10 Considerations for Your Digital Talent Management Strategy

Published on:
February 21, 2025
Updated on:
April 27, 2025
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In the age of digital transformation, it wouldn’t be very clever to expect the way organizations attract, develop, and retain talent to stay the same. 

So how exactly is talent management affected by digital transformations?

"The biggest part of our digital transformation is changing the way we think."

Simeon Preston

Digital talent strategies aren’t just about implementing expensive software into your existing talent management strategies.

They also aren’t talent management trends that just come and go.

They are creative and employee-centric approaches to talent management that take advantage of emerging technologies, to bring the absolute best out of the talent pool.

So in this article, we will be going into:

  • The Definition of Digital Talent Management
  • Key Considerations to Build Your Digital Talent Management Strategy Around
  • The Impact of Digital Transformations on Talent Management

We will be examining eye-opening statistics, real-world case studies from some of the top organizations in the world of work today, as well as quotes and opinions from experts on digital talent management to provide you with the best possible guide into the world of digital talent management

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What is Digital Talent Management?

Digital talent management is not just the process of automating HR tasks or digitizing paperwork. This term encapsulates an entire strategic approach that leverages AI, data-driven insights, and modern tools to attract, develop, and retain top talent.

Companies that invest in digital talent management create more agile, employee-centric workplaces, where hiring, career development, and performance management are smarter, faster, and more personalized. As technology continues to evolve, so do the expectations of employees and digital talent management ensures organizations keep up.

10 Factors to Consider For Building Your Digital Talent Management Strategy

1. Diversity in Talent Management

The role of diversity in talent management can’t be stated enough. While there are some organizations currently that are rolling back their DEI initiatives, research shows that:

Companies with inclusive cultures experience 22% lower turnover rates, 22% greater productivity, and 83% higher engagement among millennial employees -( Select Software Reviews)

While we’ve gone over in great detail about all the benefits of diversity in talent management in other articles, it is crystal clear that HR initiatives that support DEI such as;

  • Inclusive Benefits & Policies
  • Diversity Training & Bias Awareness Programs
  • Mentorship & Sponsorship Programs

Help organizations maintain a positive employee experience. That being said, these initiatives aren’t one-and-done:

"Creating and managing a diverse workforce is a process, not a destination."

R. Roosevelt Thomas, Jr. Diversity Management Specialist.

That is why maintaining a workforce that fosters diverse skills, mindsets, and individuals should always be one of your core considerations when building your digital talent strategy.

Case-Study: Netflix & Diversity

Netflix's DEI Initiatives: Netflix has implemented several initiatives to promote diversity, equity, and inclusion within its workforce. 

The company offers inclusive benefits such as a flexible parental leave policy, a family forming benefit, and transgender and non-binary care in its U.S. health plans. 

As it stands at the time of this writing, Netflix remains one of the top companies in the world that have elected to maintain their DEI initiatives.

2. How Will You Implement AI in Talent Management?

We can’t possibly have a discussion on digital transformations and talent management without discussing the role of AI in talent management. 

While studies show that implementing AI tools in your talent management process can:

  • Boost employee performance by 27%.
  • Enhance engagement rates by 24%.
  •  Increase your retention rates by up to 51%.

That being said, the phrase, “Use AI.” is as meaningless as “Do an internet!”. There are plenty of different applications of AI in all stages of the talent management lifecycle that can yield positive results.

Experts suggest that the use of artificial intelligence in talent management shouldn’t be to replace humans, but in fact, to double down on humanity. 

Talent management tools that have AI and automation features can be used to eliminate “busy work” in order to give HR professionals the time and energy to focus on people instead.

Case-Study: Chipotle & The Buritto Season

Chipotle Mexican Grill utilized an AI-powered virtual assistant named Ava Cado to streamline its hiring process. This particular digital transformation practice ended up reducing their average application-to-employment time from 12 days to four and increased the application completion rate from 50% to over 85%.

3. Redefining Qualifications: Skills Over Diplomas

A college education is nothing to scoff at. That being said, it doesn’t carry the same weight it used to. In the era of digital talent management, traditional recruitment benchmarks are bound to change.

A survey revealed that 67% of recruiters prioritize skills and experience over formal educational qualifications when evaluating candidates. 

Harvard Business Review refers to the portion of the workforce today who are highly skilled yet lacking the “required college degrees” as “The New-Collar Workforce”. 

Their article goes into detail about how focusing on skills first, instead of degrees results in a more diverse talent pool. 

