Companies Are Sitting on a Wealth of Talent, Says SHL

SHL, has observed client concern over recruiting and retaining talent intensifying over the last two years. One question seems obvious ëWhy donít organizations start with the talent they have in-house? ñ The answer is - companies often donít realize what skills are already in place but unused. The first step in winning ëthe war for talentí is uncovering this untapped wealth of talent by following a simple talent audit approach.

Are US organizations expending too much resource on acquiring and training customers that they are at risk of neglecting their own employees? Research suggests that US companies will spend $338 billion on RandD in 2007 compared with just $109 billion on employee training and development. Additionally, Workforce Magazine (February 2004) puts a high price on the cost of losing valuable staff by estimating that a 20% reduction in turnover for a 5,000 employee firm can cut costs by anywhere from $1 to $5 million.

The word ëaudití is usually associated with understanding finances, not people. But an audit is exactly what is needed to effectively assess and manage talent within organizations. Too many decisions about people are based on ëgut feelí when what is needed is an objective look at the potential of those within the organization.

One of the most important actions that an organization can take today to prepare for the challenges of tomorrow is to conduct an audit of their current talent. ìNot only does a talent audit provide invaluable information about the strengths and gaps of current talent, but it also allows organizations to be proactive in developing or obtaining the strengths that they will need to be successful in the future,î explains Marlene Burchfield-Dunne, VP of Consulting for SHL USA. ìAs an added benefit, clear career development processes help to build loyalty with internal íhigh potentialsí who feel like their potential will be realized within their current organization.

Employing a simple, yet strategic, talent audit of the existing people potential within the organization could uncover skills that may need developing, but exist within those who are already in tune with the companyís brand values and culture. In addition to this, maximizing the output of existing potential could cost businesses a third of the cost of recruiting new candidates.

Taking a look at talentóSHL outlines some simple steps that can help companies get started or enhance current practices to help prepare for the ongoing shortage of talent.

1. Write a talent map
Carry out an analysis to demonstrate the link between the human capital and competencies in your organization, and the delivery of your strategy. Plot what competencies will be needed from all parts of the organization to achieve the long term plan or vision. Make a note of what competencies will be essential, which will be desirable, and for what objectives. SHL finds this to be a critical first step to ensure that your ongoing talent management activities support corporate goals.

2. Critique current context
Get a clear view of your talent reputation, by asking how fulfilled, engaged and motivated employees feel. Take an honest look at the answers ñ Does your organization have work to do? Analyze the companyís career development process. Do employees at multiple levels feel confident that they have room grow their careers without looking at other firms? Is there scope for improvement? How many leaders of the future could there be within the organization? Review your processes for identifying and ìfast-trackingî undiscovered talent in your organization.

3. Conduct a talent audit
SHL can help organizations to assess the current status of talent through the use of a competency survey. By applying SHLís Occupational Personality Questionnaire (OPQ), Motivation Questionnaire (MQ), and ability tests, organizations can obtain a measure of potential and fit for future roles and responsibilities. Taken together, the assessment results can enable organizations to understand the competency profile of talent ñ at both the individual and group level ñ and match it to those required as per your talent map.

4. Create a talent strategy
With the help of an SHL Facilitator, schedule a day with the executive team to review the talent audit results and to create a talent strategy with real targets that all can commit to. The objective is not to solve the talent challenge for the whole organization at once. Through the facilitated discussion, prioritize initiatives by identifying areas that address significant pain points and that have the most impact on strategy. Circulate the strategy, the development plans, timescales and targets to help ensure that successes are recognized and progress measured.

Finally, integrate talent management into quarterly business reviews and remember, when addressing talent in your organization, above all else be bold. Act like your business depends upon talent - because it does.