Study finds that HR executives feel talent is crucial to an organization’s success.
By Debbie Bolla
Is talent management moving toward a more holistic approach? That was the question one study attempted to answer recently, and it appears there is clear movement toward an aligned, holistic talent management system.
According to “Integrated Resource Fulfillment,” a survey of 250 companies conducted by TAPFIN and the Human Capital institute (HCI), competition, globalization and a challenging economy have placed increased stress on organizations. HR is faced with the pressure to increase productivity, maximize output and optimize expenditures. The study found that most organizations are shifting their approach toward talent management. Under this new model, traditional and contingent (contractors) workforces are both held responsible for achieving the goal of improving workforce optimization, engagement, retention, and development.
Between 25 and 33 percents of all work done in the U.S. is conducted by for-hire contractors. Additional research shows that 94 percent of U.S. companies use contracted talent. Organizations are realizing the benefit and effectiveness of on-demand talent trained in a specific area of expertise. Working together and leveraging all talent will results in a dynamic advantage.
The study found that 66 percent of respondents employ a chief-level officer to oversee the talent management system to streamline the process. In addition, 86 percent said they felt their organization should have this level of executive to be successful.
The study also revealed the emphasis senior executives place on talent. Even in this economy, more than 50 percent of respondents have invested in human capital planning, and more than 75 percent believe it’s important to have this function to be part of strategic business planning (Figure 1). On the other hand, 32 percent do not use talent planning, and 12 percent were unaware of talent planning.
Click here to view Figure 1
With more than 2.5 million jobs lost in 2008, HCI also asked a question looming over HR executives: Is the war for talent over? The study showed even in a recession, organizations must retain talent to succeed, and outsourcing this function can boost efficiencies and cost savings. Internal movement, however, is another option companies are considering. The survey revealed that 90 percent of respondents call high-potential employees to special assignments frequently or sometimes, and 82 percent agree that it is crucial to deploy top talent to the organization’s most important initiatives. Of those surveyed, 88 percent said they could identify their key players; 98 percent conduct performance interviews either regularly or sporadically.
Said one respondent, “We’re a high technology business requiring a highly skilled workforce. Our people directly impact quality and efficiency. We regularly manage our staff purposefully, moving employees for specific talent reasons to make changes occur in the different units impacted.”
The use of technology in providing access to better workforce planning was examined. The majority of those surveyed said they have some type of HR and talent management technology in place for holistic workforce management.
HCI’s research indicated that HR and talent management professionals believe in the competitive advantage of talent. Leveraging that talent is more important than ever while at the same time it’s becoming more challenging to retain. A holistic workforce management approach is one worth considering.