The Benefits of Efficient Talent Management
According to a 2006 report conducted by the Economist Intelligence Unit (EIU) in cooperation with Development Dimensions International (DDI), the majority of the world’s CEOs spend enormous time, money, and resources in talent management. The 2008 report from the same firms indicated that 55% of top-level executives thought their firms were in danger of underperforming due to lack of proper talent management (Wellins, Smith, & Erker, n.d.). These are just a few instances that validate the necessity of effective talent management across all levels of an organization.
The importance of effective talent management is summarized as:
Production of Quality Output
High performing employees guarantee maximum efficiency in an organization. They also build relationships between the organization and the customers. The delivery of high-quality goods and services also makes the organization a go-to entity for most consumers.
External drivers that surround any company places a lot of value in the talent pool within a firm. Therefore, having talent management practices in place that are effective enhances value to a firm in the eyes of potential investors.
In today’s rapidly developing workplace, the presence of talent and talent management systems is a great differentiator between firms. This presence is because a talented workforce is hard to duplicate. When one firm comes with an innovative product, a new company can go in, replicate the product, and provide a better service. Similarly, it is not a rare incidence to find organizations operating within the same niche copying each other’s production and design processes. Having a highly productive workforce provides organizations in these situations with a distinguishing factor and competitive advantage.