The Future of Talent Management: What does the future look like? Part 2

April 4th, 2013 by Sarah Green Leave a reply »

How can organisations sell the importance of TM to their shareholders when they do not measure the financial impact of their TM strategy?

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

Whilst the review and assessment of TM strategies are recognised as important few organisations measure the ROI. Indeed, only 5% of Leaders said their organisation had a valid and reliable measure of return on investment (ROI) of their TM practices. 44% say they never measure the ROI of their TM practices, 26% are not sure and 25% have a process but do not consistently use it. In addition to this only 2% consistently assess the impact of TM strategy on Total Shareholder Return (TSR) with 53% reporting it is not assessed at all, 25% being unsure, 14% reporting it not applicable and the remaining 6% reporting it being assessed on some strategies.

Despite this some organisations, according to the qualitative analysis, did recognise the importance of regular review and assessment of talent as part of their TM strategy.

The implication of these results is that TM will not be seen as valuable in an organisation if Leaders do not show how it is related to the bottom line. In addition, when budgets are squeezed, TM initiatives are more likely to be pulled as their value is not clear to the organisation or its Shareholders.

Look out next week for: What does the future look like? Part 3 Organisations measure the engagement of their employees.

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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