A culture of talent management delivers up to 67% improvement in a company’s long term performance

 

Companies where the promotion of talent is fixed in the organisation’s culture outperform those where it is not by 67%, a report suggests.

 

The report, "From compliance to commitment: bringing talent management processes to life", published by consultancy Jackson Samuel, discusses the issue of talent with 58 leading organisations.

 

Of the 58 companies that Jackson Samuel surveyed in depth, the total market capitalisation of those firms where talent management processes were less embedded was £177.1bn, with an average total shareholder return over a five-year period of 78.45%.

 

In contrast, the total market capitalisation of companies where talent management processes were more embedded was £295bn, and the average total shareholder return was 145.05%.

 

Lesley Uren, chief executive of Jackson Samuel, said: "This report suggests that many chief executives are simply devolving their responsibilities when it comes to senior level appointments.

"We compared total shareholder return across the 58 companies and it is crystal clear that those companies where the chief executive is taking a lead in terms of managing talent are returning significantly better value to shareholders."

 

The full article was originally published in Personnel Today in December 2006.