Flatter hierarchies, networked structures, agile teams: Many companies are embracing a fundamental rethinking of how they organize themselves. But their talent management practices remain beholden to the old ways. Only one in every three companies allows its people to grow and develop outside of the tight constraints of traditional career tracks. They expect talented professionals to dedicate years to developing for a position that might cease to exist before they ever have a shot at it, or the designated talents leave the company before they reach that target position. Companies need to overhaul their development concepts and career maps.
This is only one of the many important findings of our new study “Trust in Talent” . For the first time ever, the study brings together both sides of the equation: The HR managers responsible for talent management, and the talented people they are working with.
Our Key Findings
Talent management means, in essence, that companies decide which competences and which abilities are particularly important for their success. They identify the people who possess those competences, and they develop and support them systematically and try to keep them on board for the long term. However, only 55 percent of the participating companies have a dedicated strategy for this purpose, that is, only half of all companies know what really matters for their success and what they should support and promote. A (new) talent management strategy needs to be rooted in the corporate strategy to have a solid basis for defining specific management principles and indicators. These are essential to know whether the considerable resources invested into talent management are worthwhile and whether they indeed have a measurable impact on the company’s Performance.
Our study shows: Two thirds of all companies are still using a very monolithic notion of talent, aimed at so-called high potentials to ensure a sufficient pipeline for a defined set of key positions or leadership roles. Only 1 in 3 companies would consider every employee a talent deserving of support and opportunity. For managers and HR decision makers, it would seem the right time to ask themselves what they mean by “talent” and how they can align how they find and develop the right talent with the actual needs of their future business
There is a not very hidden subtext to our study’s title “Trust in Talent”: We have found that talented professionals want to and should take charge of their future development, but many HR professionals do not even consider that opportunity. It is a basic rule: To keep talented professionals committed to their employer and to empower them to do their best and realize their potential, their needs have to come first. Find out in our next blog entry how this can be done and what the prospects are for innovative talent management
How is your company’s talent management working? Did you recognize yourself and your company?
Come and speak to us – we can contribute our past experience and our newest research findings to help your organization progress!