The ability to effectively hire, retain, engage and deploy talent, at all levels, is extremely important for organisations for a number of reasons.
- There is a demonstrated relationship between better talent and better business performance. According to a study by the Hackett Group, companies that excel at managing talent post earnings 18 percent higher than their competition.
- Talent is a rapidly increasing source of value creation. The financial value of a company is often driven by its ability to innovate, and therefore, upon the quality of its talent.
- Disruptive forces and hyper-competition makes it more difficult than ever to sustain a competitive advantage over the long term. With new products and new business models having shorter life cycles, the need for innovation is unrelenting.
- Boards and investors are putting senior leaders under the microscope with ever-increasing expectations for profitability and growth. This pressure drives a growing emphasis on the quality of talent — not just at the C-level, but at all levels.
- Today’s employees are increasingly interested in having challenging and meaningful work, are more loyal to their profession than to the organisation, less accommodating of traditional hierarchies, more concerned about work-life balance and more prepared to take ownership of their careers and development.
So, what best practices should an organisation adopt and ensure a strong foundation for a talent management system? See tomorrow’s post for the seven pillars of effective talent management.