FINDING, developing and hiring top talent is a priority for a growing number of leading companies and their chief executives, according to a recent US report
FINDING, developing and hiring top talent is a priority for a growing number of leading companies and their chief executives, according to a recent US report.
Released by The Conference Board, the report examined what what major companies are doing to develop talented employees, what processes are working and not working, and what impact talent management (TM) programs are having on company performance.
“While the talent mindset must be present throughout an organisation, it must also cascade from the top with the CEO as the driver,” said Lynne Morton, author of the report.
The report found that a large number of CEOs in major companies are personally involved in the quest to develop talent, such as American Express’ CEO Kenneth Chenault, Pitney Bowes’ CEO Michael Critelli, and Cisco Systems’ CEO John Chambers.
In most firms, talent management processes are still evolving, with no single measure being universally used to measure this activity, according to the Talent Management Value Imperatives: Strategies for Successful Execution report.
“Some TM practitioners are still viewing its value as intangible or obvious,” Morton said. “Some believe, quite simply, that if the company stock price goes up, TM is working. Others look at the value of specific initiatives and at ways those initiatives bring in cost savings for the organisations.”
The report, based on interviews with 22 companies working in the talent management area and input from 19 other companies, presented a number of keys to effective TM:
• Knowing your company’s critical jobs and having processes in place to target potential gaps.
• Identifying potential successors.
• Sharing talent management measures with boards of directors.
• Tracking percentages of individuals in key positions who are promoted from within versus those who are hired from outside.
• Developing and communicating the specific behaviours expected of leaders in the company to all levels of employees.
• Evaluating employees annually on both performance and potential.
• Informing employees of possible career paths that will benefit them and the organisation.
• Using talent management to embed workforce diversity in the company.
• Having at least 15 per cent of employee satisfaction ratings tied to year-end goals and financial rewards.
• Identifying quantifiable opportunities for improvement.
• Establishing a central unit or person – with a cross-functional and divisional perspective – to measure talent management effectiveness.
“Talent management is a business approach that embodies the emotional intelligence of organisations,” Morton said. “This is one of the principal reasons why it’s not a fad and that it will continue to evolve into an intrinsic, critical part of business.”
