The Value of Talent Management Strategy
The Benefits and Outcomes Greatly Outweigh the Costs for Talent Management Strategy
At HireSmart, we like to show the Return on Investment for a well-executed talent management strategy. The pay-offs are numerous and easily measured!
A well-executed Talent Management Strategy allows business owners and shareholders to enjoy the benefits of:
- Quickly knowing who should be retained if a “reduction in force” is required.
- Understanding and appreciating the dollar value of the human side of the business.
- Leveraging the success of top performers for competitive advantages.
- Identifying observing and measuring organization’s performance driving behaviors.
- Developing the strategic focus and planning for human asset investments.
- Demonstrating the organization’s capacity to identify and leverage competencies, talents and knowledge for specific business outcomes.
- Increasing the total value of the organization’s Human Assets.
What is the Current Dollar Value of Your Human Assets?
Knowing the current dollar value will allow you to: 1. Confidently invest in talent management strategy. 2. Observe the business gains or losses compared to your baseline valuations. 3) Forecast and set future business goals for the human side of your business.
Contact us today!
If you’re interested in developing a talent management strategy and increasing your bottom line, contact us today at 480.503.2945.
Talent management increases value through long term productivity and performance gains. Here are a few examples:
- Strategically-aligned job descriptions will clarify performance expectations throughout the organization.
- Individual career development plans will clarify the future competency requirements based on the evolving talent management strategy. A clear plan for career growth can be articulated for each employee.
- Performance Management systems will assess and manage gaps in skills, competencies, talents or behaviors for individuals and the entire enterprise.
- Individualized performance incentives (i.e. pay for performance) will maximize goal attainment for the individual and the organization.
- Succession plans will help clarify the future staffing requirements of the organization.
- Human Asset Profiles will create a directory of the entire organization’s talents, so that managers can quickly identify people with specific skill sets, competencies or talents to be assigned to teams, critical projects or emerging problems.
- Integrated Performance Management systems will align strategic business objectives and measurable behaviors leading to desired performance and business outcomes.
- Success Metrics will measure key financial, customer, employee and business process improvements. Monitoring innovations, new skills and competencies added creates a sense of excitement in the workforce. Examples include innovation quotas, job satisfaction ratings, defect rates, turnover rates, cycle times, etc.). Some success metrics (e.g. ROI, revenue growth per employee, cost reductions per employee, profit growth per employee, market share per employee, customer retention rates, new product revenues, are viewed as annual outcomes and celebrated.
- Individual Performance Plans can be reviewed and updated on a quarterly or monthly basis holding people accountable for business outcomes.
- Success celebrations will reward and celebrate documented progress frequently.
- High Performers will be recognized for promotions, advancement, special projects, coaching, and perks leading to better retention.
- Underachieving individuals will be identified for work improvement programs or termination.
- Human Asset investments will be evaluated for their impacts on Revenue per Employee, Cost Per Employee, and Profit Per Employee