Another voice that supports this practice is LaFawn Davis, Vice President of Social Impact and Sustainability at Indeed who states:

"Skills-first hiring is a critical part of our efforts because it breaks down many of the barriers job seekers face during the hiring process."

This means that before building your next digital talent strategy, you should take the time to redefine what your organization considers to “Qualified”.

While HBR might have discussed the term New-Collar, they weren’t the ones to implement it first. That would be our next case…

Case-Study: An Old Tech-Giant with New Tricks

IBM's New Collar Initiative: IBM has embraced a "new collar" approach, focusing on candidates' skills rather than traditional degrees. 

They offer apprenticeship programs and partner with educational institutions to provide training, enabling individuals without four-year degrees to qualify for tech roles.

4. Future-Proof Skills: Soft Skills Over Hard Skills

When we discuss skill-based recruiting in digital talent management, the next question that comes up naturally is: “Which skills?”

For the longest time, the trend in talent management was to recruit mostly based on hard skills such as coding. 

That being said, not-so-recent research suggests the contrary.

So it is quite bizarre that the shift towards favoring soft skills over hard skills is very recent. 

It is bizarre, yet not a coincidence. There is a parallel between the increased focus on soft skills and the rise in prominence of tools that bring automation and artificial intelligence to the workplace

One of the most notable voices on talent management, the author of the book Workquake, and The Team Check-In po Steve Caddigan, refers to these soft skills as “Power Skills” and suggests that they are the key to future-proofing individual careers and entire workforces.

These skills should play a key part in your talent management strategies not only on the recruitment side but also in succession planning.

Case-Study: Comedians & Railways

South Western Railway's Soft Skills Training: To enhance communication and interpersonal skills among their apprentices, South Western Railway collaborated with The Free Association, an improvisational theatre company. 

This initiative aimed to build confidence and improve face-to-face interactions, especially among Gen Z employees more accustomed to digital communication.

5. Employer Branding & Digital Presence

In a world where recruitment is digital-first, your employer brand isn’t just made up of a well-designed careers page or an inspiring mission statement. It is mostly made up of your online presence.

And if you think employer branding isn’t a critical part of talent management, consider this:

  • 82% of candidates consider employer brand and reputation before applying for a job. (Digital Silk)
  • 96% of employer branding specialists utilize social media as a communication channel. (Content Stadium)

That means before a candidate even considers submitting their resume, they’re checking Glassdoor reviews, LinkedIn posts, Instagram stories, and employee testimonials. 

Your employer brand isn’t just what your marketing team says about your company, it’s what your employees, ex-employees, and the internet at large are saying.

And as the Forbes Human Resources Council puts it:

"Large or small, an employer brand is equally important as a consumer brand. Social media should be a pillar of your employer branding strategy."

In short? Your employer brand lives and breathes online and it just might end up being the difference maker for some of the top talent in your industry.

If your digital talent strategy doesn’t include employer branding, you’re already behind. Because today’s recruitment starts long before the job listing goes live.

Case Study: More Than a Cup of Coffee

Starbucks' Social Media Engagement

Few companies do employer branding better than Starbucks. 

They’ve taken employer branding to the next level with dedicated social media accounts for careers, using Instagram and Twitter to:

  • Celebrate employees: Whether it’s a barista’s college graduation or a ten-year work anniversary, Starbucks highlights individual employee stories.
  • Promote workplace values: Their content reinforces Starbucks’ commitment to diversity, inclusion, and talent development.
  • Engage with future talent: Through Q&A sessions and behind-the-scenes posts, they give job seekers an authentic glimpse into what working at Starbucks is really like.

The result? A stronger employer brand that attracts top talent before they even hit the “Apply” button.

6. Flexible Work Models & Hybrid Teams

The debate between remote, hybrid, and in-office work has been going strong for years. But if the numbers tell us anything, it’s that flexibility wins.

  • Hybrid employees report the highest engagement levels at 35%, compared to 33% for fully remote and 27% for in-office workers.
  • 95% of business leaders say their organizations have become more flexible over the past two years, and 82% plan to increase flexibility even further.

What does this tell us? While the 9-to-5, office-centric model may not be wholly outdated, individuals who assume it is the only way to work, are. 

With so many workplaces out there offering flexible work models, companies that refuse to adapt risk falling behind in both talent attraction and retention.

As Brian Kropp, Chief of Research at Gartner, puts it:

"Employers are focused on providing employees more flexibility than ever before, creating a shared purpose, and building deeper connections with employees."

In order to guarantee that you build a successful digital talent management strategy, you need to take the viability of flexible working models into account.

