Critical Components to Your Talent Attraction and Retention Strategy, Pt. 3
“The quality of an organization’s human resources is perhaps the leading indicator of its growth and sustainability. The attainment of a workplace with high-caliber employees starts with the selection of the right people for the right jobs.”
Have you thought of talent management as a business strategy? It reflects your company’s commitment to attract and retain the best talent throughout all levels of the organization. Aligning (or misaligning) talent with organizational needs has a huge potential impact. Consider the following stats:
A bad hire can cost a company as much as 5 times that employee’s annual salary, depending on the type of job. “Zappos CEO, Tony Hsieh once estimated that his own bad hires have cost the company well over $100 million.”
Organizations with a high level of engagement report 21% higher profitability and 20% higher productivity.
A highly engaged employee has 40% fewer defects, 70% fewer safety incidents, 28% less waste, 41% less absenteeism, and 24% lower turnover in high-turnover organizations (Gallup).
Gallup estimates 70% of employees are disengaged. A disengaged employee can cost an organization approximately $3.4K for every $10K in annual salary.
Organizations with a culture of training and development show 13% stronger business results (ADP presentation, 2015).
Companies with career development programs show 250% higher productivity than those that don’t (Chronus, 2014).
How do you develop a talent management strategy?
High-performing organizations have made talent management an essential component of their business practices. Start the process by assessing your talent and succession readiness.
How can your organization benefit from integrated talent management and succession planning processes? Be specific.
Do you have a strategic workforce plan that identifies the roles that are essential to your core business and execution of your business objectives?
Do you understand what knowledge, skills, abilities, and experiences these roles require? What critical skill gaps do you need to close?
Do you have the right talent? And do these people have the potential to move into critical roles that support your strategic objectives?
Who are your ‘A Players’ that you can least afford to lose? What’s your plan for retaining them?
What are you doing to prepare your core talent to step into critical roles when needed? What else could you do to develop their readiness?
What should you do next?
Once you’ve answered these questions, document the results. Having the current state and ideal future state on paper will help guide the rest of the process.
Identify a member of your executive team to serve as the champion of your talent management and succession planning process.
Assure alignment of your workforce strategy with the organization’s business strategy.
Conduct a gap analysis to assess talent gaps for jobs most critical to executing your business objectives. Do this at both leadership and workforce levels.
Identify current employees who could move into the roles that drive the success of your core business processes. Create a plan to acquire the talent that doesn’t already exist within your organization.
Align the potential successors’ interests and talents with the organization’s needs. Then prepare development plans to accelerate their readiness. Consider coaching, mentoring, targeted training/education, stretch assignments or special projects.
Create a schedule to evaluate the effectiveness of your talent and succession planning processes. Follow up by making the necessary adjustments.
Will your team dive headfirst into this process and then let it drop? Is the entire thing too daunting? Ask for help. You and a fellow business owner could keep each other accountable. Assign a person to report on progress during your quarterly leadership meetings. If it still seems like too much, find someone to facilitate the process. MAGNET has workforce experts who can guide you through every step.
Creating a talent management strategy will pay off. The sooner you do it, the sooner you’ll see results.
Article submitted by Bank of America For mid-market companies, business success and responsible growth aren’t mutually exclusive. In fact, prioritizing responsible growth is becoming increasingly important, and successful companies are making sustainability central to their growth strategies. Beyond good corporate citizenship, they are recognizing the intrinsic link between the strength of their business and that of the communities and economies in which they operate. Leading your growth with those goals in mind builds resilience and better solutions for the future. Consider the following: Responsible growth companies perform better. Companies that consider the impact of risks and opportunities on the environment, local communities and society may produce better financial results than those that don’t. Additionally, 90% of companies believe a sustainability plan is important for remaining competitive. Responsible growth companies attract investment. A 2016 study by MIT Sloan Management Review and Boston Consulting Group surveyed 3,000 executives and managers from more than 100 countries. Findings revealed that 75% of senior executives in investment firms agree that a company’s sustainability performance is materially important to their investment decisions, and nearly half would not invest in a company with a poor sustainability record. Ninety percent of executives see sustainability as important, but only
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