Since 2008 I’ve been actively engaged in designing, developing and delivering talent development programs and talent management infrastructure for fortune 100 companies.
The field of talent development has progressed and changed substantially since then. The global recession has speeded up an increased awareness that learning and development can and should only operate when there is a positive benefit to cost ratio. Low threshold measurement tooling like Metrics that Matter has had a very positive impact on this trend.
So what are four potential Returns on Investment (Phillips, Edwards, 2008) in the field of talent management and talent development?
Talents can fulfil key position vacancies One of the reasons that talent is so incredibly valuable, is rather easily calculated. Organisations frequently resort to recruitment on the open market to fulfil key positions. But to hire in external talent costs, as a rough rule of thumb, one annual salary and often much, much more.
Talent development and talent management will see KPI’s improve Provided talent development and talent management efforts are strongly aligned to business needs (Phillips, Phillips, 2012) and are subsequently well designed and executed, their impact on business performance improvement is almost guaranteed.
Talents go from potential to promotion The single most motivating factor for talents is bringing their talents to fruition in daily work: on the job (Pruis, 2011). It’s not the learning in programs in and of itself that’s motivating, it’s the business challenge that talents can undertake, having learned the capability to do so.
The turnover of talents will decrease The impact of world class talent development and talent management will help to keep talents committed and enthused and will ensure that they won’t consider leaving the company.
If you look at talent development and talent development efforts in your own company, what the potential benefits that your efforts can achieve? Who will benefit? If this article can motivate you to do just one more thing, it would be to seek the alignment with leaders and talents across your business and build the business case, the ROI on talent. It will be a huge boon for your credibility and will make the impact of your contribution visible.
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Kind regards, Evert Pruis and Wendy Twisk ROI on Talent
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