Today’s guest blogger is Heather McCulligh talking about talent management strategy. It’s a great complement to this three-part article we’ve written before on the subject of why HR strategy fails (check them out too). Here’s Heather:
Great companies have a well-articulated strategy that guides their business decisions. But many of them fail to then take that strategy and translate it into a talent management strategy. Yet the successful execution of a strategic talent management plan can determine your company’s ability to succeed.
Let me explain how…
Why is it important?
More and more research is showing the strong link between mature, integrated talent management processes and financial results. The Hackett Group recently found that companies with more mature talent management capabilities have on average18% higher earnings, 54% greater net profit margins, and greater return on equity and assets than their counterparts without mature capabilities.
The Aberdeen Group’s latest research finds that companies who integrate their talent management processes see significantly greater performance gains, and can measure a correlation between their talent management efforts and business operational results. IBM, HCI, IDC and others have shared similar findings.
Truly successful companies are realizing that the only sustainable competitive advantage they have is their people. It’s clear that to achieve your goals, you need to effectively manage your workforce.
Now let’s stop for a minute and look at what I mean by a talent management strategy.