Talent management is a critical investment, not a cost
By Leanne Hoagland-Smith January 25, 2014 1:54PM
Leanne Hoagland-Smith. | Provided photo~Sun-Times Media
Updated: January 26, 2014 10:40PM
Many, when hearing “talent management,” may think of human resources or HR.
Talent management is far more than HR and probably contributes more to the bottom line than any other trend, including technology.
Years ago, a mentor of mine shared a story. He was speaking with a CEO of a mid-size firm who was complaining about all the “nincompoops” employees. My mentor asked this question (knowing full well the answer): “Who hired those nincompoops?”
If the right people are not placed in the right seats using the right talents to make the right decisions to ensure the right results in the right time frame and within the right environment, there could be a lot of “nincompoops” in your workplace.
“Forbes Magazine” recently published an article about how happy employees equal hefty profits. These two statistics jumped from the page:
• In 2013, the revenues for the 2014 Fortune 100 Best Companies to work for increased by 22.2 percent.
• US Bureau of Labor Statistics revealed these same companies added new employees at a rate five times higher than the national average.
This trend of talent management has arisen because of many factors:
• The Silver Tsunami (retirement of baby boomers)
• Loss of intellectual property and knowledge from the baby boomers
• Advent of multiple generations in the workplace
• Global competitive environment instead of just local or regional
• Shrinking labor force of qualified applicants
Possibly the one factor that is still not clearly articulated is that people drive business results. Without people, business would come to a fast, grinding halt.
Logic suggests by focusing on people and how to manage their various talents will propel those firms as noted previously by Forbes and the US Bureau of Labor Statistics ahead of their competitors.
Forward thinking leadership in big to small businesses recognize people are not a cost, but an asset to be developed. They understand the cost to hire a new employee is at minimum 2 to 3 times the cost to keep a productive employee. These firms no longer accept employee turnover as a cost (estimated at $300 billion in 2009) of doing business.
A recent poll by Right Management, a division of Manpower, in late 2013 discovered 83 percent of all surveyed workers intended to actively seek new positions in 2014. Only 5 percent were content to stay with their current employers. Does this suggest “Houston, we, as in business, have a problem?”
Imagine for a moment, what would happen to your small business of 20 employees if you walked in tomorrow and discovered 17 employees gone? Of the three remaining, only one is really happy and the other two would be open to leaving if the right offer came across the table. If talent management is not on your list of critical goals in 2014 based on this data alone, then it should be.
Talent management is a trend for many small businesses and an established best practice for those who wish to stay ahead of the flow and maintain their competitive edge.
Next month the theme is rise of leadership in business.
P.S. Shout Out – The Halls Enterprises located in Lake County provides personalized shopping. Hogan Consulting Group in Porter County offers technology services.