Why Talent Management?

Why is it important to work with Talent Management? Because when it comes down to it, your talents are your only long-term differentiator. Your talents really are your key driver for business success.

Talent Management is not, in our opinion, a new label for old HR process. It is, or can be, a significant transformation in the HR function, that takes a much more strategic view on the value of the employees and a more holistic view of the processes that support them.

This more strategic approach really is necessary. The challenges ahead are daunting. In the Western world, the retirement of the baby-boomers will create a massive shortage of leaders. Only in Sweden, 250,000 leaders need to be replaced over the next ten years, by a generation who do not seem particularly attracted by 60-hour work weeks and 1 million frequent flyer miles.

In the developing world, attracting and retaining talent is already one of  the largest organizational challenges.

But ultimately, a well implemented Talent Management strategy will drive business results. And alternatively, poor Talent Management produces poor business results.

So, what can the positive results be?

We have a lot of data, but a recent study involving 976 companies by Bersin & Associates found that:

Companies with highly effective talent management strategies see benefits that translate into significant dollars and business impact. These companies:
• Reported 26% higher revenue per employee
• Were 28% less likely to have experienced a major layoff in 2008-2009
• Had 40% lower turnover among high performers and 17% lower overall voluntary turnover
• Were 92% more likely to effectively respond to changing economic conditions

Yet, only 5 % of the companies in the study said that they had a structured approach to Talent Management.

We believe a lot can be done in the field of Talent Management. And we believe that we can help.

This post is also available in: Swedish