Home > Organisations > Talent Management

Talent Management

In 1997, consultancy McKinsey coined the phrase ‘The War for Talent’ to describe the strategic importance of managing the availability and abilities of senior executives.  Since then. Talent management has widened its appeal. It is now seen as a system that provides the means to forecast demand, and to deploy, develop and measure the impact of above-average people with the potential to run and change organisations.

It also implies that a company has to have a structured process to ensure internal talent is identified and a structured plan in place to ensure they do not leave the organisation. This reduces recruitment costs and avoids losing the talent that has the potential to help to grow your business.

Effective talent management mobilises key people to create the greatest possible value for both the individual and the organisation.  This means viewing talent as a strategic resource that supports business goals.  The alignment of personal goals to those of the organisation is critical to engaging and retaining top talent. 

The Pain: When talent is not managed effectively, the consequences for the organisation can be:

• Higher employee turnover – incurring high recruitment costs.
• Lack of internal successors to key posts – meaning that untested people from other organisations are brought in, usually on higher salaries, and there is usually a six month period before the new executive delivers for the organisation
• Lower morale – caused by constantly recruiting externally rather than promoting from within the company.
• People are not prepared to go the extra mile, so service suffers. Research shows that how you treat your staff is how your staff treat your customers.

Pure Potential develops Search and Selection, Talent Retention Strategies and Development and Succession plans for large and small organisations.  From identifying key talent within an organisation; planning the retention and development of that talent; strengthening the overall organisation with new talent where talent gaps exist and attracting the right calibre of person to that organisation.

Remember: Estimates suggest that the total cost of losing a single position to staff turnover can cost a business anywhere from 30 per cent to 150 per cent of an employee’s yearly salary, according to research carried out by PricewaterhouseCoopers, Saratoga Institute and Hewitt Associates.

A 10,000-employee company with a 30 per cent staff turnover rate will spend more than £70m to fill those positions. If employee attrition can be driven down by as little as 10 per cent, this would amount to £25m in savings.

Why wait? Call us now on 01428 713 399 to see how we can help you develop and retain your best asset.