The Hackett Group completed last year a 3-year Talent Management Performance study that showed how Global 1000 level companies that invest in and develop more comprehensive talent management capabilities yield benefits in three areas. They call it the “triple payoff”:
Enhanced bottom line results- Improved operational processes
- Better talent management processes
Here are just a couple of highlights from their research. These Talent Management Maturity Leaders (TMML’s), compared to their peer companies, experienced:
- Earnings (EBIDTA) 18% higher
- Net Profit Margins 54% higher
- Greater retention of staff, in particular those coveted high performing employees
- Higher levels of business & operational process efficiencies
The TMML companies engaged in more comprehensive workforce development, management & leadership development, and succession planning. They tracked key metrics around staff retention and engagement. Notably, they didn’t leave talent management up to the HR department. Rather, TMML’s approached this key strategic component as a joint initiative involving HR, line managers, and the top team.
Hackett defines “talent management” as:
…the activities by which organizations identify talent needs and acquire, develop, manage and measure talent.
You don’t have to be a big corporation, however, to attend to the talent of that strategic resource called “people.” Nor do you have to be a big corporation to reap the many benefits when you do.
© 2010, Ian Cook. All rights reserved.
About Ian Cook
Ian is an experienced presenter, group facilitator and executive coach. Through his keynote presentations, highly interactive workshops, and custom-designed team-building practice, he helps his clients leverage their investment in their managers and teams. 
