Talent management relates to the processes a business has in place to attract, onboard and ultimately nurture employees who join their organisation. It’s something that every organisation does, yet some companies approach talent management in a highly strategic way whereas others do not prioritise this highly within their business. Recently, the US company Betterworks released their findings of an industry-wide talent management survey which uncovered some surprising statistics and trends. You can download the full report here, and we have also highlighted 9 of the key findings from the report below.
9 Talent Management Statistics that could Surprise you:
Not enough companies are investing in management training
According to the report, fewer than 30% of companies provide regular supervisory and management training, which is surprising when you consider the impact that both good and poor management can have on your workforce. In many organisations, managers are appointed in line with length of service and company progression, however given the fact that managers will ultimately need to coach and mentor multiple employees within a team or department, it is shocking to think that a lot of people within these roles have never been given any formal management training. Management training can be something that you conduct internally within your organisation, externally through courses or even intermittently by sending your company’s managers to relevant conferences and events. Even great managers will benefit from a fresh perspective and new insights now and again, so if management training isn’t on your talent management radar already, we suggest you add it to yours now.
Vacancies are more time consuming and costly to fill than ever before
The Betterworks report found that for many organisations it’s taking significantly longer to fill open roles, and new hires are in a position to demand the highest average salaries in a decade. These statistics are based mostly upon the US market, however this is something that we are seeing a lot of within the UK market also. In markets such as tech digital where there is fierce competition for talent, companies are often stuck waiting for long periods of time to find that perfect hire, and often have to go above their desired salary threshold to secure the right person too. If you want to get an idea of salary trends for IT and tech jobs in your area then check out IT JobsWatch, or even better speak with one of your preferred recruitment agencies to find out what is happening within the market now. Understanding your market will allow you to manage your recruitment plans accordingly, and where needed you can start your search earlier than usual to account for skills shortages.
Managers account for as much as 70% of the variance in employee engagement
We’ve all heard the term that “people leave managers and not companies”, and when you consider the report's finding that managers can account for as much as 70% of the variance in employee engagement then this does not come as a big surprise! Engaged employees are often more productive in work and more satisfied in work, but companies that have toxic management and poor leadership often find that their employees disengage, and their retention rates suffer. Another reason to invest in adequate management training!
Not enough companies are focusing on purpose in their talent management plans
While the data shows that companies with clear objectives outperform the market by 42%, most managers in the survey reported that there was a significant lack of purpose at their organisation. Organisational purpose is in many instances the whole foundation for a company’s success, the only reason the company exists, and it should serve as a guiding force for all decisions made in that organisation too. If there is a disconnect between how leaders and employees perceive this purpose, then it can have an impact on your company’s performance. Instead of letting your purpose fall by the wayside, ingrain it in everything you do, make it part of your company ethos and onboarding process and find opportunities to reinforce this through your employee communications too.
Companies need to check in with employees more often
According to the report 63% of companies fail to have regular discussions with their employees about their career growth and aspirations. This can have a big impact upon an employee’s decision to stay loyal with an employer or look elsewhere for a new career opportunity. Without a catch up with an employee you could be totally oblivious to situations where employees feel disengaged and uncertain about their future, so it’s important that you stay aware of how everyone is feeling. Ideally you will want to schedule a formal one-on-one appraisal for each employee (twice a year would be recommended) but also appoint someone from your HR / people team to regularly check in with people on a less formal basis too.
Some companies are using a continuous approach to talent management and performance
According to the report, 38% of managers expressed that their company’s performance management process included at least some ‘continuous’ elements such as goal setting, alignment, or continuous feedback and development. So while every company may not be doing enough to focus on their employees and individual goals, the ones that are understand how important to do this on a continuous basis is. Take a leaf out of these companies’ books and look at how you can use goals and feedback to track performance all year round instead of waiting for those biannual formal catch ups.
Continuous performance management impacts employee engagement
Gallup reports that when companies make their performance management programmes more continuous, 90% see a direct lift in employee engagement. When you consider that Gallup research also highlighted that companies with highly engaged employees outperform their rivals by as much as 21% for profitability then this is definitely a statistic you don’t want to ignore! Asking your directors to buy into a programme for continuous performance management might seem like a big ask, but if you can demonstrate a tangible effect this will have on your bottom line then you are bound to prick a few ears in the room!
You could be doing more for employee well-being
We have come to a point where most companies have some form of wellness initiatives in place for employees. Some offer healthcare schemes and gym memberships, others offer “Free Fruit Mondays” and office yoga, but is what you are doing really enough to genuinely impact upon your employees’ well-being? According to this report as many as 60% of employees do not agree that their company values employee well-being, which can have a big impact upon a company’s ability to hire and retain their people. Speak to your employees and assess the usage of your well-being initiatives and as yourself the question “could we be doing more?”.
Your employees might be feeling over-worked
The report showed that just 30% employees agree that they do not feel over worked at their company, meaning there could be as many as 70% of your workforce currently feeling over worked in your company right now! Employees who are overworked not only struggle to manage their workload and execute tasks to their best ability but can often become disgruntled with their employer and spread negativity throughout the workforce, before ultimately deciding to jump ship leaving you with an even bigger issue! Recruitment should be a continuous thought at your organisation, assessing each department and pinpointing areas where you need additional resource throughout the year.
Interested in doing more with your talent management plans? Check out 8 Key Stages For Your Talent Management Strategy and 4 Simple Steps To Implement A Talent Management Strategy today.