Many companies and HR professionals are referring to the War on Talent. Jobs are getting bigger and the pool of suitable candidates is getting smaller. Especially in the US and Western Europe.
Instead of hunting after the best candidates it is often more profitable to retain your good performers. And that is where talent management can play a crucial role. Offering a healthy and balanced value proposition to your employees will help you to retain your best performing or most talented contributors. Talent management is an increasingly important element in that value proposition.
Just imagine the costs of one of your best performing account managers leaving the company. If you have no succession plan in place, you will have to go hiring outside with the help of an Executive search company (25K). Once you have found the right candidate you will have to onboard and train the person (10% of annual all-in salary cost). Probably you will also have to invest in some additional training (another 5% of all in salary cost). And the biggest cost of all will be loss of turn over and possibly margin during the first 12 to 18 months. A good replacement will be able to reach 80% of turnover compared to the previous incumbent during the first 12 months. So losing one of your best people can easily cost the company 100K or more, both on replacement cost and on loss of turn over or margin.
The remarkable thing however is that for most companies these costs are not visible. These type of costs are usually “buried” in the balance sheet under fi. COGS, indirect costs, training cost etc. If companies (or HR) would take the time and effort to investigate these costs, they most likely would be shocked by the numbers.
Stop burning money
So next to offering a solid value proposition to your employees and optimize engagement and performance of your talents, there is an overwhelming financial driver to invest in effective talent management. The payback is extremely quick and the rewards are high. We can do the numbers with you or implement a simple to use and effective Talent Management Process.
call +31 (0)622391932 or mail firstname.lastname@example.org