HR bosses belief in talent management not supported by funding

New evidence released today highlights a concerning lack of funding for firmsí efforts to identify, develop and retain talent in their organisations.

66% of HR bosses polled stated that their organisation had not allocated a specific budget for the retention of their most talented employees.

One in two HR bosses interviewed believed that funding for this objective should constitute up to 20% of their HR budget, and one in three believed it should exceed this. However, nine out of ten HR managers could only allocate half this amount.

The survey also showed that 57% of those interviewed had no distinct talent management strategy, risking future deficits in this vital area.

Despite the lack of organisational support, HR professionals clearly believe in the value of developing talent. 60% polled agree that offering staff development opportunities and career challenges is the top tactic in the battle to keep hold of star workers.

Michael Moran, CEO of Fairplace, the company behind the research, said:

ìWe are seeing a strong belief in the HR value of talent management, but HR managers need to be more supported by their organisations in its application. In the future, we should expect to see increasing numbers of firms putting more funding towards this area. After all, if they donít look after their top staff, more organised rivals willî.

Talented workers are 25% more productive than average employees, and companies have long-sought a solution to the problem of them leaving. The cost to UK businesses of staff resignations and losing workers to rival firms runs into millions of pounds every year.

Money is no longer seen as the key to keeping valued staff, with only 3% of HR bosses interviewed choosing this as the best way to retain top employees.


Peter Gregory, an expert on talent management strategy, said:

ìThe main reason talented workers leave companies is due to the lack of development opportunities. Talent management is the solution to this, as it ensures skills development and progression are actively supported. If they donít receive this support, they will go elsewhere to pursue their goalsî.

The findings of the new CIPD-associated survey support previous CIPD research into the topic of staff retention. This found that a lack of training and developmental opportunities is also major reason for voluntary turnover. 44% of respondents in CIPD studies cited ípromotion outside the organisationí as a main cause of labour turnover, and 37% ílack of career of developmental opportunitiesí.