Mature Talent Management Programs Reap Higher Earnings

Mature Talent Management Programs Reap Higher Earnings

WorldatWork.com Newsline *

Mature Talent Management Programs Reap Higher Earnings *

Dec. 21, 2009 — Companies with more mature talent management capabilities reap strong bottom-line benefits, including earnings that are 18% higher than typical Global 1000 companies, according to a new study.*

The Hackett Group research found that the improved performance of talent management maturity leaders enabled them to generate an additional $673 million in additional EBITDA earnings for a typical Global 1000 company (with $26.38 billion in revenue). The study, which examined the performance at more than 60 companies over a three-year period, found that in addition to higher earnings, leaders saw significantly improved net profit margin and greater return on equity and assets. *

The research collected data on 19 measures of performance and benefits to organizations and was able to identify a wide range of other enterprise-wide payoffs seen by talent management maturity leaders. Leaders were able to create stronger organizations that better motivate and manage their talent and had clear advantages over typical companies in key areas, such as the ability to create and sustain strong corporate cultures, retain both overall employees and specifically top talent, and plan for changes in skills supply and demand. *

According to Hackett, from an operational standpoint, talent management maturity leaders outperformed typical companies across an array of efficiency and effectiveness metrics. Leaders showed superior ability to increase overall employee engagement, faster recruiting cycle time, and greater linkage of talent management to business strategy. Their talent management professionals were also significantly more productive than those at typical companies. *

Hackett’s research offers a comprehensive profile of how talent management maturity leaders operate differently from typical companies, and how companies can improve their performance in this area. Leaders achieved impressive results by creating an integrated set of talent management capabilities aligned with their business and talent strategies. They more carefully cultivate the appropriate organization and culture, focusing on people-management skills of managers and supervisors and employee engagement, the research found. They have a greater focus on improving the processes by which talent needs are identified and appropriate individual staff are acquired, developed, managed and measured. Finally, leaders are more advanced at measurement and make more effective use of technology to enhance talent management processes and activities. While they don’t necessarily spend more, they more effectively rely on technology to enable information access, track talent management development and enable improved decision-making. *

“It’s easy to find companies that feature talent management in their strategic plans and reports to shareholders. But truly, most do little more than pay it lip service. They stick to the basics because they don’t truly understand the impact of improving their talent management capabilities,” said Stephen Joyce, Hackett HR advisory practice leader. “With this research we’re clearly quantifying the price most companies pay for their lack of commitment. By ignoring the strategic value of talent management and failing to develop a comprehensive program that drives top performance in this area, companies are missing the opportunity for a triple payoff — an enhanced bottom line, better performance across the enterprise, and improvements in specific talent management processes.” *

For a free, abridged copy of the research report, log on to www.thehackettgroup.com/tmmaturity (registration required).*

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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.