A recent McKinsey Quarterly survey revealed that executives are grappling with a wide range of organisational challenges created by new economic and social patterns.

Survey results

Respondents to the survey, which covered 93 countries around the world, say that intensifying competition for talent, shifting centres of economic activity, and increased technological connectivity are the most important trends for their companies.

Two-thirds of the executives say that their companies are not sure of the right organisational response to these emerging global trends — but the vast majority believe that responding effectively is critical for competitive advantage.

In light of these serious human resources challenges it is surprising that some organisations’ HR functions are still operating as a personnel department while their business competes with organisations who apply talent management as part of their corporate strategy.

Companies that have adopted advanced solutions for improving performance and talent management are reaping the benefits in the form of dramatically reduced turnover, improved goal alignment, and better engaged and performing employees. But this is not the majority, with only just over half of companies having formal plans in place to identify, grow and retain talent and only 29% can link talent performance to business value creation. Small business is the furthest behind the times, with more than 80% lacking any kind of talent management scorecard, and 60% lack formal plans to grow and retain talent.

The benefits of talent management

Organisations across the board are realising that there has been a seismic shift in the skills and talents required to run their business and remain competitive. In the future, better companies will further distance themselves from the pack by out-performing the competition in attracting, retaining and developing their talent.

Talent has proven to rapidly become a source of value creation and go beyond just producing more motivated or better performing people. Recent research by SuccessFactors and human capital expert, Dr. Jac Fitzenz, shows that smarter human capital management leads to better financial performance. Thus, the benefits and potential for talent management are real, and those that do it right will ultimately win the war for talent and the land grab for global business.

What are you and your company doing to attract, manage and retain talented staff members as this could be the key to your future success?
 

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