Financial Benefits of Talent Management– There are pros and cons to every management philosophy and the associated processes. Talent management is no exception to it. While many organizations simply decline to have it under their umbrella because it costs the exchequer, still others approve of it equally strongly as an effective people management process.
Before we discuss the financial benefits of talent management the following may be of our interest and worth a thought: Most the organizations are short-sighted when it comes to people management. People management may not go well with pure capitalists. Organizations and industries are growing at a fast pace, faster than the rate at which talent is produced. There is a dearth of talented and skilled professionals both at the top as well as the bottom.
Due to cutthroat competition and a consequent lack of talented professionals the attrition rates have increased across all industries, especially so in the services industry. Poaching has become commonplace; employee retention has become the Achilles heel of corporations.
Some of the important and interesting facts about with reference to talent management includes –
- Firstly, every new employee cost the company 30-60 % more than the existing employee in terms of compensation only.
- Secondly, there is an added cost incurred on training and developing the new individual.
- Next, the process of recruitments itself costs an organization hugely, right from advertising a post to attracting talent and finally short-listing and hiring someone for the job.
- Moreover, organizations clearly need to look inside for solutions and design and develop better employee retention, rewards and recognition strategy.
