Talent management schemes are failing to benefit from budget hand-outs; this is the latest news from the Fairplace Talent Management Survey 2004.
Over half (66%) of HR bosses surveyed admitted that their organisation had not allocated any budget for the retention of key employees.
The news comes despite half of HR leaders saying that they believe that funding for this objective should constitute up to 20% of their HR budget. However, nine out of ten HR managers could only allocate half this amount.
Formulating a strategy for talent management also takes a back seat with 57% of respondents admitting that they had no formal plans in place. This finding contradicts the 60% who agreed that offering staff development opportunities and career challenges is the main tool of staff retention.
Interestingly only 3% of HR bosses said that cash rewards was the way to keep hold of top talent.
Michael Moran, CEO of Fairplace commented:
“We 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 don’t look after their top staff, more organised rivals will.”
Thirty-two HR directors from bluechip firms were interviewed for the survey.