Business Finance Sammer, Joanne
The Hackett Group’s 2011 Book of Numbers indicates that companies that manage their talent at the highest levels with regard to strategic workforce planning, staffing services, workforce development services, and organizational effectiveness employ internal talent management processes. Moreover, compared to companies that are merely adequate in terms of talent management and turn to vendor solutions for recruitment and staffing, these companies have higher net profit margins and better return on equity and return on assets. They also spend about 33 percent less on talent management and nearly 50 percent less on staffing services. Successful talent management involves companies knowing who their high performing and high potential employees are and recognizing that many do not receive formal recognition of their potential or help in achieving their potential. Companies should identify “key” positions that should be filled by strong talent; leverage the performance management processes already in place; and determine criteria for categorizing employees as star performers, high potential employees, and average performers who could use extra attention. After performance reviews, meetings should be held to monitor their progress, determine which training and development opportunities could benefit them, and to simply nurture the company’s talent and leadership pipeline.
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Employee development is also a key to talent retention.