I just saw an interesting article in Supply & Demand Chain Executive’s newsletter where the Hackett Group determined the measurable benefit of having a good “talent management” program in place. The article says that these are the four are of talent management:

  • strategic workforce planning, which involves identifying the skills critical to a company’s operation and how those needs match up against those of the existing workforce
  • staffing services, including recruitment, staffing and exit management
  • workforce development services, such as training and career planning
  • overall organizational effectiveness, including labor and employee relations, performance management and organizational design and measurement

The article then shares some awesome statistics: “Companies with top-quartile talent management outperformed typical companies across four standard financial metrics. They generated EBITDA of 16.2 percent, versus 14.1 percent for typical companies. This gap netted a typical Fortune 500 company (based on $19 billion revenue) an additional $399 million annually in improved EBITDA.”

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So good talent management doesn’t just “sound good” in theory. It actually pays off where it matters the most in business.

To Your Career,
Charles Dominick, SPSM
President
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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