Talent optimization: a new lens
By Michael C. Hyter
November 2013 Today’s business challenges have pried open new talent gaps: there are not enough people with the requisite skills to meet organizational needs. In this new context, the traditional talent development systems fall short. A new lens is required: one that assumes that each individual is capable of contributing more, and that can be tailored to the individual to make that happen.
In today’s knowledge-based economy, excellent employees are a singular competitive advantage. Studies show, for instance, that companies with the highest levels of employee engagement outperform competitors with lower levels by 72 percent in terms of earnings per share (Harter et al. 2010). And yet, many companies aren’t getting a healthy return on their investment in employee talent development—and they know it. In a 2013 survey by the Conference Board, 90 percent of CEOs, presidents, and board chairs of global companies cited human capital issues (the need to grow talent internally, provide employee training and development, raise engagement, improve performance management, and retain critical talent) as their top challenge. At the same time, talent is simply walking out the door—some of it at a faster rate than others. Millennials, for instance, are the demographic most likely to leave a company, and they specifically cite lack of career development as a primary reason (PwC Saratoga 2012). Another pattern of attrition plagues many organizations as well: the number of women or people of color declines proportionately as you look up the organizational ladder—both from deceleration in promotion rates and an increase in turnover (see Figure 1).
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