A talent review is a structured, forward-looking process where company leaders assess the performance and future potential of their employees. This evaluation provides a holistic view of the organization’s talent pool, helping align employee capabilities with strategic goals. The discussions are designed to inform decisions about talent placement, development, and future leadership.
The Purpose of a Talent Review
The primary objective of a talent review is to meet current and future business needs by identifying employees with high potential for growth and leadership. Pinpointing these individuals early allows companies to invest in their development, boosting their readiness for more significant responsibilities. This proactive approach helps build a strong talent pipeline.
The process also informs succession planning for roles throughout the organization. Leaders identify and prepare potential successors for important positions, mitigating risks associated with unexpected departures or retirements. This ensures a steady line of leadership, preventing gaps that could disrupt operations.
Talent reviews uncover skill gaps by assessing the workforce’s capabilities against strategic objectives. This allows for targeted reskilling and upskilling initiatives to ensure the workforce remains adaptable and competitive. Addressing these gaps helps align the talent strategy with long-term business goals.
Talent Review vs Performance Review
Talent reviews and performance reviews serve different purposes. A performance review is backward-looking, evaluating an employee’s past performance against set goals and job-specific tasks. Its outcomes are often tied to compensation, bonuses, and identifying areas for immediate improvement.
A talent review, conversely, is a forward-looking discussion that assesses an employee’s potential for future growth and suitability for different or more senior roles. The focus extends beyond current job performance to include leadership qualities, adaptability, and readiness for career progression.
The scope of these reviews also differs. Performance reviews are one-on-one conversations between a manager and their direct report. Talent reviews are collaborative meetings involving senior leaders, managers, and HR professionals who discuss employees from a broader, organizational perspective. This collective evaluation provides a more holistic view of the talent landscape.
The Talent Review Process
The process begins with data gathering. Before the review meeting, managers collect comprehensive information on their employees, including performance appraisals, skills assessments, and feedback. This data provides an objective foundation for the discussions.
The calibration meeting is where managers and senior leaders convene to discuss the talent pool. Participants share their assessments of employees, advocating for their team members while gaining a broader perspective on talent across departments. This dialogue helps standardize how performance and potential are evaluated.
A widely used tool is the 9-box grid, a visual matrix that plots employees based on their performance and potential. The grid has performance on the x-axis and potential on the y-axis, creating nine distinct boxes. An employee in the top-right box is a high performer with high potential, marked as top talent to nurture for leadership.
Conversely, an employee in the bottom-left box may be a low performer with low potential, indicating a need for performance management or reassignment. Other boxes help identify solid contributors or those with high potential who are still developing. This framework facilitates a structured conversation and helps leaders make consistent, data-informed decisions.
Key Participants in a Talent Review
Talent reviews involve several groups, each with a distinct role. The process is facilitated by Human Resources (HR) but owned by business leaders to ensure it aligns with strategic objectives. This structure helps ensure the discussions are fair and strategically relevant.
Senior leaders provide a high-level, organization-wide perspective. They help ensure that talent decisions are consistent across departments and aligned with the company’s long-term goals. Their involvement is important for identifying successors for key roles and for championing the talent management strategy.
Direct managers provide detailed insights into their team members’ performance, strengths, and development needs. They act as advocates for their employees, presenting the data and context for a fair evaluation. Managers are also responsible for implementing the resulting development plans.
Human Resources professionals coordinate and facilitate the talent review. They are responsible for defining the process, providing tools and resources, and educating leaders on how to conduct the review. HR ensures the process is consistent, equitable, and supports the organization’s broader talent strategy.
Outcomes and Next Steps
A talent review meeting is the beginning of an ongoing development cycle. The primary output is a set of clear, actionable plans that translate the high-level discussion into tangible steps for managing the organization’s talent.
A direct outcome is the creation of individual development plans. Based on an employee’s placement in the 9-box grid and the review discussion, specific actions are identified. These can range from targeted training for high-potential employees to performance improvement plans for those who are struggling.
The review also leads to finalizing succession slates for key positions. By identifying employees who are ready now or in the near future, the organization builds a solid pipeline for its most important roles. This ensures leadership continuity and reduces disruption from vacancies.
The insights gained from the review inform broader talent strategies, like implementing new training or mentorship programs. These data-driven decisions help the organization invest resources where they are most needed, fostering a culture of continuous development. The process is cyclical, with follow-ups ensuring that development plans remain on track.