully recognized and utilised wisely, the company is able to reach their goal and develop faster. Moreover, as the turnover rate reduces, the good internal environment of the company will be to the external people. Thus, more talents will be interested and attracted to serve the employer and company.
On the other hand, the organisation is a market place where employee is both buyer and consumers in the implement of internal marketing. Gifts, free samples and discounts are available for the employees so they can understand more about the company’s product and services as well as create and deliver value to the external market. For example, employees will spread word of mouth about the benefit of the service or product provided to their friends and family. Conversely, employer is able to understand the trend in the market and control the quality of the product too. They are indirect control through involvement and participation.
Implication of Talent Management
Different employees have their own skills and knowledge, which differentiates them from other employees and they is hard to replace. Thus, the company must appreciate them at all levels for employee retention and recruitment. Buzzelli, member of Deloitte Board of Directors, tries to understand and appreciate his employees, which are from different background and apply different ways of management. Thus, he is able to build an environment where his employees are proud to work for him. Moreover, Deloitte is able to attract more customer as it was believe that best employees will provide the best performance and service. (Cottrill, 2007)
Talent management improves communications and leadership skills in the firm too; A good leader must be a good listener. Buzzelli has created an environment where managers pay attention to his employees. Thus, he is reliable to his people who always give him feedbacks that help him to understand their situation and eliminate barriers. (Cottrill, 2007)
Despite high cost and challenges in maintaining talent in an organisation, talent management is still essential in providing a long-term sustainable platform for the growth of an organisation. Employees must know how to employ the right people in the right position. Conversely, Deloitte is diverse from the sex prospective, ethnic and age perspective and all they need is just the right people. (Cottrill, 2007)
A company is unable able to provide the best service and build a good reputation unless they have the best people with right skill to meet the expectation of customer. According to Deloitte’s research, Generation Y does not work in companies whose objective does not align with theirs. The company must be responsive to the employee and the community to build a good example to his employees. The company will then give confidence to the people outside. (Cottrill, 2007)
Implication of Internal Marketing
Internal marketing is a basic for designing an appropriate motivation basic. The employees will be loyal and provide a higher productivity and output quality when they learn more about each other and share the same goal throughout the process of service. (Adrian, 1998) For an example, during the process of treatment, a nurse notice that she share the same objective with the doctor, like taking good care of the sick. They can do a good job as a team in the future.
When employees are able to obtain the cheaper or free services that are provided in their organisation, they will participate enthusiastically. Thus, their involvement will help in improving the services. Comments and suggestion will be given on the service that they had encounter in order to improve their services and reduce production and internal transaction costs. The objective from the entire organisation is able to bring together in the organisation too. (Adrian, 1998)
Internal Marketing is the cheapest and easiest way for advertising the services to the external market. When the internal customer is very satisfied to the service provided in the organisation, they will introduce their friends and family to the service factory via word of mouth. For example, the employee will bring his family to the clinic where he works as he has a good experience and treatment from his employer. (Adrian, 1998)
This is a good strategy to improve open two-way communication between the employers and employees. Information in a company should pass down through and communicate back up again. Some important information in the organisation should be passing around so that rumours will not be passing around and employees will not feel underclass. On the other hand, communication helps to coordinate tasks between front line and support staff. In a legal firm, the researchers need to provide accurate information about the law so that the lawyer can win the court case. (Adrian, 1998)
Build up strong connection between learning activity and knowledge renewal is done through internal marketing too. “Customer consciousness is developed through internal marketing and the learning and knowledge that come from that experience.” (Ballantyne, 2000) Internal customer has similar properties like external customers. Thus, enhancing internal marketplace performance where the outputs are express in different ways is important. (Adrian, 1998)
Barriers for Talent Management
In order to cope with the fast growing economy of a country, more professionals needed to provide support for the business environment. However, most places especially developing and undeveloped countries are lack of talent. In UK, four big firms were fighting among each other for the recruitment of qualified accountant. (Noraini, 2009)
Most specialists are not motivated to work in rural areas due to poor facilities and living environment. For example, there is insufficient of specialist doctors in rural areas of Hindu. Although the salary increases to Rs. 50000 per month plus an addition of Rs. 10000 given as an incentive, doctors were still motivated to work in the rural areas in the State. (Shortage of doctors in State regretted, 2010)
Some People do not enrol themselves to specialized services, as they do not seek to become a professional. They enrolled into those professional degrees program to obtain a higher academic qualification needed for their job advancement. There are many cases where an accounting graduate who did not continue their career as an accountant but only a manager. (Noraini, 2009)
Companies need to invest heavily on salaries and wages for all the professionals in the organisation. Furthermore, these large amount salaries are use to attract talents to work in the organisation too. AICPA and state accounting societies have invested heavily and put in much effort to promote accounting as an attractive career option in US. (Noraini, 2009)
Employees in this century have increase their unlimited needs and wants too. Some of them may resign and seek for a more interesting and challenging job or opt for early retirement. Thus, the companies are often blindsided and risk losing some of their talent. There was in case where an aerospace company where a midcareer technical manager who active and seek more in his career. He quit the job and started his own consulting firm. However, his bosses regretted and eventually hoping for his return. (Morison et al., 2008)
Barriers for Internal Marketing
It is difficult to show the similarities between internal and external market for service in the implement of internal marketing. “The internal customer is frequently a captive customer.” Employees were tied to the employment contract with the company and entitle to use the facilities available. Thus, it is necessary for them to use the service unit provided while the external customers can change their service provider to somewhere else whenever they are not satisfied. (Palmer, 1998)
In an organization, internal customers are hard to differentiate in to different types of customers and differing their expectations. The marketing plan for that particular service will not be meet and may treat all external customers as homogeneous. i.e. All the government servants used the medication provided that is targeted for the low-income family because they are able to pay for the lowest cost. Thus, customer’s expectations and different internal customer segment must be explore, identify and evaluate. Hence, it will be help to maximize its effectiveness and able to apple on the external market. (Palmer, 1998)
Moreover, some of the employee’s lifestyle will be change too. They are forces to change the service centre they used to go before. For example, some employee is use to go for medication in a particular clinic. The clinic has all the medications record for the employee. However, when they are force to go for the clinic that they work in, the new doctor do not know anything about this patient and he needs to do all the check up all over again.
Employees in the organization only represent a small portion of the entire customer and consumer. The trend in the company may not represent the entire buyer as it only helps to understand organizational purchasing behaviour. Furthermore, they may mislead the company to a wrong direction. For instant, the employees would like to have an air flight to China but in the actual consumer demand, most customer love to go to Korea for a vacation.
Customer satisfaction for the service provided is important and is seek as a competitive advantage for the company. However, it is not enough. Employers must be aware of the development of customer commitment by building a long-term relationship like building interdependencies, share values and mutually beneficial strategies. (Harrell and Fors, 1996)
Despite good strategy plan in an organization level to increase internal and external value through talent management and internal marketing, employers are able to help their people to balance their work and family work life. These strategies include flexible working hours, flexible work arrangement, prevent work overload, etc.
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