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