The Future of Talent Management: What does the future look like? Part 1

February 19th, 2013 by Sarah Green Leave a reply »

Organisations will increase their focus on TM over the next three years, however they do not have adequate budget to attract, recruit, develop or retain talent.

Here is the next part of this series of blogs summarising our 2012 findings into the Future of Talent Management.

The majority of Leaders who completed the survey recognised that the focus on TM had increased over the past 3 years. 82% of the Leaders said they have had an increased focus on TM in the past 3 years. A high percentage of individuals from HR (91.5%) and from Talent (83%) supported this statement, however only 68% of Business Leaders concurred.

78% of all Leaders said they would continue to have a high focus on TM in the next 3 years. 89% of Leaders from HR and 81% of Leaders from Talent agreed with this statement.
Only 61% of Leaders from the Business agreed.

However whilst these results suggest TM will be focused upon in the future there is a question mark over whether adequate funds will be available, particularly because only 50% of Leaders believe that they have an adequate budget to develop and recruit talent over the next three years and less than 40% believed they would have sufficient budget to promote, attract or retain talent over the next three years. This supports The RSA Group research conducted in 2011 which suggests “companies are neglecting TM as a result of a squeeze on budgets and the continuing impact of market change”.

The increased TM requirements combined with the inadequate budget will pressurise the Talent, HR and Business Leaders to take the definition and application of TM strategy in house. “Most organisations also recognise the economic benefit of delegating TM to line leaders – when corporate and HR budgets are limited, it shifts the costs of development programs from headquarters into budgets of business units” (Martin & Schmidt, 2010, page 58). The risks associated with this solution are plentiful. In order to minimise these risks and maximise the opportunities, the talent leads should have a clear set of guidelines for how to achieve TM success. (For further information on how organisations can achieve this see the Talent
Management Survey Checklist on page 19).

Organisations need to build a strong business case for TM and need to demonstrate the importance of aligning TM, making it central to the overall strategy of the organisation. It is critical that the TM strategies meet the future challenges faced by organisations to enable ongoing success and sustainability. Organisations would do well to regularly evaluate the efficacy of their TM strategy to ensure it is still valid both now and in the future. TM needs to be seen as a key business priority and have sponsorship from above otherwise it will be squeezed out during times of conflicting operational and financial demand.

Look out next week for: What does the future look like? Part 2 How can organisations sell the importance of TM to their shareholders when they do not measure the financial impact of their TM strategy?

For further information please contact: Dr Amanda Potter 01737 555 862. Reference: Talent Management. Copyright © 2012 Zircon Management Consulting Limited. All rights reserved

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