Case-Study: Being Location Agnostic

Atlassian's 'Team Anywhere' Policy: Atlassian has adopted a flexible, location-agnostic approach called "Team Anywhere," allowing employees to choose where they work, whether from home, an office, or a co-working space. 

Their “Anywhere” model emphasizes trust and autonomy, enabling teams to operate effectively across various locations without mandated in-office days.

7. Building the Right Digital Ecosystem

As of 2019, 85% of organizations had adopted talent management applications for recruitment purposes, highlighting the shift towards digital solutions in HR practices.

That, however, isn't it.

Every single stage of the talent lifecycle deserves meticulous work both on the analytical and the operational front. That is why every organization needs a comprehensive talent management software that can assist them in:

  • Employee Onboarding
  • Employee Engagement
  • Talent Development
  • Performance Management
  • Succession Planning

And more! While there are plenty of tools that cover these areas individually, talent management is a continuous and tremendously interconnected process. So the best option for any organization is a tool that not only helps them in all the areas listed above, but does it all inside their main communication and collaboration platform.

If that platform for your organization is Microsoft Teams or Outlook, then the best option, without a doubt, is Teamflect.

Teamflect is an all-in-one talent management platform designed specifically for the Microsoft ecosystem, integrating perfectly with apps like Microsoft Teams and Outlook, letting you manage each and every step of your talent management strategy with ease.

Teamflect also provides you with extensive reports and AI-powered analytics to ensure no key result or trend goes unnoticed.

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8. Employee Experience & Well-Being

It doesn’t matter how great your digital talent strategy is if your employees are stressed, disengaged, or burnt out, none of it will work.

While no leader would like to assume that their workforce is made up of tired or burnt-out employees, the odds would suggest otherwise.

A survey conducted by WTW indicates that 48% of U.S. employees are grappling with moderate to severe issues in at least two areas of their well-being.

This means that almost one out of every two employees in the US are struggling with some form of well-being related issue.

That is why as you start developing your digital talent management strategy, you need to be aware of just where your employees stand at the face of those odds.

Conducting regular employee engagement surveys and including experts in the field in your decision making process when analyzing those results can be a solid start.

Case-Study: Brightstar Group

Brightstar Group's Mental Health Investment: Brightstar Group has made significant investments in mental health support for its employees, leading to notably higher productivity and improved employee retention rates. As a part of their Employee mental health action plan, they built an employee well-being room in their offices, available to their employees throughout the workday. Throughout this process they sought help from notable mental health experts. Their proactive approach underscores the tangible benefits of prioritizing employee well-being.

9. Building a Cross-Functional Workforce

Organizations love to talk about collaboration, but real innovation happens when teams break out of their silos and work together across departments.

An efficient fully integrated workforce does not work in silos.

Different departments work hand in hand to provide solutions through the perspectives they bring.

That being said, just bringing people together from different teams doesn’t suffice.

Without proper strategy, cross-functional collaboration can become overly complicated and unproductive leading to miscommunication, duplicate work, and differing goals.

Effective cross-functional teams unify the organization at the strategic and operational level.

10. Investing in Talent Development

Companies spend millions on hiring but often forget the most valuable resource they already have: Their existing workforce.

The best organizations recognize that investing in talent development strategies is an investment in their future.

Employees who see a clear path for growth and skill-building stay engaged and committed, while companies that prioritize continuous learning create an environment where people are more adaptable, innovative, and prepared for change.

What are the Key Benefits of Digital Talent Management?

Employees today expect more than a paycheck and a job description. They look for growth opportunities, flexibility, and a workplace that values their contributions. Without a digital talent strategy in place, companies risk losing top performers to more adaptive, forward-thinking competitors.

A strong digital talent management approach helps businesses in the following areas:

  • Attract high-quality candidates in a competitive job market.
  • Enhance employee engagement through personalized career development and real-time feedback.
  • Improve decision-making with data-driven workforce planning and predictive analytics.

The Impact of Digital Transformation on Talent Management

Workforces today look nothing like they did a decade ago. Hybrid work, AI-driven recruiting, and employee experience platforms have redefined talent management.

Businesses that embrace digital transformation see:

  • More adaptable teams that can pivot as business needs evolve.
  • Stronger collaboration across remote and hybrid teams.
  • Data-backed hiring decisions that reduce bias and improve diversity.
  • Higher retention rates due to personalized career growth and well-being initiatives.

Digital talent management is all about enabling and empowering your employees  with all the modern tools available to you. As opposed to what the name would suggest, it isn’t just about “managing” talent. Organizations that integrate digital tools into their talent strategy create workplaces where people feel valued, supported, and empowered to grow.

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