Only one in two businesses have a talent management system in place, despite 80 per cent admitting recruiting the right staff is a problem.
Research published by the Chartered Management Institute and Ashridge Business School claims to provide employers with a strategic framework for delivering talent management programmes.
According to the study, 84 per cent want to be considered as ‘talent’ or ‘high potential’ by their employer. Most believe that being identified as ‘talent’ leads to better promotion prospects.
However, only 50 per cent of employers in the UK appear to have some form of talent management system (TM system), and 35 per cent of respondents think their organisation has no TM system in place.
Just 31 per cent are confident that their appraisal system accurately identifies high-potential individuals, while only 2 per cent say their organisation regards ‘everyone as talent’.
Thirty-four per cent agree that a TM system should uncover individuals with ‘future leadership potential’, a challenge that involves spotting ‘quiet achievers’, say the survey authors, with 15 per cent suggesting individuals are identified if they ‘play the system’ at work.
In addition, 15 per cent of respondents claim they ‘don’t know’ if TM systems exist in their organisation and 60 per cent say selection is influenced by line managers, or the senior management team. There are differences between the sexes too; 20 per cent fewer women than men agree that their organisation has a selection process for talent.
Mary Chapman, chief executive at the Chartered Management Institute, said: “Even where talent management systems are in place, many employers fail to use them to drive performance and competitiveness. If UK organisations are to succeed in a global environment, talent management systems should be aligned with business strategy. Only then will the right talent be identified and nurtured to match the long-term growth plans of an organisation.”
According to the report, measuring return on investment for talent management remains a source of difficulty. Wider research shows that only 68 per cent of organisations measure the contribution made by their employees.
The report is based on the views of 1,550 individuals and in-depth case-studies of 20 organisations.